Cost–Benefit Analysis of Solar Photovoltaic Energy System in Agriculture Sector of Quetta, Pakistan

Abstract

The energy crisis in Pakistan has amplified the need for solar photovoltaic (PV) technologies in the agriculture sector. Currently, solar PV systems in Pakistan are primarily used for water-pumping irrigation. This article presents an investigation of the cost–benefit analysis of solar photovoltaic energy systems in the agriculture sector in the Baluchistan province of Pakistan. The findings of the study reveal that solar PV systems are relatively economical, as a benefit-to-cost ratio for the solar system is calculated to be 9.3 as compared to grid electricity which is calculated to be 8.4. Furthermore, solar photovoltaics can increase agricultural productivity substantially by providing a continuous power supply for water-pumping irrigation. However, the high initial cost and weather dependency of solar systems are the main obstacles to adopting PV technologies in the agriculture sector. Nevertheless, inconsistent grid power supply and sky-rocketing energy costs in Pakistan cause the local farmers to shift to solar PV systems for water-pumping irrigation to boost their agricultural productivity.

Keywords

• renewable energy
• cost–benefit analysis
• cost-to-benefit ratio