SPIS Toolbox - Assess Financial Viability - Revision history

Ranisha at 19:36, 21 July 2020

2020-07-21T19:36:07Z

Stefan Eibisch at 15:17, 3 April 2018

2018-04-03T15:17:19Z

Ranisha at 17:08, 22 March 2018

2018-03-22T17:08:32Z

Ranisha at 14:36, 22 March 2018

2018-03-22T14:36:16Z

Ranisha at 14:31, 22 March 2018

2018-03-22T14:31:33Z

Ranisha at 11:17, 14 November 2017

2017-11-14T11:17:43Z

Admin at 15:05, 13 November 2017

2017-11-13T15:05:34Z

Ranisha at 11:04, 13 November 2017

2017-11-13T11:04:09Z

Ranisha at 13:17, 5 November 2017

2017-11-05T13:17:21Z

Ranisha at 12:04, 21 September 2017

2017-09-21T12:04:26Z

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 | {{Back to Design}}
+|
-| style="width: 150px; background-color: rgb(222, 226, 192);" | <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS Toolbox - Pre-select Potential Suppliers|►Go to the Next Chapter]]'''</span></span>
+| {{Next Chapter}}[[SPIS Toolbox - Pre-select Potential Suppliers|►Go to the Next Chapter]]'''</span></span>
 |}
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 | {{Back to Design}}
+|
-| style="width: 150px; background-color: rgb(222, 226, 192);" | <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS Toolbox - Pre-select Potential Suppliers|►Go to the Next Chapter]]'''</span></span>
+| {{Next Chapter}}[[SPIS Toolbox - Pre-select Potential Suppliers|►Go to the Next Chapter]]'''</span></span>
 |}
 {{SPIS Reference}}

← Older revision		Revision as of 15:17, 3 April 2018
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	These factors influence the financial viability of the different options; hence, different scenarios should be elaborated before taking a decision.		These factors influence the financial viability of the different options; hence, different scenarios should be elaborated before taking a decision.
		+

	{\| cellpadding="1"		{\| cellpadding="1"

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 *PV equipment is more accessible in many parts of the world, including expertise for set up and maintenance.
-The tools '''INVEST – Farm Analysis Tool''' and '''INVEST – Payback Tool''' (under the '''[[SPIS_Finance|INVEST]]''' Module) are both designed to assist in determining financial viability of the SPIS. While the former allows for assessing the profitability of the farm enterprise, the latter compares that payback potential of different irrigation technologies.
+The tools '''INVEST – Farm Analysis Tool''' and '''INVEST – Payback Tool''' (under the '''[[SPIS Invest|INVEST]]''' Module) are both designed to assist in determining financial viability of the SPIS. While the former allows for assessing the profitability of the farm enterprise, the latter compares that payback potential of different irrigation technologies.
 {| style="width: 100%" cellspacing="1" cellpadding="1" border="0"

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 {{SPIS Design}}
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 <br/>
-Assessing the financial viability of the SPIS is a complex procedure which should be accompanied by financial experts. This part of the module only gives an overview of key data and indicators to be generated. Note that all projections and calculations:
+Assessing the financial viability of a SPIS is a complex procedure, which should be discussed with financial experts. This module only gives an overview of key data required. Note that all calculations:
-*need to be based on prices which can be determined but also on estimates and assumptions;<br/>
+*need to be based on prices which can be determined but also on estimates and assumptions;
-*will be contemplating the current situation and future scenarios;
+*will have to consider the current situation and future scenarios;
-*should compare options for alternative pumping systems (electric, diesel).<br/>
+*should compare options for alternative pumping systems (electric, diesel).
 The financial analysis builds on three major inputs:<br/>
@@ Line 67: / Line 66: @@
 </ol>
-. '''Capital expenditure (CAPEX)'''= long term, one-time, investments in non-consumable parts of the business, like<br/>
+. '''Capital expenditure (CAPEX)''': long term, one-time, investments in non-consumable parts of the business, like<br/>
 <ol style="list-style-type:lower-alpha;">
 <li>costs for solar pumping system, reservoir, irrigation system;</li>
@@ Line 75: / Line 74: @@
 </ol>
-. '''Operating expenses (OPEX)'''= ongoing operational and maintenance costs (fixed and variable)<br/>
+. '''Operating expenses (OPEX)''': ongoing operational and maintenance costs (fixed and variable)<br/>
 <ol style="list-style-type:lower-alpha;">
 <li>seeds, fertilizer, pesticides and other inputs for production;<br/></li>
@@ Line 99: / Line 98: @@
 *capital expenditures / initial capital investment (i.e. prices for components to be financed) for solar and alternative options
 *sales revenues (market prices);
-*operating and maintenance costs (prices);
+*operating and maintenance costs;
 *macroeconomic variables (inflation, interest rates, etc.);
 *tax policies (corporate income taxes, VAT dynamics, etc.);

@@ Line 1: / Line 1: @@
 {{SPIS Design}}
 {| cellpadding="1"
 |-
 | {{Back to SPIS Toolbox 2}}
-−
+|
 | {{Back to Design}}
-−
+|
-| style="width: 150px; background-color: rgb(222, 226, 192);" | <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS_Toolbox_-_Pre-select_Potential_Suppliers|►Go to the Next Chapter]]</span></span>
+| style="width: 150px; background-color: rgb(222, 226, 192);" | <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS Toolbox - Pre-select Potential Suppliers|►Go to the Next Chapter]]'''</span></span>
 |}
@@ Line 13: / Line 15: @@
 Solar Powered Irrigation Systems have become a financially viable alternative to electric and diesel water pumps for irrigation of agriculture crops. This is mainly due to the fact that:
-*PV module costs have declined in recent years;<br/>
+*PV module costs have declined in recent years;
-*PV systems are more reliable and cost effective;<br/>
+*PV systems are more reliable and cost effective;
-*PV equipment is more accessible in many parts of the world, including expertise for setup and maintenance.
+*PV equipment is more accessible in many parts of the world, including expertise for set up and maintenance.
 The following key indicators and financial statements help to assess the financial viability:
@@ Line 73: / Line 84: @@
 </ol>
-====  '''<span style="color:#879637;">Outcome/Product</span>''' ====
+==== '''<span style="color:#879637;">Outcome/Product</span>''' ====
 *Cash flow projections;
@@ Line 81: / Line 92: @@
 *Total life cycle costs of the SPIS investment.
-====  '''<span style="color:#879637;">Data Requirements</span>''' ====
+==== '''<span style="color:#879637;">Data Requirements</span>''' ====
 ===== '''Research, collect, analyze, cross-check:''' =====
@@ Line 98: / Line 109: @@
 *CAPEX (capital expenditure); i.e. total/annual sum for financing investment in SPIS (and alternative system).
-====  '''<span style="color:#879637;">People/Stakeholders</span>''' ====
+==== '''<span style="color:#879637;">People/Stakeholders</span>''' ====
 *Agricultural service provider;
@@ Line 106: / Line 117: @@
 *Market analysts/consultants;
-====  '''<span style="color:#879637;">Important Issues</span>''' ====
+==== '''<span style="color:#879637;">Important Issues</span>''' ====
 When comparing PV systems to diesel or electric pumping systems the following statements apply:
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 |-
 | {{Back to SPIS Toolbox 2}}
-−
+|
 | {{Back to Design}}
-−
+|
-| style="width: 150px; background-color: rgb(222, 226, 192);" | <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS_Toolbox_-_Pre-select_Potential_Suppliers|►Go to the Next Chapter]]</span></span>
+| style="width: 150px; background-color: rgb(222, 226, 192);" | <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS Toolbox - Pre-select Potential Suppliers|►Go to the Next Chapter]]'''</span></span>
-|}{{SPIS Reference}}
+|}

← Older revision		Revision as of 11:17, 14 November 2017
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	These factors influence the financial viability of the different options; hence, different scenarios should be elaborated before taking a decision.		These factors influence the financial viability of the different options; hence, different scenarios should be elaborated before taking a decision.
−	{{SPIS Reference}}	+
		+	{\| cellpadding="1"
		+	\|-
		+	\| {{Back to SPIS Toolbox 2}}
		+	\|
		+	\| {{Back to Design}}
		+	\|
		+	\| style="width: 150px; background-color: rgb(222, 226, 192);" \| <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS_Toolbox_-_Pre-select_Potential_Suppliers\|►Go to the Next Chapter]]</span></span>
		+	\|}{{SPIS Reference}}

← Older revision		Revision as of 15:05, 13 November 2017
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−	{{SPIS Design}} {{Back to SPIS Toolbox}}	+	{{SPIS Design}}
		+	{\| cellpadding="1"
		+	\|-
		+	\| {{Back to SPIS Toolbox 2}}
		+	\|
		+	\| {{Back to Design}}
		+	\|
		+	\| style="width: 150px; background-color: rgb(222, 226, 192);" \| <span style="color:#000000;"><span style="font-size: 90%">'''[[SPIS_Toolbox_-_Pre-select_Potential_Suppliers\|►Go to the Next Chapter]]</span></span>
		+	\|}

	=== '''<span style="color:#879637;">6. Assess Financial Viability</span>''' ===		=== '''<span style="color:#879637;">6. Assess Financial Viability</span>''' ===

@@ Line 1: / Line 1: @@
 {{SPIS Design}} {{Back to SPIS Toolbox}}
-=== '''<span style="color:#879637;">Assess Financial Viability</span>''' ===
+=== '''<span style="color:#879637;">6. Assess Financial Viability</span>''' ===
 Solar Powered Irrigation Systems have become a financially viable alternative to electric and diesel water pumps for irrigation of agriculture crops. This is mainly due to the fact that: