The Analysis of Financial Returns of Solar Water Pumping Systems for The Nontoxic Vegetable Production of Farmer Groops in Buddhaisong District, Buriram Province

Abstract

This study aims at investigating the factors which are affecting the financial analysis results. The objective also included analysis of worthiness on operating the project of solar water pump system for Pesticide residue free vegetable production of the farmers in Putthaisong district, Buriram province. The analysis used survey data of the farmer group leader and the farmers who participated the project. 10 farmers who were producing 5 vegetables which were kale, Chinese cabbage, morning glory, chili, and eggplant in the area 20 rais were selected. The analysis covered 20 years of investment and the data based on the production year 2013 with 7% discount rate.Financial analysis showed that investment on vegetable production by using solar energy in the area of 20 rais within 20 years period generated net present value 714,143.47 baht. The investment also induced 14% of Internal Rate of Return (IRR) and 1.16 Benefit-Cost Ratio (BCR) which these indicated the project’s financial worthiness. In addition, analysis results of switching value test of cost and benefit at 7% discount rate indicated that the project could tolerate increasing of the cost up to 16.33% and decreasing of benefit up to 14.04% to maintain its worthiness. This implied that investment risk of the project was in low level.