Economic evaluation of a business model of selected solar thermal devices in Thar Desert of Rajasthan, India

Abstract

Business of fabricating solar thermal devices can play an important role in the economic growth of the country. These technologies can create more employment opportunities in rural as well as urban areas and supplement conventional energy sources in addition to reducing carbon emission. For starting a new business, economic feasibility needs to be assessed in terms of break-even analysis and economic attributes. Banks provide loans only on the basis of economic attributes of the project. Therefore, an attempt has been made to determine the various economic indicators for a unit of three novel solar thermal devices namely, animal feed solar cooker, non-tracking solar cooker and solar dryer for guiding new entrepreneurs. The different economic parameters such as break-even point, net present value, pay back period, benefit-cost ratio, annuity and internal rate of return were determined and found highly profitable while judging the economic viability of the solar devices business. On the basis of break-even-analysis, fabrication and sale of only 37 units annually is sufficient to reach a state of no profit and no loss. The net average annual benefit accrued from this business fabricating 100 units annually is INR 189 800 ($ 2 673). In addition, this business can play a vital role in providing employment to four persons. It also has a great potential to reduce CO2 emission.