Economic Analysis of A Business Model of An Inclined Solar Dryer

Abstract

The development of any region depends on its energy consumption. Conventional sources of energy generally lead to the emission of greenhouse gases, which in turn pollute the environment. It is therefore the need of the day to resort to a green energy source, which will help mitigate the CO2 emission and make the environment less polluted. Given this, an economic analysis of a business model for the fabrication of an inclined solar dryer was considered. It will not only fetch income but also generate employment and mitigate CO2 emissions. Therefore, the economic evaluation of the business of fabricating solar dryers was carried out. The values of economic parameters were determined and found very encouraging. In addition, the value of the Break-even point was also determined which came to 37 units which is equal to 111 dryers. The economic parameters were determined for fabricating 300 solar dryers annually. The net average annual benefit accrued from this business fabricating 300 solar dryers annually is INR 2,17,672. The values of other economic attributes, such as pay-back period (PBP), internal rate of return (IRR), net present value (NPV), and benefit-cost ratio (BCR) were found to be 0.47 yr., 225%, INR 1334026, and 13.8, respectively. In addition, this business can play a vital role not only in income generation but also in generating employment for four persons.