Agrisolar Water Pump Irrigation with Fish Farm Economic Model for Smallholder Farms
Image credit: Provincial Government of Negros Occidental
Article Resource: Green Building Africa
In Negros Occidental, Philippines, a groundbreaking project integrates solar power, agriculture, and aquaculture, presenting an ideal model for smallholder farms. This project, detailed in a recent report by Green Building Africa, utilizes a solar-powered irrigation system that supports both fish farming and high-value crop production on just 1 rai of land. Through the use of a 100 kW solar array and a 10 HP water pump, the system efficiently irrigates crops and maintains the fish farm, showcasing a sustainable approach to agricultural diversification.
Economic Viability Through Carbon Credits
The project, with an initial cost of $124,000, could be fully financed through the pre-sale of carbon credits, a novel approach that leverages environmental benefits for financial sustainability. By selling high-quality carbon credits at $50 each, tracked and verified using blockchain technology, projects similar to this one could secure funding while ensuring transparency and credibility in carbon offset reporting. This method aligns with global climate goals and offers a viable financing strategy for similar initiatives.
Assumptions and Revenue Streams
Based on assumptions derived from OpenAI’s LLM, the solar-powered system can generate significant income through multiple streams. Fish farming alone, producing 1,800-1,920 kg of fish annually, could yield approximately $3,586 per year at current market prices. Additionally, providing irrigation services to two farmer groups could bring in another $2,175 annually. Together, these activities not only increase revenue for farmers but also enhance food security and promote sustainable practices.
Environmental Impact and Carbon Offset
The environmental benefits of this model are substantial. The 100 kW solar array could offset approximately 127.75 MTCO2e annually by displacing conventional energy sources. Additional carbon savings come from reducing diesel fuel use for irrigation, estimated at 1.02 MTCO2e annually, and minimizing emissions from food transport through local production, which could save around 2 MTCO2e per year. Altogether, these efforts could result in a total annual carbon offset of approximately 130.77 MTCO2e.
A Model for Smallholder Farms
This integrated approach is particularly suitable for smallholder farms, offering a way to diversify income streams while promoting sustainable land use. By combining fish farming with traditional crop production, farmers can optimize their land use, enhance their food production capacity, and benefit from new income sources. The model is designed to fit within 1 rai of land, making it accessible and practical for small-scale farmers.
A Sustainable Path Forward
This innovative project, supported by assumptions from OpenAI’s LLM, demonstrates a practical and scalable approach to sustainable agriculture. By financing the initiative through carbon credit pre-sales, it not only provides economic benefits to smallholder farmers but also contributes to global carbon reduction efforts. The use of blockchain technology ensures that these carbon credits are credible and traceable, offering a transparent and effective model for future projects. This setup stands as a testament to the potential of combining renewable energy, agriculture, and aquaculture to create resilient and sustainable farming systems.
This setup, described in a recent article, utilizes a 100 kW solar array to power irrigation systems that support both aquaculture and high-value crops on just 1 rai of land. Some assumptions in this model are derived from published data, while others are extrapolated using OpenAI’s LLM and AgrisolarAI fine-tuning, showcasing the potential for diversified income and environmental sustainability.
Assumptions Used in This Model
1. Solar-Powered Irrigation System
- System Size: Estimated 100 kW solar array, based on $124,000 total cost and $1.20 per watt installed.
- Water Pump: 10 HP (7.5 kW) pump, delivering 1,500-2,000 gallons per hour, sufficient for fish farming and crop irrigation.
2. Fish Farm Operations
- Production: 75-80 kg of fish per four-month cycle.
- Annual Production: 1,800-1,920 kg of fish.
3. Revenue Assumptions
- Fish Sales:
- Price per kg: PHP 110 (approx. $1.99).
- Price per gram: PHP 0.11 (approx. $0.002).
- Annual Revenue: PHP 198,000 (approx. $3,586).
- Irrigation as a Service:
- Service Fee: PHP 5,000 (approx. $90) per month per farmer group.
- Farmer Groups: Two groups.
- Annual Income: PHP 120,000 (approx. $2,175).
4. Additional Income
- Organic Fertilizer: Additional revenue from fish waste.
- Fuel Savings: Estimated $343 annually by using solar power instead of diesel.
5. Total Estimated Annual Revenue
- Combined Revenue: $3,586 (fish sales) + $2,175 (irrigation service) = $5,761.
6. Total Estimated Cost Savings
- Fuel Savings: $343 per year from eliminating diesel use.
- Potential Additional Savings: Reduced maintenance and operational costs from solar power.
7. Carbon Credit Model
- Solar-Powered Generation:
- Assumption: 100 kW solar system displaces grid electricity or diesel use.
- Carbon Offset: 1 kWh solar electricity can offset approximately 0.7 kg CO2.
- Annual Production: 100 kW system × 5 hours/day × 365 days = 182,500 kWh.
- Carbon Offset: 182,500 kWh × 0.7 kg CO2 = 127,750 kg CO2 (approx. 127.75 MTCO2e).
- Fuel Savings from Solar Pump Irrigation:
- Assumption: 380 liters (100 gallons) of diesel saved annually.
- Carbon Offset: 1 liter of diesel emits 2.68 kg CO2.
- Annual Offset: 380 liters × 2.68 kg CO2 = 1,018.4 kg CO2 (approx. 1.02 MTCO2e).
- Local Food Production:
- Assumption: Local production reduces transport emissions.
- Carbon Offset: Estimate of 2 MTCO2e saved per year from reduced transportation and lower food miles.
- Additional Savings:
- Reduced emissions from chemical fertilizers due to organic fertilizer use from fish waste.
8. Total Annual Carbon Offset
- Total Offset: 127.75 MTCO2e (solar generation) + 1.02 MTCO2e (fuel savings) + 2 MTCO2e (local food production) = 130.77 MTCO2e annually.
These assumptions provide a robust framework for estimating both financial returns and environmental benefits, emphasizing the impact of renewable energy and sustainable agriculture practices.
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Economic Challenges Faced by Smallholder Farmers in the Philippines
In the Philippines, there are approximately 5.56 million smallholder farmers, each operating on an average plot size of 0.9 hectares (around 2.2 acres). This significant reduction in farm size from almost 3 hectares in the 1980s has contributed to the economic struggles of these farmers. On average, smallholder farmers earn about PHP 100,000 per year (approximately $1,760), equating to just over PHP 8,000 per month (around $140). These earnings fall well below the poverty line, indicating the severe financial challenges they face due to limited access to modern farming techniques, credit, and the impacts of weather-related risks(SEADS, PSA.gov.ph, BusinessMirror).
The widespread poverty among smallholder farmers in the Philippines underscores the need for innovative solutions like the Agrisolar PV irrigation and fish farm model. By introducing sustainable energy sources and diversifying agricultural practices to include high-value crops and aquaculture, such models could significantly improve income levels and provide a pathway out of poverty for millions of farmers.