Tariff Analysis and Cost-Benefit Tool for Solarizing Irrigation

The TACTS tool provides a framework for stakeholders to calculate solar tariffs using the levelized cost of energy (LCOE) method, evaluate risk reduction and financing instruments, and conduct cost-benefit analyses from the perspective of distribution companies (DISCOMs). It specifically supports the implementation of the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme by quantifying avoided generation, power purchase, and transmission costs against the cost of feed-in tariffs.

• The TACTS tool is divided into three functional sections: tariff calculation for PM-KUSUM projects, analysis of risk reduction and alternative financing mechanisms, and a cost-benefit analysis of solarizing agricultural power demand for state nodal agencies and DISCOMs.
• Tariff determination for solar plants under the PM-KUSUM scheme utilizes the levelized cost of energy (LCOE) method, which calculates the ratio of the net present value of total capital and operating costs to the net present value of electricity generated over the plant's life.
• The cost-benefit analysis employs the utility cost test method to assess the impact on DISCOMs, identifying key benefits such as Avoided Generation Capacity Cost (AGCC), Avoided Power Purchase Cost (APPC), and Avoided Transmission Capacity Cost (ATCC), while accounting for the cost of Feed-in Tariffs (FIT).
• To determine coincidence factors for the cost-benefit analysis, the tool analyzes 15-minute time period data for total power demand and variable renewable energy (VRE) generation over one year for each state, identifying the top 5% of net power demand as peak demand.

APA

International Institute for Sustainable Development (2025). Tariff Analysis and Cost-Benefit Tool for Solarizing Irrigation. https://www.iisd.org/system/files/2025-05/tariff-analysis-solarizing-irrigation-tool-methodology.pdf

Chicago

International Institute for Sustainable Development. Tariff Analysis and Cost-Benefit Tool for Solarizing Irrigation. 2025. https://www.iisd.org/system/files/2025-05/tariff-analysis-solarizing-irrigation-tool-methodology.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Tariff Analysis and Cost-Benefit Tool for Solarizing Irrigation |date=May 2025 |url=https://www.iisd.org/system/files/2025-05/tariff-analysis-solarizing-irrigation-tool-methodology.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2025tariff, author = {{International Institute for Sustainable Development}}, title = {{Tariff Analysis and Cost-Benefit Tool for Solarizing Irrigation}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = may, url = {https://www.iisd.org/system/files/2025-05/tariff-analysis-solarizing-irrigation-tool-methodology.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }