Business Model Innovation on the Photovoltaic Water Pumping Systems for Grassland and Farmland Conservation in China

Abstract

Penetration of the renewable market of Photovoltaic PV technologies calls for the extension of the additional values generated from the technology including climate and social co-benefits as radical innovations in a new business model. Compared with existing PV business models, this paper extends the value proposition into operation system and customer segmentation, investigated by a pilot demonstration of PV water pumping (PVWP) systems for the conservation of grassland and farmland in China. The paper suggests that the integrated PVWP systems can combine the implementation of technology with environmental co-benefits, agricultural products by developing an interactive interface to link a social network. This can further disseminate benefits to stimulate the active participations of investments from individuals and corporations. Discounted cash flow (DCF) model and net present value (NPV) evaluations have been conducted on the traditional PV roof, PVWP pilot and PVWP scale up scenarios. The results show that the scenario of integrated PVWP system with social network products can significantly improve the payback period (PP) and increase internal rate of return (IRR). Based on the PVWP pilots and relevant industrial environments, the results in this paper provide how the innovative PV business model innovation can improve the present practices and policies on PV technologies implementation.