Irrigation Energy Options and Considerations

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Irrigation Energy Options and Considerations Lyndon Kelley MSU Extension/Purdue University Irrigation Management Agent 269-467-5511, cell 269-535-0343 https://www.canr.msu.edu/irrigation/

Power Options to Run Your Irrigation System

Irrigation power cost vary on: - power source - power cost - system pressure Average fuel cost for pumping NE. USA: 2016 Cost per acre inch of irrigation water Energy source Pressure Electric Diesel / propane Low <35 psi $1.76 $2.56 / 2.30 Med. 35 to 95 psi $2.48 $3.76 / 3.27 High >100psi $ 3.56 $ 4.87 / 3.90

Day to Day Power Operation Costs Table 2. Comparative Costs of Various Energy Sources to Obtain Equal Work Output per Dollar Spent Adapted from AE-111 Comparable Costs of Various Energy Sources for Irrigation Pumping Gasoline ($/gallon) Diesel ($/gallon) Propane ($/gallon) Electricity (kw-hr) 1.00 1.31.79 10.4 1.10 1.44.87 11.4 1.20 1.57.95 12.5 1.30 1.70 1.03 13.5 1.40 1.83 1.11 14.6 1.50 1.97 1.19 15.6 1.60 2.10 1.26 16.7 1.70 2.23 1.34 17.7 1.80 2.36 1.42 18.7 1.90 2.49 1.50 19.8 2.00 2.62 1.58 20.8 2.10 2.75 1.66 21.8 2.20 2.88 1.74 22.8 2.30 3.01 1.82 23.9 2.40 3.14 1.90 25.0 2.50 3.27 1.98 26.0 2.60 3.40 2.06 27.0 2.70 3.53 2.13 28.1 2.80 3.67 2.22 29.1 2.90 3.80 2.29 30.1 3.00 3.93 2.37 31.2 3.10 4.06 2.45 32.2 3.20 4.19 2.53 33.2 3.30 4.32 2.61 34.3 3.40 4.55 2.69 35.3

Power Options All Electric System - electric to power the pump - electric to drive irrigation unit Do you have access to a 3-phase, 480V power line?

Variable Frequency Drives Common for 20 Hp and less Recently 50+ Hp have been marketed Allows an effective use of portion of the total out put. (cornering arm, low psi /high psi combinations) Can be fed single phase powered to create 3 phase Takes an additional 5% energy at full output. Programing for slow start-up minimize brown out issues for power company.

Phase Converters Single phase to 3-phase conversion Used to drive pump and pivot or just pivot. Slow start-up minimize brown out issues for power company.

All Engine Power System Engine power to pump water Commonly used with High psi - Solid set irrigation units - Soft hose & hand hose irrigation units (water drive) Engine powers 3 phase, belt driven generator or hydraulic pump to drive pivots.

Example- All Electric System 100 acres, 750 gpm, 45 psi. Electric 1350 Well

Example- All Electric System 100 acres, 750 gpm, 45 psi. Cost Salvage value Electric Co. install fee $1,750 0 200 amp disconnect $500 $100 1350 buried electric cable * $2.50 per ft. $3,375 0 Well panel $1,000 $250 40 hp pump $3,000 $1,000 Totals $9,625 $1,350

Estimating Annual Irrigation Operation Costs 100 Acre Water Supply 3 phase electric pump Annual Ownership Cost Depreciation: (original cost - salvage value)/years of use = $506 Interest: interest rate * average investment value = $303 Repair: estimated to between 2 to 5% of original cost = $80 Taxes: personal property tax: Michigan no, Indiana = $96 Insurance: estimated at 0.5% * Average Investment Value = $48 Total Ownership Cost = $1,034 Operating Cost (total actual annual cost / 100 acre * 7 ) $2.50/ acre in. * 700 acre inches = $1,750 annually Total Operating cost annually = $1,960 Grand Total Estimated Annual Cost = Operating cost + Ownership Cost Grand Total Estimated Annual Cost = $1,960 + $1,034 = $2,994

Example- All Electric System/ with Phase converter or variable frequency drive 100 acres, 750 gpm, 45 psi. Electric 1350 Well

Example- All Electric System/ with Phase Converter or Variable Frequency Drive 100 acres, 750 gpm, 45 psi. Cost Salvage value Electric Co. install fee $1,750 0 200 amp disconnect $500 $100 Phase Converter/Variable Frequency Drive $3000 $1000 1350 buried electric cable * $2.50 per ft. $3,375 0 Well panel $1,000 $250 40 hp pump $3,000 $1,000 Totals $12,625 $2,350

Estimating Annual Irrigation Operation Costs Example- All Electric System/ with Phase converter or variable frequency drive 100 Acre Water Supply Annual Ownership Cost Depreciation: (original cost - salvage value)/years of use = $506 Interest: interest rate * average investment value = $303 Repair: estimated to between 2 to 5% of original cost = $80 Taxes: personal property tax: Michigan 0, Indiana = $126 Insurance: estimated at 0.5% * Average Investment Value = $13 Total Annual Ownership Cost = $1,279 Operating Cost (total actual annual cost / 100 acre * 7 ) $2.50/ acre in. * 700 acre inches = $1,750 annually Total Operating cost annually = $1,960 Total Annual Cost = Operating cost + Ownership Cost Grand Total Estimated Annual Cost = $1,960 + $1,279 = $3,239

Example- Diesel Pump and Generator 100 acres, 750 gpm, 45 lbs. Well Diesel Pump

Example- Diesel Engine and Generator 100 acres, 750 gpm, 45 lbs. Cost Salvage value Diesel engine & pump $20,000 3,500 Right angle drive $4,000 $500 Generator cost $3,000 $1,000 Totals $27,000 $6,000

Estimating Annual Irrigation Operation Costs 100 Acre Water Supply - Diesel Engine, Right angle drive and Generator Annual Ownership Cost Depreciation: (original cost - salvage value)/years of use = $2,200 Interest: interest rate * average investment value = $800 Repair: estimated to between 2 to 5% of original cost = $600 Taxes: personal property tax: Michigan 0, Indiana = 270 Insurance: estimated at 0.5% * Average Investment Value = $135 Total Ownership Cost $4,005 /year Operating Cost (total actual annual cost / 100 acre * 7 ) $2.50/ acre in. * 700 acre inches = $4,550/year Total Operating cost annually = $4,760 Grand Total Estimated Annual Cost = Operating cost + Ownership Cost Grand Total Estimated Annual Cost = $4,005 + $4,760 = $8,765

Example- Propane/natural gas Engine and Generator -142 acres, 750 gpm, 45 lbs. Well Propane /natural gas pump

Example- Propane/Natural Gas and Generator - 100 acres, 750 gpm, 45 lbs. Cost Salvage value Nat. Gas engine $12,000 2,000 Right angle drive $4,000 $500 Generator cost $3,000 $1,000 Totals $19,000 $4,500

Estimating Annual Irrigation Operation Costs 100 Acre Water Supply Propane/Natural gas engine, Right angle drive and generator Ownership Cost Depreciation: (original cost - salvage value)/years of use = $1,550 Interest: interest rate * average investment value = $562.50 Repair: estimated to between 2 to 5% of original cost = $240 Taxes: personal property tax: Michigan 0, Indiana = $190 Insurance: estimated at 0.5% * Average Investment Value = $95 Total Ownership Cost $2,638 /year Operating Cost (total actual annual cost / 100 acre * 7 ) $3.50/ acre in. * 700 acre inches = = $2,450 /year Total Operating cost annually = $2,660 Grand Total Estimated Annual Cost = Operating cost + Ownership Cost Grand Total Estimated Annual Cost = $2,638 + $2,660 = $5,298

Irrigation Energy Options- Decision consideration Always do your own home work, every situation is different Quick and dirty cost comparisons high cost to low cost Annual energy cost gasoline > diesel > propane > electricity Initial equipment and infrastructure cost diesel > propane > gasoline > electricity Annual maintenance, repairs, labor diesel > gasoline > propane > electricity

Investigate Propane. About 1/3 saving in pumping cost ($2.50 diesel = $1.50 propane) Less fuel theft problems Minimal environmental storage, exhaust concerns Off season use grain drying tank No water in fuel issues Lower initial investment

If considering electric, what are the Electric Load Management Options your utility offers Electric Irrigation System Operators? Commercial Energy Rate Off peak electric rate cost/kwh On peak electric rate cost/kwh Time of day operation restrictions Shut down concessions All considered actual rate can be from 2.3 cent to 14.7 cents? Kilowatt hour.

Estimated Annual Cost/Acre 10 yr. investment period, - salvage value, 5% interest, 7 application/yr., 100 acres Diesel engine + generator Natural gas engine + generator Single phase to 3 phase converter 3# Phase at pole Total Annual Ownership Cost/ acre $40.05 $26.38 $12.79 $10.34 Total Annual Operating Cost / Acre $47.60 $26.60 $19.60 $19.60 Grand Total Annual Cost/Acre $87.65 $52.98 $32.39 $29.94 $87.65-29.94 x 100 acres = $5771 annually for 10 yrs. at 5% interest Present Value of an Annuity C = Cash flow per period (payment amount) i = Interest rate n = Number of payments (in this calculator, derived from the payment interval and number of years)

C = Cash flow per period (payment amount) i = Interest rate n = Number of payments (in this calculator, derived from the payment interval and number of years) Present Value of an Annuity- calculator https://financialmentor.com/calculator/present-value-of-annuity-calculator