Morehead State University

Economic and Financial Feasibility of Rainwater Harvesting Systems at the Derrickson Agricultural Complex

Grade Level at Time of Presentation

Senior

Major

Agribusiness

2nd Grade Level at Time of Presentation

Senior

2nd Student Major

Agribusiness

KY House District #

4

KY Senate District #

4

Department

Dept. of Agriculture

Abstract

Rainwater harvesting (RWH) was primarily considered as a source for fresh water supply or a conservation practice for overcoming water shortages in drought prone areas. In recent years, rainwater harvesting systems are also recognized as a low impact development technique for storm water management. Consequently, many state and local governments have begun to encourage the use of rainwater harvesting as a storm water best management practice. Morehead State University has designed and installed four rainwater harvesting systems at the Derrickson Agricultural Complex as a demonstration site for best management practices with a collaboration of Kentucky Department of Agriculture and the University of Kentucky.

Main objective of this study is to assess if the RWH strategies are economically warranted management practices for the Eastern Kentucky region. The cost and benefit analysis and net present value methods were employed to assess economic and financial feasibilities of the Pond- Tire (P-T) RWH System. The catchment area of the PT was 18,800 sq. ft. The initial investment cost of the PT system was $22,386 and the annual economic benefits were $1,476 based on 9 months of water utilization. Based on the 25-year life expectancy of the RWH system, the present value of future benefits of the PT system was $25,702 after considering the evaporation loss. It shows that implementing P-T system proves to be economically and financially feasible.

This study suggests that the economic benefits of RWH systems depend on a number of factors such as the size of the catchment areas, annual rainfall distribution, usefulness of rainwater, cost of installation and cost of alternative water sources.

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Economic and Financial Feasibility of Rainwater Harvesting Systems at the Derrickson Agricultural Complex

Rainwater harvesting (RWH) was primarily considered as a source for fresh water supply or a conservation practice for overcoming water shortages in drought prone areas. In recent years, rainwater harvesting systems are also recognized as a low impact development technique for storm water management. Consequently, many state and local governments have begun to encourage the use of rainwater harvesting as a storm water best management practice. Morehead State University has designed and installed four rainwater harvesting systems at the Derrickson Agricultural Complex as a demonstration site for best management practices with a collaboration of Kentucky Department of Agriculture and the University of Kentucky.

Main objective of this study is to assess if the RWH strategies are economically warranted management practices for the Eastern Kentucky region. The cost and benefit analysis and net present value methods were employed to assess economic and financial feasibilities of the Pond- Tire (P-T) RWH System. The catchment area of the PT was 18,800 sq. ft. The initial investment cost of the PT system was $22,386 and the annual economic benefits were $1,476 based on 9 months of water utilization. Based on the 25-year life expectancy of the RWH system, the present value of future benefits of the PT system was $25,702 after considering the evaporation loss. It shows that implementing P-T system proves to be economically and financially feasible.

This study suggests that the economic benefits of RWH systems depend on a number of factors such as the size of the catchment areas, annual rainfall distribution, usefulness of rainwater, cost of installation and cost of alternative water sources.