Solar Photovoltaic (SPV) water pumping system is one of the promising renewable technologies that utilize the solar energy to pump water. Use of diesel pumping system is neither cost effective nor environment friendly. This thesis analyzes the feasibility of replacing diesel pumping system with photovoltaic pumping systems of Gubala, Gundl and Fagita case study areas in Amhara region. WinCAP and LORENTEZ software have been used in the design of the solar PV pump. Moreover, initial, running, maintenance and life cycle cost analysis have also been carried out between solar PV and the diesel pumping system using HOMER software. The initial cost of solar pumping and diesel systems under study for the Case 1, 2, and 3 are 726,132.00, 744,768.00 & 382,933.00, and 1,274,285.00, 1,048,412.00 & 725,370.00 Birr respectively. Whereas the running cost of diesel and solar pumping system for each three Cases are 10,221,457.00, 10,121,764.00, & 5,042,321.00, and 8,591.00, 6,954.00 & 3,790.00 Birr respectively. The breakeven between solar pumping and diesel systems of Case 1, 2, and 3 water supplies are 2.6, 2.1 and 2.4 year respectively. Likewise, cost of photovoltaic pumping system of Gubala, Gundl, and Fagita are less than diesel pumping system by 10.8%, 8.5%, and 9.5% respectively. The total emission of gases by diesel engine for the three water supply Cases within one year are 270,149 kg Carbon dioxide, 667 kg Carbon monoxide, 543 kg Sulfur dioxide, 5,951 kg Nitrogen oxide, and 73.8 kg of unburned hydrocarbon.