Cost–Benefit Analysis of Implementing Solar Photovoltaic Structural Snow Fences in Minnesota

Abstract

Structural snow fences have been increasingly used in northern regions of the United States. They are known as a cost-effective and efficient technology to prevent snow accumulation on highways and, therefore, improve road safety. Structural snow fences, however, are used only during winter, and to add more value to the structure, an idea to install solar photovoltaics (PV) panels on structure snow fences was first proposed by the Minnesota Department of Transportation (MnDOT), who was interested in looking at the feasibility of integrating structural snow fences with PV panels, called PV snow fences (PVSF). The PVSF would be constructed by replacing the rails between the poles of the structural fences with customized PV panels that have the same dimension as the rail. This arrangement is to ensure that the original function of the snow fences, that is, eliminating blowing and drifting snow on highways, would not be affected. Considering different factors or parameters, such as project size, panel size, installation angle or orientation of the panels, discount rate, energy selling price to a utility company, availability of incentives, ownership of the PV system, etc., a comprehensive cost–benefit model has been established to analyze the pros and cons of different implementation plans. The analysis results show that the longer the length of the PVSF is, the more cost-effective the project is, due to a lower capital cost and increased power generation. A Power Purchase Agreement (PPA) would significantly shorten the payback period in consideration of the key benefits brought through a PPA, including minimal up-front capital costs, lower energy costs, no risk, no upkeep, leveraging available tax credits, and enhancing the value of the property, which is, therefore, more realistic and would be a higher priority for an agency like MnDOT or other state DOTs.