Economic indicators evaluation to study the feasibility of a solar agriculture farm: A case study

Abstract

The 209 kWp solar agricultural farm at Dayalbagh Educational Institute's Dairy Campus in Agra, India, is the subject of this economic analysis. This study analyzes economic indicators relevant to agriculture food production, such as gross financial margins, farm profits, and cost-benefit ratios. Other measured variables include NPV (net present value), PB (payback period), and LCOE (levelized cost of electricity) of solar power generation to determine the economic viability of this agrivoltaics (production of solar energy and agriculture on the same land) APV project. Farm profit and gross financial margins both are positive values of 161, 907 INR (Indian Rupees) and 316, 907 INR, respectively. The cost-benefit ratio was 1.5.The economic factors of solar energy generation were studied for two systems: surface-mounted or ground-mounted solar systems and an elevated solar system with agriculture production on the same ground (APV or agrivoltaics). Both systems had the same production capacity. Two different hypothetical situations were used for each system. In the first situation (Case Study A), the assumption was that solar power performance would remain constant during operation. In the second situation (Case Study B), the assumption was that annual performance would be reduced by 0.5 %.The results show that APV is better than the surface-mounted system because there is no significant difference between the payback periods of APV and surface-mounted systems; the NPV of APV is greater than the surface-mounted solar system for both the study case A and case B and the LCOE of APV is 55 % less than the LCOE of the surface-mounted solar system.