Economic Viability of Wide-Row Agrivoltaics: New Research Framework – News and Statistics – IndexBox – Market Intelligence Platform

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A study from pv magazine details a new analytical framework developed by U.S. researchers to evaluate the economics of agrivoltaic systems designed for large-scale mechanized farming. The research indicates that increasing the distance between rows of solar panels can make such dual-use projects financially feasible while maintaining crop production.
The framework, created by a team led by Colorado University, models different photovoltaic row spacing scenarios to determine installed capacity. It incorporates constraints from specific agricultural equipment and calculates crop revenues alongside electricity generation revenues from power purchase agreements. These figures, combined with system costs, are used to derive financial metrics like net present value and levelized cost of energy.
To demonstrate the method, researchers simulated a 25-year project on a 160-acre plot in Colorado. The simulation considered four crops—potatoes, onions, sugar beets, and wheat—each requiring specific minimum row spacing for farm machinery. The analysis tested a range of power purchase agreement prices and open-air crop profits, and included a sensitivity analysis examining capital expenditure impacts across various farm sizes and locations.
Findings suggest that for most crops studied, an agricultural profit of approximately 200 dollars per acre could justify spacing panels at least 9.66 meters apart to accommodate farming, compared to photovoltaic-only installations. The results were notably sensitive to agricultural equipment size, where a small difference in spacing could alter the required power price for economic viability by 5% or more. The analysis concluded that in certain conditions, wider-row agrivoltaic systems can offer economic benefits over traditional utility-scale solar projects and can tolerate a broader range of capital costs while remaining viable.
The researchers noted a current limitation of the framework is its assumption that a single entity owns the land, the photovoltaic system, and operates the farm. Work is reportedly underway to develop a model accommodating separate ownership and leasing structures. The findings were published in the journal Agricultural Systems by scientists from Colorado’s National Laboratory of the Rockies, Colorado State University, and the Colorado Department of Agriculture.
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