Economic Feasibility of Agrivoltaic Systems in Food-Energy Nexus Context: Modelling and a Case Study in Niger

In the literature, many studies outline the advantages of agrivoltaic (APV) systems from different viewpoints: optimized land use, productivity gain in both the energy and water sector, economic benefits, etc. A holistic analysis of an APV system is needed to understand its full advantages. For this purpose, a case study farm size of 0.15 ha has been chosen as a reference farm at a village in Niger, West Africa. Altogether four farming cases are considered. They are traditional rain-fed, irrigated with diesel-powered pumps, irrigated with solar pumps, and the APV system. The APV system is further analyzed under two scenarios: benefits to investors and combined benefits to investors and farmers. An economic feasibility analysis model is developed. Different economic indicators are used to present the results: gross margin, farm profit, benefit-cost ratio, and net present value (NPV). All the economic indicators obtained for the solar-powered irrigation system were positive, whereas all those for the diesel-powered system were negative. Additionally, the diesel system will emit annually about 4005 kg CO2 to irrigate the chosen reference farm. The land equivalent ratio (LER) was obtained at 1.33 and 1.13 for two cases of shading-induced yield loss excluded and included, respectively.

Automated summary

Agricultural photovoltaic (APV) systems have been shown to have advantages such as optimized land use, increased energy and water productivity, and economic benefits. A case study in a village in Niger demonstrated that all economic indicators for solar-powered irrigation systems were positive, while those for diesel systems were negative. The APV system is proven to be an environmentally friendly and economically viable agricultural practice.