Economic evaluation of one-axis, vertical, and elevated agrivoltaic systems across Europe: a Monte Carlo AnalysisShow others and affiliations
2025 (English)In: Applied Energy, ISSN 0306-2619, E-ISSN 1872-9118, Vol. 391, article id 125826Article in journal (Refereed) Published
Abstract [en]
Energy conversion from conventional ground-mounted photovoltaic systems requires a significant amount of land, which can compete with food production. Agrivoltaic systems, which integrate electricity generation and crop production, can help reduce this land competition. The profitability of agrivoltaic systems is expected to be a crucial factor for decision-makers and stakeholders considering their adoption. This work aims to analyze the economic performance of one-axis, vertical and elevated agrivoltaic systems compared to conventional ground-mounted photovoltaic systems across Europe focusing on countries such as Sweden, Denmark, Germany and Italy. By employing a stochastic approach with Monte Carlo simulations, this research makes a significant contribution to forecasting the profitability and cost-effectiveness of agrivoltaic projects in European countries for the next years. Moreover, it identifies the key parameters that significantly impact the net present value and levelized cost of electricity. The economic findings reveal a notable trend: agrivoltaic projects (i.e., one-axis, vertical, and elevated) are likely to be profitable throughout Europe. However, the agricultural profit generated from these systems is minimal for the investigated crop rotations compared to the benefits derived from energy conversion. Among the systems evaluated, one-axis agrivoltaic setups demonstrate higher profitability and cost-effectiveness compared to vertical and elevated setups. They also have a shorter discounted payback period and a lower levelized cost of electricity than conventional ground-mounted photovoltaic systems. These findings are particularly significant for decision-makers and stakeholders involved in developing agrivoltaic policies. This is especially relevant for Sweden which currently lacks agrivoltaic policies, regulations, and definitions, in contrast to Germany and Italy where policies for promoting agrivoltaics have previously been implemented or are in progress.
Place, publisher, year, edition, pages
Elsevier BV , 2025. Vol. 391, article id 125826
Keywords [en]
Agriculture, Agrivoltaic, Cost-effectiveness, Economics, Photovoltaic, Profitability, Europe, Decision makers, Economics evaluations, Electricity-generation, Energy, Food production, Levelized cost of electricities, Monte carlo analysis, Photovoltaic systems, Photovoltaics, cost analysis, decision making, electricity generation, energy policy, photovoltaic system, policy implementation, Agribusiness
National Category
Energy Engineering
Identifiers
URN: urn:nbn:se:mdh:diva-71290DOI: 10.1016/j.apenergy.2025.125826ISI: 001476599900001Scopus ID: 2-s2.0-105002835079OAI: oai:DiVA.org:mdh-71290DiVA, id: diva2:1955632
2025-04-302025-04-302025-12-08Bibliographically approved
In thesis