Agricultural Photovoltaic Power Station Cost Guide

How does the cost of installing a Agricultural solar power plant

The Agricultural Photovoltaic Power Station (also known as Agrivoltaic Station) is a new energy utilization model that combines photovoltaic power generation with agricultural production. This model not only maximizes land resource utilization and enhances the overall benefits of the land but also provides clean renewable energy for businesses and farmers, reducing electricity costs and promoting sustainable development. This article aims to analyze the cost structure of agrivoltaic stations in detail, providing a comprehensive guide to help readers better understand and evaluate the project’s economics.

1.Agricultural solar power plant Initial Investment Costs

1.1 Land Acquisition Costs

• Cost Composition:
  Agrivoltaic stations require a large area of land, which significantly contributes to the total cost. Some projects may benefit from policies for free land allocation, but legal and administrative costs for land use rights must still be considered.
• Calculation Formula:
  Cland = Land Area × Land Price Per Hectare
• Example:
  Suppose a 150 MW agrivoltaic station occupies 1000 hectares, with a land price of 10,000 Yuan/hectare.
  Cland = 1000 × 10000 = 10000000 Yuan

1.2 Cost of Solar Modules

• Cost Composition:
  Solar modules constitute one of the main costs of the system, typically accounting for approximately 44% of the total cost.
• Calculation Formula:
  Cpv = Unit Cost of Solar Modules × Installed Capacity of Solar Modules
• Example:
  Assuming the unit cost of solar modules is 6 Yuan/W, and installed capacity is 150,000 kW:
  Cpv = 6 × 150000000 = 900000000 Yuan

1.3 Cost of Inverters

• Cost Composition:
  Inverters convert direct current into alternating current and are a critical component of the system, usually accounting for about 5.87% of the total cost.
• Calculation Formula:
  Cinv = Unit Cost of Inverters × Installed Capacity of Inverters
• Example:
  Assuming the unit cost of inverters is 5 Yuan/W and installed capacity is 150,000 kW:
  Cinv = 5 × 150000000 = 750000000 Yuan

1.4 Cost of Mounting Structures and Installation Materials

• Cost Composition:
  The mounting structures for agrivoltaic stations need to be designed higher to ensure that the solar modules do not shade the crops, which increases the cost of the structures.
• Calculation Formula:
  Cstr = Unit Cost of Mounting Structures × Installed Capacity of Mounting Structures
• Example:
  Assuming the unit cost of mounting structures is 3 Yuan/W and installed capacity is 150,000 kW:
  Cstr = 3 × 150000000 = 450000000 Yuan

1.5 Cable and Other Electrical Accessories Costs

• Cost Composition:
  Cables connect solar modules and inverters, and include other electrical accessories such as circuit breakers and distribution boxes. This part usually accounts for 10% to 20% of the total cost.
• Calculation Formula:
  Ce = Unit Cost of Other Electrical Accessories × Installed Capacity of Other Electrical Accessories
• Example:
  Assuming the unit cost of other electrical accessories is 1 Yuan/W and installed capacity is 150,000 kW:
  Ce = 1 × 150000000 = 150000000 Yuan

1.6 Construction and Installation Costs

• Cost Composition:
  Construction and installation costs involve labor, transport, site management, etc. The costs may be higher for agrivoltaic stations due to the special terrain of farmland and the growth cycle of crops.
• Calculation Formula:
  Cinst = Construction and Installation Costs
• Example:
  Assuming construction and installation costs are 200000000 Yuan.

1.7 Other Costs

• Cost Composition:
  Includes project management fees, training fees, operational maintenance network setup fees, engineering supervision fees, design survey fees, and basic reserve fees.
• Calculation Formula:
  Cother = Other Costs
• Example:
  Assuming other costs are 100000000 Yuan.

1.8 Summary of Initial Investment Costs

• Calculation Formula:
  C0 = Cland + Cpv + Cinv + Cstr + Ce + Cinst + Cother
• Example:
  C0 = 10000000 + 900000000 + 750000000 + 450000000 + 150000000 + 200000000 + 100000000 = 2560000000 Yuan

2. Agricultural Photovoltaic Power Station Operating and Maintenance Costs

2.1 Regular Inspections

• Frequency:
  Conduct a comprehensive inspection every six months or annually.
• Content:
  Inspect for any damage to solar modules, check if inverters are functioning properly, and assess for cable aging.
• Cost:
  The cost for each inspection is approximately 20,000 Yuan.

2.2 Cleaning

• Frequency:
  Clean every quarter or every six months, particularly in areas with frequent dust storms.
• Method:
  Use high-pressure water guns or specialized cleaning agents.
• Cost:
  The cost for each cleaning is approximately 10,000 Yuan.

2.3 Fault Repairs

• Common Issues:
  Inverter malfunctions, cable breaks, module damage, etc.
• Cost:
  The cost to replace inverters typically ranges from several thousand to tens of thousands of Yuan, while the repair costs for cables and modules are relatively low.
• Example:
  Assuming the annual repair cost is 40,000 Yuan.

2.4 Agricultural Management Costs

• Cost Composition:
  Agrivoltaic stations need to balance agricultural production, resulting in additional agricultural management costs including planting, irrigation, and fertilization.
• Calculation Formula:
  Cagri = Agricultural Management Costs
• Example:
  Assuming annual agricultural management costs are 15,000,000 Yuan.

2.5 Summary of Annual Operating and Maintenance Costs

• Calculation Formula:
  COM = Inspection Costs + Cleaning Costs + Repair Costs + Agricultural Management Costs
• Example:
  COM = 20000 + 10000 + 40000 + 15000000 = 15070000 Yuan

3. Energy Revenue

3.1 Annual Power Generation

• Calculation Formula:
  EPV = Installed Capacity of the PV System × Average Annual Sunshine Hours × System Efficiency
• Example:
  Assuming a system efficiency of 80% and average annual sunshine of 5.55 hours for a 150 MW PV system:
  EPV = 150000 × 5.55 × 365 × 0.8 = 243720000 kWh

3.2 Self-Consumption Ratio and Feed-in Tariff

• Self-Consumption Ratio:
  The electricity generated by the agrivoltaic station can be partially self-consumed, with the remaining sold to the grid.
• Feed-in Tariff:
  The feed-in tariff is usually higher than the regular electricity price, providing additional income for businesses.
• Calculation Formula:
  NCF = EPV × λ × cs + EPV × (1 – λ) × cb – COM
• Example:
  Assuming a self-consumption ratio of 50%, a feed-in tariff of 0.30 Yuan/kWh, and a purchase price of 0.60 Yuan/kWh:
  NCF = 243720000 × 0.5 × 0.3 + 243720000 × 0.5 × 0.6 – 15070000
  NCF = 36558000 + 73068000 – 15070000 = 94556000 Yuan

4. Economic Viability Analysis

4.1 Payback Period

• Calculation Formula:
  Tpayback = C0 / NCF
• Example:
  Tpayback = 2560000000 / 94556000 ≈ 27.07 years

4.2 Average Cost of Electricity Generation

• Calculation Formula:
  Cavg = (C0 + Σ COM) / Σ EPV
  Where n is the project life cycle (usually 25 years).
• Example:
  Cavg = (2560000000 + 25 × 15070000) / (25 × 243720000)
  Cavg = (2560000000 + 376750000) / 6093000000 ≈ 0.48 Yuan/kWh

4.3 Environmental Benefits

• Emission Reduction Calculation:
  • Standard Coal Savings:
    Qbm = EPV × Coal Consumption Rate
    Assuming a coal consumption rate of 305 g/kWh:
    Qbm = 243720000 × 0.305 = 74339600 kg ≈ 74339.6 tons
  • CO2 Emission Reduction:
    QCO2 = Qbm × CO2 Emission Factor
    Assuming the CO2 emission factor for standard coal is 2.47:
    QCO2 = 74339.6 × 2.47 ≈ 183728.01 tons
  • SO2 Emission Reduction:
    QSO2 = Qbm × SO2 Emission Factor
    Assuming the SO2 emission factor for standard coal is 0.02:
    QSO2 = 74339.6 × 0.02 ≈ 1486.79 tons
  • Dust Emission Reduction:
    QF = Qbm × Dust Emission Factor
    Assuming the dust emission factor for standard coal is 0.01:
    QF = 74339.6 × 0.01 ≈ 743.40 tons

5. Government Incentives

5.1 Initial Installation Subsidies

• Type: Initial installation subsidies are generally provided on a per-kilowatt installation basis.
• Amount: The subsidy amount varies by region and policy, usually covering 10%-30% of the initial investment.

5.2 Operational Subsidies

• Type: Operational subsidies are typically provided per kilowatt-hour of electricity generated.
• Amount: The subsidy amount fluctuates by region and policy, usually ranging from 0.1 to 0.3 Yuan/kWh.

5.3 Tax Reductions

• Type: Tax reductions include VAT exemptions, income tax reductions, etc.
• Amount: The specific amount of tax relief requires calculations based on local tax policies.

6. Risk Management and Uncertainty Analysis

6.1 Sensitivity Analysis

• Influencing Factors: Total investment, power generation, feed-in tariff, etc.
• Analysis Method: By varying these factors, calculate the changes in the project’s internal rate of return (IRR) to predict investment risks.
• Example:
  Assuming a total investment increase of 10%, a 10% decrease in power generation, and a 10% decrease in feed-in tariff:
  IRRnew = IRRbase × Sensitivity Coefficient
  IRRnew = 12.59% × 0.9 × 0.9 × 0.9 ≈ 9.35%

6.2 Breakeven Point

• Calculation Formula:
  BEP = C0 / NCF
• Example:
  Assuming the annual operating hours of the project are 1500 hours, the breakeven point is approximately 57.86%:
  BEP = 2560000000 / 94556000 ≈ 27.07 years

7. Comprehensive Benefit Evaluation

7.1 Economic Benefits

• Annual Economic Benefits of the Station:
  Agrivoltaic projects possess dual value in energy production and crop cultivation. A study on a 150 MW agrivoltaic project in Leqing, Zhejiang, indicates annual economic benefits ranging from 75,341,100 to 84,170,600 Yuan. The power revenue fluctuates while agriculture revenue increases steadily.
• Specific Calculation:
  Power Revenue: EPV × cs
  Agriculture Revenue: Agricultural Yield × Market Price

7.2 Ecological Benefits

• Value of Ecosystem Services:
  The project’s ecosystem services value demonstrates a “decrease followed by an increase” trend, with an overall growth of 4,353,100 Yuan. The unit area ecological value rises from 71,600 Yuan/hectare to 85,200 Yuan/hectare, indicating the positive impact of this agrivoltaic model on ecosystems.
• Specific Changes:
  • Water Conservation and Air Purification Functions: Slight decline
  • Soil Conservation Function: Basically unchanged
  • Flood Regulation and Carbon Sequestration Functions: Substantial increase

7.3 Social Benefits

• Employment Opportunities:
  The construction and operation of agrivoltaic stations can create numerous job opportunities, including installers, maintenance technicians, and agricultural specialists.
• Rural Economic Development:
  By providing clean energy and increasing agricultural income, agrivoltaic stations can foster rural economic development and improve farmers’ living standards.

8. Conclusion

Although the initial investment cost of agrivoltaic stations is relatively high, reasonable system design, the selection of efficient components and inverters, as well as government incentives can achieve significant economic and environmental benefits over a longer lifespan. Specifically, agrivoltaic stations can significantly reduce electricity costs for enterprises, improve energy efficiency, and increase agricultural income while contributing to environmental protection. Additionally, regular maintenance and timely fault repairs are crucial for ensuring the long-term stable operation of the system. Through detailed cost and revenue calculations, the feasibility and economic benefits of the project can be accurately evaluated.

We hope this guide helps you better understand the cost structure and economic benefits of agrivoltaic stations and provides reference for your project decisions.