Agriphotovoltaics as a profitable land use approach for regions in transformation? - An economic analysis and technical validation of suitable concepts

Abstract

The study explores efficient land use models and their contribution to the energy transition for transformation regions from the perspective of Agriphotovoltaics (APV) and examines the economic viability of APV using the example of the model region in the Rhenish lignite mining area. The high population density of the region and the simultaneous phase-out of fossil fuels make APV a promising solution for sustainable energy generation and efficient land use. Based on a mixed quantitative and qualitative research approach, the economic feasibility of potential suitable systems in the regions' main agricultural activity of arable farming such as vertical and high-mounted APV systems are analyzed, considering valid feed-in tariffs and agricultural factors' impact on profitability. Results show that current remuneration structures, especially national tariffs, are deemed non-viable. Vertical systems achieve stable profitability when higher tariffs of 0.09€/kWh outside the national tariff are considered, and show better profitability compared to high-mounted systems due to lower investment costs. Electricity sales overshadow agricultural revenue and reduce agriculture's influence on feasibility in arable farming settings that are typical for regional agriculture. Experts view APV in arable farming critically, expecting limited synergy and compatibility challenges. However, a funding measure from the state government amounting to 25% of the acquisition costs significantly increases the profitability of even the more expensive, high-mounted APV systems and is a valuable example of how innovative regional development concepts can be successfully promoted. The methodology presented here is transferable to other regional research approaches and provides practical guidance for land-efficient regional development.