The Economic Potential of Agrivoltaic Systems in Apple Cultivation—A Hungarian Case Study

Aidana Chalgynbayeva, Péter Balogh, László Szőllősi (), Zoltán Gabnai (), Ferenc Apáti, Marianna Sipos and Attila Bai ()
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Aidana Chalgynbayeva: Institute of Applied Economics, Faculty of Economics and Business, University of Debrecen, H-4032 Debrecen, Hungary
Péter Balogh: Institute of Statistics and Methodology, Faculty of Economics and Business, University of Debrecen, H-4032 Debrecen, Hungary
László Szőllősi: Institute of Economics, Faculty of Economics and Business, University of Debrecen, H-4032 Debrecen, Hungary
Zoltán Gabnai: Institute of Applied Economics, Faculty of Economics and Business, University of Debrecen, H-4032 Debrecen, Hungary
Ferenc Apáti: Institute of Horticulture, Faculty of Agricultural and Food Sciences and Environmental Management, University of Debrecen, H-4032 Debrecen, Hungary
Marianna Sipos: Institute of Horticulture, Faculty of Agricultural and Food Sciences and Environmental Management, University of Debrecen, H-4032 Debrecen, Hungary
Attila Bai: Institute of Applied Economics, Faculty of Economics and Business, University of Debrecen, H-4032 Debrecen, Hungary

Sustainability, 2024, vol. 16, issue 6, 1-34

Abstract: Agrivoltaic systems (AVS) allow the simultaneous use of land—as a limited resource—for crop production and electricity generation. This paper introduces the development prospects of AVS in Hungary with insights into international trends. The most important part is a complex economic analysis and a unit cost analysis of a 38 MWp capacity AVS, considering the most typical basic data in electricity and apple production. The applied risk analysis is based on a Monte Carlo simulation, the distribution function, and probabilities. To introduce the economic facet of the competitiveness of AVS, a comparative analysis was carried out between AVS, ground-mounted photovoltaic (GM-PV) systems, and conventional apple production systems (ConAPS). In the most probable scenario, the AVS was financially attractive (NPV = 70 million EUR under 30 years). Our correlation analysis shows that feed-in tariff (FIT) price and the role of financing are considered the dominant economic factors. A favorable FIT price enhances the profitability of AVS; however, it makes GM-PV systems more profitable compared to AVS, so it negatively affects the competitiveness of AVS systems. AVS operations result in a more balanced unit cost of apples and of electricity compared to the independent operation of GM-PV systems and of ConAPS; in addition, it allows for land saving and more intensive land use.

Keywords: agrophotovoltaic system; agri-solar; apple farming; economic analysis; unit cost analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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