Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation

Yi Liang () and Michael Popp
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Yi Liang: Department of Biological and Agricultural Engineering, 203 White Engineering Hall, Fayetteville, AR 72701, USA
Michael Popp: Department of Agricultural Economics and Agribusiness, 405 N Campus Walk, Fayetteville, AR 72703, USA

Energies, 2025, vol. 18, issue 4, 1-15

Abstract: The aim of this study was to assess the impact of the on-farm solar photovoltaic (PV) generation to offset grid electricity consumption on a commercial poultry farm in the US. Hourly electricity production by PV systems was estimated using the System Advisor Model (SAM) of the National Renewable Energy Lab (NREL) and compared with the estimated electric load demand of a broiler house. We analyzed the economic benefits of installing solar systems of three capacities under net energy metering and net energy billing pricing scenarios. Results suggested that a smaller PV installation of 35 kW p , while substantially short of meeting energy needs, resulted in an 85% self-consumption ratio, whereas the larger 70 kW p and 105 kW p PV systems, led to 59% and 42% self-consumption ratios, respectively. This is important when analyzing pricing schemes as lesser amounts of PV energy created are sold to the grid with the smallest system, and, thereby, the least pricing effects on profitability occur across pricing scenarios. Although all scenarios lead to positive net present values (NPVs), under either type of the pricing scenarios, farm business owners realize more favorable energy sales with NEM, which would spur PV system adoption. Results of this study thus provide information to both poultry farmers, considering the size of system installations and policy makers interested in affordably increasing renewable energy supplies and/or rural development.

Keywords: photovoltaic systems; distributed generation; price support schemes; net metering systems (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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