Agrivoltaic systems boost indoor farming economics

What happened

According to pv magazine, researchers at Canada's Western University have shown that combining solar installations with indoor farming agrotunnels can mitigate high electricity expenses. These enclosed structures protect crops from adverse weather and pests while maintaining controlled growing conditions. High energy bills often push indoor farming operations into bankruptcy, making low-cost solar power a viable solution to improve financial outcomes.

The research team conducted experiments focusing on basil cultivation using different planting densities and lighting regimes. By scaling these findings to a commercial facility featuring thousands of growing ports, the scientists modelled energy consumption across LED lights, heat pumps, ventilation systems, dehumidifiers and irrigation pumps. They evaluated financial models across six North American locations in Canada and the United States, factoring in local climate variations, capital investments, maintenance expenses and crop revenues.

Financial performance

The analysis revealed that configuring the systems with three plants per pot under continuous lighting maximized annual yields. Grid-connected photovoltaic setups substantially lowered electricity expenditures, achieving near-zero net power consumption across most tested sites. Capital costs for the evaluated facilities varied, while production expenses per kilogram remained tied to local tariffs and market conditions.

The study calculated strong returns on investment alongside short discounted payback periods. Canadian cities generally recorded higher net present values compared to their American counterparts, influenced by local regulatory frameworks and electricity export compensation rules. Sensitivity analyses highlighted that crop market prices and initial construction expenses exerted the greatest influence on overall profitability.

Why it matters

Energy reliability and affordability dictate the viability of controlled-environment agriculture across developing and developed markets alike. In regions facing grid constraints, integrating decentralized solar power into agricultural production offers a pathway to bypass expensive fossil-fuel generation. While Canada achieves full electricity access with a significant renewable share, many emerging economies grapple with volatile power supplies that threaten commercial agribusiness ventures. Adopting optimized agrivoltaic frameworks could help shield agricultural investors from energy price shocks, supporting food security and sustainable rural industrialisation across diverse operating environments.