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Financial Analysis of Agrivoltaic Sheep: Breeding and Auction Lamb Business Models

From Appropedia
Source data
Type Paper
Language English
Location Ontario
Cite as Citation reference for the source document. Adam Gasch, Rafael Lara, Joshua M. Pearce, Financial analysis of agrivoltaic sheep: Breeding and auction lamb business models, Applied Energy, 381, 2025, 125057, https://doi.org/10.1016/j.apenergy.2024.125057. Academia, preprint

Controlling vegetation on photovoltaic (PV) farms with sheep grazing is a mature form of agrivoltaics with massive potential to accelerate growth in the sheep farming industry. Agrivoltaic systems are environmentally superior to conventional PV systems, but sheep grazing business models have not been explored in detail. Thus, this study assesses profitability of agrivoltaic sheep grazing and lamb husbandry business models using case studies at two scales (200 kW to 465 MW) for breeding ewes for lambs on the farm and purchasing lambs from auction. For each model, revenue streams, costs and investments are investigated using sensitivity analyses. The results show that despite differences in operational approaches, both base cases, earnings before interest, tax, depreciation and amortization (EBITDA) margins are higher than agriculture industry values due to the increased and reliable revenue source of grazing services. Return on investments (ROIs) for the breeding model range for 16–31 % and the auction model 22–43 % for identical scenarios. While the breeding model exhibits higher EBITDA margins, the auction model offers greater ROI potential, reflecting trade-offs between operational efficiency and initial investments. The results clarify the resilience of agrivoltaics to economic fluctuations, while highlighting sheep agrivoltaics as a stable and profitable investment.

Highlights[edit | edit source]

  • Agrivoltaics: Solving land-use conflicts with dual-purpose solar farms.
  • Enhanced productivity: Improved EBITDA margins and competitive ROI.
  • Environmental benefits: Optimal land use efficiency and reduced emissions.
  • Economic potential: Canada's sheep supply can drive exports and rural growth.
  • Scalability: Agrivoltaics offer long-term profitability amidst market fluctuations.
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See also[edit | edit source]

The Western Innovation for Renewable Energy (WIRED) system is currently under construction to test out new open source methods to reduce PV systems costs and enable novel forms of agrivoltaics including the world's first agrivoltaic agrotunnel.

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Services provided by agrivoltaics are: renewable electricity generation, decreased green-house gas emissions, reduced climate change, increased crop yield, plant protection from excess solar energy, plant protection from inclement weather such as hail, water conservation, agricultural employment, local food, improved health from pollution reduction increased revenue for farmers, a hedge against inflation, the potential to produce nitrogen fertilizer on farm, on farm production of renewable fuels such as anhydrous ammonia or hydrogen, and electricity for EV charging for on- or off-farm use.
Agrivoltaics Canada - What is Agrivoltaics
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In the News[edit source]

  1. How agrivoltaics is marrying food production with green energy in Alberta CBC
    1. Solar burgers: How agrivoltaics is marrying food production with green energy Western Investor
    2. Comment l’agrivoltaïque associe production alimentaire et énergie verte Les Affaires
    3. Solar burgers: How agrivoltaics is marrying food production with green energy MSN
    4. Comment l'agrivoltaïque associe production alimentaire et énergie verte Le ChoseLaval
    5. CastaNet
    6. The Winnipeg Free Press
    7. Head Topics
    8. Morning Ag Clips
    9. Les Affaires
    10. LaTerre
    11. RD News
    12. Lethbridge News
    13. Famrs.com
    14. Enbeuce
  2. Agrivoltaics: solar energy + better crops Climate and Nature
  3. Why solar power and farmers’ fields could be the perfect combination TVO
  4. Solar farms and sheep show the makings of a clean energy classic duo Business Renewables
  5. Agrivoltaics charge up St. Albert-area farms St Albert Gazette
  6. Sheep, solar and crops. How some Alberta farms are creating ideal growing conditions Western Wheel
  7. Sheep, solar and crops. How some Alberta farms create ideal growing conditions Voxpopuli
  8. 3D printed clamps for front-surface PV mounting on wood racking PV Magazine
  9. Harvesting the Sun to Grow in the Shade Garden Culture Magazine
  10. What crops fit with vertical agrivoltaics? PV Magazine
  11. Agrivoltaics – Keeping the farm in the solar farm Green Energy Futures
  12. Booming solar industry has a growing appetite for weed-chomping crews CBC
    1. La floreciente industria solar tiene un creciente apetito por equipos de devoradores de maleza Espanol news
    2. Des cochons à l’ombre des panneaux solaires, l’agrivoltaïsme gagne en popularité Radio Canada
    3. Pigs in the shade of solar panels, agrivoltaics gains popularity Euro Day France
    4. Des porcs à l’ombre des panneaux solaires, l’agrivoltaïque gagne en popularité News Day France
    5. ICI Radio
    6. The Weather Network
  13. Agrowoltaika zyskuje na wartości. Panele słoneczne na polu nie przekreślają upraw Business Insider Poland
  14. Kanada/ Coraz popularniejsza agrowoltaika: rolnictwo i produkcja energii w jednym Deon Pl
  15. Tu zboże, tam fotowoltaika. Rolnicy produkują i żywność i energię na jednym polu Bankier PL
  16. Kanada: coraz popularniejsza agrowoltaika: rolnictwo i produkcja energii w jednym MSN PL
  17. Agrowoltaika podbija świat (Agrovoltaics is conquering the world ) Warzywnichtow Polish
  18. Coraz popularniejsza agrowoltaika - rolnictwo i produkcja energii w jednym Agro Polska
  19. Agriculture and Energy Future - Agrivoltaics Agritecture
  20. MBA students examine a solar farm’s benefits for critical issues case competition Ivey
  21. Ontario solar curbs rankle expert BNN Bloomberg
  22. Kanada: coraz popularniejsza agrowoltaika: rolnictwo i produkcja energii w jednym MSN Poland
  23. Agrivoltaics: Harvesting the sun to benefit farmers, crops, and livestock Shareable
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