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

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 Ene...

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Main Authors: Yi Liang, Michael Popp
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Energies
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Online Access:https://www.mdpi.com/1996-1073/18/4/979
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author Yi Liang
Michael Popp
author_facet Yi Liang
Michael Popp
author_sort Yi Liang
collection DOAJ
description 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<sub>p</sub>, while substantially short of meeting energy needs, resulted in an 85% self-consumption ratio, whereas the larger 70 kW<sub>p</sub> and 105 kW<sub>p</sub> 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.
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spelling doaj-art-e277e86e306f4f01af7f4d1dbaee3cb02025-08-20T02:44:56ZengMDPI AGEnergies1996-10732025-02-0118497910.3390/en18040979Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and GenerationYi Liang0Michael Popp1Department of Biological and Agricultural Engineering, 203 White Engineering Hall, Fayetteville, AR 72701, USADepartment of Agricultural Economics and Agribusiness, 405 N Campus Walk, Fayetteville, AR 72703, USAThe 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<sub>p</sub>, while substantially short of meeting energy needs, resulted in an 85% self-consumption ratio, whereas the larger 70 kW<sub>p</sub> and 105 kW<sub>p</sub> 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.https://www.mdpi.com/1996-1073/18/4/979photovoltaic systemsdistributed generationprice support schemesnet metering systems
spellingShingle Yi Liang
Michael Popp
Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation
Energies
photovoltaic systems
distributed generation
price support schemes
net metering systems
title Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation
title_full Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation
title_fullStr Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation
title_full_unstemmed Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation
title_short Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation
title_sort economic impact of energy accounting schemes for commercial systems on a broiler farm with power demand and generation
topic photovoltaic systems
distributed generation
price support schemes
net metering systems
url https://www.mdpi.com/1996-1073/18/4/979
work_keys_str_mv AT yiliang economicimpactofenergyaccountingschemesforcommercialsystemsonabroilerfarmwithpowerdemandandgeneration
AT michaelpopp economicimpactofenergyaccountingschemesforcommercialsystemsonabroilerfarmwithpowerdemandandgeneration