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

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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)

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.

Suggested Citation

  • Yi Liang & Michael Popp, 2025. "Economic Impact of Energy Accounting Schemes for Commercial Systems on a Broiler Farm with Power Demand and Generation," Energies, MDPI, vol. 18(4), pages 1-15, February.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:4:p:979-:d:1593622
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    References listed on IDEAS

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    1. Bazen, Ernest F. & Brown, Matthew A., 2009. "Feasibility of solar technology (photovoltaic) adoption: A case study on Tennessee's poultry industry," Renewable Energy, Elsevier, vol. 34(3), pages 748-754.
    2. Hughes, Larry & Bell, Jeff, 2006. "Compensating customer-generators: a taxonomy describing methods of compensating customer-generators for electricity supplied to the grid," Energy Policy, Elsevier, vol. 34(13), pages 1532-1539, September.
    3. Brothers, Dennis L. & Duke, Joshua M. & Rabinowitz, Adam & Gamez, Jose Garcia, 2022. "Factors Affecting Solar System Profitability for Southeastern Broiler Growers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2022.
    4. Antans Sauhats & Laila Zemite & Lubov Petrichenko & Igor Moshkin & Aivo Jasevics, 2018. "Estimating the Economic Impacts of Net Metering Schemes for Residential PV Systems with Profiling of Power Demand, Generation, and Market Prices," Energies, MDPI, vol. 11(11), pages 1-19, November.
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