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Parameter Study of Financial Analysis for Implementing Solar Photovoltaics Structural Snow Fences

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  • Namrata Bista

    (Department of Civil, Construction and Environmental Engineering, North Dakota State University, Fargo, ND 58104, USA)

  • Fangzheng Yuan

    (Upper Great Plains Transportation Institute, North Dakota State University, Fargo, ND 58104, USA)

  • Yao Yu

    (Department of Civil, Construction and Environmental Engineering, North Dakota State University, Fargo, ND 58104, USA)

  • Rui Miao

    (Department of Civil, Construction and Environmental Engineering, North Dakota State University, Fargo, ND 58104, USA)

  • Xiaoou Hu

    (Department of Civil, Construction and Environmental Engineering, North Dakota State University, Fargo, ND 58104, USA)

  • Mijia Yang

    (Department of Civil, Construction and Environmental Engineering, North Dakota State University, Fargo, ND 58104, USA)

Abstract

Structural snow fences are known as a cost-effective way to enhance road safety on highways, which, however, are only used during winter, making them “useless” during summer. To increase their cost-effectiveness, Photovoltaics Snow Fences (PVSF) were developed by integrating PV panels with conventional structural snow fences. As part of the feasibility study supported by the Minnesota Department of Transportation (MnDOT), a financial analysis was performed involving many parameters, such as the capital and operating costs of the PVSF system, installation orientation of the panels, discount rates, energy selling prices, availability of incentives, ownership of the PV system, etc. The effects of these parameters on the analysis results were evaluated, where critical (most sensitive) parameters were first identified, and then their quantitative effects on the analysis results were evaluated in terms of Net Present Value (NPV) and Internal Rate of Return (IRR). The results indicate that the real discount rate is the most sensitive parameter in determining the cost-effectiveness of a PVSF project in Minnesota by looking at its NPV, when the benefits, such as Federal Tax Credits, Renewable Energy Certificates, and those associated with the use of snow fences, are considered in the financial analysis. The cost of the PVSF system is the most sensitive parameter for IRR, depending on the ownership of the PV system (by MnDOT or via a Power Purchase Agreement).

Suggested Citation

  • Namrata Bista & Fangzheng Yuan & Yao Yu & Rui Miao & Xiaoou Hu & Mijia Yang, 2023. "Parameter Study of Financial Analysis for Implementing Solar Photovoltaics Structural Snow Fences," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1599-:d:1035222
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    References listed on IDEAS

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    1. De Schepper, Ellen & Van Passel, Steven & Manca, Jean & Thewys, Theo, 2012. "Combining photovoltaics and sound barriers – A feasibility study," Renewable Energy, Elsevier, vol. 46(C), pages 297-303.
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    3. Fthenakis, Vasilis M., 2000. "End-of-life management and recycling of PV modules," Energy Policy, Elsevier, vol. 28(14), pages 1051-1058, November.
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