Economic Assessment of Solar Photovoltaics Use in Agricultural Greenhouses in Greece

Abstract

Modern greenhouses can utilize renewable energy sources for covering their energy requirements and reducing their carbon footprint. Solar photovoltaics use for power generation is currently a reliable and cost-effective technology which is used in many applications. The purpose of the current work is to investigate the possibility of using solar photovoltaics in agricultural greenhouses in Greece and to assess their profitability compared with the profitability of their use in households. Semi-transparent and opaque photovoltaic cells can be used for electricity generation with the net-metering regulations covering all their annual electricity needs. Existing studies in various countries concerning their use in greenhouses have reported a payback period of the investments of 4-10 years. In Greece the cost of electricity in the agricultural sector is subsidized while economic incentives are offered regarding the use of this technology in greenhouses. Economic assessment of the investment of solar photovoltaics in greenhouses for a period of 25 years in Greece indicates payback periods of 7.2 and 14.4 years, depending on capital subsidies obtained, while positive net present values are achieved. Their use in households in Greece has a payback period of 10.4 years while the net present value is also positive. The current study indicates that the use of solar photovoltaics in modern greenhouses in Greece supported financially by the government according to the net-metering regulations is profitable, offering economic and environmental benefits to the farmers.