Profitable continued operation of the PV system for agricultural enterprises after the end of the funding
With the expiration of the feed-in tariff under the German EEG law, an unbureaucratic source of income is lost for agricultural businesses. Times are tough for family farms, with high bureaucratic requirements, economic pressure from free trade agreements, and not least increased risks from epidemics. However, new opportunities are emerging to save costs, minimize operational risks, and sustainably and economically continue to operate the already depreciated solar installations. With manageable investments and short return on investment periods. This is a German example, but it might be adapted to any EU farmer.
Initial situation
The agricultural operation is idyllically located between Oldenburg and Bremen and is supplied by the energy provider EWE. The existing photovoltaic system (PV system) of the farm is approaching the end of the guaranteed feed-in tariff under the Renewable Energy Sources Act (EEG) after 20 years. The farm also has accommodations for harvest workers with corresponding heating and hot water needs. Additionally, the milking machine, which is operated mainly in the mornings and evenings outside of peak sunlight hours, as well as the milk cooling system, must be continuously supplied with electricity. The milk cooling system is organized in such a way that the waste heat can be used for heating the residential house, the harvest workers' accommodations, and other operational buildings. The milking machine has a high starting current, which can lead to increased electricity costs.
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Challenge
After the end of the EEG funding, the operator receives only the so-called "annual market value for solar," which is currently around 7 ct/kWh and fluctuates significantly, being very uncertain during election periods. This uncertainty and potentially lower compensation make exclusive grid feeding less attractive. Additionally, high starting currents from the milking machine can lead to peak loads that may cause higher grid fees.
Solution
Installation of the Acada ESY HM20-60 Smart Inverter with Battery Storage
To maximize the self-consumption of the self-generated solar power and reduce electricity costs, an Acada ESY HM20-60 battery storage system was installed. This system allows for the storage of excess solar power and its use when needed, especially during the operating hours of the milking machine and in low-sunlight hours.
Advantages of the system for the agricultural operation
1. Increase in self-consumption: By storing energy, the farm can utilize a larger share of the generated solar power itself, which reduces dependence on the power grid and saves costs.
2. Peak load management: The battery storage buffers high starting currents of the milking machine, thereby avoiding load peaks and reducing grid fees.
3. Emergency power supply: In case of power outages, the system continues to supply critical consumers such as the milking machine and milk cooling with energy.
4. Recharge through solar energy: Even during power outages, the battery storage can be charged via the PV system, which increases the autonomy of the operation.
Cost-benefit analysis
Before the installation, a detailed consumption analysis was conducted to determine the optimal sizing of the battery storage system. The total investment, including the necessary modifications by a licensed electrical contractor, amounted to approximately €35,000. With an assumed interest rate of 4%, the payback period is about 4 years.
The following graphic illustrates the projected cost and savings development over a period of 10 years:
Project Workflow
Good planning - fast delivery - professional implementation
Request
The farm determines the investment needs and approaches Acada GmbH. Acada offers the system and promptly gets in touch with the supervising electrical company.
Measurement
Some continuous measurements are being conducted on the farm to verify consumption data and feed-in data. The customer had already collected data for over a year, which just needed to be verified.
Order
The courtyard orders the HM20-60 system from Acada and the installation from its electrical specialist company...
Installation
The system is installed and put into operation within one day. An additional day was needed to prepare the installation site. A power outage for the operation was not necessary.
"We were completely satisfied. From planning to installation, it went really quickly, and I was always well informed about how Acada responded to the specific features that our farm has to offer."
I particularly liked that the planned costs and installation times were not exceeded despite some unforeseen obstacles, and that the system is running on time for spring and saving money.
