Feed in tariff need for ROI on solar for dairy

A dairy in the Lockyer Valley region, milking 250 cows, has implemented a photovoltaic (PV) system and management opportunity based on the energy audit report the farm received through the Energy Savers Plus Program Extension. Through the program the business site received a dairy shed energy audit carried out by AgVet Energy and an electrical site analysis performed by Solar Energy & Battery Storage Solutions (SEBSS) as well as an irrigation energy audit completed by The Energy Guys, all engaged by eastAUSmilk.

The goal of the business is to reduce electricity costs by implementing a PV System and making maximum use of the energy generated by the system to reduce energy imported by the grid.

Thanks to data provided by SEBSS performance monitoring of the Solar PV system, I was able to evaluate the savings and outcomes achieved from the farms investment.

Monitoring the farm energy use from June to August 2021 the load was 314 kWh/day with an average 271 kWh/day being supplied by the grid. With average grid supply cost of 20 c/kWh the 43 kWh being supplied by PV the system conservatively achieves a grid annual saving of $3,139.

As the business was on demand tariff 44 no income was being generated from the excess solar being fed into the grid. The business aims to move to a consumption tariff, so we explored the potential income from an expected feed in tariff of 7.84c/kWh.

With the average utilisation currently of 44% annually the PV system is expected to export 30,660 kWh. Potentially generating just over $2,400 per year.

With the increase of solar utilisation expected due to irrigation through summer the income generated through solar export will be reduced; however, this means the total business savings provided by the system will be higher as the export rate of 7.84 c/kWh is far less than the grid supply rate of 20 c/kWh. Provided that irrigation occurs during sunlight hours to make the most of the PV output.

The total expenditure invested by the business was $37,000. With over $3,000 in annual savings from reduced grid supply the calculated payback period of this investment is 11.78 years with a return on investment of 8.5%.

If the business is able to generate income from the PV export the total annual savings $5,542 would reduce the calculated payback period to 6.68 years with a return on investment of 15%.

Solar Energy & Battery Storage Solutions (SEBSS) can provide a comprehensive electrical data analysis for your business, Paul Reynolds on 0414 636 099.

Torie Harrison – eastAUSmilk