The cost structure of solar energy systems for farms

Transitioning to solar energy involves understanding the various components of a solar power system, the different options available, and how the costs thereof are calculated, writes Cobus du Plessis.

- Cobus du Plessis

As electricity costs in South Africa continue to rise and the reliability of grid power becomes increasingly uncertain, many farmers are turning to solar energy as a sustainable, long-term solution. Solar power not only reduces dependence on Eskom but also offers long-term cost savings, energy independence, and environmental benefits.

This article provides a guide to costing solar energy systems for farmers. It covers the reasons for adopting solar power, different types of systems, how to calculate energy needs, upfront and maintenance costs, financing options, and essential financial metrics like the payback period and return on investment.

The goal is to equip farmers with the information needed to make an informed decision.

DIFFERENT TYPES OF SOLAR ENERGY SYSTEMS

Farmers have three main solar energy system options to choose from: grid-tied, hybrid, and off-grid. Each one has its advantages and comes with distinct costs.

Grid-tied systems are connected to the national electricity grid. They allow farmers to use solar energy during the day and draw power from the grid when solar production is insufficient.

These systems are the most affordable but do not provide backup power during load-shedding.

Hybrid systems combine solar panels with battery storage and remain connected to the grid. They provide flexibility by storing excess solar energy for use during nighttime or power outages, ensuring energy reliability.

Hybrid systems are more expensive than grid-tied systems but offer improved energy independence.

Off-grid systems operate independently of the national grid and require large battery banks to store energy.

These systems are ideal for remote farms without access to grid power. While they provide full energy independence, off-grid systems have the highest upfront costs due to the extensive battery storage required.

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