Low-density agrivoltaics could drain farmers’ finances in West Africa

The findings reveal that high-density agrivoltaics not only generates more energy but also achieves consistently positive financial indicators, while medium- and low-density setups show mixed or negative results. The standalone PV plant still delivers the highest returns overall, but optimized agrivoltaic systems emerge as a strong compromise solution for regions balancing food production with rising electricity demand.

A new economic assessment of agrivoltaics in West Africa warns that not all solar-crop systems deliver meaningful financial returns, despite their strong potential to address the region’s worsening energy and food challenges. The findings, published in Sustainability, clearly state that high-density elevated solar arrays significantly outperform other agrivoltaic configurations in profitability, while low-density systems risk becoming a financial burden for farmers.

The research, titled “Agrivoltaics for Sustainable Energy and Food Production in West Africa: Profitability Assessment of Configurations Variation (Case of Burkina Faso)”, uses a one-hectare test plot to compare three elevated agrivoltaic designs against traditional agriculture and a ground-mounted PV plant across multiple land-price and discount-rate scenarios. 

The findings reveal that high-density agrivoltaics not only generates more energy but also achieves consistently positive financial indicators, while medium- and low-density setups show mixed or negative results. The standalone PV plant still delivers the highest returns overall, but optimized agrivoltaic systems emerge as a strong compromise solution for regions balancing food production with rising electricity demand.

High-density systems lead across all profitability metrics

The study evaluates three elevated agrivoltaic configurations, low, medium, and high panel density, each designed to accommodate crops such as tomatoes and peppers beneath the raised modules. The financial assessment uses standard investment metrics, including Net Present Value (NPV), Life Cycle Cost (LCC), Levelized Cost of Energy (LCOE), Profitability Index (PI), Internal Rate of Return (IRR), and Payback Period (PP). Scenarios incorporate five land-price levels and discount rates ranging from 6 percent to 12 percent to reflect varied market realities in Burkina Faso.

The results show that the high-density agrivoltaic configuration (Case 3) outperforms all other agrivoltaic designs. By maximizing installed solar capacity, it generates significantly more electricity, which drives its profitability even when crop yields decline slightly due to increased shading. Case 3 achieves positive NPVs across most conditions, competitive LCOE values, and payback periods often under 15 years. Its profitability index remains attractive, and the system continues to perform well even in scenarios with higher discount rates.

On the other hand, the low-density configuration (Case 1) performs poorly, with negative NPVs under many scenarios, high LCOE, and PI values below 1. In multiple simulations, the payback period exceeds the 25-year project lifetime, making it financially less viable than conventional agriculture. Medium-density systems (Case 2) show intermediate results: better than low-density installations but consistently weaker than high-density ones.

Energy production is the principal factor driving financial success. Higher installed capacity increases annual electricity output, lowers the cost per kilowatt-hour, and offsets reductions in crop productivity. This mechanism gives high-density systems a substantial advantage in regions where electricity access remains constrained and where energy demand is growing rapidly.

Standalone PV plants deliver highest returns but agrivoltaics offer strategic advantages

Although high-density agrivoltaics performs strongly, the analysis shows that the conventional ground-mounted PV plant still ranks as the most profitable option overall. Its larger installed capacity and uninterrupted exposure to sunlight give it the highest energy yield of all systems examined. In nearly all financial indicators, the standalone PV plant delivers the strongest performance, particularly at lower discount rates.

However, the authors caution that financial superiority does not automatically mean that standalone PV should be the default choice. Agrivoltaics provides dual-use efficiency by enabling simultaneous land use for food production and energy generation, a critical benefit in West African regions contending with shrinking arable land, rapid urbanization, and intensifying climate pressures. The dual function of agrivoltaic systems aligns with national resilience goals, especially in rural and peri-urban areas where communities depend heavily on agriculture.

The study makes an important distinction: the choice between agrivoltaics and standalone PV should depend on local context. In urban zones with expensive land and limited farming, standalone PV remains the preferred option. But in rural and semi-urban regions where agricultural livelihoods dominate, agrivoltaics emerges as a more balanced and socially relevant solution.

The research also notes that land price has a far greater negative impact on traditional agriculture and low-density agrivoltaics than on medium- and high-density systems. Where land is costly, low-density systems become especially unattractive, as their combination of lower energy output and limited agricultural gain makes it hard to offset land-related expenses.

Investment costs, land prices and system choice determine long-term viability

Installation cost is the most influential variable affecting overall profitability. Sensitivity analysis reveals that fluctuations in PV system costs significantly affect both LCOE and NPV, more so than changes in land price. This sensitivity reflects the high upfront capital requirement of agrivoltaic systems, which often exceed the cost of standard PV installations due to elevated racking structures and spacing.

The analysis highlights several important dynamics shaping the economic outlook:

• PV system costs matter more than land costs. Reducing capital expenditure on modules, mounting structures, and inverters has a larger impact on profitability than lowering land rental or purchase prices.
• Low-density agrivoltaics is disadvantaged in nearly all scenarios. The system does not produce enough electricity to compensate for either land costs or shading impacts on crops, rendering it a high-risk configuration for most investors.
• Medium-density systems offer balanced but modest gains. While not as profitable as high-density systems, they outperform low-density installations and can be viable when land prices remain moderate and energy tariffs are supportive.
• High-density systems consistently create value. Their ability to maximize energy yields under stable irradiance conditions in Burkina Faso makes them resilient to fluctuations in discount rates and crop performance.
• Traditional agriculture becomes uncompetitive as land prices rise. The findings show that food-only cultivation struggles to match the returns of energy-producing systems, especially when economic conditions tighten.

This highlights the importance of targeted investment support, incentives and policy frameworks if agrivoltaics is to expand beyond demonstration sites in West Africa.

Agrivoltaics positioned as a strategic tool in Burkina Faso’s food–energy future

Agrivoltaics has emerged globally as a promising response to climate stress, rising temperatures, water scarcity, and land-use conflict. In the context of Burkina Faso, where rural communities face mounting pressures from climate variability, soil degradation and growing electricity demand, dual-use systems offer a pathway to build local resilience.

The authors argue that optimized agrivoltaic systems could help stabilize both food production and energy supply in semi-arid regions. Elevated solar structures can reduce heat stress on crops, moderate soil temperatures, and help conserve moisture, all critical advantages in the Sahel. At the same time, the shade generated by panels supports vegetable crops commonly grown in family farming systems.

However, the study makes clear that not all agrivoltaic systems are equal. Low-density layouts may appear attractive due to their lighter shading impact, but the economics do not favor such designs. High-density systems, despite greater shading, offer stronger returns and remain compatible with many crops adapted to partial sun conditions.

The authors recommend that policy frameworks in West Africa incorporate agrivoltaics into energy and agricultural planning, particularly in regions where grid expansion is slow and where food production remains essential to livelihoods. They stress the importance of further research comparing alternative designs, such as vertical, rotating, or inter-row agrivoltaic systems that may optimize both crop yield and solar performance.