Solar energy is a promising technology that could improve sustainability and reduce production costs, but poultry producers must first determine if the benefits outweigh the initial investment required.
“When you put in different kinds of systems, how long does it take for those to pay off? What kind of financing do you need to look at? What’s the capital investment?” said Michael Popp, professor of Agricultural Economics and Agribusiness for the Division of Agriculture of the University of Arkansas.
Popp developed the Poultry Solar Assessment tool with graduate students and in consultation with experts. It is scheduled to launch online in October. It offers poultry producers a simplified way to analyze the advantages and values of solar for their farm, based on farm-specific information.
“I wanted to provide an opportunity for independent analysis,” Popp explained.
Solar’s poultry potential
According to previous research from the University, a solar energy project at a Cleveland County, Arkansas poultry production operation resulted in a 90% reduction compared to the farms typical annual electricity expense. During 2021, the poultry grower paid only account charges – between $15 and $25 per month – for 11 of the 12 months.
To that end, solar power can reduce production costs in the long run. It can also lower input cost risk by knowing what costs are up front rather than living with the uncertainty of rising energy prices. Finally, solar does not draw down fossil energy reserves.
“I think it makes a lot of sense because poultry operations spend a significant amount of their budget on electricity for ventilation, heating, cooling and water pressure,” Popp added.
Confronting the costs of solar
Despite the benefits, upfront costs can be pricy. It’s important to remember that bill reduction requires up-front costs that need to be financed over the 30-year useful life of the project.
The Poultry Solar Assessment tool uses farm-specific information, like the last 12 months of electric bill information and potential financing terms, to give interested poultry growers a snapshot of when financial benefits are realized at different times over the project period.
The free tool will join a line of decision support tools for every segment of Arkansas’ agricultural industry at agribusiness.uark.edu/decision-support-software.
