How does the Agrivoltaics & Dual-Use Solar Farming Economic Underwriter calculate financial return and payback?

The solver models gross capital expenditure (CapEx), Section 48 Investment Tax Credits (ITC 30%–50%), 5-year MACRS accelerated depreciation, utility demand charge shaving, and levelized cost of energy (LCOE).

Does this calculator account for battery degradation over time?

Yes, it models standardized degradation curves (typically 1.5% to 2.2% annually for LiFePO4 cells) and accounts for battery pack augmentation cycles across a 20-to-25 year lifecycle.

What federal tax credits apply under the Inflation Reduction Act?

Under Section 48 and Section 45Y, qualifying clean energy and battery storage installations unlock a 30% base ITC, plus potential 10% domestic content and 10% energy community bonus adders.

Agrivoltaics & Dual-Use Solar Farming Economic Underwriter

🚜 1. Farming & Agricultural Archetype

Dual-Use Agricultural Mode

Farmland Area (Acres)

Baseline Farm Net ($/Acre/yr)

Shade Microclimate Crop Yield Impact +8% (Moisture Retained)

In hot/arid climates, partial panel shading cuts soil evapotranspiration by 20–35%, preserving crop yield.

⚡ 2. Solar PV & Structural Clearance

PV System Capacity (MW-DC)

PPA / Energy Rate ($/kWh)

Minimum Leading Edge Height Clearance

Baseline Solar CapEx ($/W)

Specific Yield (kWh/kWp/yr)

🏛️ 3. Subsidies, Grants & Tax Credits

USDA REAP Section 9007 Grant Up to 50% eligible project grant (Capped at $500,000)

IRA Section 48 ITC (%)

O&M & Grazing Mowing ($/kW/yr)

Net Turnkey CapEx

$3,425,000

Incl. -$500,000 REAP Grant

Annual Stacked Revenue

$594,250/yr

$581k Solar + $13k Farm

Simple Payback / IRR

6.3 Yrs

15.8% Unlevered IRR

Dual-Use Land Productivity Comparison (Per Acre/Year) Land Equivalent Ratio (LER)

Baseline Farmland Only

$450 / Acre / Yr

Single-crop commodity yield vulnerable to drought and market swings.

Agrivoltaics Stacked Yield

$23,770 / Acre / Yr

52.8x increase in gross economic productivity per acre.

Solar Power Revenue Share 97.8%

Structural Elevation & Civil Premium Underwriting

Component / Budget Line	Unit Basis	Cost ($)	Impact Rationale

25-Year Cumulative Financial Lifespan

$11,845,000 Net Profit

Assumes 0.5%/yr PV module degradation, 2.5%/yr power rate escalation, and vegetation management mowing expense offset via livestock grazing ($6,500/yr saved on mechanical mowing and chemical herbicides).