Techno-Economic Assessment of Solar Photovoltaic for Agro-Processing in Rural Africa: Evidence from Shea Butter Processing Facility

This study evaluates the techno-economic performance of solar photovoltaic (PV) systems for powering a 7 t/day shea butter processing plant to address electricity constraints limiting rural processing and local value capture. Annual electricity demand is modeled under three operational scenarios: (i) a typical processing season from November to February; (ii) an extended season until mid-May; and (iii) near year-round operation with eleven months of processing. Using detailed load modeling and techno-economic simulations in HOMER Pro, off-grid PV/battery systems and grid-connected PV hybrids are compared using the levelized cost of electricity (LCOE). In scenario 1, the national grid remains the most cost-effective solution. Scenario 2 reveals that integrating 35% solar PV into the grid becomes economically attractive, offering a recoverable value of 263.33 thousand USD within 7.73 years. In scenario 3, the grid/PV/battery configuration emerges as the optimal solution, providing the lowest cost of electricity at 0.246 USD/kWh compared to 0.319 USD/kWh for a grid-only supply and delivering an internal rate of return (IRR) of 20.7%. Under the same scenario, the standalone PV/battery system also demonstrates strong economic viability, with a cost of 0.292 USD/kWh and an IRR of 9.2%, lower than average tariffs from PV mini-grid developers in sub-Saharan Africa. These results demonstrate the profitability and viability of PV-based systems in powering food processing facilities in off-grid regions.