An economic evaluation of photovoltaic systems as shade provision in cattle feeding operations: a preliminary interdisciplinary evaluation of energy production and cattle welfare

Abstract Agrivoltaics is an emerging field that combines the production of solar energy with agricultural activities, creating synergies that benefit both sectors. The objective of this study was to investigate the economic feasibility and welfare impact of integrating photovoltaic shading systems into feedyard operations. Four feedyards in the western United States with diverse operational profiles were used as case studies for this project. Information was gathered from the feedyards during onsite visits including layouts, energy usage, and cattle management practices. Conceptual PV layouts were developed and tailored to each site to maximize full energy consumption offset, continued operational access, and proportion of in-pen shading. Using industry-standard economic modeling, a base case economic analysis was conducted for each feedyard, using existing consumption data to estimate system size, capital expenditure (CapEx), operating expenses (OpEx), and cattle welfare values, with viability measured by an Internal Rate of Return (IRR) greater than 10%, a Multiple on Invested Capital (MOIC) greater than 1.5x, and a payback period less than 7 years. In the base analysis, IRR ranged from 1.78% to 7.19%, MOIC from 1.16x to 1.67x and payback period from 12.17 to 23.42 years across feedyards. However, sensitivity analyses revealed that grant funding (e.g., both federal and state grants to assist with capital expenditures) could dramatically improve outcomes, reducing payback periods to an average of 2 years and raising the average IRR to 17%. Findings indicate that economic returns for these projects are highly variable and significantly influenced by operation characteristics and availability of funds to incentivize implementation. Strategic placement in the feedyard is crucial for minimizing infrastructure development costs yet maximizing shade benefits to priority cattle areas (e.g., receiving or hospital pens). While a solar project can offer long-term protection against rising electricity costs, the number of panels needed to offset onsite electricity loads typically shades only a small portion of a typical feedyard pen. This research highlights the need for further studies across different geographic areas to better understand the variable benefits of agrivoltaics in cattle operations.