Agri-PV in South African winegrowing: Successful examples, investment costs for Agri-PV systems and promising potential

Successful examples of Agri-PV in wine growing in South Africa

Agri-photovoltaics (agri-PV) combines agricultural production with renewable energy production and has the potential to revolutionize the sustainability and profitability of winegrowing. There are also promising approaches and successful implementations in South Africa, one of the world's most renowned wine-growing regions. A comprehensive overview of pilot projects, commercial applications, planned projects as well as challenges and potential is given below.

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• Viticulture and solar energy: Agri-photovoltaics (Agri-PV) in viticulture in South Africa - opportunities, challenges and potential

Pilot projects and research

Sunfarming Food & Energy Plant

Sunfarming has been operating an innovative “Food & Energy Plant” on the Northwest University campus in Potchefstroom since 2014. Scientific studies on the cultivation of food plants and herbs below solar modules are carried out here. The project was expanded in 2016 and now also serves as a training center for sustainable agriculture. This research impressively shows that Agri-PV not only provides energy, but can also have a positive impact on agriculture.

Geisenheim University

Geisenheim University is working in collaboration with South African partners to research the effects of Agri-PV on viticulture. Parameters such as yields, grape quality and the microclimate are examined in a unique real-world research laboratory. The aim is to create a scientifically sound basis for the use of Agri-PV in winegrowing and thus offer winemakers a solid basis for decision-making.

Commercial implementations

Avondale Wine Estate

The Avondale Wine Estate, known for its environmentally friendly wine production, recently installed a modern solar system, making the estate energy independent. Although this is not a classic agri-PV system, this example shows the wine industry's growing interest in renewable energy.

Boland Cellar

Boland Cellar, one of the largest wine companies in South Africa, has installed a 473 kilowatt photovoltaic system. This covers around a quarter of the company's energy needs and reduces electricity costs by 34%. The economic benefits of such an installation are an incentive for other winemakers to implement similar systems.

Planned projects

Sunfarming's expansion

Sunfarming is planning further “Food & Energy” plants in the South African provinces of Eastern and Western Cape. These will not only generate energy for private customers, but also serve as training centers for sustainable agriculture. Such projects highlight the growing interest in agri-PV as an innovative solution to energy and agricultural problems.

Challenges and potential

challenges

Despite the positive examples, there are some challenges that stand in the way of widespread implementation of Agri-PV:

• High initial investment: The costs of installing agri-PV systems are high and represent a financial burden for many winemakers.
• Bureaucratic hurdles: Approval processes can be complex and lengthy, making planning and implementation difficult.
• Technological requirements: Innovative technologies such as AI-driven, dynamic agri-PV systems can involve additional costs and technical effort.

Potentials

However, the advantages of Agri-PV should not be underestimated:

• Climate protection: Agri-PV can help winemakers adapt to the consequences of climate change. Shading through solar modules reduces heat and drought stress for the plants.
• Water savings: Studies show that evaporation can be reduced by 10-30% through Agri-PV, which is a huge benefit in water-stressed regions such as South Africa.
• Additional income: In addition to agricultural production, winemakers can develop additional sources of income through electricity generation.

With targeted research and policy support, Agri-PV could become a key factor in the sustainable transformation of South African viticulture.

Investment costs for agri-PV systems

The investment costs for Agri-PV systems in wine growing depend on numerous factors. General and specific information about costs is presented below.

General investments in agri-PV in South Africa

• In 2018, investment in photovoltaic systems in the South African agricultural sector was estimated at between 630 and 960 million rand (approximately 33-50 million euros).
• These investments corresponded to a total installed capacity of around 60 MWp.

Costs for specific projects

• The oldest winery in South Africa invested around 2.78 million rand (approx. 145,000 euros) in a solar system.
• Innovative, AI-driven Agri-PV systems can increase costs through advanced technology, but provide long-term economic benefits.

Factors affecting costs

• System size: Smaller systems can be more cost-effective but offer lower energy savings.
• Location: Local climatic conditions and soil conditions affect installation costs.
• Technology: Simpler systems are cheaper, while dynamic agri-PV solutions require higher investments.

economics

Despite the high initial investment, model calculations show promising economic viability:

• Even in unfavorable scenarios, a return of 23% and a net present value of over 2.5 million rand (approx. 130,000 euros) are forecast.
• In the best case, the return can be up to 43%, with a payback period of just 2.5 years.

However, actual costs and economic viability vary greatly depending on the project and local conditions. To make informed decisions, more detailed studies and pilot projects specific to wine growing are needed.

Agri-PV offers enormous opportunities for South African viticulture, both economically and environmentally. Successful pilot projects and initial commercial applications demonstrate the potential of this technology. Despite challenges such as high initial investments and bureaucratic hurdles, the potential benefits are overwhelming: protection against the effects of climate change, water savings and additional sources of income through electricity production. With further research, policy support and adapted funding programs, Agri-PV could be a key to the sustainable future of viticulture in South Africa.

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Renewable energies in viticulture: Agri-photovoltaics as a future solution in South Africa

Renewable energies in viticulture: Agri-photovoltaics as a future solution in South Africa - creative image: Xpert.Digital

The integration of photovoltaic systems in agriculture, especially in winegrowing, is experiencing increasing interest worldwide. There are also promising developments in the field of agri-photovoltaics (agri-PV) in South Africa, a country with a traditional wine-growing history and at the same time a high demand for renewable energies. The combination of agricultural use and solar power generation not only offers ecological advantages, but also opens up new economic perspectives for wineries.

Although Agri-PV is still in a comparatively early phase of development in South African viticulture, notable examples of successful pilot projects and commercial applications already exist. These initiatives demonstrate the great potential of this technology, but also face specific challenges.

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Pioneering work in research and development

An important foundation for the establishment of Agri-PV in South Africa was laid through scientific research projects. Particularly noteworthy is Sunfarming's “Food & Energy Plant”, which has been operating on the Northwest University campus in Potchefstroom since 2014. This innovative project serves as a real-world laboratory in which the interactions between food crops and solar modules are examined under real conditions. This is not just about pure electricity generation, but also about optimizing the cultivation of various crops and herbs in the partial shade of the solar modules. The facility was expanded to include a training center in 2016, underscoring the importance of knowledge transfer and training for the spread of agri-PV.

The Geisenheim University in Germany is also intensively involved in researching the effects of Agri-PV on viticulture in cooperation with South African partner institutions. Detailed studies are carried out in a unique real-world research laboratory to understand how shading from PV modules affects key aspects of viticulture. This includes the yields of the vines, the quality of the grapes and the microclimate in the vineyard. The knowledge gained is of crucial importance in order to optimally adapt agri-PV systems to the needs of viticulture and to maximize potential synergy effects. For example, it is being investigated how the changed incidence of light affects the photosynthesis of the vines or to what extent shading can offer protection against extreme heat and sunburn.

Commercial applications as a guide for the future

Beyond pure research, there are also encouraging examples of commercial implementations of agri-PV in South African viticulture. A pioneer in this area is the Avondale Wine Estate. Although the state-of-the-art solar system installed there is not designed as an agri-PV system in the classic sense, as it was not built directly over the vineyards, it impressively demonstrates the South African wine industry's growing interest in renewable energy solutions. The system enables Avondale to cover the entire energy needs of the winery itself and thus take an important step towards energy independence. This is a clear signal to the industry that sustainability and profitability can go hand in hand.

Another notable example is Boland Cellar, one of South Africa's largest wine companies. The company has installed a photovoltaic system with an output of 473 kilowatts. This plant is a prime example of how renewable energy can be integrated into the operations of a large wine producer. The solar energy generated already covers a quarter of the company's total energy needs and leads to a significant reduction in electricity costs by around 34 percent. These figures illustrate the economic potential of solar energy in the wine-growing sector and can serve as an incentive for further investments in renewable energies.

Planned projects with a focus on sustainability

The positive experiences and the growing awareness of the advantages of Agri-PV are leading to further concrete project planning. Sunfarming plans to build additional “Food & Energy” facilities in the key wine-growing regions of the Eastern and Western Cape. These projects have a dual purpose: On the one hand, the electricity generated is to be sold to private customers, which generates an additional source of income. On the other hand, the systems are intended to serve as training centers for sustainable agriculture and thus contribute to the dissemination of knowledge and best practices in the field of agri-PV. These planned initiatives show that Agri-PV is seen not only as an energy supplier, but also as a tool for promoting sustainable agricultural practices.

Challenges and solutions

Despite the promising examples, the widespread adoption and economic success of Agri-PV in South African winemaking still faces some challenges. A key factor is the comparatively high initial investment required to install agri-PV systems. These can represent a significant financial hurdle, especially for smaller wineries.

Another limiting factor are bureaucratic hurdles in the approval process for such systems. Complex and lengthy processes can delay the implementation of agri-PV projects and make them unattractive. Simplified and accelerated approval procedures are required to make investments in this promising area easier.

In addition, the need for adapted funding programs becomes clear. Government incentives and financial support could make a decisive contribution to reducing initial investment costs and improving the economic viability of agri-PV systems for wineries. Such support programs could include, for example, low-interest loans, investment grants or feed-in tariffs for the solar power generated.

The untapped potential: Advantages of Agri-PV in detail

Despite the challenges mentioned, the potential benefits of agri-PV in South African viticulture clearly outweigh the negatives. A central aspect is protection against the increasing effects of climate change. The shading provided by the solar modules can protect the vines from extreme heat and intense sunlight, which is particularly important in the hot summer months. This can reduce heat stress, prevent sunburn damage to the grapes and thus ensure the quality of the harvest.

In addition, Agri-PV helps save water. The reduced evaporation under the solar modules can significantly reduce the water requirements of the vines. It is estimated that water savings of 10 to 30 percent are realistic. In a region increasingly affected by drought and water scarcity, this represents an immense advantage and can significantly improve the long-term sustainability of viticulture.

Another important aspect is the additional source of income generated by electricity production. The solar power generated can either be used for personal consumption, which reduces energy costs, or fed into the public grid, which enables additional income. This diversification of income sources can increase the economic stability of wineries and make them more resilient to market fluctuations.

In addition to these direct benefits, Agri-PV also offers positive side effects. The shading provided by the modules can improve the microclimate in the vineyard, which can have a positive effect on the health of the plants and biodiversity. Some studies suggest that more diverse flora and fauna can colonize under agri-PV systems.

Investment costs: A challenge with a long-term perspective

The question of investment costs for agri-PV systems in wine growing in South Africa is complex and depends on various factors. Exact, general information is difficult to provide at this point in time, as the costs depend heavily on the size of the system, the technology chosen and the specific site conditions.

In general, it can be said that the initial investments for agri-PV systems tend to be higher than for conventional ground-mounted systems. This is due, among other things, to the additional expenses for the substructure, which must be dimensioned so that it supports the solar modules and also enables agricultural use underneath.

A 2018 estimate suggests that investment in PV systems across South Africa's agricultural sector was between R630 and R960 million, representing a total installed capacity of about 60 megawatts. However, these figures only provide a rough overview of the entire agricultural sector and do not allow any direct conclusions to be drawn about the specific costs in viticulture.

There is more specific information for individual projects. The cost of installing a solar system on South Africa's oldest winery was estimated at 2.78 million rand. However, it is important to note that this is not a classic agri-PV system, but rather a rooftop system.

The costs of Agri-PV systems are significantly influenced by the technology chosen. Innovative approaches such as dynamic agri-PV systems, in which the orientation of the solar modules is controlled by artificial intelligence, can optimize the efficiency of electricity generation and the synergy effects with agricultural use, but are usually also associated with higher costs.

Economic efficiency and long-term profitability

Despite the higher initial investment, various studies and model calculations indicate a potentially high profitability of agri-PV systems in winegrowing. Even in less favorable scenarios, returns of over 20 percent and a significant net present value were forecast. In the best case, the returns could be significantly higher, with payback periods of just a few years.

However, it is crucial to emphasize that these figures are based on estimates and model calculations and the actual economic viability depends heavily on the individual case. Factors such as solar radiation at the location, electricity prices, funding conditions and specific management practices play a crucial role.

For a more detailed cost-benefit analysis, further specific studies and pilot projects are required that specifically address the general conditions in South African viticulture. Not only the direct costs and returns should be taken into account, but also the long-term benefits such as improved resilience to climate change and the potential savings in operating costs.

Agri-PV as an opportunity for a sustainable future for South African viticulture

The examples and research results to date underline the considerable potential of Agri-PV in South African viticulture. The technology offers a promising opportunity to overcome the challenges of climate change, increase resource efficiency and at the same time strengthen the economic basis of wineries.

Although the initial investment costs and bureaucratic hurdles cannot be underestimated, the long-term prospects and potential benefits suggest that the use of agri-PV can be worthwhile for many wineries in South Africa. With further research, targeted funding programs and policies that support renewable energy innovation, agri-PV could play a key role in the sustainable transformation of South African viticulture and help make this important industry sustainable. The combination of traditional viticulture and modern solar technology is a promising approach to reconciling ecological and economic goals and preparing South African viticulture for the challenges of the future.

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