Research on agrivoltaic sheep-raising and grazing reveals two business models for making a profit. One approach is to breed sheep from birth, while the other involves buying lambs at auction, growing them, and reselling them. The breeding model is more profitable, with an 11% higher EBITDA margin due to higher costs of capital. However, the auction model offers a higher return on investment (ROI) because the upfront cost of buying new sheep each year is recouped by the end of the grazing period, without off-season expenses. The analysis found that sheep farming in conjunction with solar installations can be a profitable business, with returns ranging from 16% to 43%. Additionally, agrivoltaic sheep raising can increase available grass by up to 90% in arid regions, making it a viable option for producing more food on underutilized land. As farmland viability is threatened by climate change, this approach is gaining popularity. The study suggests that sheep farming and grazing in combination with solar installations can be a viable and profitable business opportunity.
Agrivoltaics’ business model yields a potential return on investment of 16-43%.
