Photovoltaic solar energy applied to irrigation: an analysis of the financial impact in Brazil

Irrigation plays a vital role in sustaining agricultural production during periods of low rainfall. While ensuring increased productivity and economic profitability, irrigation is associated with high electrical energy consumption. In 2018, Brazilian Decree 9642 eliminated discounts for rural consumers, established in 2013. Leveraging renewable energy sources for irrigation can mitigate nonrenewable energy dependence and reduce the electricity costs for irrigators. This study aimed to nationally compare the economic viability of on-grid photovoltaic systems as an alternative to conventional grid energy for agricultural irrigation, both pre- and post-Brazilian Decree 9642. We conducted a comprehensive life cycle cost (LCC) analysis for both systems before and after discount termination, facilitating more informed economic decisions. The LCC of the conventional grid energy increased by over 40% after the Decree, whereas the photovoltaic system saw a modest increase of 12%. The solar system’s 28% cost advantage over the conventional grid post-Decree underscores its resilience to regulatory changes. The photovoltaic system demonstrated viability when its LCC was equal to or lower than the comparator system’s LCC. Notably, the economic viability of the photovoltaic system extended across all geographic regions for the grid-connected system. This study highlights the competitive pricing, versatility, and economic impact of photovoltaic systems in the context of changes in Brazilian tariff legislation.