Impact of Agricultural Photovoltaic on the Farm Household Income

This study examined the impact of photovoltaic use on farm household income. Construction of photovoltaics on agricultural areas of crop planting could be a benefit to farmers depending on the incentives. We designed a farm household income calculation model to considering farm income, off-farm income, transfer income, and non-current income. Reduced production by photovoltaics causes a decrease in farm income, while power generation increases the off-farm income. Our model generated income changes based on assumptions of financial and electrical supports that affect off-farm income and productivity that influence farm income. Our results showed that farm household income could be increased if benefit supports followed the current condition. The farm income slightly decreased, but the off-farm income showed a large relative increase, producing an overall increase in income. However, if benefit supports were worse than our baseline assumptions, the farm household income could be decreased. Therefore, our study implies the effect of benefit supports for photovoltaics in Korean agriculture on farm household income. These results can help policy makers and farmers determine the use of photovoltaics in agriculture.