Taiwan Solar PV Cost Forecasting Case Study: Agrivoltaics, Aquavoltaics and Dual Use System Adoption

The research team conducted a thorough cost analysis forecast and provided insights into implementing a dual-use system as a solution to the problem statement. They evaluated the cost implications of incorporating lactose replacers versus skimmed milk powder (SMP) in ice cream formulations, considering ingredient prices, processing expenses, and potential impacts on product volume and quality. The team forecasted that while lactose replacers might incur higher upfront ingredient costs, their use could lead to improved overrun and product volume, potentially offsetting the initial expenditure through increased sales volume. Additionally, they examined the dual-use system—where a production line could alternate between formulations containing lactose replacers and those with SMP—to maximize operational flexibility and meet varying consumer demands. This approach was projected to optimize resource utilization, reduce downtime, and allow for efficient scaling of both premium and value-oriented product lines. The research team recommended that the client adopt this dual-use system to balance cost efficiency with product innovation, thereby enhancing market responsiveness while maintaining control over production costs

The research methodology for cost assessment involved applying a bottom-up modelling approach to evaluate the systems’ costs accurately. This approach included detailed cost segmentation into CAPEX (modules, inverters, mounting structures), OPEX (maintenance, insurance), and soft costs (permitting, agronomic consultations). These cost elements were quantified based on data collected from EPC contractors, supplier bids, local pilot projects, and international benchmarks. Levelized Cost of Electricity (LCOE) calculations—incorporating discount rates, system degradation, and energy output—were used to provide a standardized view of economic viability. Sensitivity analyses were conducted to test how changes in capital costs or yield impacted the overall project economics.

Solutions

In Taiwan, where land scarcity was acute and solar targets were ambitious, a policy-driven approach was deemed essential to mainstream dual-use systems. This included differentiated feed-in tariffs for canopy-style agrivoltaics, dedicated subsidies for floating PV on reservoirs, and standardized engineering protocols to streamline design and reduce risk. Support mechanisms such as agricultural integration funds and technical training were recommended to encourage farmer adoption, while incentivizing domestic production of system components was suggested to help reduce cost premiums associated with imports.

Globally, the advancement of agrivoltaics and aquavoltaics was seen to require stronger public-private R&D collaboration, especially for emerging technologies like bifacial panels and low-cost floatation systems. Exportable design templates, such as modular kits for canals or vertical agri-PV units, were proposed to support scalability in developing regions. Multilateral climate funds and development banks were advised to integrate dual-use solar within climate adaptation and sustainable agriculture portfolios, using metrics like a “Carbon + Land Productivity Index” to prioritize high-impact projects.
Although dual-use solar systems involved higher upfront costs compared to traditional solar PV, their integrated environmental and socio-economic benefits positioned them as strategic investments. With rigorous cost modelling, tailored financial instruments, and supportive policies, both global markets and Taiwan were considered capable of scaling agrivoltaic and aquavoltaic solutions in a cost-effective and sustainable manner. Taiwan, in particular, was viewed as well-positioned to lead innovation in this domain, leveraging its solar manufacturing base, strong R&D ecosystem, and progressive energy policy framework to become a global model for dual-use solar deployment.

Problem statement

Insights on adoption of Solar PV modules and its Cost Forecasting and Innovative Applications

Background: 

Taiwan is rapidly expanding its solar photovoltaic (PV) market as part of its national strategy to increase renewable energy usage, enhance energy security, and achieve carbon neutrality by 2050. The government has set ambitious targets to grow solar capacity across utility-scale, commercial, and residential sectors. Due to limited flat land and unique geographical features, Taiwan is also exploring innovative solar PV applications such as agri-voltaics—where solar panels are integrated with agricultural production—and aqua-voltaics, which involve floating solar PV systems installed on reservoirs and other water bodies.

Problem statement:

Despite strong policy support, several challenges such as cost uncertainty persists because near-term global cost forecasts segmented by deployment scale—utility, commercial rooftops, and residential rooftops—are insufficient, complicating investment decisions. Furthermore, the costs and technology options for specialized applications like agri-voltaics and aqua-voltaics are not well documented locally, limiting guidance for stakeholders. Market barriers include high initial capital expenditures, constraints on land availability, grid integration complexities, and environmental challenges unique to Taiwan such as typhoons, high humidity, and salt corrosion, all of which increase project development and operational risks.

Solutions and Recommendations: 

The research team addressed several challenges and accelerated solar PV adoption in Taiwan, several strategies are recommended. First, financial incentives such as targeted subsidies and low-interest loans for floating solar and agri-voltaic projects can help offset high upfront capital costs and incentivize uptake. Second, fostering research and development through public-private partnerships is critical, particularly to develop durable, typhoon-resistant floating platforms and optimized agri-voltaic designs suited to Taiwan’s climate and agricultural needs. Third, integrated planning involving energy authorities, water resource managers, and agricultural stakeholders can improve site selection and minimize environmental impacts. Fourth, grid modernization investments, including smart grid technologies and distributed energy resource management systems, will facilitate efficient integration of variable solar power from dispersed installations. Finally, streamlining permitting processes to reduce regulatory delays and transaction costs will enable faster project deployment, especially for innovative solar PV applications.

Taiwan’s solar PV market is poised for significant growth, provided that stakeholders gain a clear understanding of cost trajectories and embrace innovative technologies such as agri-voltaics and aqua-voltaics. While these specialized systems currently face higher initial costs, targeted policy support, technological innovation, and coordinated planning efforts can overcome barriers, reduce costs over time, and accelerate Taiwan’s transition towards a sustainable and renewable energy future.