Proc.
of the International Conference on Electrical, Computer and Energy Technologies (ICECET)
Field assessment on Agrivoltaic Misai Kucing
Techno-economical approach in Solar Farming
2021 International Conference on Electrical, Computer and Energy Technologies (ICECET) | 978-1-6654-4231-2/21/$31.00 ©2021 IEEE | DOI: 10.1109/ICECET52533.2021.9698511
Mohammad Effendy Ya’acob Noor Fadzlinda Othman
Department of Process & Department of Agricultural
Food Engineering, Technology, Faculty of
Advanced Ligthning, Power Agricultural, Universiti Putra
and Energy Research Malaysia Serdang, Malaysia
(ALPER), Hybrid Agrivoltaic fadzlin013@gmail.com
System Showcase (HAVs),
Faculty of Engineering,
Ahmad Suhaizi Mat Su
Universiti Putra Malaysia
Department of Agricultural
Serdang, Malaysia
Technology, Faculty of
fendyupm@gmail.com
Agricultural, Universiti Putra
Malaysia Serdang, Malaysia
asuhaizi@upm.edu.my
Abstract— Agrivoltaic (AV) systems or solar farming which
combines agricultural activities with solar energy generation is
currently a critical topic being discussed worldwide. Integrating
these two resources would optimize the yield both in DC electricity
and green crops, improve Solar Photovoltaic (PV) energy
performance, and solve land scarcity especially in urban areas
besides mitigating carbon emission reductions (CER).
Recognizing the vast benefits of agrivoltaic system, researchers in
Universiti Putra Malaysia, Serdang are cultivating high-value
herbal crops directly under the solar PV arrays with proper
interventions to the existing solarfarm infrastructures and ground
conditions. This work established a proof-of-concept techno-
economic assessment for herbal tea products from Orthosiphon
Stamineus (Misai Kucing herbs) cultivated under agrivoltaic
condition at 2MWp Solar Farm Puchong, Selangor, Malaysia.
Field setup for 500 units of Misai Kucing (one string) planted in
16x16 polybags with soilless media (cocopeat + burned risk husk
+ chicken manure) and attached to fertigation system. The
economical assessment covers the overall capital expenses (Capex)
and operation expenses (Opex) with some potential monetary
benefits especially to farmers with return on investments (ROI)
less than 3 years operation. The project's net present value (NPV)
shows a good trend of profit that supports the herbal processing
facility project in agrivoltaic integration.
Keywords—High value herb, Agrivoltaic, PV systems, Crops
cultivation, NPV
I. INTRODUCTION
The concept of Agrivoltaics or the coupling of solar farming
tends to create dual beneficial use of agriculture and
photovoltaics applied on the same land to give better impacts
and maximize the yield. This system allows agricultural use and
electricity generating on the same land in a very cost-effective
way [1]. Agrivoltaic (AV) systems or solar farming which
combines agricultural activities with solar energy generation is
978-1-6654-4231-2/21/$31.00 ©2021 IEEE
Authorized licensed use limited to: COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY. Downloaded on June 25,2022 at 11:43:13 UTC from IEEE Xplore. Restrictions apply.
9-10 December 2021, Cape Town-South Africa
Mark Buda Elina Jani
Department of Agribusiness Malaysian Green Technology
and Bioresource Economics, and Climate Change Centre
Faculty of Agricultural, (MGTC),
Universiti Putra Malaysia Selangor, Malaysia
Serdang, Malaysia elina@mgtc.gov.my
markbuda@upm.edu.my
currently a critical topic being discussed worldwide. Integrating
these two resources would optimize the yield both in DC
electricity and green crops, improve Solar Photovoltaic (PV)
energy performance, and solve land scarcity especially in urban
areas besides mitigating carbon emission reductions (CER).
Agrivoltaic systems represent a key technology for
reaching sustainable development goals (SDG’s), by reducing
the competition of land used for food versus land used for
electricity. Moreover, agrivoltaic systems are at the centre of the
nexus between electricity production, crop production, and
irrigation water savings [2]. Rising demand for solar power
generation will lead to increased land use competition, and thus
to potential economic and social conflict. A solution to this
challenge is to produce food and energy within an agrivoltaic
system. Using large tracts of land for solar farms will increase
competition for land resources as food production demand and
energy demand are both growing and vie for the limited land
resources. As highlighted by Dinesh [3], the land competition is
exacerbated by the increasing population. These coupled land
challenges can be ameliorated using the concept of agrivoltaics
or co-developing the same area of land for both solar PV power
as well as for conventional agriculture. Since 2017, governments
in Japan, France, Massachusetts (USA), South Korea, and China
have introduced policies in supporting Agrivoltaic
implementation. Governments considering Agrivoltaic
implementation. Some evidence-based policy making are
demanding information on how levelized cost of electricity
(LCOE) of Agrivoltaic differs from that of conventional ground-
mounted photovoltaics (PV), as well as on how additional costs
associated with APV installation relate to the benefit of
maintaining agricultural activity under APV [4]
 The new method of farming within the solarfarm area is an
innovation of incorporating green energy into agriculture and
introducing modern aspect to both agriculture community and
solar industry in Malaysia especially. Agriculture activities
provides greater social impacts to community at large and the
economics of scale. One sample case study by Malu et al. [5]
considers the shade tolerance of grapes, for the installation of
PV systems. The electrical energy generation potential is
determined per unit area and economic benefits for the
cultivators is quantified over a number of design options.
Although an agrivoltaic land received about 60% of direct
sunlight compared to a land with no panels, farmlands have the
capacity to generate energy which is significantly more than that
required for crop production. Analysis shows that about 50% of
the agricultural land sales would have made up for the price of
the sale within 2 years with agrivoltaic systems. (Majumdar &
Pasqualetti, 2018). Continues efforts and incentives from the
Malaysia government to boost Solar Industry towards Green
Energy have develop great participations from the industry as
shown in Fig. 1
Fig. 1. Large Scale Solar (LSS) projects in Peninsula Malaysia during 2018
quota.
Weed Management has been the utmost issue in ground-
mounted large scale solar PV Farms in Malaysia as shown in
Fig. 2 which creates housing for Vertebrate Pests i.e rodents,
rats, snakes and other reptiles which damages the
communication cables. Another critical issue lies on the PV
shading effects where some weeds have the growth potential
above panels which creates a permanent shading thus reducing
the DC generation to the grid (lower revenues and might be
penalise by Power Authority). The Figure also reflects land
optimisation issue especially the unused area directly under
solar PV arrays and buffer zones. Agrivoltaic creates
opportunities in Large Scale Solar (LSS) projects which requires
huge land area (1MWp ~ 4 acre). Based on weed sampling
exercise in Selangor and Kedah solarfarm samples (flat land and
Authorized licensed use limited to: COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY. Downloaded on June 25,2022 at 11:43:13 UTC from IEEE Xplore. Restrictions apply.
hilly area), 50 weed species has been identified growing
especially underneath solar panels. Although the ground
maintenance schedule is in place, some issue of limited staffing/
budget, area too large to cover/ difficult to access, and speedy
weed growth during rainy season has been highlighted by the
operators. Some concerns on improper ground resistivity levels
to reduce damages to site equipment’s especially inverters and
communication devices are also rectified.
Fig. 2. Speedy weed growth gives negative effects to the solar farm operation.
Universiti Putra Malaysia (UPM) has launched the
Agrivoltaics4LSS Program as shown in Appendix 1 since May
2021 as an initiative supporting both Solar and Agriculture
Industry. The Agrivoltaic4LSS brings several benefits namely
a) Supporting both Solar and Agriculture Industry by
optimizing the land
b) Multiplying carbon footprint with increasing interest in LSS
agri-integration
c) Exploring and promoting new models for complementary
solar energy and agricultural production under Malaysia
weather condition
d) Cost Benefits on Farm maintenance, Landscape and
monitoring.
e) Increase visibility and promotion for SDG’s/ Greentech
f) Matching UPM expertise on Agriculture/ Solar PV and
human resources with solar industry
g) Support Government Initiatives for Tax Exemption on RnD
projects.
h) Enhancing marketability of graduates through agri-based
entrepreneurial development with industries
Recent work on Agrivoltaic natural cooling mechanism to
increase DC electrical generation and extend PV module
 lifespan have been initiated. This work established a proof-of- a) Financial :- to increase resource efficiency and lower
concept techno-economic assessment for herbal tea products life cycle cost
from Orthosiphon Stamineus (Misai Kucing herbs) cultivated b) Environmental :- to reduce hazardous material use,
under agrivoltaic condition at 2MWp Solar Farm Puchong, pollutionand waste generation
Selangor, Malaysia.
c) Social:- to improves labor health, productivity and
II. GREEN ECONOMY rights
Based on the published government policy [7] Malaysian III. SITE SETUP
recognises the importance of Green Government Procurement
(GGP) and that initial steps have been taken to implement it. The
Government's commitments are outlined in the Tenth Malaysia
Plan (10TH MALAYSIA) as shown in Fig. 3, New Economic
Model (MBE), Economic Transformation Programme; ETP),
NGTP, National Renewable Energy Policy and Action Plan;
NREPAP), Masterplan Small and Medium Enterprises
Masterplan Masterplan; SMEMP) (SME 2012) and Federal
Government annual budget in 2010. Under the ETP, the
government has made GGP one of the (Entry Point Projects;
EPP).

Fig 4. Misai Kucing cultivated underneath solar PV

Field setup for 500 units of Misai Kucing (one string) planted
in 16x16 polybags with soilless media (cocopeat + burned risk
husk + chicken manure) and attached to fertigation system are
installed as shown in Fig. 4. The selection of Misai Kucing as a
high value herbal crops in Malaysia, is based on their
sustainability, sustainable growth underneath solar PV and
medicinal benefits as depicted in Fig. 5.

Fig. 3. The new scope of Malaysia strategic policies on Green Initiatives Antibacterial
agent
Improve blood
The implementation of GGP requires proper planning and As a circulation and
changes in existing government procurement practices and has suplementary body
been introduced in stages, systematically and efficiently. Upon tea drink detoxification
completion of the pilot phase, the introduction of GGP in Misai Kucing
Malaysia will be guided by the Long Term Action Plan; LTAP) (Orthosiphon
Stamineus)
covers the time frame from 2015 to 2025. LTAP is part of the
effort towards Sustainable Consumption and Production (SCP)
will be launched in the form of a blueprint for Malaysia (SCP Treatments for Controlling
Malaysia Blueprint). The objectives of the Government Green kidney, gout, high blood
cancer and pressure
Procurement are leading towards: diabetic

Fig. 5. The uses of Misai Kucing Herbs

Authorized licensed use limited to: COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY. Downloaded on June 25,2022 at 11:43:13 UTC from IEEE Xplore. Restrictions apply.
 generating enough profit from its sales and whether operating
costs & overhead costs are being contained.

IV. TECHNO-ECONOMICAL ASSESSMENT

V. RESULTS AND DISCUSSIONS
The economical assessment covers the overall capital
expenses (Capex) and operation expenses (Opex) as listed in
TABLE 1. The annual revenue of Misai Kucing (MK) under Agrivoltaic
condition resulted in a good projected business performance
TABLE 1. CAPEX AND OPEX ITEMS FOR ECONOMICAL where the payback period is 2.4 years (29 months operation).
ASSESSMENT
This trend leads to a positive net present value (NPV) of
CAPEX OPEX
RM11.5M as shown in Fig. 6 and at an astonishing 70%
• Nursery with Racking Farm: average Net Profit Margin (NPM) for the period of 5 years
(20' x 20') • Administrative Personnel (1 person x
RM3000 x 12 months)
running. The MK price in average is RM385 based on the
• Fertigation System
• Weedmat with Pin • Labor (4 persons x RM2500 x 12 months) market survey conducted as shown in TABLE 2 and TABLE 3.
(lifespan • Utilities (Electricity & Water) This value is used to illustrate the potential revenues collected.
approximately Four • Fuel for Machinery (Green purchasing) A total of 42,000 units polybags could be cultivated for 5 acres
years) Agrivoltaic plots which produces 1,365kg dried MK per cycle
• Planting Equipment Planting:
• Media harvest. Since the cost of processing wet MK is relatively high,
• Small Machinery
• ATV • seedling replanting the fresh produce will be sent to third party (OEM) with the
• Manure estimated price of RM10 per kg (dry). The green procurement
• Seedling
• weedmat replacement
• Utilities setup
• Polybag (16" x 16") (Green materials)
has been included in the operational expenses related to
agricultural items and others with the value of 15% cost
Maintenance: increment (based on current market price).
• Fertilizers
• Herbicides
• Pesticides/ Fungicides

Post Harvest:
• Packing & Storage
• Transportation
• Drying Service (OEM)
• Miscellaneous (flushing, pipe repair, repair
works, groundwork, inflation etc)

NPV is the difference between the present value of cash inflows

and the present value of cash outflows over a period of time. It
accounts for the time value of money. NPV looks to assess the
profitability of a given investment on the basis that a ringgit in
Fig. 6. Projected NPV for Agrivoltaic Misai Kucing
the future is not worth the same as a ringgit today.

IRR is a discount rate that makes the NPV of cash flows equals TABLE 2. PRICE OF MISAI KUCING END PRODUCT
to zero. The higher the IRR, the more desirable an investment
is. Think of IRR as the rate of growth that an investment is
expected to generate annually. IRR is focusing on the
determining the breakeven rate at which the present value of the
future value becomes zero. The payback period focuses on
determining the time period within which the initial investment
can be recovered (https://efinancemanagement.com).

ROI directly measure the amount of return on an investment

relative to the investment's cost. It does not take into account
the holding period of time. ROI can be used as a simple guide
to understand the profitability of an investment. The financial
projection assumes exemption from tax throughout the
operation based on RnD/ green scope.

The NPM illustrates how much of each ringgit in revenue

translates into profit where it assesses whether a company is

Authorized licensed use limited to: COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY. Downloaded on June 25,2022 at 11:43:13 UTC from IEEE Xplore. Restrictions apply.
 The shorter time in payback period return usually associated
with less risk towards liquidity of the project. The steady
production of Misai Kucing is expected to bring the company a
positive net cash flow.
TABLE 3. PRICE OF DRIED MISAI KUCING IN THE MARKET
TABLE 4 and Fig. 7 shows the financial projection of Misai
Kucing cultivation and revenues from selling the dried MK
products. Year zero is the first year that shows the amount of
the initial investment (Capex) and each year shows good
incremental trends of profit projection.

SUMMARY
This field work established a proof-of-concept techno-
economic assessment for herbal tea products from Orthosiphon
Stamineus (Misai Kucing herbs) cultivated directly under
agrivoltaic condition at 2MWp Solar Farm Puchong, Selangor
with 500 units of Misai Kucing polybags in one string. The
projected financial values of NPV, IRR, ROI and NPM proofs
the realistic and profitable Agrivoltaic integration in existing
ground mounted Large Scale Solar PV farms. The techno
economical applied in Agrivoltaic provides extra values of
secondary business by optimising the space underneath solar
PV and reduce other associated risk related to weed
management in solar PV farm.

ACKNOWLEDGMENT
TABLE 4. SUMMARY OF FINANCIAL PROJECTION
The authors delegate our thanks to the Ministry of Energy
Financial Analysis Value and Natural Resources (MENR) for the Malaysia Energy
Supply Industry Trust Account (MESITA) Grants Scheme
r 3.5%
Vot 6300921.
Payback Period years 2.445
REFERENCES
months 29.34
[1] W. Liu et al., “A novel agricultural photovoltaic system based on solar
spectrum separation,” Solar Energy, vol. 162, pp. 84–94, Mar. 2018, doi:
10.1016/j.solener.2017.12.053.
5 Years Projection
NPV RM5,965,996 [2] Campana, P. E., Stridh, B., Amaducci, S., & Colauzzi, M. (2021).
Optimization of vertically mounted agrivoltaic systems. arXiv preprint
IRR 232.4%
arXiv:2104.02124.
ROI 1126.5%
[3] H. Dinesh and J. M. Pearce, “The potential of agrivoltaic systems,”
NPV/investment RM10.06
Renewable and Sustainable Energy Reviews, vol. 54, pp. 299–308, 2016,
doi: 10.1016/j.rser.2015.10.024.

[4] S. Schindele et al., “Implementation of agrophotovoltaics: Techno-

economic analysis of the price-performance ratio and its policy
implications,” Applied Energy, vol. 265, no. October 2019, p. 114737,
2020, doi: 10.1016/j.apenergy.2020.114737.

[5] P. R. Malu, U. S. Sharma, and J. M. Pearce, “Agrivoltaic potential on

grape farms in India,” Sustainable Energy Technologies and Assessments,
vol. 23, no. August, pp. 104–110, 2017, doi:
10.1016/J.SETA.2017.08.004.

[6] D. Majumdar and M. J. Pasqualetti, “Dual use of agricultural land:

Introducing ‘agrivoltaics’ in Phoenix Metropolitan Statistical Area,
USA,” Landscape and Urban Planning, vol. 170, pp. 150–168, Feb. 2018,
doi: 10.1016/j.landurbplan.2017.10.011.

[7] Government Green Procurement. Accessed: Nov. 15, 2021. [Online].

Available: https://www.myhijau.my/

Fig. 7. Financial projection showing a payback period less than 3 years in

operation.

Authorized licensed use limited to: COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY. Downloaded on June 25,2022 at 11:43:13 UTC from IEEE Xplore. Restrictions apply.
 APPENDIX 1

Authorized licensed use limited to: COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY. Downloaded on June 25,2022 at 11:43:13 UTC from IEEE Xplore. Restrictions apply.