Economics of Open-Source Solar Photovoltaic Powered Cryptocurrency Mining

Abstract

Solar photovoltaic (PV) technology offers a promising means to alleviate environmental and electricity costs challenges for cryptocurrency miners. To analyze this promise, this study investigated the feasibility of using electricity from individually optimized PV systems to power: 1) an individual Bitcoin miner, 2) a DIY intermodal shipping container holding 50 miners, and 3) a commercial mining farm container holding 408 miners. In a controlled lab environment, miners were monitored for electricity use. Then using these values, numerical simulations of both the PV system yield and sensitivity ranges based on the Bitcoin price, Bitcoin halving events, and miner hardware were investigated for informed financial planning. In addition, sensitivity for geographic locations in North America, utility electric rates and PV capital costs were analyzed. The profitability and return on investment (ROI) varied by location primarily because of the geographic distribution of solar flux and utility rates. The ROI for using PV with Bitcoin mining was found to be negative for Toronto and Montreal because of low-cost electricity, while it was 8% for Calgary. In the U.S. cities evaluated, the ROIs were substantial and ranged from 34% in New York, to 64% in Boulder, and up to 104% in Los Angeles. Although the study is based in North America regarding energy rates, climate, and energy laws, the analysis methodology is generalizable globally and grants the average cryptocurrency business the knowledge to make an informed decision on whether to pursue this venture from a financial and environmental perspective. This study contributes to the body of knowledge in cryptocurrency mining by providing an economic means of environmental preservation by powering cryptocurrency miners with renewable solar energy.

The Agrivoltaic Potential of Canada

“…(i) decarbonizing transportation by moving to electric vehicles [125,126] and hydrogen fuel (e.g., mirror the hub and spoke collection system developed by dairy producers for on-farm hydrogen production by agrivoltaics [127]); (ii) decarbonizing heating using heat pumps that are already economical in Canada [5], (iii) powering increased computing operations [78,128,129], and (iv) exporting electricity to the fossil fuel-dependent U.S. [130].…”

“…In addition, as the solar PV system is a capital asset that generates economic value that increases with inflation, it can be viewed as a financial means to hedge against inflation during times of high inflation [77]. Agrivoltaics can be coupled to large loads from computing facilities such as those running AI, server farms, and cryptocurrency miners [78]. There is a particularly good potential symbiosis between server waste heat, greenhouses, and agrivoltaics for powering both systems [79].…”

Maximizing Biomass with Agrivoltaics: Potential and Policy in Saskatchewan Canada

“…In addition, this approach is compatible with bringing mobile loads to the farms. For example, it has been proposed to use agrivoltaics to power computing facilities (e.g., servers, cryptocurrency [59], etc.). In turn, such computing facilities provide waste heat that can be used profitably in greenhouses [60].…”

“…Research is also needed for supplementary or secondary systems, which can make use of agrivoltaics-based electricity generation such as sourcing pumps and irrigations networks, the processing of crops, the production of fertilizers and fuels such as hydrogen, as well as charging electric vehicles. Another use of agrivoltaics-based electricity could be to source data miners for cryptocurrency or other computing uses (e.g., AI) [59]. There is also great potential of integrating thermal energy from computing/servers, greenhouses and agrivoltaics to energize both facilities [60], which needs to be further investigated.…”

Energy Policy for Agrivoltaics in Alberta Canada

“…In addition to transportation electrification, the vast quantities of electricity made available by a large-scale role out of agrivoltaics could be used in computing. Both cryptocurrency mining [136,137] and data centers [138] can also benefit from an agrivoltaic facility. Crypto miners use powerful computing equipment to solve mathematical algorithms.…”