What is an agrivoltaic system?​

The agrivoltaic installation uses the share of the sun irradiation by photovoltaic modules and the agricultural land underneath. This concept derails the conflict between photovoltaic energy production and agricultural production. The basic idea, which motivated the early pioneers of the AGV (Or APV) is to have a minimal impact on the agricultural land used for photovoltaic production and thus leave it available for cultivation. The first experiments related to this technology date back to the early 80s and had to wait until 2011 in Italy to see a concrete and sustainable evolution of the concept, which issued the name Agrovoltaico®. 

With the support of incentive tariffs, which do not distinguish between a ground-mounted PV plant and an agrivoltaic plant, in Northern Italy, 6.7 MW of plants were connected in 2011, covering 45 hectares of agricultural land. Under these plants, various crops have been cultivated including corn, rice, wheat, and barley, through classic agricultural means and without changing the methods of cultivation.

In recent years, worldwide interest in this technology has increased and has become the subject of research by several institutions, both public and private. Last year, for example, the European Commission approved Italy’s €1.7 billion Italian State aid scheme under the Recovery and Resilience Facility to support 1.04 GW of agrivoltaic installations by 2026. 

Case example: Borgo Virgilio ​

This system can reconcile food production with the supply of energy from renewable sources.

The panels are built on suspended structures, which have mounted axes that hold the photovoltaic panels. These panels rotate thanks to the presence of an engine connected through a wireless communication system.

This type of structure allows the panels to adjust both orientation and inclination in relation to the position of the sun, in order to turn their surface perpendicular to the direction of the sun’s rays. In this way, the panels can intercept the largest amount of solar irradiation compared to traditional systems. 

At the same time, crop productivity can be stimulated by modifying the inclination of the panel during the different stages of the plant’s life cycle. This is a fundamental feature, thanks to which the system allows the change of the amount of light during the phenological phases considered critical. 

For example, this happens during the setting of fruits or ripening, where it might be considered appropriate to increase the amount of light available for the plant. While in the phases not critical to development, it may be more advantageous to favor shading and consequently electricity production. It should be noted that light requirements vary according to the culture, the phenological phase, and the climate.

The advantages of agrivoltaic systems​

The panels affect the amount of shade that the soil or crop receives. As a result, two areas are created. The first one is adjacent to the main axis of the panels where the shade is more intense. The second corresponds to the area where the shading occurs only at certain times of the day. Shadow, if handled correctly, has prominent advantages:

• Reduces the amount of water used by the plant.
• Promotes the maintenance of moisture inside the soil. 
• Promotes the formation of a microclimate below the panels, in which, external temperatures are mitigated.
• Panels protect crops from extreme weather events.

In addition, below the agrivoltaic systems, unlike the traditional photovoltaic panels, common agricultural practices can be carried on without any constraint. 

So, through agrivoltaic systems, the following goals are achieved: 

• Recovering part of the abandoned agricultural land allows the achievement of the decarbonization targets.
• Excellent compromise between the production of renewable energy and agriculture. You can read more about the benefits of agrivoltaic systems in our in-depth piece.

Latest agrivoltaic designs​

There are no standards in the design of agrivoltaic systems, only definitions which are covered in this guide on Italian agrivoltaics, but there may be different types of structures.

The last design of Agrovoltaico® systems allows to increase the specific power production of each tracker by using high-density PV modules as well as the power production by using bi-facial modules.

This design increases the flexibility of the shadow management of the system as well as the power production. The consequence is an improvement in the photosynthesis of the crop underneath. 

Agrivoltaic deployment around the world​

By 2030, according to Legambiente, PV energy must supply at least 60% of the production of energy from non-renewable sources. Reaching a production of 100 TWh, corresponding to an area of panels in the order of 50,000 hectares. However, it is clear that using traditional photovoltaic panels would require the usage of a very large AA (utilized agricultural area). Therefore, the adoption of Agrovoltaico® systems is fundamental to be able to decrease CO₂ production and safeguard the planet. 

For these reasons, Italy is not the only country where the use of agrivoltaics systems for the production of renewable energy and for the supply of raw materials is promoted. 

Agrivoltaics in Europe​

In 2020, other nations such as Germany and the Netherlands, began the construction of 5 experimental agrivoltaic plants, where 4 different crops will be tested: blueberry, red currant, strawberries, and blackberries. Germany is planning on using renewables to cover 65% of its power consumption by 2030 this means that a new powerful agrivoltaic will need to be built. 

Indeed, one of the projects of Fraunhofer Institute for Solar Energy Systems (ISE) in Freiburg is an Agrivoltaic plant in Herdwangen-Schönach, around 30 km north of Lake Constance, where a 2,500-square-metre pilot plant has been in operation for three years on the Demeterhof of the Heggelbach farming community. 

The solar modules, with an output of 195 kilowatts, generate electricity on five-meter-high steel structures so that tractors and combined harvesters can easily fit underneath. BayWa r.e. in 2021 announced the completion of its first agrivoltaic plant combined with red currants in the Netherlands. Further agrivoltaic projects are currently being planned in Europe and the rest of the world by 2022.

Agrivoltaics in the US

The National Renewable Energy Laboratory (NREL) has supported the implementation of 25 experiments that include blueberry cultivation in Massachusetts. 

NREL forecasts that by 2030, around 3 million acres in the United States to be covered by agrivoltaic systems.  

Agrivoltaics in China

Across Asia, agrivoltaic plants are increasingly being installed as part of efforts to reduce CO2 emissions by 2060. China, the world’s largest CO2 emitter, aims to achieve carbon neutrality by then. In 2020, China boosted renewable energy production from agrivoltaic systems by 40 GW. The country’s total renewable energy capacity could potentially double within the next five years.

One of the world’s largest agrivoltaic plants, with a capacity of 2.2 GW, is located in northeastern Qinghai prefecture, second only to India’s Bhadla plant with 2.5 GW. This system enables plant cultivation in a region with minimal precipitation by reducing soil evapotranspiration by 30-40%. Installed at a height of 1.9 meters, the panels allow both plant growth and agricultural maintenance.

In 2016, Panda Green Energy installed an agrivoltaic system in vineyards in Turpan, Xinjiang Uygur Autonomous Region, and later expanded the project by several tens of MW due to its success. That same year, a 70 MW agrivoltaic system was installed on agricultural and forestry crops in Jiangxi prefecture. In 2017, a 550 kWh Agrovoltaico® system was built in Fuyang, Anhui prefecture. Today, agrivoltaic systems are predominantly found in northeastern China, particularly in Xinjiang, Gansu, and Qinghai.

Agrivoltaics in Japan​

Japan was the first country to develop an agrivoltaic system. In 2004, Akira Nagashima developed a removable structure conceptually similar to the Agrovoltaico® system that was tested on different crops. 

Then, numerous plants were developed with permanent facilities and with capacities of several MW, the first was built in 2013. In 2017, moreover, 1300 people have been employed, an increase of 13 times in just 4 years. 

At the moment, the most important construction project is in the Chiba area. The second in the Shizuoka area and the third in the Gunma area. In the Shiga area, the Japanese company Nisshoku has built an agrivoltaic system with a capacity of 526.4 kWp and has 11 plants in the suburbs of Shiga, Hyogo, and Kyoto with a total capacity of 11.1 MW. 

In 2018 a 35 MWp plant was installed on 54 hectares, below the panels, there is the cultivation of ginseng, ashitaba, and coriander.

Agrivoltaics in South Korea​

In 2016, South Korea installed its first 100 kWh agrivoltaic system, initiated by Green Energy Institute Korea in Chungbuk Ochang, cultivating rice, cabbage, ginseng, soybeans, garlic, and other vegetables. By 2030, the South Korean government plans to source 20% of its energy from renewables, up from 5% in 2017. 

To support this goal, the Korea Agrivoltaic Association was established in 2019 to promote and develop the agrivoltaic industry. Initially, national laws restricted agrivoltaic systems on hard-to-reach areas or non-arable slopes, but in 2017, these rules were relaxed. The government aims to build 100,000 agrivoltaic systems by 2030.

Prioritizing food over electricity​

A theme typical of new technologies is now opening up, namely, to draw up the criteria and rules for a plant to get the agrivoltaic label.

The focal point of this is that the primary factor must be agricultural production, not electricity production. Otherwise, there is an important risk that can result in the growth of agrivoltaics and the profits of the workers, to the detriment of agricultural crops and the territory. For example, Italy has banned solar PV on farmland, which comes from the fear that solar farms might be impacting food supplies.

In order for the AGV plant to be an added value for agriculture, it is necessary for the plant to be in fact an agricultural machine, which can manage the determining factors for the growth of plants, namely light, water, and temperature.

The scientific research of the companies that first developed the AGV model is oriented in this direction. It’s about creating algorithms that derail, sharing light, and then the apparent conflict between electrical and agricultural production.

A take on the future​

In the future, agricultural land will partly feature agrivoltaic systems, where farmers harness solar energy to power machinery and optimize crop growth by adjusting PV panels. However, this clashes with energy producers focused solely on maximizing output. The challenge lies in balancing energy loss with increased agricultural yield and adjusting shading to meet plant needs.

Meanwhile, some companies misuse the agrivoltaic label, installing fixed PV panels on farmland for energy production, leaving little space for agriculture. This mirrors past practices where PV-covered greenhouses in Europe abandoned agriculture in favor of energy production alone

Final thoughts​

The goal is for insiders to invest in research while upholding the core principle of Agrovoltaico®: prioritizing agriculture. This challenge is heightened by climate change, and the ongoing health and economic crises. We can no longer afford to create models for their own sake. Today’s reality demands proactive, interconnected solutions. Producing clean energy isn’t enough. We must consider the environmental impact and the footprint of our structures, including their eventual dismantling and land use. Sustainable models like agrivoltaics offer a systemic response, aiming not just to avoid problems but to be part of the solution.

How to finance agrivoltaic projects

Whether you’re a new or seasoned developer or not, you’ve probably already witnessed first-hand that there are many investors out there, many of whom are willing to invest in renewable energy projects.

Although finding investors for solar projects is easy, finding just the right one typically proves itself to be a whole different game, oftentimes taking multiple months, especially if you want to be sure that you also get the optimum price for your project.    

Having been in this business for nearly a decade, we know the struggle, but we also know the solution to it.

Read more about how we help developers find the right investor for utility-scale solar projects.

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In addition to developers actively seeking sites to deploy more PV, land owners are also proactively pushing for more deployment on their land in a move to generate supplementary incomes with lease prices for PV installations ranging between £3000-3500 Euros per hectare in Europe, which is a substantial increase compared to the average farm lease price of 357Euro per hectare. In most countries, this trend is amplified by an ever-increasing renewable energy investment market and favorable development conditions led by various government incentive plans, such as the EU Solar Strategy.

This article will cover the considerations when building a solar farm, from initial thoughts to the final financing.

What is a solar farm?​​

Photovoltaic power plants, also just commonly referred to as solar farms or solar parks, use large arrays of solar panels to capture sunlight and convert it into electricity. When people talk about solar farms, this type is usually what comes to mind.

These installations are mostly ground-mounted and located in areas with high solar radiation and can range from a few megawatts to hundreds of megawatts in capacity, even gigawatts, like the current largest solar farm in the world boasting a huge 5 GW of capacity.

Solar farms come in two different versions: utility-scale solar farms and community solar farms.
Let’s cover their differences. 

Utility-scale solar farms ​

This type of solar farm is normally a rather large farm compared to community solar farms, but there is no generic number that defines the scale of a utility-scale solar farm since the capacity of the individual farm depends upon the local market to which the solar farm will deliver its power. In some places, farms producing only 1 MW of power are counted as utility-scale, while in others, utility-scale solar farms must produce more than 25 MW.

 It is common for utility-scale solar farms to have long-term agreements in place – often 10-20 years – with an ‘off-taker’ such as a utility company, government entity, or private business to buy their energy in what is known as a Private Purchase Agreement (PPA). PPAs are contractual agreements between energy buyers and sellers. They come together and agree to buy and sell an amount of energy that is or will be generated by a renewable asset, this provides financial security for the developer while the off-taker knows how much energy to expect coming

Community-scale solar farms​

Community-scale solar farms are generally smaller and provide power used for commercial or community consumption in a local area. Often working on a subscription basis, residents or local inhabitants can subscribe to a local community solar farm, using it to typically enjoy reduced power bills as a result.

Future demand for solar​

In the EU, the total solar power capacity reached 259,99 GW, up from 204,09 GW the year before. The EU predicts that it can manage to reach a total solar capacity of 320 GW by 2025 and almost 600 GW by 2030, leaving plenty of space for more growth.

The really encouraging aspect of solar farm development is how accessible it is to private individuals when compared to fossil fuel energy production. Granted, establishing a solar farm is a cost-intensive investment, however, routes to third-party investment are becoming more accessible as we’ll explore later on in this article. Further to this, the cost of generating solar energy becomes cheaper with every passing year due to advances in technology and the widespread production of solar generation components. 

How do you make money from a solar farm?​

Traditionally, there are two main ways to make money from solar farms. These include leasing land to a renewable developer or, developing the land and operating the solar farm yourself.

Farmers across the EU are increasingly aware of the supplementary income that’s possible to generate from leasing their land to developers, with prices in some countries ranging between €3000-3500 per hectare. This annual rate is for most crops more profitable than what’s possible to generate from crops. However, this trend has caused some politicians to put the brakes on solar farm development on what’s being classified as prime agricultural land over fears that it might compromise local food supplies in the long run.

But given that it’s a possibility to lease and get approval to build a solar farm, the main benefit to leasing your land is that you just need to provide the land, and the project developer will do the rest.

On the other hand, if landowners have access to renewable energy project investment to develop the solar farm themselves, they stand to make money off the electricity that they generate and earn an average ROI of 10%-20% per annum. These numbers vary, in the US for instance, it’s possible to make $21,250- $42,500 per acre per year.

It’s important to consider where your solar farm will be as this will determine how much solar energy it will be able to generate.

Whichever model you choose, income will trickle down into your pockets by selling energy to off-takers that include utilities, government entities, or private businesses via a Private Purchase Agreement (PPA).

Solar farm development considerations​

If you choose to act as the project developer and build the solar farm, there are several common mistakes and considerations that you need to be aware of before committing. Below, we’ve compiled a list of these considerations.

Also read: Our grand guide to PV project development

Environmental permits​

The location of a proposed solar project will determine how difficult it will be to attain a valid environmental permit with different countries having different regulations in place.

It’s important for developers to determine – as early as possible – whether they will be required to obtain such permits. This information should be available on local authority websites.

Figuring out whether you’ll require a permit means conducting an environmental impact assessment (EIA) which will evaluate the effects of the project on the surrounding wildlife and habitats – in some cases, a wildlife and habitat protection plan may need to be developed.

Site selection​

Location can make a big difference, not just in terms of solar irradiance but also, in whether your solar project can go ahead. 

The first consideration is the amount of sunlight/direct light the area gets as this will massively impact the output of the panels. The land should be flat, and ideally south-facing. It should get at least 4 hours of peak sun per day.

You will need to check the local zoning laws and land-use regulations since these vary across the EU.

Grid access is an important factor, if not the most important factor. You’ll need to make sure that your land will have access to the grid and how long it will take for your project to get a grid connection, and lastly, make sure that the site isn’t located in an area that’s prone to flooding.

Financial planning​

Starting a solar farm requires capital. A lot. The starting phase of the project is always the most capital-intensive when the infrastructure is being built. The good news is that roughly 1/3 of the costs associated with a solar farm are directly related to the solar panels, and these are currently at an all-time low, falling 40% in the last twelve months alone.

The cost of a 1 MW solar power plant varies depending on a number of factors, including:

• The type of solar panels you choose
• The efficiency of the solar panels
• The cost of labor and materials in your area
• The amount of land you need
• The permitting process

In general, you can expect to pay between $0.89 and $1.01 per watt for a 1 MW solar power plant. This means that a 1 MW solar power plant could cost between $890,000 and $1.01 million.

Don’t have the money on hand? Few do. There are many funding options out there to assist, including financing part of the capital expenditure through raising debt and typically bringing on board investors to cover much of the remainder or the whole lot.

You may give equity in exchange for the money, or agree on repayment options with a financial institution and retain full ownership of the solar farm.

You can learn more about funding and how to source capital for a solar farm in our article on how to finance your solar project.

Government incentives​

Depending on where you are in the world, various governments have different incentives to promote the development of solar energy infrastructure. What you can access will depend on where you are and the current schemes, but common financial incentives include tax incentives, capital subsidies, subsidized loans, and generation-based incentives.

How much financing you need and what financing options are right for you will depend heavily on how big your solar farm will be, where it’s going to be built, who it will serve, and more. Think about whether you are creating a utility-scale farm, a solar farm for a specific nearby commercial off-taker, or a farm just to power nearby residential consumption. The size and type of off-taker will determine the revenue risk and hence the kind of financing options available.

If you are seriously considering starting a utility-scale solar farm and are looking for financing options or investors, then read more on how we can help you find the right investor.

Equipment and technology​

Understanding the equipment that you are purchasing and the pros and cons that come with each part is important. Additional research and speaking to an advisor before going ahead with anything is recommended, but here are a few basics that you may find useful. 

Permitting and compliance​

Although governments in the EU are currently adjusting local legislation to align with the European Solar Strategy, it is still necessary to research the regulations in your local area since regulations still vary country by country.

The approval procedure can be quite rigorous; planners prefer to grant permission on unused land that is poorly suited for farming. If the land is agricultural, permission is more likely to be granted if the land can be dually used (e.g. grazing, wildflower meadows, etc.). Planners will look at socio-economic and ecological factors and the environmental impact of decommissioning the farm. This makes leasing more attractive to some individuals because it requires less work for the landowner.

Operations and maintenance​

There are operational and maintenance costs to a solar farm, although these tend to be low because there are few moving parts unless you choose trackers for your panels.

Estimates vary, but the annual maintenance may cost around 2% of the system’s startup cost per annum for a small farm, and 1% for a large farm.

Panels need cleaning and damage inspection at least twice per year. You should establish a schedule for panel maintenance. Your installer should visit twice each year to check everything is working correctly.

Read about the most common problems with solar panels.

You will also need to develop systems for monitoring the production of energy and how it is being used. This will help you to ensure that everything is running as it should be.

You should put a contingency plan in place to help you deal with any equipment failures. 

Although solar technology is good, no technology is infallible, so issues will eventually come. Having a plan allows you to respond promptly, minimizing the farm’s downtime. 

Remember that PV panels have a life expectancy of around 25 years, while monocrystalline panels should last upwards of 30 years. In the long term, you will need to think about panel replacement costs.

Community engagement and outreach​

Solar farms aren’t always the most popular addition to an area; although many people recognize the need for more solar power, nobody wants these farms in their backyards!
That means it’s important to spend time engaging with the local community, building relationships with the local authorities and organizations, and encouraging the public to get on board with your plans.

You should also work to listen to and address any concerns that local people have and do what you can to minimize the damage and disruption done to the surrounding countryside.

If you need a bit of inspiration, then take a look at our case study on how the Danish developer Andel managed to overcome NIMBY and gain plenty of public and local support for its onshore renewable energy projects.

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Inadequate Preliminary Assessments: A Costly Oversight​

One of the top mistakes PV developers make is failing to conduct a thorough preliminary project assessment, which covers both site assessment and feasibility studies. This critical step ensures that the chosen location is suitable for Solar PV installations and can significantly impact project timelines and costs. 

• Tip: Perform a comprehensive site evaluation and feasibility study, considering factors like soil quality, shading, and proximity to transmission lines. We cover these things in a more in-depth way in our guide on solar project development. 

Poor Financial Planning: The Road to Delays and Overruns​

Underestimating the financial needs of a Solar PV project is a common yet critical mistake. This can result in delays or, worse, project failure. Maybe not surprisingly, this step ties into the preliminary assessment, which includes evaluating the costs and benefits of the project to determine if the project will be financially viable in the end.  

• Tip: Develop a robust financial plan that includes all potential costs, including contingencies for unexpected expenses. 

Inadequate Permitting: The Silent Saboteur​

Permitting is a critical and often overlooked challenge in Solar PV development, and is another typical PV mistake developers make. Failing to secure the necessary permits can lead to costly delays and jeopardize your project’s success. The permitting process isn’t just about meeting basic requirements—it can involve stringent and expensive demands. Environmental permits, for example, may require mitigation measures like reforestation or stormwater management, while some projects might face additional costs for infrastructure upgrades, such as widening roads or installing stoplights.

The specific permits required depend on factors like location, size, and the nature of the project. Ground-mounted installations often attract extra scrutiny, especially when involving sensitive environmental areas or historical sites. 

• Tip: To navigate this complex process, integrate permitting considerations into your overall project management plan. This should include clear timelines, resource allocation, and regular progress reviews to ensure that all permitting requirements are met without derailing your project.

Neglecting The Local Community: Communication and Community is Key​

Failing to engage stakeholders early in the project is another common mistake that can lead to delays and budget overruns. Sometimes even complete discarding of the project. 

We have previously written an extensive piece on how a Danish developer and IPP overcame NIMBY, but since not all developers have the budget to launch nationwide campaigns to generate positive connotations to solar farms and get people to adjust their attitude, there are other ways of making sure NIMBY will not become a problem to limit the risk of local opposition, as is the case in Japan where roughly 80% of all large-scale projects are hit by some form of opposition from local residents. 

For utility-scale projects, but also even smaller ones, ensuring that communities are informed in advance through public consultations is oftentimes the key to getting any potential issues addressed before moving on. An example from the offshore industry, which isn’t that common, is RWE hosting local town halls ahead of its Thor project, resulting in minimal opposition. 

• Tip: Establish clear communication channels and identity and engage all stakeholders from the beginning of the project to limit the risk of anyone objecting against your project and putting a spanner in the works.

Lack of a Decommissioning Plan: The Long-Term Oversight​

One of the top mistakes PV developers make is overlooking the importance of a decommissioning plan. While the focus is often on the construction and operation phases, planning for the end of a Solar PV project’s life cycle is equally critical. Failing to develop a clear decommissioning strategy can lead to unexpected costs, legal complications, and environmental impacts when the time comes to retire the facility.

A well-crafted decommissioning plan outlines how the site will be restored to its original condition—or an agreed-upon state—once the solar panels are no longer in use. This includes the safe disposal or recycling of solar panels, the removal of electrical components, and the restoration of the land. Without such a plan, developers risk facing significant financial liabilities and regulatory challenges.

Moreover, decommissioning isn’t just about compliance; it’s also about sustainability. Ensuring that your solar farm can be dismantled responsibly aligns with broader environmental goals and can even improve community relations.

Tip: Begin developing your decommissioning plan during the initial project planning phase. This proactive approach can help you avoid future complications and ensure a smooth transition at the end of the project’s life.

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The definition of agrivoltaics in Italy​

Agrivoltaic plant is the one which:

i) adopts innovative integrative solutions with the assembly of the modules raised from the ground, also providing for the rotation of the modules themselves, in any case, so as not to compromise the continuity of the activities of agricultural and pastoral cultivation, also possibly allowing the application of tools of digital and precision agriculture;

ii) provides for the simultaneous implementation of monitoring systems that make it possible to verify the impact of photovoltaic installation on crops, water-saving, agricultural productivity for the various types of crops, the continuity of the activities of the farms concerned, the recovery of fertility soil, microclimate, resilience to climate change.

The possible agrivoltaics configurations are various in order to optimize the global performance of the plant. To learn more about agrivoltaic installations and benefits can easily be done by reading our guest blog on agrivoltaics by Giancarlo Ghidesi, COO of REM Tec, the leading Agrovoltaico® company in Europe.

Requirements for Italian agrivoltaic support schemes​

The following requirements apply to all the agrivoltaic plants being eligible for the support schemes.

If you wish to read more on the incentives for Italian agrivoltaics, then we suggest taking your reading further and diving into our dedicated article on the incentives for agrivoltaics in Italy.   

Additional parameters​​

In addition to the above, in order to evaluate the effects of the agrivoltaic achievements, the PNRR also provides for the monitoring of the following additional parameters (REQUIREMENT E):

· The recovery of soil fertility;
· The microclimate;
· Resilience to climate change.
You can read the original document here.

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This guide takes a look at the solar project development process, from the initial assessments and design phase to regulatory requirements, financing options, construction, and maintenance.

Preliminary project assessments​​

Step one in the development process of developing utility-scale solar is to do the preliminary assessments, which involve identifying the best location for the project and assessing the feasibility.

Site selection​

Finding the right location is essential for any solar project to achieve maximum efficiency and keeping costs low. A feasible location of photovoltaic (PV) systems must consider certain elements:

• Solar radiation: An ideal site should have an abundance of radiation, meaning it receives plenty of unrestricted sunlight throughout the day, but the area should not be too hot either, as solar panels work best between 15C and 35C. Hotter temperatures will cause the solar panels to degrade faster.
• Site accessibility: The location should be easily accessible for construction workers and their equipment, not to forget suitable conditions for the solar panels.
• Land topography: The location terrain should preferably be flat with no trees bordering the site to ensure optimal conditions during and after construction.
• Soil conditions: The structural design and construction costs can vary depending on how the soil on the site is. No one wants to work in a swamp.
• Grid connection: One of the most important things, if not the most important, of any project is the grid connection. Very few investors want to take a change on a project where the grid connection is uncertain or maybe very far away from being granted.
• Social impact: An increasingly important aspect to consider when developing a solar farm is to research the local dynamics and attitudes in the area, since more and more governments are requiring solar parks to be in harmony with the local surroundings and communities.

Project Feasibility​

Unless you can’t live without extreme financial risk, a feasibility study is needed to review the economic viability of the project. This typically includes:

• A financial analysis: This includes evaluating the costs and benefits of the project to determine if the project will be financially viable.
• A technical analysis: This includes evaluating the site’s technical feasibility, including the electrical infrastructure, soil conditions, and topography, as also noted in the site selection.
• An environmental impact assessment (EIA): This part is to ensure the sustainability of PV projects by means of engaging in a process of evaluating and predicting the potential environmental effects and socio-economic impacts associated with the establishment, construction, and operation of a solar energy project 
• A market analysis: Developing in a new market or a new municipality? Gaining a comprehensive understanding of the local incentives, fees, regulations, competition etc. is important. Evaluating these aspects is important to fully determine the overall site’s attractiveness.

Design and engineering​

Great, the preliminary assessments have shown that the project is viable to develop. Then what? Then system design and engineering can start.

With the site’s physical and technical characteristics in mind, the following things should now be given more thought:

Component selection: The design of the solar project must consider the type of components used, including solar panels, inverters, and mounting and tracking systems. The selection of components is based on operational and budgetary requirements.

Solar panel orientation and tilt: The solar panel’s orientation and tilt are important factors in optimizing the system’s energy production. The optimal orientation and tilt of the panels are determined by considering the site’s conditions, including climate, shading, and latitude.

Electrical and structural design​

The electrical and structural design of the solar project involves planning the electrical layout and plant sizing, including grid connection and integration.

The design should consider solar power quality considerations, such as harmonics and power factors, to ensure that the system meets grid interconnection requirements. The structural design should consider the wind and snow loads on the solar panels and other equipment.

Project permits and approvals​

To get a utility-scale solar project fully on track, a series of permits and approvals must be obtained to continue. The local authorizations required typically include zoning approvals and land use permits.

Environmental permits​

The location of a proposed solar project will determine how difficult it will be to attain a valid environmental permit with different countries having different regulations in place.

It’s important for developers to determine – as early as possible – whether they will be required to obtain such permits. This information should be available on local authority websites.

Figuring out whether you’ll require a permit means conducting an environmental impact assessment (EIA) which will evaluate the effects of the project on the surrounding wildlife and habitats – in some cases, a wildlife and habitat protection plan may need to be developed.

Grid connection & interconnection agreements​​

The grid connection and interconnection agreements are essential components of the solar project development process.

Utility coordination and technical requirements must be thoroughly understood to ensure that the project is compliant with the relevant regulations. Communication with utility companies should be started as soon as possible and finalized before construction begins.

Financing solar projects​

There are several viable solar financing options open to developers, that we will introduce on a more overall level below. For a more comprehensive overview, you can read our article on how to finance your solar project.

Procurement process​

Compiling a request for proposals is where this stage starts. An RPF is a formal bid document that outlines the PV requirements to service providers such as solar installation services, as well as the contract terms and the bidding process. 

This can be a lengthy process taking anywhere from a few months to a year, involving several different parties from project leaders to lawyers, energy managers to site managers.

After the RFP has been administered, proposal meetings and site tours can be made. Well-defined criteria should be evaluated before supplier and contractor selections are made and contract negotiations are entered.

Construction and installation​

With permits and financing secured, the construction and installation phase of a solar project can commence.

This phase is where the physical solar panels and equipment are installed on-site and connected to the power grid. It includes several key steps that require careful planning and execution.

Project operation and maintenance​

Once the solar project is in operation, it’s important to maintain it ensuring continued performance and longevity. The operation & maintenance (O&M) phase is a critical stage of the project lifecycle that ensures the system operates as efficiently as possible throughout its lifespan.

Monitoring system performance​

To maintain high efficiency of the solar park, it is important to monitor system performance namely, monitoring the energy output of the solar panels and the performance of the inverters.

Remote monitoring systems and performance data analysis can be used to identify any issues or defects with components. Analyzing performance data helps to identify areas where improvements can be made to increase efficiency.

Preventive maintenance​

Preventive maintenance is an essential part of O&M. Regular maintenance checks, including automated monitoring and servicing, can help to maximize efficiency, reduce downtime, meet regulatory requirements, and extend the lifespan of equipment.

This can include checking for loose connections, inspecting cables and wiring, and cleaning the solar panels.

Reactive maintenance and repairs​

Despite regular preventive maintenance, unexpected issues can still arise that require reactive maintenance and repairs.

Automated monitoring can provide troubleshooting and diagnostics that alert a project team of any malfunctions or inconsistencies. Plans should be in place for scenarios that demand reactive maintenance and repairs, and component replacements should be ready on-site to expedite repairs in the event of a component failure.

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Between a massive oversupply of new panels, falling prices, and rising costs, solar decommissioning has become more expensive than many utilities and other solar owners initially planned for. Solar owners need to fully understand the costs associated with decommissioning and put realistic strategies in place.

Market forces are demanding more realistic solar decommissioning plans

While the dramatic drop in the price of solar over the last decade has helped solar proliferate, it has also created challenges for solar owners ready to replace or recycle older panels. Existing decommissioning plans too often rest on assumptions that are no longer true.

First, the massive oversupply of new solar modules currently sitting in warehouses is a cost sink that utilities can no longer afford to ignore. The glut is spurring solar owners to repower existing panels, sell to secondary markets, or recycle their extra panels. 

At the same time, prices of new solar modules continue to decline; they’re forecast to fall to as little as 10 cents per watt by the end of 2024. That’s squeezing the secondary market. With prices for new modules so low, the demand for used panels has slackened. “A lot of decommissioning plans rely on the fact that they get paid for used modules, and I see that slowly degrading,” says Dwight Clark, director of compliance and recycling technology at We Recycle Solar. 

We Recycle Solar, which has a multi-pronged business that includes solar decommissioning and panel recycling, estimates that the average cost just to truck and handle panels being decommissioned is between five and seven cents per watt. That estimate doesn’t include actual recycling or reselling costs. Consequently, reselling used panels may generate little or no profit at all.

It’s not as though secondary markets for used solar panels have evaporated completely, Clark adds. “If they’re still good modules, there’s always a home for them somewhere in the worldwide market,” Clark said. The question, though, is whether the revenue that solar project owners anticipated in the decommissioning plan is anywhere near what’s realistic and whether the project owner can even access global secondary markets. 

Rising labor costs and the negative effects of inflation are also upending revenue and cost estimates in decommissioning plans. Without a thoughtful decommissioning plan, the costs and lack of financial return may come as a nasty surprise for solar owners.

Decommissioning requires detailed plans and frequent updates ​

More rigorous planning will help solar owners understand the costs and potential return on investment for decommissioned solar panels. Clark recommends three key components, taking inspiration from outside the solar industry.

Drill into the details

Too often, Clark says, he sees decommissioning plans that make sweeping assumptions or fail to account for entire cost categories. Solar decommissioning plans need to consider all of the costs, from renting and transporting the equipment necessary to return the land to its former use to labor to fuel to packaging and shipping decommissioned panels. And, Clark warns, solar owners can’t assume that all of their decommissioned panels are going to be reusable. That’s not realistic. They need a plan and an associated cost estimate for how to handle panels that need to be disposed of.

Clark points to the U.S. Environmental Protection Agency’s Resource Conservation and Recovery Act (RCRA) Closure Cost Estimate as a realistic way to look at decommissioning. The granular level of detail required in plans to close hazardous waste treatment facilities can help solar owners improve the accuracy of their decommissioning plans

Update decommissioning plans to account for market changes

These recent solar industry trends emphasize something solar project owners should have already known: Decommissioning plans are only as good as the information they use. That information must be updated frequently to account for inevitable market changes. 

“The proper way to do a decommissioning cost estimate is to write a work plan and say here’s what we’re specifically going to do, and here’s what each step costs. So, if you have to rent an excavator for two weeks at $1,500 a week, you’ll have to adjust if diesel prices increase by $1 in two years,” Clark says. “You should do the same for labor and transport and other costs. You need to really do a detailed work plan and a detailed cost estimate and then adjust it annually.” 

Those updates should also include the changing cost of solar panels on the secondary market to avoid surprises down the line.

Plan to fund decommissioning plans

It’s not enough to develop an accurate and detailed cost estimate; it’s also vital to plan for funding it. That’s where solar project owners can turn to the broader utility industry for inspiration.

Best practices for reliable decommissioning costs are standard in the utility world and can guide solar owners in developing a plan. “Utilities are used to having permits and bonds for decommissioning other power assets. They know they’ll have to dig up dirt around an oil tank that’s being decommissioned,” Clark says. “They understand these things and they have well-developed environmental departments. These are things that many solar-only people just don’t grasp.”

Embracing a more rigorous and detailed approach to decommissioning solar power plants gives owners and investors clarity on costs and project ROI. It also ensures there are no financial surprises when it comes time to repower or shut down a plant. And for the industry, it’s an important and necessary step toward the maturity expected of a mainstream energy provider. 

Learn more about We Recycle Solar by visiting their website, or check out how we help developers find the ideal investors for their solar projects.

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How to sustainably integrate energy and agriculture

Solar photovoltaics (PV) have experienced rapid global expansion in recent years. It’s boasting a cumulative capacity of 942 GW by 2021 (Figure 1). Despite PV’s potential to cover a fraction of global land for electricity generation, localized land competition and social acceptance issues loom. Concurrently, preserving agricultural land, improving crop yields sustainably, and addressing climate change are pressing agricultural concerns. In this context, the fusion of solar PV systems and agriculture, known as agrivoltaics, presents a mutually beneficial solution to why analyzing optimal PV setup for agrivoltaics is relevant.

With over a decade of experience connecting developers and investors, we dive into the trenches, revealing the most common mistakes developers make that sink renewable energy projects before they even see the light of day.

Integrating PV systems and crops can usher in micro-climate shifts, diminishing irrigation needs and enhancing soil conditions in arid environments. Additionally, solar panels can serve as rainwater collectors for irrigation. They can also provide weather protection for crops, and foster a harmonious food-energy alliance. Research has demonstrated varied impacts on crop yields under APV, with certain crops thriving and others experiencing marginal decreases.

Analyzing the potential of APV installations across Europe

Investigating various agrivoltaic photovoltaic (APV) configurations, this study focuses on three PV setups. Optimal tilted, horizontal single-axis tracking and vertical bifacial setups (Figure 2A, 2B and 2C). These setups are analyzed in detail to elucidate their unique characteristics and design elements.

Optimal tilted PV system

The optimal tilted configuration involves a monofacial fixed-tilt PV system facing south. Notably, the optimal tilt angle adjusts based on latitude to maximize yearly electricity generation, in line with European Commission guidelines. Illustrated in Figure 2A, this design is referred to as the tilted configuration.

Horizontal single-axis tracking PV system

In the horizontal single-axis tracking setup, monofacial PV panels are mounted along a north-south axis. They can adjust their tilt angle dynamically throughout the day. Panels orient eastward in the morning, lie flat at noon, and face westward in the evening. Figure 2B provides a schematic illustrating this design at different times, termed the single-axis tracking configuration.

Vertical bifacial PV system

The vertical bifacial configuration places PV modules vertically along a north-south axis. That exposes one side to the east and the other to the west. This setup—referred to as vertical bifacial—assumes a bifaciality factor of 0.8, enhancing its energy capture potential. See Figure 2C below.

Agricultural photovoltaic configurations: Electricity, shadows, and potential benefits in Europe

This study investigates three distinct agrivoltaic (APV) setups on a reference field measuring 100 m x 100 m to analyze electricity output and on a 50 m x 50 m field to assess shadow effects on the ground. The choice of field sizes minimizes border errors while maintaining computational feasibility. PV modules are positioned at fixed heights above the ground: 2 m for the tilted setup, 1 m for the single-axis tracking, and vertical bifacial setups. This differentiation arises due to the elevated structure required for the tilted setup’s optimal performance. While the distance above the ground does not impact electricity production, it influences shadow distribution on the ground. Inter-row spacing and PV module height are considered variables in conjunction with installation types.

All setups are assumed to use solar panels with similar electrical properties for modeling solar PV generation. The analysis includes irradiance reaching the modules and solar electricity production. Considering different crop radiation demands, the study factors in shadowing effects on the ground and their impact on crops. Performance indicators such as capacity density, electricity yield, price-weighted electricity yield, shadow losses, and specific yield are evaluated in Figure 3.

Land availability and maximum electricity generation are assessed to determine the potential of APV systems in Europe (See Table 1 below).

Land eligibility analysis using the Corine Land Cover database identifies suitable land types for APV systems, excluding protected areas. The analysis contributes to understanding APV setups’ viability and potential benefits in different contexts.

The performance and potential of various PV setups in agrivoltaic systems

Significant findings emerge in assessing the optimal PV setup for agrivoltaics and the performance of distinct photovoltaic (PV) setups at a low-irradiance northern location (Foulum, Denmark). The figure below, (4A) illustrates the specific yield for different configurations, factoring in shadow losses. The average daily electricity yield for each month is analyzed in (4B). Daily generation profiles vary, especially in Denmark due to electricity price fluctuations, causing a midday dip shown in (4C). Vertical bifacial setups align better with price profiles, yielding more price-weighted electricity despite lower overall output.

The single-axis tracking setup yields the highest, followed by tilted and vertical bifacial setups. Notably, the tilted setup maintains a consistent specific yield until a capacity density of around 70 W/m², while the others decrease at lower densities. Shadow losses remain minimal at the lowest capacity density (15 W/m²) for all configurations.

Spacing and heights for the optimal PV setup for agrivoltaics​

Analyzing varying heights within a setup and considering inter-row spacing, it’s observed that increased height enhances electricity generation, while greater spacing diminishes generation. Irregularities are attributed to shadow effects. The analysis of temporal generation patterns shows summer yielding higher electricity production than winter. Tilted setups outperform others in winter, while single-axis tracking excels in summer.

The assessment extends to irradiance distribution on the ground in (5). Vertical bifacial demonstrates even shadows and irradiance distribution, unlike the tilted configuration with more pronounced shading

Figure 6 presents a chart depicting the proportion of the field with adequate irradiance for crops relative to electricity yield. A decision map to prioritize: crop production (upper left corner). Electricity generation (lower right corner). Or strike a balance between the two.

Looking into the optimal PV setup for agrivoltaics in Europe

When expanding the analysis to Europe, we see the yearly electricity output rises as latitude decreases in all three cases. With axis tracking leading, followed by tilted, and vertical bifacial setups, the sequence remains consistent across all locations. Moreover, we explore whether these relative differences hold true regardless of location. To investigate, we normalize the specific yield for each setup relative to the tilted configuration in its respective location. Illustrated in Figure 7.

Figure 8 extends Figure 4 to various European countries. Latitude subtly alters the daily generation profiles for the three configurations. But it’s the unique daily evolution of spot market electricity prices, influenced by demand patterns and renewable penetration, that stands out in each country. Across the board, the tracking configuration consistently achieves the highest electricity yield. However, depending on the specific country, either the tilted or bifacial vertical configuration secures the second-highest price-weighted electricity yield. Illustrated in Figure 9.

Considering eligible areas for the optimal PV setup agrivoltaics

The analysis investigates APV’s viability and electricity generation potential across Europe using NUTS-2 regional analysis. By assessing land eligibility, we pinpoint suitable areas within countries.

Various land types exist, including artificial surfaces, agriculture, forests, wetlands, and water bodies. Among them, arable land, permanent crops, and pastures are prime for APVs (see Table 1). For instance, in central Denmark (Midtjylland), about 64% of the land is eligible, totaling 8,341 km² (see Figure 10 below).

The land eligibility analysis for European APV expansion, using NUT-2 regions (see Figure 11). It represents 16.2% of a total eligible area of 1.7 million km2. The distribution across Europe is uneven, with most countries falling within 12% to 29%. A few have even less (1% to 9%), while some excel, like Hungary (58.6%), Denmark (53.9%), and Ireland (63.9%). Fruit tree areas are valuable for static tilt APV setups as they offer protection from heavy rainfall and hail. In Europe, there’s roughly 29,000 km2 of such land available.

These regions constitute 16.2%, totaling 1.7 million km². However, it’s important to note that eligibility varies significantly across Europe. In most European countries we saw the proportion of eligible land ranges from 12% to 29%

What is the capacity potential for agrivoltaics in Europe?

The capacity potential (in GW) for APV across NUTS-2 regions, is found by factoring in the land types detailed in Table 1 and a capacity density of 30 W/m². The southern and eastern regions of Europe exhibit higher suitability for APV systems. This confirms the findings in the analysis, illustrated in Figure 12.

APV system energy potential (TWh/year) in EU NUTS-2 regions: optimal tilt, vertical bifacial, and horizontal single-axis tracking PV systems is revealed in Figure 13.

APV configurations and potential for sustainable energy and agriculture

This study delved into diverse agricultural photovoltaic (APV) configurations in Foulum, Denmark, and across European regions categorized by NUTS-2-regions. The research focused on two key aspects: the feasibility of PV systems and their impact on underlying agricultural land. Three distinct APV setups were scrutinized: optimal tilted, horizontal single-axis tracking, and vertical bifacial.

A sophisticated model was devised, accurately simulating shadow effects on solar panels and the ground. This nuanced approach allowed precise analysis of hourly shadow-related production losses for each setup, diverging from generalized loss assumptions. The outcomes affirmed expectations: single-axis tracking yields greater electricity output. However, vertical bifacial setups exhibited superior price-weighted electricity yields in select countries when assessing daily generation patterns.

A 30 W/m2 capacity density is used to assess APV potential in various European NUTS-2 regions. This balances high electricity yields while preserving over 80% of land for crops.

Extending analysis across Europe using the Corine Land Cover database, eligibility areas for APVs were determined, highlighting uneven distribution. Some countries, like Norway, possessed just 1% suitable area, while others, like Denmark, boasted up to 53%.

Overall, APV’s potential shines bright. With a capacity of 51 TW across Europe, it is capable of generating 71,500 TWh/year—25 times the current electricity demand.

About the authors

Kamran Ali Khan Niazi | Marta Victoria

Kamran Ali Khan Niazi from Department of Mechanical and Production Engineering, iClimate, Aarhus University, Aarhus, Denmark.

Marta Victoria from Novo Nordisk Foundation CO2 ResearchCenter, Aarhus, Denmark.

The original article is from the EU2020 project, i.e., H2020Hyperfarm.

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Agrivoltaic Incentives in Italy​

Following the goals set out by the National Integrated Plan for Energy and Climate (“PNIEC”), the National Recovery and Resilience Plan (“PNRR”) has expressly included the construction of agro-voltaic plants among the initiatives to be implemented in the context of the ecological transition in view of achieving complete climate neutrality and environmental sustainability.

Reference is made to “Mission M2C2, investment 1.1.” named “agro-voltaic development”, envisaging a production capacity from agro-voltaic plants of 2GW with the aim of producing about 2,500 GWh per year with a reduction of greenhouse gas emissions estimated around 1.5 million tons of CO2.

The M2C2 mission (which financial resources should be over 1 billion euros, as provided under the current version of the draft decree of the Ministry of Economy and Finance having as scope the allocation of financial resources for the implementation of the PNRR targets) aims to make the agricultural sector more competitive, reducing energy supply costs and improving climatic-environmental performances.

Regulatory changes to agrivoltaics​

In addition to the above, it is worth noting that regulatory changes have been introduced aimed at promoting the construction and operation of these power plants:

• Law Decree no. 77 of 31 May 2021, converted, with amendments, by Law no. 108 of 29 July 2021 (“Governance of the National Recovery and Resilience Plan and first measures for strengthening administrative structures and accelerating and streamlining administrative procedures” – so-called “Simplification Decree Bis”) providing that agro-voltaic plants can benefit from incentive tariffs related to the production of energy from renewable sources;
• The draft of Legislative Decree implementing Directive 2018/2001 (the “RED II Directive”) (the “Draft Decree Implementing RED II”), whereby the Ministry of Ecological Transition has been entrusted with the definition of the “criteria and methods for providing incentives for the construction of agro-voltaic plants through the granting of loans or non-repayable contributions, carried out in accordance with the provisions of article 65, paragraph 1-quater, of Legislative Decree no. 1 of 24 January 2012, converted, with amendments, by Law no. 27 of 24 March 2012, which, through the implementation of hybrid agriculture-energy production plants, do not compromise the use of land dedicated to agriculture. With the same decree are defined the conditions of combination with the incentive tariffs referred to in Chapter II”.

Why are these changes important?​

These recent amendments are extremely relevant considering that since 2012, according to previous Italian Laws, photovoltaic plants constructed within agricultural lands could not benefit from RES incentives.

Specifically, this prohibition was provided under Article 65 of the Law-Decree no. 1/2012 (“DL 1/2012”), introducing – as to photovoltaic solar plants with ground-mounted modules located in agricultural areas – the prohibition to benefit from RES incentives. In that respect the unique exceptions to this ban were the following: (a) plants built or to be built on military lands (demanio militare); and (b) photovoltaic plants installed on area classified as “agricultural” at the date of 25 March 2012 (date of entry into force of the law converting DL 1/2012), providing that they obtained the relevant authorization title within 25 March 2012 and entered into operation within 180 days starting from 25 March 2012.

How to qualify for agrivoltaic incentives​

As mentioned above, the Simplifications Decree Bis (see Article 31, Paragraph 5), has amended Article 65 of DL 1/2021, providing that agro-voltaic plants meeting the following characteristics could benefit from incentives: “agrovoltaic plants adopting innovative integrative solutions with the installation of the modules raised from the ground, also providing for the rotation of the modules themselves, however in such a way as not to compromise the continuity of agricultural and pastoral cultivation activities, also allowing the application of digital and precision agriculture tools“.

The same provision of the Simplifications Decree Bis has also specified that access to incentives is subject to the simultaneous implementation of monitoring systems that make it possible to verify the impact on crops, water saving, agricultural productivity for the different types of crops, and the continuity of the activities of the farms concerned.

The same article of the Simplifications Decree has also specified that access to incentives is subject to the implementation of monitoring systems aimed at verifying the impact on crops, water saving, agricultural productivity for the different types of crops, and the progression of the relevant farm activities.

Therefore, the provisions of the Simplification Decree Bis together with the requirements of the Draft Decree Implementing RED II (currently subjected to parliamentary opinion, hence, susceptible to potential amendments) seem to overcome the prohibition imposed by the former Article 65 of DL 1/2012, gradually introducing the chance even for agro-voltaic plants to benefit from RES incentives.

In case you want to read more, get Tommaso’s full piece here, or read our in-depth piece on the optimal setup for agrivoltaics.

About the author

Italian-qualified lawyer, Tommaso has fifteen years of extensive experience in domestic, cross-border, and multi-jurisdiction mergers and acquisitions, joint ventures, corporate finance, and private equity transactions involving both listed and privately held companies. He has particular expertise in transactions in highly regulated activities as well as in the infrastructure sector and, in particular, in the energy, transport, water, and waste sectors. His experience also includes assistance in favor of developers and lenders in relation to development projects in the energy sector, with particular reference to renewable energy assets (solar, biomass, wind, hydrogen) and transport infrastructure (electricity and gas transport, electricity and gas distribution, gas storage and LNG plants). He has extensive experience in the negotiation and drafting of M&A contracts, facility agreements, EPC, O&M, PPA contracts, and supply contracts in the public and private sectors. Tommaso has an LL.M Master’s Degree in Business & Corporate Law from City Birmingham University and has more than 15 years of experience in primary international law firms in London, Milan, and Dubai. Tommaso is an Italian native speaker and is fluent in English and Spanish

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What is agrivoltaics?​

Agrivoltaics is not a new invention, but it continues to be an innovative approach that allows developers to integrate solar energy production with agricultural activities. By installing solar panels above or between rows of various types of crops, agrivoltaics allows for the dual use of land, enabling farmers to produce food and generate renewable energy simultaneously. This method not only maximizes land use but also supports sustainable farming practices.

Key benefits of agrivoltaics​

Increased land efficiency​

One of the primary benefits of agrivoltaics is its ability to increase land efficiency. Traditional solar farms require large areas of land, often displacing agricultural activities. Agrivoltaics addresses this issue by enabling the same land to be used for both energy production and farming. This dual-use approach reduces the need for additional land and helps optimize space utilization. The German Frauenhofer Institute has been one of the pioneering forces behind sound research into how agrivoltaics can increase land efficiency. 

For example, the institute’s “APV-RESOLA” pilot project demonstrated the efficiency of agrivoltaics with a 194 kWp pilot plant in Heggelbach, Germany. The results in 2017 showed an overall efficiency of 160 percent. The performance of the agrivoltaic system in the summer of 2018 again reached more than this efficiency of land use. During this very hot summer, the shades developed by the PV module protected the crop from failure and enabled the produced a significant amount of energy. Considering the land – use of potatoes in the area, the efficiency of the system in Heggelbach reached 186% in 2018.

Enhanced crop yields​

Agrivoltaics can also improve crop yields through shading provided by solar panels. The partial shade from the panels reduces heat stress on plants and leads to less evaporation, leading to healthier crops. This can result in higher productivity and better crop quality overall. Studies have shown that crops grown under solar panels often experience less water stress and improved growth conditions. In studies carried out by Enel Green Power and Agrivoltaico Open Labs, results show that, depending on the crop, crop yields increase between 20-60%.

Sustainability and environmental impact​

The benefits of agrivoltaics extend to environmental sustainability. By combining solar energy production with agriculture, this approach helps minimize land use changes and reduces the environmental footprint of both energy and farming activities. Agrivoltaics supports biodiversity by preserving natural habitats and reduces the need for separate solar farms, thereby limiting land conversion.

Economic advantages​

In addition to environmental benefits, agrivoltaics offers economic advantages. Farmers can generate additional income from selling solar energy while continuing their agricultural operations. This can help offset the costs of implementing solar technology and provide a new revenue stream for farming businesses. Farmland lease prices for photovoltaic (PV) installations range between €3,000 to €3,500 per hectare in Europe, which is a substantial increase compared to the average cost of €357 per hectare. 

Challenges and considerations

While agrivoltaics presents numerous advantages, there are some challenges to consider. Initial setup costs for solar panels and infrastructure can be high, which affects the levelized cost of energy quite much in certain regions. In fact, estimates show that the LCOE relative to a ground-mounted PV installation can be north of 100% in some Scandinavian regions and some parts of the UK. 

Additionally, the design and installation of agrivoltaic systems need to be carefully planned to ensure they do not negatively impact crop growth or farming practices, but also to make sure that they meet the definitions of an agrivoltaic plant. 

The future outlook for agrivoltaics​

The future of agrivoltaics is promising as technology continues to advance. Innovations in solar panel design, efficiency improvements, and better integration techniques will likely enhance the effectiveness of agrivoltaic systems. As more projects are developed and research expands, agrivoltaics is expected to play a significant role in sustainable agriculture and renewable energy.

Another thing worth noting is the political pressure to safeguard agricultural land from being used solely to produce solar energy, as was the case in Italy. The good news is that last year, the European Commission approved Italy’s €1.7 billion Italian State aid scheme under the Recovery and Resilience Facility to support 1.04 GW of agrivoltaic installations by 2026, and it is likely that other EU counties will follow this trend, pushing for more solar power where agriculture and renewable energy co-exist.  

Final thoughts​

In conclusion, the benefits of agrivoltaics include increased land efficiency, enhanced crop yields, and positive environmental impacts. By integrating solar panels with farming activities, agrivoltaics provides a sustainable solution for both energy production and agriculture. For more information on how agrivoltaics can transform your farming practices and contribute to sustainability, explore our resources or contact us.

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