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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Unpacking the FER 2 Decree: What developers need to know​

The FER 2 Decree is Italy’s latest legislative effort to incentivize the development of renewable energy sources. Unlike previous measures, this decree specifically targets innovative technologies and mostly smaller-scale projects, broadening the scope for developers across the country. The decree’s introduction marks a new step towards aligning Italy’s energy strategy with the European Union’s renewable energy directives, especially after the current government decided to ban Solar-PV on agricultural land earlier in the year.

Key elements of the FER 2 Decree

Understanding the core elements of the FER 2 Decree is important for developers looking to capitalize on the opportunities it presents. Here are the most important aspects:

• Eligible Technologies: The decree supports a wide range of renewable energy sources, including thermodynamic solar, offshore floating photovoltaics, inland floating photovoltaics, offshore wind, geothermal energy, biomass, biogas, and tidal power. This inclusivity ensures that various projects can benefit, promoting more diversity in Italy’s renewable energy portfolio.
• Incentives and Support Mechanisms:
  • The decree introduces competitive auctions where developers bid for financial support. Winning projects receive either a guaranteed tariff or a premium, making long-term project viability more achievable.
  • Support is tiered based on project size and type. For instance, smaller projects and those involving innovative technologies might receive higher incentives compared to large-scale conventional projects.
• Project Eligibility and Requirements:
  • Projects must meet stringent criteria to qualify for these incentives, including compliance with technical standards, environmental regulations, and completion timelines.
  • Emphasis is also placed on grid compatibility, requiring projects to demonstrate they can integrate seamlessly with the existing energy infrastructure.

These elements form the backbone of the FER 2 Decree, guiding developers through the process of securing support for their renewable energy projects.

The Role of CfD in the FER2 Decree​

The introduction of CfD (contracts-for-difference) in the FER2 Decree is a strategic move to attract investment by mitigating market risks.

Providing this mechanism, producers secure a steady income. CfDs help to reduce the financial uncertainty that could deter investment in renewable energy projects. This mechanism is particularly important for offshore wind projects where significant upfront capital is needed alongside the long development timelines.

Navigating the legal and regulatory framework​

While the FER 2 Decree opens up new avenues for renewable energy development, it also presents a complex legal and regulatory landscape. Developers must be prepared to navigate these challenges to fully benefit from the decree’s incentives.

Key legal considerations​

• Permitting: Securing the necessary permits remains a significant hurdle. Developers must ensure compliance with environmental, historical, and cultural regulations, which can vary widely depending on the project’s location.
• Grid connection: Demonstrating that a project can integrate with the existing grid is a prerequisite for receiving incentives. This often involves extensive planning and collaboration with grid operators.
• Contractual obligations: Winning a competitive auction comes with contractual obligations, including adherence to construction timelines and operational standards. Failure to meet these obligations may result in penalties or the loss of incentives.

Final thoughts: Seizing the opportunities of FER 2​

The FER 2 Decree represents a good opportunity for developers to contribute to the country’s renewable energy goals while benefiting from the new incentives. By understanding the decree’s intricacies and preparing accordingly, developers can position themselves for success in this evolving market. 

For more detailed insights into the FER 2 Decree, we recommend consulting with your nearest legal energy team and/or consult the official text of the FER 2 Decree available on MASE’s home page. 

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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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The Aid Decree​

On July 14, the Senate renewed its confidence in the Government by definitively approving, in the text dismissed by the Chamber, the bill for the conversion, with modifications, of the Decree-Law no. 50 of 17 May 2022, published in the Official Gazette on 15 July 2022 general series – no. 164 (also known as the “ Aid Decree ”).

This is a measure aimed at adopting measures to combat the systemic effects caused by the Ukrainian crisis, in particular with regard to national energy policies, business productivity, and investment attraction.

With regard to the energy sector, with a view to encouraging the production of energy from renewable sources, articles 6 and 7 of the Aid Decree introduced rules for further simplification of the authorization procedures for the construction and operation of plants powered by renewable sources.

Speeding up identification of suitable areas​

Article 6, paragraph 1 of the Aid Decree – in amending article 20, paragraph 4 of Legislative Decree No. 199 of 8 November 2021 (the ” Legislative Decree 199/2021 “) – aims to speed up the process of identifying surfaces and areas suitable for the installation of renewable energy plants, giving the Department for Regional Affairs and Autonomies the possibility of exercising state substitute power in the event of failure by the Regions to adopt laws aimed at delineating suitable areas within the deadline provided for by the legislation in force.

The provision also affects Article 20, paragraph 8 of Legislative Decree 199/2021, extending the number of areas that can be classified by law as suitable for the construction and operation of renewable plants pending the identification of suitable areas by of the Regions.

Specifically, in light of the changes introduced as a result of Article 6 of the Aid Decree:

Exceptions to the ordinary authorization procedure​

It should be remembered that Article 22 of Legislative Decree 199/2021, with reference to the construction and operation of plants for the production of energy from renewable sources in suitable areas, has introduced some exceptions to the ordinary authorization procedure. Specifically, with reference to these projects:

• The competent authority in landscape matters expresses itself with a mandatory non-binding opinion and once the deadline for the expression of the non-binding opinion has expired, the competent administration in any case provides for the authorization application;
• the terms of the authorization procedures for installations in suitable areas are reduced by one-third.

More on exemptions​

Article 6 of the Aid Decree has explicitly extended the scope of these exceptions, stating that they apply to electrical infrastructures connecting renewable energy plants and to those necessary for developing the national transmission grid, provided they are strictly functional to increasing energy production from renewable sources.

The decree also adopts incentive measures, specifically in paragraphs 2 quarter and quinques, to encourage new projects and interventions that promote social, economic, and productive development in municipalities with areas under concession for geothermal energy production. Starting January 1, 2023, holders of concessions for constructing and managing these plants, under Legislative Decree no. 287 of December 29, 2003, and law no. 99 of July 23, 2009, must pay a contribution of €0.05 for each kilowatt hour of electricity produced by the corresponding geothermal plant. Within ninety days of the Aid Decree’s entry into force, the Minister of Economic Development will issue a decree.

The decree also introduces further simplifications for tourist and spa facilities. For 24 months from the conversion law’s entry into force, these facilities can implement new photovoltaic projects with ground-mounted modules up to 1,000 kWp using the administrative DILA (sworn declaration of start of works) regime. These projects must be aimed at using self-produced energy for the needs of the facilities, located outside historical centers, and not under protection according to Legislative Decree 42/2004 (see Article 6, paragraph 2 septies of the Aid Decree).

Finally, Article 6 of the Aid Decree requires the Ministry of Culture, within sixty days of the conversion law’s entry into force, to establish uniform criteria for evaluating renewable energy plant projects. This aims to streamline proceedings and ensure that any negative assessments are well-founded, reflecting stringent and proven needs for cultural or landscape protection, in line with the specific characteristics of different territories.

Article 7​

Article 7 of the Aid Decree introduces significant innovations, simplifying procedures for authorizing plants that produce electricity from renewable sources.

These changes primarily affect projects that require an Environmental Impact Assessment (EIA) under state jurisdiction.

Specifically, the decree establishes that in the authorization procedures for renewable energy plants, if the project requires an EIA at the state level, the Council of Ministers’ resolutions will replace the EIA provision for all purposes, even in cases of conflicting assessments by the relevant environmental authorities.

The Presidents of the concerned Regions and Autonomous Provinces participate in the Council of Ministers’ meetings to express the position of their administration and the non-state administrations involved in the authorization process, but they do not have voting rights.

The Council of Ministers’ resolutions are then incorporated into the single authorization procedure, which the competent administration must conclude within sixty days. If the Council of Ministers decides to issue the EIA provision and the sixty-day period passes without action, the authorization is automatically deemed issued.

More on Article 7​

Furthermore, article 7 of the Aid Decree intervenes in various ways on the authorization procedures connected to the construction and operation of renewable plants, providing that:

• for the construction of plants other than those fueled by biomass, including biogas plants and plants for the production of biomethane of new construction, and for photovoltaic plants, the proponent, when submitting the application for authorization, can request the declaration of public utility and the affixing of the preordained constraint to the expropriation of the areas affected by the construction of the plant and related works.
• the simplified authorization procedure (PAS) for the construction and operation of photovoltaic systems up to 20 MW located in quarries or lots of quarries not susceptible to further exploitation may also concern the location in “portions of quarries”, it being understood that the same they must not be susceptible to further exploitation.
• with regard to ceased quarries and mines, not recovered or abandoned or in conditions of environmental degradation considered suitable areas pursuant to the law for the installation of plants for the production of electricity from renewable sources, portions of quarries and mines not susceptible to further exploitation.
• with regard to the standard that subjects to PAS the installation of photovoltaic systems with a power of up to 10 MW in floating mode on the water mirror of reservoirs and reservoirs, including water reservoirs in disused quarries, the plants in question can be placed also in the water reservoirs in the quarries in operation (see the modification of article 9 – ter of the Energy Decree).

Furthermore, it is appropriate to point out that with the provisions referred to in Article 7 – bis of the Aid Decree, the deadline for the start of work for the interventions carried out under a qualification issued under Article 12 of the Legislative Decree n. 387 of 29 December 2003 is set for three years from the issue of the relative qualification.

The Aid Decree therefore follows the path already outlined by the Simplifications Decree and the Energy Decree, demonstrating a unitary, albeit fragmented, intention of the legislator towards promoting the consumption of energy from renewable sources.

About the author

Italian-qualified lawyer, Tommaso has fifteen years of extensive experience in domestic, cross-border 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 at 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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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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