Agrovoltaics: Solar Energy for Sustainable Farming

Agrovoltaics combines farming with solar energy, creating a win-win situation for food and power production. This innovative method places solar panels over crops, allowing farmers to grow food and generate electricity on the same land. 

As the world's population grows, the need for both food and clean energy increases. Agrovoltaics offers a smart solution that uses land more efficiently.

In 2021, solar power capacity grew significantly, showing its potential to meet energy needs. Yet, only a small fraction of farmland uses agrovoltaics. This means there's a huge opportunity to expand this approach. Studies show that using agrovoltaics can make land use up to 186% more efficient than using land separately for farming and solar energy. 

 In the UK alone, adopting agrovoltaics could significantly contribute to meeting energy goals while supporting farmers.

By shading crops, solar panels reduce water loss and protect plants from extreme weather, improving yields and resilience.

Agrovoltaics, or agrophotovoltaics, use the same land for farming and solar energy generation. This innovative method, also known as dual-use solar or agrisolar, allows us to generate clean electricity while growing crops or providing space for grazing.

Agrovoltaics offers a promising solution to challenges faced by rural farmers, including land scarcity and rising energy costs. Integrating solar panels with agricultural activities can optimise land use efficiency and create a synergistic effect between food production and renewable energy generation.

The concept of agrovoltaics dates back to the early 1980s when German physicist Adolf Goetzberger and his colleague Armin Zastrow first proposed this innovative idea. Their vision was to address the dual challenge of producing sufficient food and energy for a rapidly growing global population while preserving our planet's limited resources.

Since its inception, agrovoltaics has been implemented in various parts of the world. Japan embraced this concept in 2004, followed by widespread adoption in Europe and Asia. Interestingly, different regions have given this practice unique names. In Italy, it's called "Agrovoltaics," while Germans call it "Agrophotovoltaics." In Asia, it's commonly known as "solar sharing."

We can categorise agrovoltaic systems into three main types:

Recent advancements in agrovoltaics include dynamic systems with adjustable panels and monitoring systems that optimise panel orientation based on crop needs and weather conditions. Future developments may even see semi-transparent solar panels allowing specific light wavelengths to pass through for photosynthesis.

This system offers numerous advantages:

We've discovered that agrovoltaics offers a remarkable solution to maximise land use. Combining solar energy production with agriculture on the same plot can achieve up to 186% land-use efficiency. This dual-purpose approach allows us to simultaneously address food and energy security challenges, making the most of our available land resources.

Surprisingly, integrating solar panels with farming has significantly boosted crop yields. Studies reveal that agrovoltaic systems increase yields by 20% to 60%, depending on the crop type. For instance, forage crops grown between solar panel rows have shown a 40% increase in yield, while peppers have demonstrated an impressive 60% boost. The panels provide partial shade, creating a favourable microclimate that protects plants from excessive heat and sunlight, improving growth conditions.

One of the most significant benefits of agrovoltaics is its potential for water conservation. Solar panels provide partial shade, reducing evaporation and allowing soil to retain more moisture. This effect has led to a decrease in irrigation needs by up to 20% and, in some cases, even up to 30%. For farmers facing water scarcity issues, this water-saving aspect of agrovoltaics is particularly valuable, enabling them to grow more crops with the same amount of water.

Agrovoltaic systems offer a sustainable solution for clean energy production. If just 1% of arable land were dedicated to solar energy production, it could offset the world's energy demand. This approach helps combat climate change by reducing carbon emissions and provides farmers with an additional income stream. The electricity generated by these systems can be used for farm operations or sold back to the grid, potentially increasing the economic value of agrovoltaic farms by more than 30%

Agrovoltaics reduces greenhouse gas emissions by generating renewable energy. A study showed that carbon emissions were reduced by 12% on agrovoltaic systems compared to conventional farming practices. By combining solar energy production with agriculture, agrovoltaics helps preserve natural habitats and reduce the need for separate solar farms, thereby limiting land conversion.

Agrovoltaics provides economic benefits by offering farmers additional revenue streams. Farmers can generate income from crop sales and solar energy production, which can help offset the costs of implementing solar technology. Farmland lease prices for photovoltaic system installations can be significantly higher than traditional farming, providing a substantial increase in income for farmers. 

Agrovoltaic systems contribute to climate change mitigation by reducing greenhouse gas emissions associated with traditional energy production. The renewable energy generated by solar panels can offset the need for fossil fuel-based electricity, decreasing carbon dioxide (CO2) and other greenhouse gas emissions.

It is estimated that agrovoltaic farms could reduce emissions by 330,470 metric tonnes of CO2 equivalent annually, comparable to removing over 71,000 cars from the road. 

These systems simultaneously address multiple environmental challenges by reducing greenhouse gas emissions, promoting biodiversity, and preserving agricultural land. Integrating renewable energy with sustainable farming practices is a powerful tool in our efforts to create a more sustainable future.

Countries worldwide are exploring agrovoltaics to boost agricultural resilience to climate change and enhance rural electrification. Key statistics indicate that As technology advances, it is expected to play a vital role in addressing climate change and ensuring food security.

In the meantime, we analysed recent reports, academic studies, and industry data on agrivoltaics from 2022-2024. We focused on quantitative statistics and verifiable facts from reputable sources. This information provides an evidence-based overview of agrivoltaics' potential for sustainable agriculture and renewable energy.

So far, we have found that maximising land use efficiency addresses food and energy security challenges.

The growing demand for sustainable solutions will likely drive further adoption and innovation. In addition, based on current data and statistics, agrovoltaics - combining solar energy with farming - show promise for sustainability. 

Moreover, initiatives demonstrate that agrovoltaics can be a sustainable solution for farming and solar energy production, offering benefits such as increased crop yields, water conservation, and additional income for farmers.

Europe has embraced agrovoltaics with enthusiasm. The EU Solar Energy Strategy encourages member countries to integrate incentives for agrovoltaics in their national plans. Covering just 1% of the utilised agricultural area with agrovoltaic systems could result in approximately 944 GWDC of installed capacity, surpassing the 2030 target of 720 GWDC. 

Thanks to advanced technology and supportive policies, Germany has seen rapid growth in agrovoltaics. The LIFE ADAPT-PV project, for instance, uses translucent photovoltaic panels over fruit crops to protect them from extreme weather and create a stable microclimate. 

Other European countries have implemented supportive policies. Italy has allocated €1.1 billion for agri-PV development, aiming for more than 1GW capacity. Austria offers a 30% additional investment subsidy for agri-PV projects.

France, Europe's largest agri-PV market, has set clear rules balancing food sovereignty and energy independence. The Netherlands provides specific support through its CAP Strategic Plan.

China leads agrovoltaics, with over 500 projects showcasing the technology's potential. In Dongying City, farmers have seen a 50% increase in shrimp and sea cucumber yields thanks to solar panels installed above their ponds.

Japan pioneered 'solar sharing' systems in 2004, combining solar energy production with various food crops. These systems, with PV panels mounted on 3-metre-high poles, allow crops like peanuts, yams, and cabbages to be cultivated.

The USA has begun exploring agrovoltaics, with a small-scale research plant installed in Arizona as part of the Biosphere 2 research facility. Plans are underway to set up more testing sites in rural Arizona and northern Mexico.

Agrovoltaics holds great promise for developing countries. In Mali and The Gambia, a project supported by the German Federal Ministry of Education and Research aims to improve productivity and resilience in the agriculture sector. The project plans to construct a 200-kilowatt-peak system in Mali and four smaller systems in The Gambia. 

When considering agrovoltaic systems, we must carefully weigh costs against potential benefits. The initial investment for these systems can be substantial, with infrastructure costs often higher than traditional farming or solar installations alone. However, the long-term economic advantages can be significant, especially for high-value crops.

For instance, in some Italian regions, potato cultivation could combine with agrovoltaics to achieve profitability without additional financial support. Conversely, for lower-revenue cropland activities, the high costs of agrovoltaic infrastructure may require external financial support to be economically viable. 

Farmers can sometimes lease their land to solar PV companies, providing a consistent and predictable income that helps mitigate the impact of fluctuating crop yields and market prices. 

Moreover, government support plays a crucial role in making agrovoltaics financially attractive. For example, the Improving Farm Productivity (IFP) solar grant in the UK covers 25% of the capital for a wide range of equipment, including solar PV panels, battery storage, and installation costs. Grants range from £15,000 to £100,000, making it easier for farmers to adopt this technology. 

Consequently, the long-term economic sustainability of agrovoltaics depends on various factors, including crop type, location, and system design. While the extra income from electricity production can be significant, the repayment period may only sometimes be favourable for investors with subsidies. However, agrovoltaics can enhance energy independence and create employment opportunities in rural areas, contributing to local economic growth. 

Various countries provide financial incentives to promote the adoption of agrovoltaics. These include grants, tax breaks, and competitive tariffs to make the technology more accessible to farmers and energy producers. 

Europe is leading in adopting agrovoltaic systems. Countries like Germany, France, and Italy are integrating these systems into their energy and agricultural policies. Germany, for example, has a high potential for agrovoltaics due to its large farming areas and commitment to renewable energy.

Italy, for instance, has also allocated significant funds to support agrovoltaic projects, aiming for over 1 GW of development. 

In Asia, countries like China are scaling agrovoltaic projects to the gigawatt level, showcasing the potential for large-scale implementation. The focus is reducing costs and developing policies supporting collaboration between the agricultural and energy sectors.

We expect the sector to scale up, moving beyond MW to GW scale projects. However, challenges remain, including cost reduction, policy framework development, and strengthening cooperation with the agricultural sector.

The global market for this innovative technology will experience significant growth in the coming years.

The agrovoltaics market is experiencing rapid growth, with projections indicating a substantial increase in market size. The market is expected to grow from £2,013.8 million in 2023 to £9,120.0 million by 2025, reflecting a strong annual growth rate.

The market is projected to reach around £12.5 billion by 2033, with a compound annual growth rate of 22.9%. 

Agrovoltaics presents a promising future for sustainable energy and agriculture. This innovative approach can significantly contribute to global energy and food security by addressing challenges and leveraging opportunities.

Moreover, dynamic panel systems contribute significantly to market growth, with an 86.4% share in 2024. Root crops like potatoes and carrots also play a strong role, representing a 42.2% share in the same year. 

According to a recent study by the International Energy Agency, the global capacity of agrovoltaic systems is expected to reach 100 gigawatts by 2030. This represents a significant increase from the current level of 2 gigawatts.

With the UK government’s focus on renewable energy, agrovoltaics could significantly meet future energy demands. Integrating this approach into farming practices can help secure a sustainable future for food production and energy supply.

As this technology develops, it could become a key part of the energy strategy, benefiting farmers and the broader community.