The convergence of agriculture and renewable energy is an emerging paradigm of sustainable development. In recent years, agrovoltaics, which combine solar energy with agricultural activities, have gained considerable traction.
This innovative approach promises to optimize land use, enhance food security and contribute to renewable energy targets. The integration of agricultural, feed, and livestock systems within utility-scale solar farms exemplifies this synergy, showcasing recent projects, innovations, and investments that are moving the field forward.
According to BIS Research, the agrovoltaic market is expected to reach $15.87 billion by 2033 from a market size of $2.01 billion in 2023, growing at a compound annual growth rate (CAGR) of 22.93% during the forecast period.
Concept of Agrivoltaics
Agrivoltaics involves the strategic placement of solar panels over or between crops, pastures or forage areas. This dual land use addresses the increasing competition between agricultural demands and the expansion of renewable energy sources. By harmonizing these two critical sectors, agrovoltaics maximizes the productivity of farmland, increases economic returns for farmers, and reduces the environmental footprint of solar farms.
Recent agricultural projects and innovations
Several recent projects exemplify the practical application and benefits of agroelectricity, highlighting innovative approaches and significant investments.
Jack’s Solar Garden – Colorado, USA
Located in Boulder County, Colorado, Jack’s Solar Garden is one of the most significant agricultural projects in the United States. This 1.2 MW solar farm integrates a variety of crops, including leafy vegetables, root vegetables and berries, under and around the solar panels. The project, in collaboration with the National Renewable Energy Laboratory (NREL) and local universities, investigates the effect of shading on crop yield and microclimate. Early results show that some plants benefit from the partial shading provided by solar panels, which helps reduce water evaporation and alleviate heat stress.
Fraunhofer ISE – Germany
The Fraunhofer Institute for Solar Energy Systems (ISE) pioneered agrovoltaics in Germany. Their project in Heggelbach combines a 194 kW solar system with organic farming practices. The solar panels are three to five meters above the ground, allowing for traditional agricultural activities below. Initial results suggest that agrovoltaic materials can maintain and in some cases even increase crop yields while producing clean energy. This project has received attention and funding from both the German government and the European Union, emphasizing its potential as a model for sustainable agriculture and energy production.
The Agro Photovoltaic (APV) Project – Kenya
In arid regions like Kenya, agrovoltaics offer a promising solution to water scarcity and food security challenges. The Agrophotovoltaic (APV) project, supported by the German government and local partners, integrates solar cells with agricultural activities in land areas. The solar panels reduce soil moisture loss and create a more favorable growing environment by providing shade. This project demonstrates the adaptability of agrovoltaic materials to different climate conditions and the potential for improving resilience to climate change.
Innovations that led Agrivoltaics to a $15.87 billion market valuation
Technological innovations and agricultural practices are key to the development of agrovoltaics. Recent developments have focused on optimizing the design and management of agrovoltaic systems to maximize their benefits.
Dynamic solar tracking systems
Traditional fixed solar panels can limit the amount of sunlight reaching plants. However, a solution is offered by dynamic solar tracking systems, which adjust the tilt angle of the panels throughout the day. These systems optimize solar capture while allowing more sunlight to reach the ground. Projects using dynamic tracking, such as the French SunAgri project, have shown promising results in balancing energy production with agricultural productivity.
Adaptive crop selection
Choosing the right plants for growing in agrovoltaic systems is critical. Research shows that certain plants, such as shade-tolerant vegetables and forage crops, thrive in agricultural environments. Collaborative efforts between agronomists and solar developers are refining crop selection and crop rotation strategies to increase yields and land use efficiency. For example, a study by the University of Arizona investigated the cultivation of leafy greens and herbs under solar collectors, demonstrating improvements in water use efficiency and crop quality.
Integration of animal husbandry
The integration of animal husbandry and solar farms represents an innovative approach in agrovoltaics. Grazing animals such as sheep can maintain vegetation under solar panels, reducing the need for mechanical mowing and contributing to soil health. The University of Massachusetts Amherst’s Clean Energy Extension project has implemented a project in which sheep graze under solar systems, demonstrating the feasibility and benefits of this approach. This integration increases the efficiency of land use and provides additional sources of income for farmers.
Agrivoltaics investments
Growing interest in agroelectricity has attracted significant investment from both the public and private sectors. These investments are key to scaling agrovoltaic projects and promoting research and development.
Government support
Governments around the world recognize the potential of agrovoltaic materials and provide financial incentives to support their deployment. In the European Union, the Horizon 2020 program allocated funds for agrovoltaic research and pilot projects. Similarly, the United States Department of Agriculture (USDA) and the Department of Energy (DOE) have launched initiatives to promote agricultural practices, offering grants and technical assistance to farmers and researchers.
Private sector investments
Private companies and investors also play a vital role in the development of their agribusinesses. Solar companies such as NextEra Energy and Enel Green Power are exploring agrovoltaic projects as part of their renewable energy portfolios. In addition, venture capital firms invest in startups that focus on agricultural technologies and services. For example, Sunfolding, a company specializing in solar tracking technology, has raised significant funding to develop adaptive systems for agricultural applications.
Academic and research institutes
Academic and research institutions are at the forefront of agrovoltaic innovation. Universities such as the University of California, Davis, and the University of Massachusetts Amherst conduct extensive research on agricultural energy, exploring optimal system designs, crop combinations, and management practices. These institutions often collaborate with government agencies, private companies, and farmers to translate research findings into practical applications.
Challenges and the road ahead
Technical and economic feasibility
The technical feasibility of agrovoltaic systems depends on the local climate, soil conditions and plant species. Ensuring that solar panels and agricultural activities do not interfere with each other requires careful planning and design. In addition, the economic viability of agroelectricity depends on whether energy production and agricultural emissions are in balance. Decision makers and investors should consider these factors when supporting agrovoltaic projects.
Regulatory frameworks
A clear and supportive regulatory framework is essential for the growth of agrovoltaics. Policies that encourage dual land use practices, simplify permitting processes, and provide financial support to farmers can accelerate the adoption of agroelectrics. Governments should work to create an enabling regulatory environment that encourages collaboration between the energy and agriculture sectors.
Community engagement
The involvement of local communities and stakeholders is key to the success of agrovoltaic projects. In particular, farmers should be involved in the planning and implementation stages to ensure that agrovoltaic systems meet their needs and expectations. Building trust and fostering partnerships between solar developers, farmers and researchers can facilitate the successful integration of agricultural elements into mainstream agricultural practices.
Conclusion
Agrivoltaics represents a transformative approach to sustainable land use, offering a promising solution to the challenges of food security, renewable energy and climate change. By integrating agricultural, feed, and livestock systems within utility-scale solar farms, agrovoltaics maximizes farmland productivity and economic returns while reducing environmental impacts. As the field evolves, collaboration between governments, the private sector and research institutions will be key to maximizing its potential and creating a more sustainable future.
To learn more about this growing industry, check out the report Agrivoltaics Market – Global and Regional Analysis by BIS Research.
About the publisher: BIS Research is a global market intelligence, research and advisory firm focused on emerging technology trends that are likely to disrupt the market. His team consists of industry veterans, experts and analysts with diverse backgrounds in consulting, investment banking, government and academia.