Agrivoltaics: Growing Crops Under Solar Panels for Dual Energy and Food Production

Agrivoltaics combines agriculture and solar energy: Elevating solar panels on structures (4-8 feet high) allows crops to grow underneath while panels generate electricity above. A traditional corn/soybean operation yields food only; agrivoltaic system yields food AND 100-150 kW solar generation = $15,000-$25,000 additional annual income. Real-world systems operating in US since 2015 demonstrate crop productivity loss of only 5-15% (vs. expected 30-50% from panel shading) while adding renewable energy generation. Total system cost: $150,000-$250,000 for 1-2 acre agrivoltaic setup with 100+ kW capacity. Payback: 8-15 years (highly variable by crop, location, electricity rates). Federal tax credits (30% Investment Tax Credit) and state rebates reduce costs. This guide explains agrivoltaic system types, calculates real economics by farm size, analyzes crop compatibility, and provides honest assessment of when agrivoltaics makes financial sense for farms.

Agrivoltaic System Types and Design Approaches

Type 1: Elevated Fixed-Tilt Panels (Most Common) Solar panels mounted on trackers/fixed structures 6-10 feet high, allowing tractor/equipment access underneath. Typical configuration: 40-60% panel coverage ratio (spacing between panel rows allows light transmission, air flow). Crops grown underneath (often shade-tolerant crops like forages, berries, leafy greens). Advantages: Maximum crop diversity, easiest equipment integration, proven design. Disadvantages: Lower solar efficiency per acre (panels don't cover entire area), higher installation cost (structural engineering). Example: 1-acre system with 60% coverage = 0.6 acres panels (15 kW @ 5 W/sq ft typical), produces 18,000 kWh/year; 0.4 acres open space grows alfalfa/hay (~$400 value/acre/year). Combined value: $160 + $160 solar generation = $320/acre/year return (vs. $250/acre traditional hay alone).

Type 2: Vertical Bifacial Panels (Emerging) Panels oriented vertically (like fence posts) instead of tilted. Allows more light transmission underneath (20-40% less shading). Bifacial panels capture light from front AND reflected light from ground. Cost: 30-50% higher than traditional tilted systems. Efficiency: Similar total output per acre due to vertical orientation efficiency losses offsetting bifacial gains. Use case: High-value crops very sensitive to shade (berries, specialty vegetables). Benefits: Reduced shading, novel technology appeal. Drawbacks: Higher cost, immature technology market, unproven long-term performance.

Type 3: Dual-Use Grazing Systems (Livestock) Panels elevated 8-12 feet, allowing livestock (sheep, goats) to graze underneath. Panels generate electricity; grazing animals provide meat/wool and vegetation management (no mowing required). Low maintenance cost (animals replace mowing labor). Livestock benefit from panel shade on hot days. Challenges: Panel cleaning more complex (animal hooves, dust), electrical safety protocols needed, veterinary concerns (electrical hazards). Real example: Texas ranch installed agrivoltaic panels with sheep grazing underneath. 100 kW system + 200-head sheep operation = $25,000/year solar revenue + $40,000 sheep wool/meat = $65,000 combined. Traditional solar only (no livestock) = $25,000 revenue. Added livestock value = $40,000 marginal revenue from same land.

Key Takeaway: Agrivoltaic design selection depends on: (1) Crop type (shade tolerance), (2) Land value/scarcity (high-value land justifies more complex systems), (3) Equipment constraints (can tractors fit under structures?), (4) Climate (shade beneficial in hot regions, detrimental in cool regions). Fixed-tilt elevated panels most practical for traditional crops (corn, soybean); specialty designs for high-value crops or livestock integration.

Crop Compatibility and Productivity Impact

Research Context German agrivoltaic studies (most advanced market, 300+ systems operating) show: Shade-tolerant crops (alfalfa, berries) maintain 80-95% productivity under agrivoltaic panels. Sun-demanding crops (corn, soybean) lose 25-35% yield. Strategic shade (morning/evening vs. midday) mitigates losses. Climate matters: Cool climates (shade reduces productivity); hot climates (shade beneficial for heat-sensitive crops). Panel orientation (fixed vs. tracking) changes shading patterns (tracking = less consistent shade, but more solar generation).

Real Agrivoltaic System Economics: Three Case Studies

Case 1: Iowa Corn/Soybean Farm Transitioning 20 Acres to Agrivoltaics Traditional 20-acre operation: 150 bu/acre corn = $450/acre value; 50 bu/acre soybean = $250/acre value. Weighted average: $350/acre gross revenue. Agrivoltaic conversion: Install 150 kW system on 10 acres (50% panel coverage), grow alfalfa underneath, keep 10 acres conventional corn/soybean. System cost: $200K installed ($1.33/W typical for 2025). Federal ITC (30%) = $60K reduction. Net cost: $140K. Annual output: 180,000 kWh at $0.10/kWh (PPA rate) = $18,000/year solar revenue. Alfalfa productivity on 10 acres: 7 tons/acre × 2 cuts × $80/ton = $1,120/acre/year = $11,200 total. Traditional corn/soybean on remaining 10 acres: $3,500. Total farm income: $18,000 + $11,200 + $3,500 = $32,700/year new revenue vs. $7,000 traditional 20 acres = +$25,700 year 1. Payback: $140,000 ÷ $25,700 = 5.4 years (excellent). Long-term: Years 6+, generating $25K+/year indefinitely.

Case 2: California Strawberry Farm Adding Agrivoltaics 5-acre strawberry operation (high-value crop): $7,500/acre baseline = $37,500 total revenue. Agrivoltaic conversion: Vertical bifacial panels over 3 acres of strawberries (keeping 2 acres traditional). Shade actually improves strawberry quality/reduces summer heat stress. System: 50 kW bifacial vertical system, cost $100K installed, ITC $30K, net $70K. Solar revenue: 60,000 kWh/year × $0.11/kWh PPA = $6,600/year. Strawberry productivity: 3 acres + panels = 7,800/acre (slight quality improvement from shade) = $23,400. 2 acres traditional: $15,000. Total farm revenue: $6,600 + $23,400 + $15,000 = $45,000 vs. $37,500 traditional = +$7,500/year. Payback: $70K ÷ $7,500 = 9.3 years. Less dramatic payback than corn example, but still financially positive with long-term upside.

Case 3: Texas Sheep Grazing Under Agrivoltaic Panels 100-acre ranch, traditional grazing: 200 ewes, wool + lamb production = $40,000/year. Agrivoltaic conversion: Install 200 kW system over 40 acres (elevated 10 feet for full grazing access), sheep continue grazing underneath. System cost: $300K installed, ITC $90K, net $210K. Solar revenue: 240,000 kWh/year × $0.095/kWh PPA = $22,800/year. Sheep productivity unchanged: $40,000 (minimal impact from elevated panels + shade beneficial in hot climate). Total revenue: $22,800 + $40,000 = $62,800 vs. $40,000 traditional = +$22,800/year. Payback: $210K ÷ $22,800 = 9.2 years. Operational benefit: Elevated structures reduce mowing/maintenance labor (panels don't require mowing; sheep graze naturally). Estimated labor savings: $2-3K/year = effective payback 8.5 years.

Federal Incentives and Financing for Agrivoltaic Systems

Investment Tax Credit (ITC): 30% through 2032 Federal tax credit covering 30% of system cost (equipment, installation, engineering). Example: $200K system = $60K tax credit. Requirement: System must be placed in service (operational) to claim credit. Can be carried forward if current-year tax liability insufficient. Best for: Farm operations with strong tax liability (profitable years). Drawback: Credit realized in tax year, not cash upfront.

Production Tax Credit (PTC): 2.6¢ per kWh generated (10-year term) Alternative to ITC (can choose one, not both). Example: 150 kW system generating 180,000 kWh/year × 2.6¢ = $4,680/year × 10 years = $46,800 total credit. Better for: Systems where owner lacks sufficient tax liability. Requires system to remain operational entire 10-year period (early decommissioning forfeits remaining credits). Depreciation: Accelerated depreciation (MACRS 5-year) on system equipment reduces taxable income further. Example: $200K system depreciates $40K/year for 5 years, reducing taxable farm income by $40K/year = ~$8,400/year tax savings for 5 years.

USDA Rural Energy for America Program (REAP): Grants + Low-Interest Loans Grants up to $500K (25% of project cost) for renewable energy on agricultural operations. Loans available for remaining balance at subsidized rates (2-4% vs. commercial 6-8%). Requirements: USDA-eligible applicant (farmer, rancher, rural small business), feasibility study shows positive ROI. Application process: ~6-9 months typical. Highly competitive (limited funding). Worth pursuing for mid-size farms (25-500 kW systems).

Next Steps

Step 1: Assess land suitability for agrivoltaics. (1) Do you have 2+ acres available? (2) Current crop type and revenue? (3) Shade tolerance of that crop? (4) Access to equipment for taller structures? (5) Local solar irradiance (use PVWatts.nrel.gov to estimate output). If yes to most, agrivoltaics may be viable.

Step 2: Get feasibility study and financial projection. Hire agricultural solar consultant or engineering firm (~$2-5K cost) to: (1) Model system output (kWh/year), (2) Estimate crop productivity loss, (3) Calculate combined farm + solar revenue, (4) Project 15-year NPV. Study required for USDA REAP grant applications anyway.

Step 3: Explore incentives early. (1) ITC/PTC eligibility: Consult tax professional. (2) USDA REAP: Contact local farm service agency (see usda.gov). (3) State incentives (varies by state—CA, NY, MA have additional programs). Timing: Apply for grants 9-12 months before construction to account for approval timelines.

Step 4: Select system design based on crop + labor constraints. (1) High-value crops (berries, greens): Consider vertical bifacial or tracked systems (higher cost, but crop productivity preserved). (2) Livestock grazing: Elevated fixed system (8-10 feet), bifacial optional. (3) Traditional field crops (corn, soybean): Elevated fixed single-tilt (lowest cost), accept 20-30% crop yield reduction; solar revenue offsets losses. (4) Engineering: Hire structural engineer ($5-10K) to verify equipment clearance, wind loads, soil conditions.

Related articles: Solar ROI, Agricultural Rates, Federal Tax Credits