Agriculture and photovoltaics do not have to be mutually exclusive

Such investments offer numerous benefits, enabling efficient land use and increasing the income of farmers (who have the option of investing in their own installations or leasing land to developers). The panels themselves can contribute to improved crop yields. Shading the land limits water evaporation, which is particularly important during the increasingly severe droughts occurring in Poland. Furthermore, they can protect plants from heavy rain, hail, and excessive sunlight.

Access to your own energy source is also crucial. Farms are increasingly automated – cold stores, milking machines, lighting, and irrigation systems all increase electricity consumption. Therefore, generating your own energy can provide significant long-term benefits. Research indicates that electricity generated by solar panels increases farm income by 30 percent. Besides enabling solar energy generation, it improves land use efficiency, positively impacting harvests in regions with high temperatures.

To use a chance

According to the Polish Photovoltaic Association, over 14 GW of agrophotovoltaic systems would be installed worldwide by 2022. In 2023, the global market in this segment was valued at over $5.5 billion, and it was predicted to grow by nearly 6% annually from 2024 to 2032.

Further development of agroPV will involve, among other things, the implementation of innovative technological solutions. "Mounting systems that allow for the adjustment of the panel tilt angle or their periodic lifting allow for better adaptation of installations to the specific crops and maximize solar energy collection. Introducing solutions that automate installation management processes can further increase their efficiency," the association states in a report from April of this year.

Agriculture doesn't have to suffer from this type of investment. Many vegetable species are suitable for growing under solar panels, including broccoli, zucchini, eggplant, asparagus, and legumes. Such attempts have also been undertaken in Poland in the form of pilot projects. In the Zgorzelec district, 10,000 wild garlic seedlings were planted between photovoltaic panels in 2021, with the aim of launching the production of a local pesto based on this plant. Eighty percent of the plantings have been successful. Ultimately, the crops are expected to cover as much as 50 hectares. Garlic thrives on shade and moisture, so these conditions seem optimal for the plant.

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Fruit bushes are also grown under panels worldwide. Raspberries, gooseberries, blackberries, currants, and blueberries are planted in such areas. Tomatoes, potatoes, and peppers also perform well. Panels are also installed over apple and pear trees. Translucent panels can be used to provide the plants with the appropriate amount of light.

Law must keep up with the needs

Agrophotovoltaics are developing rapidly in Asia, including China, South Korea, and Japan. The potential for photovoltaic agriculture in Europe is also significant. It is estimated that 700 GW of capacity could be created, assuming that only 1% of the European Union's arable land is used for installations. In Europe, the countries with the largest number of agrophotovoltaic projects are Germany, France, Italy, and the Netherlands.

The main challenges to the development of domestic photovoltaics are legislative barriers. The Polish Photovoltaic Association points to several specific issues, including the lack of a definition of agrivoltaics and specialized legal solutions, as well as the difficulty of obtaining a planning permit. Another significant obstacle is the inability to dual-use agricultural land, which necessitates the procedure of excluding it from agricultural production. Formal "non-agriculturalization" requires the consent of the Minister of Agriculture to allocate land of classes I-III for non-agricultural purposes, which is accompanied by high fees. Although agrivoltaics maintains an agricultural function, it is currently treated as a standard non-agricultural investment.

Another problem is the risk of losing the right to direct payments. As the association points out, current regulations do not specify whether the area occupied by agroPV projects constitutes an "eligible hectare," one of the basic conditions for granting direct payments to farmers. And another issue is the risk of double taxation of land. In addition to agricultural tax, there is also property tax .

Potential Central Europe

The Ember think tank confirms that projects accelerate where appropriate legal frameworks are in place. Countries whose laws allow for the shared use of land for agricultural purposes and electricity production benefit, without losing agricultural subsidies.

Already in 2021, Germany introduced the first regulations providing clear guidelines for defining specific agrivoltaic systems. Subsequent legislative amendments also provided economic support for agriphotovoltaics. Projects gain access to the grid and feed-in tariffs provided for in the Renewable Energy Sources Act. In specific cases, they can receive a technology bonus per kWh. A recent study shows that over 70% of farmers in Germany are interested in this type of investment. Last May, the Czech Republic also amended its regulations to enable the implementation of agriphotovoltaic projects, setting a good example for Central European countries.

Ember points out that the Czech Republic, Hungary, Poland, and Slovakia account for 19% of the European Union's agricultural land and estimates that these countries could install 180 GW of solar panels on agricultural land, with Poland accounting for as much as 119 GW. Ember emphasizes that agrophotovoltaics can increase yields by up to 16% for some fruit crops. Meanwhile, for crops less tolerant to shade (such as wheat), yield losses using vertical panels with wide row spacing are less than 20%; additional revenue from electricity sales significantly outweighs the partial losses caused by installing the panels. Land use efficiency can reach 178% compared to plots used separately for solar or agricultural purposes, the think tank emphasizes.

Brussels indicates the direction

Green targets remain in place. The European Union aims to be carbon neutral by 2050. The European Commission notes that combining solar energy generation with agriculture may be a good solution for increasing the potential of renewable energy sources. These two types of activities can enable significant synergies.

"Member States should consider incentives for the development of agrophotovoltaics when developing national strategic plans for the common agricultural policy, as well as support frameworks for solar energy, for example by including agrophotovoltaics in renewable energy tenders," the Commission urged in its 2022 "Solar Energy Strategy." Such investments also increase the resilience of the agricultural sector to climate change . This opportunity is worth seizing.