Commentary_Agrivolatics and Rural Land-Use

Across the country, solar farms have experienced rapid growth, supported by advancements in technology, cost reductions, and policy initiatives such as state-level renewable portfolio standards and tax credits. As shown in Map 1, roughly 18% of ground-mounted PV facilities in the U.S. were installed between 2021 and 2023, with a notable portion of these projects built on former cropland or pasture in rural areas. This trend has raised skepticism in rural communities, prompting questions about land value, environmental impacts, and the future of these properties once solar installations are decommissioned.

While solar installations are not the primary drivers of land-use change in rural areas—low-density development has far outpaced solar utility land use—they have nonetheless attracted significant attention due to their visual prominence on agricultural land, leading to policy responses in some communities. A study by USA TODAY shows that over 3.5% of counties nationwide have started to limit or block the development of utility-scale solar projects within their jurisdictions. Notably, half of these policies were adopted in 2023. According to their analysis, at least three counties in Georgia—Franklin, Jeff Davis, and Thomas—have either enacted bans or imposed moratoriums on such developments.

 As efforts to conserve farmland intersects with the growth in renewable energy, agrivoltaics emerges as a solution to integrate agriculture and solar photovoltaic (PV) infrastructure. This dual land-use approach allows solar energy production to coexist with farming activities, from crop cultivation to livestock grazing and supporting pollinator habitats.

Agrivoltaic Solutions

Currently, there are several ways solar panels can be installed to complement agricultural activities. Fixed vertical or tilted panels provide partial shading for crops and vegetables, protecting them from excessive sunlight and offering shelter for livestock. Similarly, panels mounted on a single-axis or two-axis tracking system can follow the sun throughout the day, optimizing energy capture while still allowing enough light for crops below. Elevated panels, standing as tall as 10 feet are designed to allow tractors to pass underneath and reduce the risk of damage to infrastructure and injury to farmers. Additionally, panels can be integrated into the greenhouse structures, allowing for better light conditions for plants.

_{Figure source: Macknick, J., et al. (2022). The 5 Cs of agrivoltaic success factors in the United States: Lessons from the InSPIRE research study. Golden, CO: National Renewable Energy Laboratory. NREL/TP-6A20-83566. https://www.nrel.gov/docs/fy22osti/83566.pdf}

With strategic panel placements and adaptive shading techniques, agrivoltaics provides a way to balance land use while contributing to farming practices. For instance, Hermelink et al (2024) show that certain crops, like blueberries, can benefit from the partial shade provided by solar panels. This is particularly relevant in Georgia, which leads the nation in blueberry cultivation by harvested acres. Beyond the crop-specific advantages, the panels help reduce evaporation rates and preserve soil moisture. This could be especially valuable in drought-prone areas or regions with rising temperatures and limited water resources.

The State of Agrivoltaics

Across the nation, agrivoltaics projects are already gaining attention. As of September 2024, the National Renewable Energy Laboratory (NREL) has identified 584 sites covering roughly 62,350 acres in the U.S., and with a combined capacity of over 10 gigawatts (GW). To put that into perspective, these agrivoltaics projects could potentially power more than 8.2 million homes annually.

Among the agrivoltaics projects nationwide, the majority integrate solar production with habitat activities (pollinators, for examples), while the remainder focus on grazing, crop production, greenhouses, and various combinations of these uses. Georgia has 11 agrivoltaics projects, with a combined system size of 858 MW spanning 8,220 acres. The majority of these projects are designed to combine solar energy production with livestock grazing.

Policy & Economic Context for Agrivoltaics

Understanding public perceptions of agrivoltaics is critical to addressing potential barriers to its adoption. A survey conducted with Texas and Michigan residents suggests that agrivoltaics are generally perceived more positively than solar-only developments, though some reservations remain. The most frequently mentioned issue (35% of survey respondents) was related to perceptions around the unfair distribution of a project’s economic benefits between solar developers and farmers. Another important factor was the visual impact of agrivoltaics project on the landscape. Recent research by EPIcenter Director Laura Taylor sheds light on this concern as it relates to agricultural property values.

Economically, agrivoltaics offer farmers the opportunity to create dual-revenue streams from their land. According to the Ag Economy Barometer, a survey by Purdue University and CME Group, 58% of farmers reported being offered annual payments of $1,000 or more per acre to lease their land for solar projects. In comparison, the average annual cash rent for farmland in Georgia in 2024 is $153 per acre. Since small family farms are more likely to face higher risk of financial instability, incorporating agrivoltaics can provide a more reliable, year-round income stream than traditional farmland alone..  

As interest in agrivoltaics grows, several states have introduced policies to support its development and adoption. In Massachusetts, the state offers a $0.06/kWh incentive for qualifying agrivoltaics projects through their Solar Massachusetts Renewable Target (SMART) program. In Washington, $10.7 million has been allocated in the 2024 and 2025 budgets to support a dual-use solar pilot program, which will provide grants and technical assistance for utility-scale agrivoltaics. Other states are offering tax incentives. In Maryland, for instance, the state has passed a bill providing property tax exemptions for agrivoltaics systems, ensuring that land used for such projects is assessed as agricultural. Meanwhile, Michigan allows farmers to retain their agricultural tax benefits if they include pollinator-friendly plants alongside solar panels. In addition, states like Colorado, Illinois, New Jersey and New York are exploring ways to advance agrivoltaics.  

Yet, even though agrivoltaics is gaining traction, it’s not without challenges—particularly when it comes to land-use policy. Many jurisdictions across the nation now have regulations for solar installations that cover aspects like fencing, visual impacts, permitting processes, and decommissioning plans. However, few have developed definitions or specific language for agrivoltaics. In Colorado, for instance, only one county has an official definition for both solar and agrivoltaic systems. The absence of clear definitions slows down the development of effective proposals and hinders progress in agrivoltaics, even for research and experimental purposes.

As agrivoltaic projects transition from research to implementation, it becomes increasingly important to engage stakeholders, including farmers, solar developers, and local communities. Balancing diverse interests is crucial, as these dual-use projects come with fixed design parameters that can’t easily be changed once they’re set, often for 20 to 30 years. Choices made early on, like the inter-panel and inter-row spacing between solar panels, will impact the kind of farming that can be supported.

In conclusion, the long-term success of agrivoltaics hinges on careful alignment of policy, innovation, and stakeholder interests. With thoughtful planning and effective policymaking, agrivoltaics has the potential to provide more flexibility for landowners, contribute to state and national energy goals, and contribute to communities and sustainable land use practices.