Agrivoltaics: How Solar Panels Above Cropland Boost Yields and Deliver New Income for Farmers

Mounting solar panels above actively farmed land — a practice known as agrivoltaics — can increase food production in dry regions while generating rental income for landowners, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).

How Agrivoltaics Works

Agrivoltaic systems place photovoltaic panels high enough above the ground so crops can grow beneath them and livestock can move between supports. In arid and water-stressed climates, the shade created by the panels reduces soil evaporation and plant stress, often cutting irrigation needs and improving yields.

Key Findings

IEEFA’s analysis reports that agrivoltaics covered roughly 27,000 acres (about 4.5 gigawatts) in 2020 and expanded to more than 62,000 acres (around 10 GW) by 2024 — enough generation to serve approximately 1.5 million households. The report finds that, in many agricultural settings, agrivoltaics can make farming and solar development complementary rather than competing land uses.

"Agrivoltaics demonstrates that agricultural production and solar development can be complementary rather than competing options for land use," said Asher Salkin, a former research intern at the IEEFA and the report's author.

"Our research shows that using agrivoltaics in agricultural settings increases crop yields in water-stressed regions, which not only lowers operating costs but also improves soil and ecosystem health," he added.

Benefits for Farms, Communities and the Environment

• Higher Crop Resilience: Shade reduces heat and water stress on plants, which can increase yields in arid regions.
• Water Savings: Panels lower soil evaporation, helping preserve limited irrigation supplies for farms, communities and wildlife.
• New Revenue Streams: Farmers and landowners can earn steady lease or power-purchase payments, stabilizing income amid volatile crop prices and extreme weather.
• Cleaner Air: More renewables means less coal and gas burned, reducing pollution linked to respiratory and other health problems.
• Lower Local Opposition: Dual-use land projects often face less community resistance than ground-mounted solar that displaces farming.

What Farmers Should Know

Agrivoltaics is commercially available and projects are increasing annually. Farmers considering this option should seek solar developers with agricultural experience, evaluate crop-specific shade tolerance, and consult local regulators about permitting and financing incentives.

Policy and Next Steps

Wider adoption will be faster with supportive policies that simplify permitting, provide financing options, and encourage best practices for co-locating solar and agriculture. Farmers and communities can urge elected officials to support rules that make dual-use projects easier to approve and finance.

If you farm or work with farmers and want to explore agrivoltaics, start by researching developers experienced with agricultural sites and reach out to local extension services or your representatives for guidance and policy support.