Agrivoltaics has already reached the gaming world. In an add-on to the computer game “Farming Simulator”, players test semi-transparent solar modules, high-mounted systems, single-axis trackers and vertical constructions with different types of cultivation. The add-on is sponsored by the German government and aims to promote a better understanding of agrivoltaics.
In the real world, too, every project begins with the question of which form of agriculture should be combined with which PV-system.
A broad distinction can be made between the type of mounting structure (high up or close to the ground) and the use by farming or animal husbandry.
Cultivations are further categorised according to crop type, for example arable crops, grassland, pastures, orchards and vineyards. The operator and farmer develop a use concept for the first three years or a crop rotation cycle.
Three players are important: the farmer, the operator and the landowner.
Then it must be decided whether a tripartite contract or separate contracts shall be concluded.
Frequently recommended are separate contracts: a land use contract between the operator and the landowner, and a cultivation contract between the operator and the farmer.
In Germany, agrivoltaics projects can be subsidised. On the one hand, there is special support for research projects. On the other hand, funding under the German Renewable Energy Sources Act can be available. Systems with an output of up to 1 megawatt can receive direct funding under the Act. If the planned output is more than 1 megawatt and not more than 20 MW, operators can apply for funding in a tender organised by the German Federal Network Agency.
The maximum bid volume has been raised to 50 megawatts, but will only apply after the European Commission’s approval under state aid law, which has now been awaited for almost a year.
In addition, projects with a height of at least 2.1 metres can be given priority over other solar projects and receive a technology bonus (for vertically aligned solar installations the threshold is at least 0.8 metres). This funding is also still subject to approval by the Commission.
The agrivoltaics system must comply with the requirements of the German Federal Network Agency to be subsidised. The current requirements refer to DIN SPEC 91434 for agricultural cultivation and DIN SPEC 91492 for animal husbandry (Agrivoltaics-DIN). Annex A of the Agrivoltaics-DIN contains a template for a use concept, the specifications of which are helpful as a checklist.
The farmer and the operator can develop a cultivation contract based on the use concept.
The loss of agricultural land may not exceed 15% of the total area in the case of a ground-mounted system and 10% in the case of a high-mounted system.
The crop yield must also not decrease too sharply because of the PV system. The annual crop yield after commissioning must be at least 66% of the yield before construction – measured over three years or three crop rotations.
The reduction in yields can result not only from the loss of area, but also from shade or the uneven distribution of water. Positive effects of the modules, such as protection against hail, frost or drought damage, are increasingly being recognised and researched by farmers. However, it is still difficult to measure these reliably.
If the crops were not grown on the land before the PV system was set up, published average yields are used, for example from the agricultural statistics of the federal states. As there is still a lack of reliable standards for the exact calculation of the average yield, the limit should not be set too narrowly.
When commissioning, the operator must prove to the grid operator that it complies with the state of the art, in particular the Agrivoltaics-DIN, for example by means of an expert report.
After commissioning, the operator must provide proof of agricultural activity every three years in the form of an expert confirmation. The expert also checks whether the farmer and operator are complying with the use concept. The use concept can then be renewed for the next three years and adapted within the Agrivoltaics-DIN.
The fee under the cultivation agreement must be agreed individually between the parties. Both previous payments by the farmer to the landowner and restrictions on use by the PV system are relevant here.
Farmers must also consider possible reductions in subsidies under the European Common Agricultural Policy (CAP). The uncertainties regarding eligibility for funding for agrivoltaics, which were discussed until 2022, have been resolved by the amendment to the German CAP Direct Payments Regulation. Accordingly, direct payments for agrivoltaics will be reduced by up to 15% for the farmer. Generally, the farmer would like to be compensated by the operator for this reduction.
Agrivoltaics systems are categorised as agricultural and forestry assets for tax purposes. The disadvantages for the landowner of ground-mounted photovoltaic projects in terms of inheritance and gift tax therefore do not apply if the Agrivoltaics-DIN criteria are met.
The parties often agree on compensation for crop losses during the construction of the system in accordance with the rates of the relevant Chamber of Agriculture.
Both the operator and the farmer should be covered by public liability insurance. The operator usually has all-risk insurance that covers typical risks such as fire, lightning, short circuit, storm, frost and theft.
The insurance premium may be higher, as the combination of agriculture and energy generation results in an increased risk of damage, e.g. for damage to the system caused by agricultural machinery or by animals if these are kept under or next to the system. The insurer assesses the risk individually once the type of installation and agricultural use have been determined.
Important for safe operation: The farmer and his employees must be trained as an electrotechnically trained person before setting foot on the system area.
This results from safety and accident prevention regulations. PV systems can carry high DC voltages. This harbours dangers such as electric shocks, arcing and fire risks. An electrotechnically trained person is someone who has been instructed by a qualified electrician about possible hazards when handling electrical systems and equipment.
The operator must ensure continuous agricultural use during the operating period of the system. This is a prerequisite for subsidies. In one-person agricultural operations, there is a risk for the project if the responsible farmer is prevented from cultivation (for example due to prolonged illness or parental leave), or decides to give up his business.
Some farmers have substitution arrangements with other farmers already in place. The operator could make use of these arrangements.
Good planning and clear agreements between all parties involved are crucial to maintain operations in unforeseen situations.
In sum, agrivoltaics is an innovative solution for tackling the challenges of the energy transition and sustainable land use together. By skilfully combining agricultural production and solar energy on the same area, land can be used more efficiently. At the same time, agriculture can benefit from the protection provided by the PV system – for example against heat, extreme weather or excessive solar radiation.
However, agrivoltaics requires careful planning and close cooperation between farmers and operators. Clear contractual regulations, compliance with technical standards and regular inspections are essential.