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Stacking Revenue Streams - The Business Case for Agrivoltaic Solar Projects

Written by Pure Power Engineering | Nov 10, 2025 3:48:35 PM

In the public eye, there is hardly a conversation about utility-scale solar without addressing the fear of losing valuable farmland. Debates with community involvement tend to be polarized. Developers see open fields as ideal for solar, while farmers and communities see lost productivity and disrupted rural character. But what if both sides could win?


Agrivoltaics shows that energy production and farming are not mutually exclusive; solar energy generation and agricultural activity can be hosted on the same land. Instead of competing for space, solar and farming can even support each other. And for developers, agrivoltaics open new opportunities for land access, community acceptance, and diversified revenue streams.

What Are Agrivoltaics?

Agrivoltaics combine agriculture and photovoltaics—solar infrastructure built to enable productive agricultural use beneath and between panels. Energy production, food generation, ecosystem restoration, and land conservation become part of the same plot of land.


The most common forms include:
•    Crop production: leafy greens and root vegetables grown under elevated panels.
•    Livestock grazing: sheep or cattle graze the solar site.
•    Pollinator habitats: grasses and wildflowers provide a biodiverse ecosystem

Photo Courtesy | Jacks Solar Garden 

Definitions vary by location and the ultimate project goals but in Europe, e.g., where the utility-scale solar market is characterized by limited land availability, agrivoltaics function as a way to maximize efficiency. In Asia and Africa, it’s a tool to combat drought and desertification. In the United States, where economics drive innovation, agrivoltaics are about profitability, sustainability, and community acceptance.

How It Works

A standout U.S. example is Jack’s Solar Garden near Boulder, Colorado, where rows of spinach, kale, and tomatoes grow beneath raised panels. The crops benefit from moderated sunlight and cooler soil, and the panels operate at lower temperatures producing more consistent power. 

Photo Courtesy | Jacks Solar Garden 

The facility spans 4 acres and features a 3,276-panel community solar array. Since its inception in 2021, the farm has produced over 25,000 pounds of vegetables, herbs, and berries. The project also includes pollinator habitats and serves as a hub for research and education. The model showcases how agrivoltaics can be effectively implemented on a commercial scale, with demonstrable benefits for both the environment and local communities.

The Significance of Agrivoltaics

From an economic standpoint, agrivoltaics allow revenue stacking: combining a power purchase agreement with continued agricultural production or grazing leases. Farmers earn income from both energy and crops, while developers strengthen land partnerships and can reduce local opposition.

Photo Courtesy | Jacks Solar Garden 

The following are some of the well-established advantages of agrivoltaics:

•    Shade and morning condensation reduce the need for irrigation, saving water in arid regions. 
•    The vegetation beneath the panels cools the microclimate and helps stabilize energy output. 
•    By avoiding full grading, projects preserve nutrient-rich topsoil and protect long-term soil fertility. 
•    Panels reduce excessive heat and light, keeping plants in photosynthesis longer and increasing yields.

Indirect benefits to the community arise when agrivoltaic sites include pollinator habitats. Using native plants that support bees, butterflies, and other species, the resulting biodiversity contributes to a more resilient ecosystem and can improve the performance of nearby farms.

 

Challenges and Engineering Considerations

Agrivoltaic projects confront developers and EPCs with a whole new level of complexity. Concerns about shading, plant height, and maintenance are valid. Poorly planned layouts can hinder both agriculture and energy production. Needless to say, design and operation need to be carefully tailored to local conditions via diligent engineering and cross-disciplinary collaboration.

  1. Array Height and Row Spacing - Panel spacing and height determine how much sunlight reaches the ground and what equipment can move between rows. Typical trackers may sit three feet above ground; agrivoltaic designs often raise them to six feet or more to allow farmers and workers space to navigate and tend to crops within the array and widen the rows to support light distribution, airflow, and access for tractors. The ground coverage ratio of agrivoltaic sites may thus be lower compared to conventional projects.
  2. Soil Protection and Construction Practices - Traditional solar construction often grades sites flat, stripping away nutrient-rich topsoil and compressing the earth. Disturbing the topsoil can have costly consequences. Sometimes it can take years or even decades to repair the native soil. Agrivoltaic sites typically preserve natural contours and limit heavy equipment to defined driving lanes, maintaining the integrity of the soil ecosystem. The result: better drainage, improved root health, and productive land beyond the system’s lifespan. 
  3. Wire and Cable Management - Livestock and crops require careful protection of electrical systems. Split looms, zip ties, and low-sag routing can limit exposed wires. Or they can be placed into underground conduit runs, reducing the risk of mechanical wear.
  4. Structural and Safety Considerations - Animals introduce unique loads and behavior patterns. Sheep are generally harmless, but cattle can rub against racking posts, requiring sturdier materials and coatings. Enclosures for combiners and inverters, fenced paddocks, and added gates can enhance safety and improve access for livestock or faming equipment.
  5. Grounding and Electrical Studies - With animals and people regularly on premise, an advanced grounding analysis is needed to manage touch and step potentials safely. Design teams have to coordinate equipment placement and fence grounding to ensure electrical safety throughout the site.
  6. Site Selection and Environment - Not all land is suitable for agrivoltaics. The most promising sites are active or restorable agricultural lands with gentle slopes, fertile soil, and good solar resource. In arid climates, agrivoltaics can make previously marginal land productive again by reducing evaporation and heat stress.
    Zoning laws also play a major role. Regulations vary widely by state and county, with early leaders including Colorado, Illinois, and Minnesota, states that have developed frameworks for dual-use solar permitting.

Financial Incentives and Policy Context

Agrivoltaics make for a strong business case to improve project economics via faster permitting, fewer community disputes, and additional income from agricultural leases. In addition, developers and EPCs can access incentive and grant programs linked to solar and agricultural co-use.

Photo Courtesy | Jacks Solar Garden 

The Massachusetts SMART program, for example, includes an agrivoltaic adder that pays an additional $0.06 per kWh over baseline solar rates. Other states are following suit. As policymakers look for ways to enable the renewable energy expansion, more supportive frameworks are likely to emerge.

Changing Public Perception

Agrivoltaics prove that with the right design, solar farms can grow more than power—they can grow partnerships, ecosystems, and sustainable prosperity. For developers, agrivoltaics open the doors to new incentives and positive public perception. For engineers, they present an exciting frontier that calls for creativity, coordination, and vision.

At Pure Power, we are inspired by integrated problem-solving. Designing agrivoltaic systems requires not just meeting code, but understanding how electrons, ecosystems, and economics interact. From interconnection design to soil management, our engineers work side by side with developers and agricultural partners to not only ensure that we are being great land stewards, but to deliver solutions that are efficient, durable, and community friendly. To have a more in depth conversation or For more information on our Agrivoltaic engineering services please email info@PurePower.com.

 

For Further Reading on Agrivoltaics Visit: