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Home - News - New report outlines the economic benefits of agrivoltaic energy for farmers, developers and communities
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New report outlines the economic benefits of agrivoltaic energy for farmers, developers and communities

solarenergyBy solarenergyNovember 16, 2025No Comments2 Mins Read
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Photo: DOE

In the United States, energy demand is rising after decades of stagnant growth, driven by electrification efforts, data centers and artificial intelligence. As demand increases, the economy continues to favor wind and solar energy, which consistently rival gas and coal in terms of affordability. As rural communities look to increase renewable energy, a unique opportunity presents itself.

Flat, sunny and easily accessible land that is ideal for solar parks is often already in use for agriculture. A new one report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights the opportunity to expand the use of agrivoltaic energy to boost renewable energy generation, reduce water use and increase yields – a win for renewable energy and agricultural communities.

Agrivoltaic energy – the integration of solar panels and active agriculture on the same dual-use land – offers a solution that benefits all three key stakeholders. Landowners gain a new, steady income stream in a volatile industry while maintaining their land’s agricultural productivity; developers of solar projects gain access to viable locations with fewer permits; and communities maintain farmland in production while benefiting from local investments and tax revenues.

A recent short film, ‘Save the farm, save the future’, also highlights the benefits of agrivoltaic energy.

“Agrivoltaic technology shows that agricultural production and solar energy development can be complementary rather than competing land use options,” said Asher Salkin, former research intern at IEEFA and author of the report. “Our research shows that using agrivoltaic energy in agricultural environments increases crop yields in water-scarce areas, which not only reduces operating costs but also improves soil and ecosystem health.”

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Although still not widespread, agricultural voltaic installations are expanding, from 27,000 hectares with a capacity of 4.5 GW in 2020 to more than 62,000 hectares and 10 GW in 2024 – enough to power 1.5 million households. With supportive policies, agrivoltaic energy could help small farmers, meet growing electricity needs and involve more rural communities in the energy transition.

Read the full report here.

News item from the Institute for Energy Economics and Financial Analysis

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agrivoltaic benefits communities developers economic Energy Farmers outlines report
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