How Market Transformation Policies Can Support Agrivoltaic Adoption

Agrivoltaics, combining agricultural production with a photovoltaics system, leverage the dual benefits of panel shading and electricity to optimize traditional farming methods. Agrivoltaics offer many advantages, including agricultural and environmental benefits (e.g., increased crop productivity, water conservation, and enhanced biodiversity), energy benefits (e.g., increased energy production and efficiency), and social benefits (e.g., improved food and energy security, diversification of income, and rural development). Although agrivoltaic approaches have been around for about forty years, little is known about the long-term benefits, potential compatibility with current agricultural practices, market uncertainty and economic viability, and overall benefits. This research provides a review of the literature with a particular focus on individual income generation opportunities: (1) solar energy generation, (2) electricity sales, (3) agricultural production, (4) agricultural sales, and (5) agrivoltaics installations. Each focus area has an associated critical review of government-sponsored market transformation policies aimed to increase agrivoltaics adoption. The paper concludes with a call to action for establishing a collaborative agenda toward prioritizing agrivoltaics research and adoption. Future research is needed to find innovative designs and practices that maximize agricultural productivity within APV systems. Two promising areas for research and innovation include (1) real-time performance monitoring and (2) peer-to-peer networks. Implementing real-time performance monitoring systems can provide valuable data on energy production, microclimate conditions, and crop growth within APV setups. Additionally, peer-to-peer trading platforms can allow farmers to sell surplus energy generated by their APV systems directly to local consumers, bypassing traditional energy utilities. This decentralized model could provide farmers with an additional revenue stream, while promoting the use of renewable energy within local communities, further incentivizing the adaptation of APVs.