Financial Benefits

Agrivoltaics can provide several financial benefits for farmers by combining agricultural production with solar energy generation.

Some key financial advantages are diversified revenue, long-term return on investment, and resilience to market and climate variability.

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Generally speaking, there are two project ownership models.

  1. Leasing your land to a long term solar asset owner or
  2. Owning the system outright. There are pros and cons to both of these and one must consider all options.

Own System If a farmer elects to own a system, any energy they use on site can reduce their utility bill, leading to significant cost savings over time, and any excess electricity generated can be sold back to the grid for revenue via net metering, feed in tariff program or merchant electricity markets.

Despite the initial capital investment, the long-term savings on energy costs and the additional revenue from electricity sales can result in a favorable ROI. Solar panels typically have a lifespan of 25-30 years, providing sustained financial benefits over time.

Lease Land If a farmer elects to lease their land to a long-term asset owner, their lease income can provide substantial and predictable revenue streams. Plus the project risk is lower when leasing your land since the capital costs are paid by the developer.

Diversifying income sources through agrivoltaics can provide farmers with greater financial stability, helping to buffer against fluctuations in crop prices and yields due to market conditions or adverse weather events. Agrivoltaic systems can help mitigate the effects of climate change on farming operations, protecting crops from extreme weather and reducing economic risks.

Offsetting Costs Many states have solar programs and agricultural programs that offer incentives, grants, or subsidies to support the installation of renewable energy systems, including agrivoltaics. These can significantly offset the initial capital costs. We’d love to discuss this more with you!

For additional information check out our frequently asked questions.