What research says about agrivoltaics, land values and long-term considerations for farmer
Researchers around the country are studying how energy projects interact with agriculture, including emerging practices that allow farming and energy production to take place on the same land. Understanding what that research shows can help landowners evaluate how these projects might fit within their operations over the long term.
Agrivoltaics: Agriculture and Solar Together
One area receiving growing attention is agrivoltaics. The term refers to solar installations designed to allow agricultural activity to continue beneath or around the panels.
The most common example is solar grazing. In many regions, sheep are used to manage vegetation beneath solar arrays. Cornell University research suggests livestock producers working under these arrangements earn payments per acre through vegetation management contracts with solar developers. In those cases, the grazing income can exist alongside the landowner’s lease payment.
Researchers are also studying how certain crops perform under solar panels. In experimental systems in arid regions, research published by the University of Arizona found that some specialty crops, including cherry tomatoes and chiltepin peppers, produced higher yields under solar panels while requiring less irrigation. The partial shading reduced heat stress for both crops and solar equipment.
Results vary widely by region, crop type and system design. For example, research from the University of Illinois found that maize yields declined under agrivoltaic systems in humid eastern Midwest conditions, while soybean yields increased in semiarid western regions.
What Research Shows About Shared Land Use
Several recent studies have explored how integrating solar projects with agricultural land can affect farm economies and land use.
Researchers at Michigan State University examined scenarios where a small portion of farmland was used for solar generation while the remainder stayed in crop production. Their findings suggested that farms using a mix of agriculture and solar achieved greater financial stability per acre than farms relying entirely on crops.
Another study from Cornell University examined how shifting a small portion of U.S. cropland used for corn ethanol production could affect energy generation. The researchers found that converting about 3.2% of land currently used for corn ethanol to solar installations could produce an equivalent amount of energy. The comparison highlights how relatively small portions of land can generate substantial energy output when used for solar.
Research has also looked at how nearby solar projects affect agricultural land values. A study analyzing real estate transactions found that agricultural or vacant land within two miles of large-scale solar facilities increased in land value by an average of 19.4% per acre. Researchers suggest this may reflect the potential for future solar leasing opportunities on nearby land.
Taken together, these studies suggest renewable energy development and agriculture do not always have to compete for the same land.
A Multi-Generational Decision
Beyond the research, one of the most important considerations is time.
Solar and wind agreements often span 25 to 50 years when option periods, initial terms and extensions are included. For many families, that means a lease signed today could still be in place when the next generation takes over the farm. For landowners planning to pass land to the next generation or maintain flexibility, long-term leases require careful thought about family goals and succession plans.
Contract details also play an important role. Escalation clauses, decommissioning requirements, surface use provisions, and restoration obligations can all affect how landowners experience a project over time.
Making an Informed Decision
Renewable energy development presents both opportunities and questions for agricultural landowners. Evaluating those opportunities carefully can help ensure that any decision supports the long-term health of the farm or ranch.
At REFA, we help landowners navigate these decisions with practical guidance and independent support. Through educational resources, peer-to-peer networking and non-legal lease review services, members gain access to information and perspectives from other farmers who have already been through the process.
If you are considering a renewable energy project on your land, REFA membership can help you evaluate the opportunity and understand how it may fit into your operation for the years ahead.
