What is Agrivoltaics? Pt.1

In the face of the pressing demand for sustainable and efficient energy solutions worldwide, agrivoltaics emerges as a pioneering concept at the intersection of agriculture and renewable energy. This innovative approach harnesses the power of the sun while coexisting harmoniously with agricultural practices. In this first part of our two-piece introduction to agrivoltaics, we explore the motivations driving the adoption of agrivoltaics and its vast potential to revolutionize land use. The second part will discuss diverse system types that have emerged, the challenges faced, and noteworthy pioneering projects that showcase the transformative power of this sustainable technology.

The Motivation for Agrivoltaics

We know everything about the main driver behind the development of Agrivoltaics: It’s called climate change.The aim of Agrivoltaics is to limit global warming and at the same time minimize its damage. To this end, Agrivoltaics is working on the Water-Energy-Food Nexus. But what is that all about?

Climate Crisis is a Water Crisis

The climate crisis is a water crisis. The effects of this crisis include heavy rainfall, which causes flooding, erosion and landslides. Extreme weather events like hurricanes, cyclones and typhoons cause damage to infrastructure, loss of life and pollution of water sources through flooding and runoff.

At the same time, higher temperatures lead to droughts, drying up of lakes, rivers and reservoirs, which affects the availability of freshwater and leads to water scarcity. Agriculture is severely affected by all these consequences for people and the planet: Agriculture consumes 72% of all withdrawn freshwater resources (UN Water).

In order to mitigate the most severe effects of climate change, greenhouse gas emissions must achieve a state of net-zero by 2050. Since fossil fuels account for almost 90% of all carbon dioxide emissions, renewable energies must be expanded massively (United Nations).

Agriculture is severely affected by climate change

Situation of the Farmers

Climate change is not the only threat to farmers. They have to compete on a global market with low prices, which makes it difficult to run their business in a sustainable way, both financially and environmentally.

Protests

The stress that farmers have to deal with varies from country to country, depending on the local climate and economic conditions. Currently, farmers in France block the highways around Paris, protesting against the low income they generate under the prevailing structure of the food market (The Guardian). The situation in Germany is similar: Farmers protest nationwide reacting to an announcement of the German Government. It had planned to cut subsidies for diesel and vehicle tax (DW).

Protest of farmers in Hannover, Germany, 2024 (photograph made by Axel Hindemith, license)

Dependence on Subsidies

Those plans have been softened, however, the problems for European farmers are fundamental. They highly depend on subsidies given out by the EU (DW). For example, 70% of the available subsidies for German agriculture is given to farmers based on their farm size (Federal Information Center Agriculture), which favors big companies. This may seem as a European problem, but the reality is that the EU is the biggest exporter of food and the third biggest importer worldwide (European Commission). So the European regulations on agriculture have a global impact. 

Let’s take a look at the situation in the US. The 2018 Farm Bill authorized $428 billion over the 5 year period from 2019-23 and was extended by President Biden (Economic Research Service). The Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill, is a comprehensive piece of U.S. legislation that reauthorized significant funding for agricultural programs. Pros of the bill include its provision of support, certainty, and stability for farmers, ranchers, and forest managers, contributing to the overall resilience of the agricultural sector (USDA). Additionally, the bill addresses commodity support and introduces modifications to Department of Agriculture programs through FY2023, aiming to enhance the industry’s sustainability (Economic Research Service). However, critics argue that the bill’s allocation of funds and certain policy provisions may not effectively address pressing issues such as environmental concerns and income inequality among farmers. Balancing these perspectives is essential to understanding the multifaceted impact of the 2018 Farm Bill on the nation’s agricultural landscape.

The World is Growing

In addition to climate change, we are dealing with another global trend: A growing world population. And this population wants to be fed. To sustainably feed the projected population of over 9 billion by 2050, global food production would need to rise by 50% (Food and Agriculture Organization of the United Nations). Note that 735 Million people were undernourished in 2022 (Statistical Federal Office) and climate changes leads to a loss of 10 million hectares of arable land every year (Environmental Federal Office) while nutritional values of food fall (National Geographic).

How to Face the Dilemma? 

Climate change and the growing world population seem to be leading to a dilemma. On the one hand, the energy industry needs land to expand renewable energies such as wind power and photovoltaics. On the other hand, agriculture needs to produce more food under more difficult conditions. One might think that a competition for land use is emerging. But the supposed dilemma is not one, because it has a solution: Agrivoltaics.

The Potential of Agrivoltaics

By combining food production and renewable energy generation on the same land, an agrivoltaics configuration increases the land use efficiency. At the same time, the causes of the climate crisis are being addressed and its inevitable consequences mitigated. Let’s illustrate this with an example: 

A farmer is using his land 100% to cultivate crops. They might receive an offer from a solar company to rededicate the land, stop producing food and instead install 100% solar panels to earn money by leasing the land to the solar company. This is the situation of an apparent land use conflict: 100% agriculture or 100% solar power?

Now let’s take a look at how an agrivoltaics system would change the situation. By installing a solar system that allows the cultivation of crops under or between the panels, for instance, the farmer might install solar panels with 83% of the power compared to a traditional solar system. The slightly decreased power is due to the specifics of a solar system being designed for agricultural uses compared to an optimized system which doesn’t allow agricultural activities.

How would such a system affect the crop yield? 

This highly depends on the specific crop and the climate conditions of the region where the crops are grown. With potatoes, for example, the farmer might even see a higher yield in a hot dry year due to UV stress reduction caused by shading provided by the solar panels. Let’s say the crop yield rises to 103% compared to a field without solar panels. (Numbers from: Fraunhofer).

Summarized: Instead of choosing between 100% crop yield or 100% energy yield, the farmer gets 186% combined both food and electricity production. This is how agrivoltaics increase land use efficiency.

Knowledge Murphy (American Farmland Trust) on the economic potential of agrivoltaics

How Both Farmers and Solar Developers Benefit

By utilizing the higher land use efficiency of agrivoltaics compared to a traditional set up, both farmers and solar developers can profit. Here is an overview of the potential benefits:

Benefits for Farmers:

  • Resilience to Climate change
  • Ability to stay in production under stressed climate conditions
  • Potential for a higher crop yield
  • Shading for workers, crops and cattle
  • Wind protection
  • Less soil erosion
  • Hail Protection
  • Additional Source of income

Benefits for Solar Developers:

  • Higher panel efficiency due to the cooling microclimate under the panels
  • Cooling effect and higher yield of vertical panels due to a higher heat transfer coefficient (PV Magazine)
  • Obtain permissions by local authorities to develop solar projects because agricultural production can be maintained
  • Grid serving production curve of vertical bifacial panels facing east and west

The Potential for the US and Worldwide

Agrivoltaics offer a solution to promote the expansion of renewable energies and at the same time strengthen the resilience of agriculture. But how high is the land potential and how much land is needed to achieve the expansion targets?

For the US, the Biden-Harris Administration has established an objective to achieve decarbonization of the electricity sector by 2035. Solar energy, currently contributing approximately 4% to the U.S. electricity supply, plays a pivotal role in realizing this decarbonization goal. According to the Solar Futures Study conducted by the U.S. Department of Energy, it is projected that solar energy could potentially account for up to 40% of U.S. electricity generation by 2035. To achieve this significant scale of solar deployment, an estimated 5.7 million acres, equivalent to 0.3% of the contiguous land area in the United States, may be required (Office of Energy Efficiency and Renewable Energies).

In addition to various other installation types, agrivoltaics can play a role in advancing these initiatives, potentially leading to an increase in photovoltaic (PV) power ranging from 40 to 70 GW. This boost could be achieved solely by converting lettuce cultivation to agrivoltaic systems in the United States (H. Dinesh, J.M. Pearce).

Forecasts from other parts of the world are similarly optimistic. Researchers from Denmark have investigated the potential for Europe. They came to the conclusion that agrivoltaic systems have the potential to generate electricity that is 25 times the current electricity demand in Europe (PV Magazine). The potential of this technology is enormous and only a fraction of the agricultural land would be needed to make a significant contribution to a sustainable energy supply.

Conclusion

Rising temperatures, water shortages and heavy rainfalls are threatening agriculture fundamentally. At the same time, a growing world population and competitive global markets put additional pressure on farmers’ shoulders. Agrivoltaics, the combination of agriculture and solar PV has an enormous potential to protect agriculture productivity and profitability while mitigating climate crisis by generating renewable energy. But what does the concrete technical implementation look like? And which pioneering projects harness the power of the sun twice already today? Those questions will be answered in the second part of our article series “What is Agrivoltaics”.

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California produces nearly half of all U.S. vegetables and more than three-quarters of U.S. fruits and nuts, according to the CDFA. Today, moving that food from farms and packing facilities to distribution centers, ports, and markets requires a significant transportation network. One that runs predominantly on diesel.

Shifting this transportation network from diesel to electricity could have significant environmental and public-health benefits. A recent Southern California study found that battery-electric trucks produced approximately 75% fewer well-to-wheel greenhouse gas emissions than comparable diesel trucks, while eliminating tailpipe emissions such as nitrogen oxides (NOx) and particulate matter. These pollutants have been linked to respiratory and cardiovascular disease, as well as premature death.

But electrifying heavy-duty transportation also creates substantial new electricity demand. As electric trucks such as the Tesla Semi enter commercial fleets, larger questions appear: Where will that electricity come from, and could innovative solar infrastructure along transportation lines become part of the solution?

The Energy Economics Can Be Compelling

Consider a simplified example of a heavy-duty truck operating predictable routes in California’s Central Valley.

If a truck travels approximately 300 miles per day for 250 days each year, it covers about 75,000 miles annually. Based on Tesla’s claim that the electric Class 8 truck requires approximately 2 kWh per mile, including allowances for charging losses and operating conditions, it would consume roughly 150 MWh of electricity per year. California’s average electricity prices during the first half of 2026 were approximately $0.20/kWh for industrial customers and $0.26/kWh for commercial customers, according to the U.S. Energy Information Administration. That represents approximately $30,000–$39,000 per year in electricity costs.

A comparable diesel tractor averaging 6.3 mpg would consume approximately 11,900 gallons of diesel annually over the same 75,000 miles. At California’s August 2026 average on-highway diesel price of approximately $7.04 per gallon, annual fuel costs would approach $84,000. Under these assumptions, electrification could save roughly $45,000–$54,000 per truck per year in energy costs alone.

Actual economics will vary considerably with diesel and electricity prices, vehicle efficiency, charging losses, demand charges, payload, route conditions, and other factors. But the simplified calculation illustrates something important: for predictable agricultural trucking routes, the cost of electricity itself may not be the biggest obstacle. The greater challenge may be ensuring sufficient electricity is available along delivery routes and at the time trucks need to charge.

Truck Electrification Means More Energy Infrastructure

Heavy-duty charging requires infrastructure on an entirely different scale than passenger EV charging. A packing facility, distribution center, or trucking depot operating dozens of electric trucks could require several megawatts of charging capacity. In rural areas, delivering that power may require utility upgrades, transformers, switchgear and other costly infrastructure.

This makes predictable agricultural routes particularly interesting. A truck that travels between a packing facility and distribution center and returns to the same yard each day has something an unpredictable long-haul truck does not: a known place and time to charge.

That opens the door to pairing charging with onsite generation and energy storage. Rather than relying solely on the traditional model of grid-supplied charging, facilities could move toward a more integrated approach where renewable energy, such as solar, is paired with battery storage and managed charging.

This allows electricity generated onsite to be stored when production exceeds immediate demand and delivered later when trucks need to charge. In addition to increasing the use of onsite renewable energy, storage can help reduce peak demand on the grid, manage demand charges, and smooth large charging loads that might otherwise require substantial utility infrastructure upgrades. For fleet operators, the result could be greater control over when and how electricity is purchased, generated, stored, and ultimately delivered to vehicles.

Where Does Highway Solar Fit In?

While direct connections could be technically possible in certain locations, there are significant practical challenges. Electricity generated alongside a highway is not automatically available to a truck charger several miles away. Interconnection, ownership, utility requirements, DOT right-of-way restrictions, and the mismatch between variable solar generation and megawatt-scale truck charging all affect whether and how that electricity can be used.

Highway solar should therefore be viewed more broadly as a potential distributed generation resource within an increasingly electrified transportation system, rather than a direct connection between a particular solar array and a particular truck.

The Role of Dual-Use Solar

Conventional ground-mounted solar can contribute to this energy mix, but in agricultural regions such as the central valley, arable land is a valuable and finite resource. Dedicating additional acreage exclusively to energy production can create competition between renewable energy development and food production.

That is where dual-use energy systems with a small footprint, such as vertical PV, enter the conversation. Rather than replacing the existing use of the land, vertical solar can be integrated along agricultural plots as wind breaks, property boundaries as fencing, and other narrow or underutilized spaces. In the right applications, these systems can add renewable generation without taking working land out of production.

Conceptual illustration generated using AI.

Vertical bifacial PV also has a different daily production profile than conventional south-facing fixed-tilt solar. An east-west-facing vertical array tends to produce more strongly during the morning and afternoon, with lower production around solar noon relative to a traditional array. For transportation facilities, that profile could have advantages. Trucks returning to a depot later in the day  may begin charging during afternoon or evening hours. West-facing surfaces of a vertical bifacial system can continue generating later in the day, potentially placing more solar production closer to those charging periods.

That does not eliminate the need for the grid or battery storage. Heavy-duty trucks require large amounts of energy, and charging schedules will rarely align perfectly with solar generation. But it demonstrates why transportation solar should be evaluated on more than annual kilowatt-hours alone. 

The Future of Property Lines

California’s Central Valley offers a compelling setting for transportation electrification: high diesel costs, abundant solar resources, and predictable and highly frequented freight routes. As trucks increasingly shift from diesel to electricity, the infrastructure that supports those routes will need to evolve as well. That creates an opportunity to look beyond conventional solar sites and consider spaces already present in the agricultural and transportation landscape.

By finding productive uses for the spaces between farms, freight facilities, and freeways, the Central Valley could help demonstrate how transportation electrification and distributed solar generation can grow together.

Annual energy production has long been the primary metric used to compare photovoltaic (PV) configurations. In general, configurations that produce more kilowatt-hours are assumed to perform better. However, electricity is not worth the same amount throughout the day.

Many utilities now use Time-of-Use (TOU) rate structures, where the value of electricity varies by time of day. Under these tariffs, electricity generated during periods of high demand, which is typically in the late afternoon and evening, has a higher economic value than electricity generated during lower-priced periods.

As solar deployment has increased, midday electricity has become increasingly abundant in many markets. In regions such as California, this can reduce the value of electricity generated around noon while increasing the value of generation later in the day. As a result, a PV configuration that produces less total energy may still generate greater economic value if its generation profile better aligns with higher-value periods.

As electricity markets continue to evolve, evaluating PV configurations requires considering not only how much electricity is produced, but also when it is produced.


How Vertical East-West Configurations Differ

Conventional fixed-tilt PV configurations are designed to maximize annual energy production, with generation peaking around solar noon when solar irradiance is highest.

Vertical east-west bifacial configurations produce a different generation profile. Because bifacial modules generate electricity from both faces, the east-facing side captures more morning sunlight while the west-facing side produces more electricity later in the day. This shifts generation away from midday and creates two distinct production peaks—one in the morning and one in the late afternoon.

Measuring the Value of Electricity

To better understand how generation timing affects economic value, we evaluated measured production data from three PV configurations using a representative 2026 PG&E Time-of-Use (TOU) tariff. This allowed us to compare not only how much electricity each configuration produced, but also when it was produced and the corresponding value of that electricity.

The three configurations included an east-west vertical system, a north-south vertical system, and a 20° fixed-tilt system. Each system used identical PV modules and microinverters.

The analysis sought to answer three questions:

  • Which PV configuration produces the most electricity?
  • Which PV configuration generates the greatest share of its electricity during the highest-value TOU periods?
  • Which PV configuration provides the greatest overall economic value under a TOU rate structure?

Initial Findings

Measured field data collected over five representative days in June 2026 revealed a clear difference between energy production and energy value.

Although the fixed-tilt system produced the most electricity, the east-west vertical system generated the greatest economic value. This difference was driven by generation timing. Because the east-west vertical configuration produced a larger share of its electricity during higher-value TOU periods, each kilowatt-hour generated was worth more on average.

  • Fixed Tilt: Produced the most electricity (32.2 kWh), but only 14.3% of its energy was generated during peak-rate hours. Its average electricity value was 34.3¢/kWh, which serves as the baseline for comparison.

  • East-West Vertical: Produced slightly less electricity (29.2 kWh), approximately 9.3% below fixed tilt, but generated 35.4% of its energy during peak-rate hours. As a result, its electricity averaged 40.6¢/kWh, which is approximately 18% more value per kilowatt-hour than the fixed-tilt system.

  • North-South Vertical: Produced substantially less electricity (13.3 kWh). Its average electricity value (35.4¢/kWh) was slightly higher than fixed tilt, but its lower energy production resulted in the lowest overall economic value ($4.71).

The lower performance of the north-south vertical configuration is consistent with the reduced direct solar exposure expected for north-south-oriented vertical systems during summer. Monitoring is ongoing to evaluate seasonal performance throughout the year.

Overall, these initial results highlight that the configuration that produced the most electricity was not the configuration that produced the greatest economic value. Under Time-of-Use pricing, when electricity is generated can be just as important as how much is generated.

Why This Matters

These findings illustrate that maximizing annual energy production does not necessarily maximize economic value.

In regions where solar energy is well established, midday electricity is becoming increasingly abundant, reducing its value during certain periods of the year. At the same time, electricity demand, and often electricity prices, remain higher during the late afternoon and early evening. Under these conditions, a generation profile that shifts production away from solar noon may provide greater economic value, even if total energy production is lower.

As Time-of-Use pricing becomes more common, evaluating PV configurations requires considering both how much electricity is generated and the time at which it is generated. Depending on the utility tariff and site characteristics, a generation profile that better aligns with higher-value periods may provide benefits beyond project revenue, including reduced grid stress, lower reliance on peaker plants, and improved utilization of renewable generation.

Project Considerations

These results do not indicate that vertical east-west PV configurations will always provide greater economic value. Performance depends on several project-specific factors, including:

  • Utility Time-of-Use tariff structure
  • Geographic location
  • Seasonality and weather
  • PV system design
  • On-site electricity consumption versus grid export

Utilities with relatively small differences between peak and off-peak electricity prices may show only modest economic differences between PV configurations. Conversely, tariffs with larger price differentials may place greater value on generation that occurs outside the midday production peak.

Applications with significant morning or late-afternoon electricity demand may benefit most from this generation profile, including:

  • Agricultural irrigation operating under TOU tariffs
  • Farms with electrically driven water pumps
  • Commercial or industrial facilities with morning and evening demand peaks
  • Projects seeking to reduce demand charges
  • PV systems paired with battery energy storage

Conclusion

Annual energy production remains an important measure of PV performance, but it does not always capture the full economic value of a system. As Time-of-Use electricity pricing becomes more widespread, generation timing is becoming an increasingly important consideration alongside total energy production. This analysis demonstrates that, under the representative utility tariff evaluated, the vertical east-west bifacial configuration produced greater economic value despite generating less total electricity than the conventional fixed-tilt configuration. Evaluating both energy production and energy value provides a more complete basis for comparing PV configurations and selecting the most appropriate solution for a given project.


Analysis based on production data collected from Sunzaun’s Central Valley, California test site. Results represent an initial five-day analysis from June and should not be generalized across all projects or seasons. The system configurations and utility rate structures may vary depending on location, weather, utility tariffs, and project-specific design.


About the Author

Anika conducted the data analysis and prepared this article. She is part of the Business Development team at Sunzaun, where she focuses on vertical solar technologies, agrivoltaics, and research that supports practical solar deployment.

How Bodhi Hot Yoga & Fitness in San Rafael, California became the first business in the United States to install a vertical bifacial solar system in an urban environment — and why they’d do it all over again.

“We’re the first, I believe — the first in an urban environment to do it. In the US.”
— Bo Keeve, Co-owner, Bodhi Hot Yoga & Fitness

When most people picture a solar installation, they imagine rooftop panels or open fields. Bodhi Hot Yoga & Fitness in central San Rafael, California had neither to offer. What they had was a parking lot perimeter, an electricity bill climbing past $2,000 a month, and a relationship with Sunzaun built on years of shared yoga classes. That combination led to something no urban business in the United States had done before: a vertical bifacial solar installation right in the heart of the city.

About Bodhi Hot Yoga
Bodhi Hot Yoga & Fitness is a family-owned studio run by mother and son Katie and Bo Keeve, with Katie’s husband Damon supporting behind the scenes. Coming up on their second anniversary, Bodhi offers hot yoga, Pilates, and a range of fitness classes using infrared heating panels and added humidity — making it one of the more energy-intensive businesses on its block. The studio was built on four core values: community, boldness, curiosity, and adventurous fun. Those values didn’t just hang on a wall during the solar process. They guided every decision.

The Challenge
As an all-electric building with no gas on the property, Bodhi’s energy costs are entirely tied to the grid. In two years of operation, their monthly electricity bill more than doubled — from $500–800 at launch to over $2,000 as class schedules grew and demand increased. Solar had always been on their radar, but the rooftop was structurally complex and every parking space was too valuable to sacrifice. Conventional solar simply didn’t fit.

The Solution
Sunzaun proposed something most people had never seen outside of Europe: 16 vertical bifacial panels, each standing eight to nine feet tall, installed along the perimeter of Bodhi’s back parking lot. Bifacial panels capture sunlight from both sides — direct irradiance on one face, reflected and diffuse light on the other — making vertical installation viable without a south-facing rooftop. The design also included a whitened wall section behind the panels to test whether surface reflection could further increase energy yield, a detail that will inform future urban installations. Bodhi Hot Yoga became the first business in the United States to install this type of system in an urban environment.

“They made it easy, they made it affordable, and it’s really fun. I would 100% recommend it.” — Katie Egan, Co-owner

The Construction Process

Katie braced for a month of disruption. The reality was eight to ten days. The Sunzaun crew managed city permitting, utility coordination, and site logistics from start to finish, with no significant involvement required from the owners. Workers kept the site clean daily, attended yoga classes during the build, and Sunzaun co-founder Helge Biernath even brought brewed beer for studio clients inconvenienced by the temporary parking closure. No parking spaces were lost. The bollards added around the panel bases looked, in Katie’s words, “phenomenal.” Bo, who had worried the panels would look industrial and out of place, called the finished result “really cool” and said it fits the lot like a modern perimeter fence.

The Results
The system is newly operational and full-year data will tell the definitive story, but projections are clear: $5,000–$10,000 in estimated annual savings on electricity. Zero parking spaces lost. Eight to ten days from start to finish. And a visible, working statement about who Bodhi is as a business — one that clients see every time they pull into the lot.

“Come do hot yoga, support, feel good, enjoy your day. Zero guilt.” — Beau Keeve

San Rafael is growing fast — new buildings rising across the street, eight and seventeen stories high. In that context, a small family-run studio choosing vertical solar isn’t just a financial decision. It’s a declaration about what kind of neighbor they intend to be. For other urban businesses watching their electricity bills climb with no rooftop solution in sight, Bodhi Hot Yoga is proof that a different path exists.

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