Agri-voltaics attract energy developers amid rural land tensions

The rapid rise of agri-voltaic projects in France raises concerns over agricultural impact, land speculation and the economic viability of a still-emerging model.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Since its inclusion in the 2023 law on accelerating renewable energies, agri-voltaics has become a strategic development focus for energy developers operating across France. This model involves installing photovoltaic panels above cultivated land, with the goal of producing both agricultural output and electricity. Currently, around 200 projects are operational, but more than 2,000 are under review.

The Institut national de recherche pour l’agriculture, l’alimentation et l’environnement (Inrae) estimates that 300,000 hectares of agri-voltaic installations could generate as much electricity as France’s 57 nuclear reactors. The association France Agrivoltaïsme claims that “several thousand” more projects are viable in the coming years, while energy developers continue to secure pre-contracts with farmers.

Attractive economic models for farmers

On the ground, financial structures vary. Some developers fully fund the installations, such as a 4-hectare photovoltaic greenhouse in Gironde valued between EUR 5mn and EUR 6mn ($5.3mn to $6.4mn), operated by a kiwi grower. Other setups offer annual rents of EUR 2,000 to EUR 3,000 ($2,140 to $3,210) per hectare to farmers.

Electricity generation costs average EUR 70 ($75) per megawatt-hour, which remains below the cost of rooftop solar panels. This economic positioning strongly appeals to developers, especially in agricultural regions facing profitability crises, such as the wine sector in Gironde.

Land tensions and a fragile regulatory framework

According to several observers, the main risk lies in land speculation. Around 1 million hectares have already been pre-contracted—ten times more than the surface likely to be equipped over the next 25 years. In the Vienne department alone, nearly 100 projects covering 2,000 hectares have been recorded. Plots have been resold for up to EUR 7,000 ($7,490) per hectare, a level considered concerning by certain elected officials.

Member of Parliament Pascal Lecamp, rapporteur of a draft bill in committee, has warned against the model’s “perverse effects” and supports a “reasoned” approach limiting projects to 10 megawatts peak. The bill also proposes redistributing the value generated, in part through levies on electricity profits.

Local resistance and administrative delays

The sector’s rapid growth is facing local resistance and regulatory bottlenecks. The association Les Prés Survoltés, with around 300 local opponents, cites visual nuisances and risks of “heat traps” caused by installations. The Conseil national de la protection de la nature has also raised concerns over the uncoordinated rollout and potential biodiversity impacts.

France Agrivoltaïsme also points to long administrative processing times, ranging from three to five years, and difficulties accessing grid connection points, particularly for remote farms.

Electric potential requiring oversight

To address infrastructure constraints, collective self-consumption models are being considered. On the 85% of agricultural land located far from connection points, smaller-scale projects could be developed, according to proponents of a decentralised model.

Despite ongoing uncertainty, agri-voltaics is still seen by its advocates as a potential lever for strengthening the French energy mix. However, the legislative and economic framework will need to evolve to balance the interests of developers with those of the agricultural sector.

Melvan is issuing local bonds to co-finance two photovoltaic projects in Avignon and Sault, aiming to supplement a total budget of EUR5.5mn ($5.82mn).
The 50 MW Kong solar power plant marks a new step in Côte d’Ivoire’s national grid expansion, with CFA37bn ($60.5mn) in funding and commissioning set for early 2027.
Westbrooke Real et son partenaire CVE South Africa ont racheté un portefeuille solaire couvrant 91 stations Shell en Afrique du Sud, marquant un transfert d’actifs majeur dans le secteur énergétique local.
The commissioning of the 195 MW Springbok plant introduces the continent’s first utility-scale multi-buyer model, reinforcing the growth of power wheeling in South Africa.
The consortium led by Engie and Masdar has been selected to develop a 1.5 GW photovoltaic plant in Abu Dhabi, aimed at expanding the emirate’s solar capacity under its long-term energy strategy.
T1 Energy invests in private solar cell manufacturer Talon PV to support industrial expansion of the U.S. solar sector and address rising grid demand.
The European Bank for Reconstruction and Development is reviewing a loan for a 100 MW photovoltaic project led by Qair in Tunisia, backed by a long-term power purchase agreement with the national utility.
French independent producer CVE has commissioned an agrivoltaic pilot project in Haute-Loire, aiming to test solar panel integration on a cattle farm ahead of a future 12 MWc installation.
Geronimo Power celebrated the near completion of its 125 MW solar farm in Jackson County, marking a major step for the local economy and regional power grid.
GOLDBECK SOLAR Polska has received the Final Operational Notification for its Zwartowo photovoltaic facility, marking a key regulatory milestone in the development of large-scale solar projects in Poland.
H.E Energy will develop 100 low-voltage solar facilities totalling 10MWDC in Hokkaido for SMFL Mirai Partners, with commissioning scheduled by June 2026.
Hokkaido Gas has launched a 2MW solar power plant in Kamishihoro, with an expected annual output of 4.4GWh to be distributed locally through energy supplier Karch.
Sembcorp Industries has signed a purchase agreement to acquire a 300-megawatt solar plant in India, boosting its renewable energy footprint to a total capacity of 6.9 gigawatts.
Spanish solar energy producers have recorded 693 hours of zero or negative prices since January, already matching the total for the previous year, raising concerns about the sector’s profitability and market stability.
Mars signs a major contract with GoldenPeaks Capital to develop over 100 solar plants in Poland, aiming to power its European operations and supply chain with renewable electricity.
Doral Renewables has signed a power purchase agreement for 75% of the output from its Cold Creek Solar project, expanding its contracted portfolio to over 1.6 GW nationwide.
SNCF Voyageurs secures direct solar electricity supply from two plants owned by Octopus Energy and BayWa r.e., through 25-year agreements aimed at powering its rail network.
The end of China's VAT rebate and reduced output bring an end to eighteen months of historically low prices in solar and storage sectors.
The Kuwait Authority for Partnership Projects has shortlisted several companies for Phase III of the Al Dibdibah solar plant, with a net capacity of 500 MW.
The Central Electricity Regulatory Commission has agreed to examine compensation claims by ACME Solar and AMPIN Energy, citing losses caused by non-operational transmission lines.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.