Solar package 1 increasingly focusses on agri-PV - key points and recommendations as well as public legal assessment

Advantages of Agri-PV for agriculture and energy production

The dual utilisation of land for agriculture and PV offers both ecological and economic advantages.​

• Increased land efficiency: By combining solar panels and agriculture on the same land, more use can be made of the land, which is particularly beneficial in regions with limited available land. 
• Protection and microclimate: The solar panels provide protection for crops underneath or in between, resulting in less evaporation and a more favourable microclimate. This can reduce the crops' need for water and protect them from extreme weather conditions.
•  Diversified sources of income: Farmers can generate additional income by selling the electricity generated or by leasing it to project developers, which can be an important source of income support, especially in difficult economic times.
• Sustainable energy production: Agri-PV contributes to the production of renewable energy without taking up additional land, which improves the carbon footprint and contributes to achieving climate targets.​​

Agricultural and energy yields​

•  The solar radiation available to the plants can vary depending on the technical design (for example, the distance and orientation of the PV modules). As a guideline for Germany, a reduction in radiation of around one third can be considered acceptable in arable farming.
•  The lower the elevation, the greater the microclimatic changes.
•  On particularly hot days, the ground temperature and, to a lesser extent, the air temperature are reduced.
•  Depending on the orientation and design of the system, the wind speed can be reduced or increased. Wind tunnel effects and their effects on plant growth should therefore be taken into account when planning the system.
•  Less soil water is lost in an agrivoltaic system. The hotter and drier the climate, the more the soil moisture tends to increase compared to reference areas without agrivoltaics​

Agri-PV for special crops: Special crops such as vines and hops, fruit trees, berries or special types of vegetables can benefit from partial shading by solar panels. The panels protect the plants from overheating, frost, hail, heavy rain and reduce stress, which can improve the quality of the harvest.

​High-mounted systems in arable farming: Here, the solar panels are installed at a height high enough to allow agricultural machinery to pass underneath. These systems are ideal for arable farming or extensive agricultural areas where normal soil cultivation and harvesting can take place undisturbed

Technical framework conditions for Agri-PV 

DIN SPEC 91434 provides guidance for approval authorities, legislators, financiers and project planners in the realisation of agri-PV projects. These specifications ensure that the planning and construction of agrivoltaic systems meet the technical requirements and are harmonised. It also clarifies the distinction between agrivoltaics and conventional ground-mounted PV systems. It provides detailed specifications for the installation, safety and maintenance of the systems and is therefore an essential component for standardisation and quality assurance in this sector. 

• ​The area must remain suitable for agricultural use and the planned use must be described in the utilisation concept.
• The loss of land due to the plant may not exceed 10 % of the total area in category I and 15 % in category II.
• The availability of light and water must be checked and adapted to the needs of the agricultural products.
• Soil erosion and damage caused by the system structure, anchoring in the ground or water run-off from the modules must be avoided. 

In addition to these minimum requirements, DIN SPEC 91343 offers further recommendations. For example, the elevation and the complete design of the project should ensure the workability of the area, the construction and dismantling should not impair the subsequent use of the area and the farmer should be able to present an economic calculation for the cultivation.

BauGB privilege § 35 and urban land-use planning procedure

The provisions of Section 35 (1) BauGB play a central role in the construction of ground-mounted PV systems. In principle, the so-called outdoor area must be kept free from development. For certain projects, Section 35 (1) BauGB provides for a privileged outdoor area. These privileged projects can be authorised in the outdoor area if there are no public interests to the contrary and their development is secured. In principle, no separate urban land-use planning is required for privileged projects. 

The 'Act to Strengthen Digitalisation in the Urban Land Use Planning Procedure and

to amend other regulations', a new privileged status for so-called agri-PV systems in accordance with Section 48 (1) sentence 1 no. 5 a) to c) EEG 2023 was recently included in Section 35 (1) no. 9 BauGB. In addition to generating energy, agri-PV systems enable the simultaneous use of land for agriculture, forestry or horticulture and should also be permitted in future without the prior preparation of a development plan under the conditions of Section 35 (1) no. 9 BauGB. The new privilege is subject to the restrictive condition that (1.) the project is in a spatial-functional connection with an agricultural or forestry business in accordance with Section 35 (1) no. 1 or 2 BauGB, (2.) the base area does not exceed 25,000 square metres and (3.) only one system is operated per farmstead. The reference to Section 48 para. 1 sentence 1 no. 5 a) to c) EEG 2023 refers to the requirements for the area and the technical character of the system specified there. 

Influence of solar package 1 on the market ramp-up of Agri-PV

Solar Package 1 comprises a series of legal measures and guidelines designed to promote the use of solar energy in Germany. In principle, particular attention is to be paid to the multiple use of land, especially in areas that are already sealed or already contaminated. These typically include car parks, roof systems, photovoltaic noise barriers, balconies and façades. However, as a compromise between agricultural use and electricity production, there is also an increasing focus on agri-PV.

In 2024, 300 MW will be reserved for these systems for the first time in the 'special solar systems' sub-segment, which includes all of the above-mentioned PV systems within the 1st segment.  In the following years, this tender volume will grow to 2,075 MW by 2029.

This regulation is intended to increase the financial attractiveness of PV projects that allow multiple utilisation of land and thus accelerate the expansion of this technology. This sub-segment will be subsidised in preference to ground-mounted PV systems until the tender volumes of the sub-segment have been used up. However, it should be noted that once the sub-segment has been awarded, special systems with a lower maximum value than that specified in Section 37 (1) EEG may participate in the tenders in the normal ground-mounted segment.

According to Section 37 (1) no. 3 EEG 2023, special solar installations are all installations that

• on arable land that is not peatland with simultaneous crop cultivation on the same area
•  on land that is not peatland with simultaneous agricultural use in the form of the cultivation of permanent or perennial crops on the same area
• on grassland that is not peatland with simultaneous agricultural use as permanent grassland, if the grassland is not located in a Natura 2000 site within the meaning of Section 7 (1) No. 8 of the Federal Nature Conservation Act and is not a habitat type listed in Annex I of Directive 92/43/EEC,
• on car parks,
• on peat soils that have been drained and used for agriculture, if the areas are permanently rewetted with the construction of the solar installation, or
• on land that is an artificial body of water within the meaning of Section 3 No. 4 of the Federal Water Act or a heavily modified body of water within the meaning of Section 3 No. 5 of the Federal Water Act.

The maximum value for electricity from these special PV systems is 9.5 ct/kWh for 2024.  From 2025, the assessment will be based on an increase of 8% of the average value of the last three bidding dates, whereby the maximum value will be 9.5 ct/kWh in 2023 in accordance with Section 37b (2) sentence 3 EEG.

In these new procedures, car park PV systems will be given preferential treatment.  However, as these are not expected to exhaust the tender volume, agrivoltaic systems with a clear height of 2.10 m or 0.80 m vertically elevated will receive a large proportion of the funding.

Expected impact on adoption and expansion

Solar Package 1 creates new incentives to increase the financial attractiveness of agrivoltaic systems. It includes improved subsidy conditions, simplified authorisation procedures and additional financial support. These measures are intended not only to promote initial installation, but also to facilitate the scaling of existing projects. In addition, the integration of agri-PV systems into existing agricultural operations will be promoted, which should lead to wider acceptance and increased expansion.

As a rough guide, agri-PV systems should cost a maximum of €1,000/kWp (capex and opex) in the reference year t = 0 in order to achieve a maximum value of 9.5 ct/kWh (assumptions: debt interest rate of 5 % and expected return on equity of 10 %, 80 % FC and 20 % equity) (own calculation). For further categorisation, the operating costs are likely to be somewhat lower than for normal ground-mounted PV systems, as grassland maintenance is not required due to the cultivation.

With the subsidies and facilitations introduced by Solar Package 1, the prospects for Agri-PV are particularly promising. It is expected that the improved framework conditions will enable faster adoption and scaling of agri-PV systems. The combination of agricultural production and energy generation on the same land offers an efficient solution for reducing land consumption and increasing energy independence.

In the long term, agri-PV could play a key role in the energy transition by integrating renewable energy directly into rural structures and offering farmers an additional source of income or cost savings for their own use. This not only contributes to the economic stability of agricultural businesses, but also supports the social and political goals of sustainable development. In the near future, the demand for electricity for mobility, cooling, etc. in agriculture will also increase and can be generated directly on site with agri-PV.

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Summary of key points and recommendations for stakeholders

• ​Promoting social acceptance: It is crucial that agri-PV projects are designed and communicated transparently to ensure broad social acceptance. Information campaigns and public dialogues can help to address concerns and highlight the benefits of this technology.
•  Adaptation to local conditions: Agri-PV systems should be adapted to the specific geographical and climatic conditions and agricultural practices of the area in question. This maximises efficiency and environmental benefits.
• Interdisciplinary co-operation: Close co-operation between energy producers, farmers, scientists and authorities is crucial for the success of Agri-PV. 

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