In public debate, agri-PV is often reduced to its electricity generation costs—but this view is too narrow. As a member of the Association for Sustainable Agri-PV (VnAP), we support the association’s latest statement, which demonstrates why agri-PV is economically competitive and highlights the societal benefits that are overlooked when costs are considered in isolation.

Agri-PV is competitive

Modern agri-PV systems generate electricity at a cost of 5 to 12 cents per kWh—which puts them on par with other renewable energy sources and well below the costs of fossil fuel power plants. The higher cost figures appearing in current studies primarily pertain to research facilities and highly specialized systems for specialty crops such as fruits or vegetables. These systems are naturally more expensive due to small production volumes and specific requirements—but they do not represent the state of the art for broad market deployment. Cost-effective variants, such as vertically mounted systems or single-axis tracking systems, can already be operated economically today. Furthermore, it is expected that increasing production volumes will lead to significantly lower costs due to learning curve effects—as was the case with ground-mounted photovoltaics several decades ago.

More than just power generation

An assessment based solely on electricity generation costs does not do justice to the technology. Agri-PV combines energy and food production on the same land—a decisive advantage given the growing competition for land in Germany. Every day in this country, around 55 hectares of farmland are lost to housing and transportation, while the expansion of PV capacity is estimated to require 280,000 hectares by 2040. Agri-PV resolves this conflict through smart multiple use, rather than pitting land uses against one another.

In addition, agri-PV systems offer concrete benefits for farms: protection against hail and heat stress, reduced irrigation needs due to lower evaporation, and an improved microclimate that stabilizes crop yields. East-west-facing and tracking systems, in particular, generate electricity specifically during peak demand times—in the morning and evening—which improves grid utilization and reduces storage requirements. Last but not least, agri-PV enables farms to participate directly in the energy transition: through additional sources of income, long-term planning security, and a stronger integration of the energy transition in rural areas.

The right balance of support

These societal benefits are not reflected in traditional LCOE calculations—yet they have a measurable economic and societal value. The subsidy perspective also puts the cost debate into perspective: If the planned tender volume were fully implemented, it would result in annual additional costs of around 89 million euros for agri-PV under the EEG—which amounts to just 0.4 percent of the EEG budget. By comparison: The planned expansion of new gas-fired power plants through 2030 requires investments of up to 32 billion euros.

Targeted support for agri-PV at this stage of development therefore makes sense: to achieve economies of scale, reduce system costs, and establish a technology that addresses multiple societal goals simultaneously.

The VnAP has published a detailed statement on this matter, which we, as member companies, strongly support.
The full VnAP statement is available here:
https://vnap.org/wp-content/uploads/2026/02/Stellungnahme-Agri-PV-im-Kostenvergleich-1.pdf