Economic Performance of a Farm-Based Agri-PV System

[Dachau, Germany] A 1 MW Agri-PV system with single-axis tracking technology located near a farm (in Germany) offers a representative example of the economic outlook. The system yields an annual output of 1,280,000 kWh (1,280 kWh/kWp) and has a total investment cost of approximately €820,000, including transformer and grid connection (€220,000).

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Table 1: Economic Viability With and Without Technology Bonus

Variant Investment Cost EEG Feed-in Tariff Annual Revenue Payback Period
Without Technology Bonus €820,000 €0.067/kWh €85,760 9.6 years
With Technology Bonus €820,000 €0.0936/kWh €119,808 6.8 years

 

Modular Installation with Self-Assembly: Up to €200,000 Savings

Many agricultural businesses possess technical skills and can install parts of the system themselves. With guidance from an experienced site manager, significant cost reductions can be achieved. In this example, investment costs are reduced by €200,000.

Table 2: Economic Viability with Partial Self-Installation

Variant Investment Cost EEG Feed-in Tariff Annual Revenue Payback Period
Kit with Self-Installation €620,000 €0.0936/kWh €119,808 5.2 years

 

Negative Electricity Prices: No Risk to EEG Compensation

Negative electricity prices can cause uncertainty in the market. For new and larger PV systems (from 400 kWp), the following rule applies:

If electricity prices are negative on the exchange for at least three consecutive hours, EEG compensation is suspended for that duration. While the total support period is extended to partially offset this, the current compensation level is slightly reduced. Forecasts estimate approximately 5% of hours to have negative prices. This has no material impact on the overall profitability of Agri-PV systems.

Current Status: Technology Bonus and EU Approval

The full EEG remuneration, including the technology bonus, currently stands at €0.0936/kWh. This tariff is still subject to approval by the European Commission. Until the approval is granted, compensation will likely be paid without the bonus. Once approved, the bonus will be paid retroactively.

Key Takeaways:

  • Farm-based Agri-PV systems remain economically viable, even amidst electricity market uncertainties.
  • Negative electricity prices do not affect EEG compensation.
  • Self-installation and the technology bonus significantly shorten the payback period.
  • Full EEG compensation will be granted as soon as EU approval is obtained.

Agricultural Use

Continued agricultural use is a decisive criterion for classification as an Agri-PV system, which is reassessed every three years.

The AgriPV Yearbook 2025 (in German) (https://www.agripv.de/jahrbuch-agripv-2025) published by AgriPV Verlag outlines the detailed requirements.

Key criteria include:

  • Primary Agricultural Use
    The concept must clearly demonstrate how agricultural production (e.g., arable farming, permanent crops, grassland, or livestock farming) continues on the land.
  • Minimum Agricultural Yield
    After installation, the agricultural yield must be at least 66% of the reference yield (averaged over a three-year period).
  • Limited Land Loss
    The area taken up by the Agri-PV system must not exceed 15% of the total project area (Category 2 standard).
  • Adaptation to Agricultural Requirements
    The availability and distribution of light and water must be evaluated and adapted to the needs of the crops. Farming operations must remain feasible using standard agricultural machinery. This is typically ensured by minimum row spacing (approx. 7 m for single-post trackers) combined with vertical stowing of modules.
  • Technical Requirements for Trackers
    Tracker systems must maintain a minimum clearance height (e.g., 2.10 m) to allow the use of large agricultural machinery.
  • Verification and Monitoring
    Continuous agricultural usability must be documented and periodically reviewed, forexample through digital field records.

 

Farm-Based Agri-PV Systems Are a Win-Win Model

They offer financial stability, protection against climate risks, promote biodiversity and soil health, and prepare agricultural operations for the future.

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