THE ECONOMICS OF AGRIVOLTAIC SYSTEMS: A MAPPING REVIEW

Authors

  • Mohd Iqbal Mohd Noor 1Faculty of Business Management, UNIVERSITI TEKNOLOGI MARA, RAUB BRANCH
  • Izyan Hadirah Institute for Biodiversity and Sustainable Development, UNIVERSITI TEKNOLOGI MARA, SHAH ALAM
  • Amira Mas Ayu Amir Mustafa School of Accounting and Finance, Faculty of Business and Law, TAYLOR’S UNIVERSITY, SELANGOR
  • Normah Abdul Latip Borneo Research Institute for Indigenous Studies (BorIIs), UNIVERSITI MALAYSIA SABAH (UMS)
  • Muhammad Fuad Abdullah Faculty of Business Management, UNIVERSITI TEKNOLOGI MARA, PUNCAK ALAM
  • Mohamad Pirdaus Yusoh Faculty of Hospitality, Tourism and Wellness, UNIVERSITI MALAYSIA KELANTAN

DOI:

https://doi.org/10.21837/pm.v24i40.1968

Keywords:

Agrivoltaic systems, economic impacts, profitability, renewable energy, agriculture

Abstract

Agrivoltaic systems (AVS) combine solar PV technology with agriculture, offering a dual-use solution to land-use conflicts and energy needs. While environmental and technical benefits are well-studied, economic viability remains less explored. This review analyzes 53 peer-reviewed studies using metrics like ROI, CBR, and IRR. Results show fixed tilt and bifacial systems offer strong economic potential, while elevated and tracking systems often need policy support. Key challenges include high upfront costs, inconsistent profitability, and limited long-term financial data. Standardized metrics and deeper economic analyses are needed to support AVS adoption and policy development.

Downloads

Download data is not yet available.

References

Ahmad, N. A., Hussain, N. H. M., & Rahim, F. A. (2024). Establishing a sustainable solar energy community in the Malaysian rural energy landscape: A case study of Perak Tengah, Malaysia. Planning Malaysia, 22.

Agostini, A., Colauzzi, M., & Amaducci, S. (2021). Innovative agrivoltaic systems to produce sustainable energy: An economic and environmental assessment. Applied Energy, 281, 116102. https://doi.org/10.1016/j.apenergy.2020.116102

Ahmed, M. S., Khan, M. R., Haque, A., & Khan, M. R. (2022). Agrivoltaics analysis in a techno-economic framework: Understanding why agrivoltaics on rice will always be profitable. Applied Energy, 323, 119560. https://doi.org/10.1016/j.apenergy.2022.119560

Al-Amin, Shafiullah, G. M., Ferdous, S. M., Shoeb, Md., Reza, S. M. S., Elavarasan, R. M. M., & Rahman, M. M. (2024). Agrivoltaics system for sustainable agriculture and green energy in Bangladesh. Applied Energy, 371, 123709. https://doi.org/10.1016/j.apenergy.2024.123709

Ali, O. M., Maka, T., Ghalut, E., & Elsaye, E. (2024). The pathway towards decarbonisation and net-zero emissions by 2050: The role of solar energy technology. Green Technologies and Sustainability. Advance online publication. https://doi.org/10.1016/j.grets.2024.100107

Anusuya, K., Vijayakumar, K., Martin, M. L. J., & Manikandan, S. (2024). Agrophotovoltaics: Enhancing solar land use efficiency for energy-food-water nexus. Renewable Energy Focus, 50, 100600. https://doi.org/10.1016/j.ref.2024.100600

Azzeri, A., Ching, G. H., Jaafar, H., Mohd Noor, M. I., Razi, N. A., Then, A. Y.-H., Suhaimi, J., Kari, F., & Dahlui, M. (2020). A review of published literature regarding health issues of coastal communities in Sabah, Malaysia. International Journal of Environmental Research and Public Health, 17(5), 1533. https://doi.org/10.3390/ijerph17051533

Balat, M., Balat, H., & Acici, N. (2003). Environmental issues relating to greenhouse carbon dioxide emissions in the world. Energy Exploration & Exploitation, 21(5), 457–473. https://doi.org/10.1260/014459803322986286

Ben Guida, S., & Ben Guida, D. M. (2019). Investment in agrophotovoltaics: Efficient solutions from Switzerland. International Journal of Innovative Technology and Exploring Engineering, 8(12), 2497–2505. https://doi.org/10.35940/ijitee.L2497.1081219

Campana, P. E., Stridh, B., Hörndahl, T., Svensson, S.-E., Zainali, S., Ma Lu, S., Zidane, T. E. K., De Luca, P., Amaducci, S., & Colauzzi, M. (2024). Experimental results, integrated model validation, and economic aspects of agrivoltaic systems at northern latitudes. Journal of Cleaner Production, 437, 140235. https://doi.org/10.1016/j.jclepro.2023.140235

Chae, S.-H., Kim, H. J., Moon, H.-W., Kim, Y. H., & Ku, K.-M. (2022). Agrivoltaic systems enhance farmers’ profits through broccoli visual quality and electricity production without dramatic changes in yield, antioxidant capacity, and glucosinolates. Agronomy, 12(6), 1415. https://doi.org/10.3390/agronomy12061415

Chalgynbayeva, A., Balogh, P., Szőllősi, L., Gabnai, Z., Apáti, F., Sipos, M., & Bai, A. (2024). The economic potential of agrivoltaic systems in apple cultivation—A Hungarian case study. Sustainability, 16(6), 2325. https://doi.org/10.3390/su16062325

Chalgynbayeva, A., Mizik, T., & Bai, A. (2022). Cost–benefit analysis of Kaposvár Solar Photovoltaic Park considering agrivoltaic systems. Clean Technologies, 4(4), 1054–1070. https://doi.org/10.3390/cleantechnol4040064

Claude-Michel Nzotungicimpaye, & H Damon Matthews. (2024). Linking cumulative carbon emissions to observable climate impacts. Environmental Research: Climate. Advance online publication. https://doi.org/10.1088/2752-5295/ad3fda

Cuppari, R. I., Higgins, C. W., & Characklis, G. W. (2021). Agrivoltaics and weather risk: A diversification strategy for landowners. Applied Energy, 291, 116809. https://doi.org/10.1016/j.apenergy.2021.116809

Dasgupta, S., & Robinson, E. J. Z. (2024). Climate, weather, and child health: Quantifying health co-benefits. Environmental Research Letters, 19(8), 084001. https://doi.org/10.1088/1748-9326/ad5d09

Di Francia, G., & Cupo, P. (2023). A cost-benefit analysis for utility-scale agrivoltaic implementation in Italy. Energies, 16(7), 2991. https://doi.org/10.3390/en16072991

Feuerbacher, A., Laub, M., & Högy, P. (2021). An analytical framework to estimate the economics and adoption potential of dual land-use systems: The case of agrivoltaics. Agricultural Systems, 192, 103193. https://doi.org/10.1016/j.agsy.2021.103193

Feuerbacher, A., Herrmann, T., Neuenfeldt, S., Laub, M., & Gocht, A. (2022). Estimating the economics and adoption potential of agrivoltaics in Germany using a farm-level bottom-up approach. Renewable and Sustainable Energy Reviews, 168, 112784. https://doi.org/10.1016/j.rser.2022.112784

Garrod, A., Hussain, S. N., & Ghosh, A. (2024). The technical and economic potential for crop-based agrivoltaics in the United Kingdom. Solar Energy, 277, 112744. https://doi.org/10.1016/j.solener.2024.112744

Gheorghiu, C., Scripcariu, M., Sava, G., Gheorghiu, M., & Dina, A.-L. (2022). Agrivoltaics potential in Romania: A symbiosis between agriculture and energy. EMERG, 8(3), 129–145. https://doi.org/10.xxxx

Giri, N. C., Mohanty, R. C., Pradhan, R. C., Abdullah, S., Ghosh, U., & Mukherjee, A. (2023). Agrivoltaic system for energy-food production: A symbiotic approach on strategy, modelling, and optimization. Sustainable Computing: Informatics and Systems, 40, 100915. https://doi.org/10.1016/j.suscom.2023.100915

Giri, N. C., & Mohanty, R. C. (2022). Agrivoltaic system: Experimental analysis for enhancing land productivity and revenue of farmers. Energy for Sustainable Development, 70, 54–61. https://doi.org/10.1016/j.esd.2022.07.003

Goh, K. C., Kong, J. W., Chai, C., & Lee, C. K. (2024). Exploring the potential of solar power for residential use in Malaysia: Insights from solar companies and local authorities. Planning Malaysia, 22.

Gonocruz, R. A., Nakamura, R., Yoshino, K., Homma, M., & Yoshida, Y. (2021). Analysis of the rice yield under an agrivoltaic system: A case study in Japan. Environments, 8(7), 65. https://doi.org/10.3390/environments8070065

Guerrero Hernández, A. S., & Ramos de Arruda, L. V. (2021). Technical-economic potential of agrivoltaic for the production of clean energy and industrial cassava in the Colombian intertropical zone. Environmental Quality Management, 31(1), 1–15. https://doi.org/10.1002/tqem.21778

Huston, P. (2024). Climate change and the pivotal role of health professionals. Journal of Evaluation in Clinical Practice. Advance online publication. https://doi.org/10.1111/jep.14103

Hwang, K.-W., & Lee, C.-Y. (2024). Estimating the deterministic and stochastic levelized cost of the energy of fence-type agrivoltaics. Energies, 17, 1932. https://doi.org/10.3390/en17081932

Janota, L., Vávrová, K., Weger, J., Knapek, J., & Králík, T. (2023). Complex methodology for optimizing local energy supply and overall resilience of rural areas: A case study of Agrovoltaic system with Miscanthus x giganteus plantation within the energy community in the Czech Republic. Renewable Energy, 212, 738–750. https://doi.org/10.1016/j.renene.2023.05.077

Ji, Z., Li, W., & Niu, D. (2024). Optimal investment decision of agrivoltaic coupling energy storage project based on distributed linguistic trust and hybrid evaluation method. Applied Energy, 353, 122139. https://doi.org/10.1016/j.apenergy.2023.122139

Jürkenbeck, K., & Schulze, M. (2024). Consumer preferences and willingness to pay for apples from agrivoltaics. Journal of Cleaner Production, 465, 142854. https://doi.org/10.1016/j.jclepro.2024.142854

Kim, S., Kim, S., & An, K. (2023). An integrated multi-modeling framework to estimate potential rice and energy production under an agrivoltaic system. Computers and Electronics in Agriculture, 213, 108157. https://doi.org/10.1016/j.compag.2023.108157

Kumar, N. M., & Chopra, S. S. (2023). Integrated techno-economic and life cycle assessment of shared circular business model-based blockchain-enabled dynamic grapevoltaic farm for major grape-growing states in India. Renewable Energy, 209, 365–381. https://doi.org/10.1016/j.renene.2023.03.064

Lindsey, R. (2024, April 9). Climate change: Atmospheric carbon dioxide. NOAA Climate.gov. https://www.climate.gov/news-features/understanding-climate/climate-change-atmospheric-carbon-dioxide

Malu, P. R., Sharma, U. S., & Pearce, J. M. (2017). Agrivoltaic potential on grape farms in India. Sustainable Energy Technologies and Assessments, 23, 104–110. https://doi.org/10.1016/j.seta.2017.08.004

Mamun, M. A. A., Dargusch, P., Wadley, D., Zulkarnain, N. A., & Aziz, A. A. (2022). A review of research on agrivoltaic systems. Renewable and Sustainable Energy Reviews, 161, 112351. https://doi.org/10.1016/j.rser.2022.112351

Mo, T., Lee, H., Oh, S., Lee, H., & Kim, B. H. S. (2023). Economic efficiency of climate-smart agriculture technology: Case of agrophotovoltaics. Land, 12(1), 90. https://doi.org/10.3390/land12010090

Muhamad Nor, A. N., Abas, M. A., Arumugam, J., Yusoh, M. P., & Abdul Latip, N. (2024). Land suitability analysis using geographic information system (GIS) for sustainable land development in Jeli, Kelantan, Malaysia. Planning Malaysia, 22(34). https://doi.org/10.21837/pm.v22i34.1571

On, Y., Kim, S., & Kim, S. (2024). Multi-objective optimization for design of an agrophotovoltaic system under non-dominated sorting genetic algorithm II. Computers and Electronics in Agriculture, 224, 109237. https://doi.org/10.1016/j.compag.2024.109237

Parisa, H., Moazami, A., & Aghaei, M. (2024). Solar energy system integration for energy transition: A short review from technologies and methods to energy management system and challenges. InTechOpen. https://doi.org/10.5772/intechopen.114956

Parkinson, S., & Hunt, J. (2020). The economic potential for rainfed agrivoltaics in groundwater stressed regions. Environmental Science & Technology Letters. Advance online publication. https://doi.org/10.1021/acs.estlett.0c00349

Phoung, S., Hittinger, E., Guhathakurta, S., & Williams, E. (2023). Forecasting macro-energy demand accounting for time-use and telework. Energy Strategy Reviews, 51, 101264. https://doi.org/10.1016/j.esr.2023.101264

Rabasoma, K., Jenkins, N., & Ekanayake, J. (2024). Economic feasibility of using agrivoltaics for tomato farming. Food and Energy Security, 13, e548. https://doi.org/10.1002/fes3.548

Ravilla, A., Shirkey, G., Chen, J., Jarchow, M., Stary, O., & Celik, I. (2024). Techno-economic and life cycle assessment of agrivoltaic system (AVS) designs. Science of the Total Environment, 912, 169274. https://doi.org/10.1016/j.scitotenv.2023.169274

Schindele, S., Trommsdorff, M., Schlaak, A., Obergfell, T., & Högy, P. (2020). Implementation of agrophotovoltaics: Techno-economic analysis of the price-performance ratio and its policy implications. Applied Energy, 265, 114737. https://doi.org/10.1016/j.apenergy.2020.114737

Segbedji Geraldo Favi, R. Adamou, T. Godjo, N. C. Giri, K. Kuleape, & Trommsdorff, M. (2024). Agrivoltaic systems offer symbiotic benefits across the water-energy-food-environment nexus in West Africa: A systematic map. Energy Research & Social Science, 117, 103737. https://doi.org/10.1016/j.erss.2024.103737

Shaik, S. (2024). Contribution of climate change to sector-source energy demand. Energy, 294, 130777. https://doi.org/10.1016/j.energy.2024.130777

Sirnik, I., Sluijsmans, J., Oudes, D., & Stremke, S. (2023). Circularity and landscape experience of agrivoltaics: A systematic map of literature and built systems. Renewable and Sustainable Energy Reviews, 178, 113250. https://doi.org/10.1016/j.rser.2023.113250

Sponagel, C., Feuerbacher, A., Bendel, D., & Bahrs, E. (2023). Economic and agronomic impacts of agrivoltaics on arable land use: The example of the Stuttgart region. German Journal of Agricultural Economics, 71(2), 1–15. https://doi.org/10.30430/gjae.2022.0334

Sponagel, C., Weik, J., Feuerbacher, A., & Bahrs, E. (2024). Exploring the climate change mitigation potential and regional distribution of agrivoltaics with geodata-based farm economic modelling and life cycle assessment. Journal of Environmental Management, 359, 121021. https://doi.org/10.1016/j.jenvman.2024.121021

Trommsdorff, M., Hopf, M., Hörnle, O., Berwind, M., Schindele, S., & Wydra, K. (2023). Can synergies in agriculture through an integration of solar energy reduce the cost of agrivoltaics? An economic analysis in apple farming. Applied Energy, 350, 121619. https://doi.org/10.1016/j.apenergy.2023.1216

Widmer, J., Christ, B., Grenz, J., & Norgrove, L. (2024). Agrivoltaics, a promising new tool for electricity and food production: A systematic map. Renewable and Sustainable Energy Reviews, 192, 114277. https://doi.org/10.1016/j.rser.2023.114277

Willockx, B., Lavaert, C., & Cappelle, J. (2022). Geospatial assessment of elevated agrivoltaics on arable land in Europe to highlight the implications on design, land use, and economic level. Energy Reports, 8, 8736–8751. https://doi.org/10.1016/j.egyr.2022.06.076

Yajima, D., Toyoda, T., Kirimura, M., Araki, K., Ota, Y., & Nishioka, K. (2023). Estimation model of agrivoltaic systems maximizing for both photovoltaic electricity generation and agricultural production. Energies, 16, 3261. https://doi.org/10.3390/en16073261

Yue, H., Wang, H., Xiong, Y., Yao, Y., Lv, H., Xue, X., & Xu, C. (2024). Performance investigation on an agricultural photovoltaic thermal system based on spectral separation. Renewable Energy, 221, 119720. https://doi.org/10.1016/j.renene.2023.119720

Yusoh, M. P., Abdul Latip, N., Hanafi, N., Hua, A. K., Zakaria, Z., & Mohamad Ridzuan, M. I. (2023). Social carrying capacity as a planning tool for sustainable tourism: A case of Pangkor Island, Perak, Malaysia. Planning Malaysia, 21(28). https://doi.org/10.21837/pm.v21i28.1329

Yusoh, M. P., Muhamad Nor, A. N., Hambali, K. A., Abdul Latip, N., & Abas, M. A. (2024). Willingness of island community to participate in the waste-to-wealth program: A case study in Teluk Renjuna, Tumpat, Kelantan, Malaysia. Planning Malaysia, 22(33). https://doi.org/10.21837/pm.v22i33.1538

Zafar, H., Alam, H., & Alam, M. A. (2023). Techno-economic modeling for agrivoltaics: Can agrivoltaics be more profitable than ground-mounted PV? IEEE Transactions on Sustainable Energy, 14(5), 1445–1457. https://doi.org/10.1109/TSTE.2023.3265965

Zhang, Z., Zhang, F., Zhang, W., Li, M., Liu, W., Omer, A. A. A., Zheng, J., Zhang, X., & Liu, W. (2023). Spectral-splitting concentrator agrivoltaics for higher hybrid solar energy conversion efficiency. Energy Conversion and Management, 276, 116567. https://doi.org/10.1016/j.enconman.2022.116567

Zhang, Z., Zhang, F., Zhang, W., Li, M., Liu, W., Zheng, J., & Liu, W. (2024). Spectral-splitting concentrator agrivoltaics for higher hybrid solar energy conversion efficiency. Energy Conversion and Management, 276, 116567. https://doi.org/10.1016/j.enconman.2022.116567

Zheng, J., Meng, S., & Ning, X. (2021). Increasing the comprehensive economic benefits of farmland with even-lighting agrivoltaic systems. PLoS ONE, 16(7), e0254482. https://doi.org/10.1371/journal.pone.0254482

Zheng, Y., Chen, A., Fu, X., & Li, D. (2024). Photovoltaics and agriculture nexus: Exploring the influence of agrivoltaics on food production and electricity generation. IEEE Journal of Photovoltaics, 14(5), 705–719. https://doi.org/10.1109/jphotov.2024.3421298

Downloads

Published

2026-02-12

How to Cite

Mohd Noor, M. I., Hadirah, I., Amir Mustafa, A. M. A., Abdul Latip, N., Abdullah, M. F., & Yusoh, M. P. (2026). THE ECONOMICS OF AGRIVOLTAIC SYSTEMS: A MAPPING REVIEW. PLANNING MALAYSIA, 24(40). https://doi.org/10.21837/pm.v24i40.1968

Most read articles by the same author(s)

<< < 1 2 3 4