Renewables in Agriculture: How Agrivoltaics, Bioenergy & Sustainable Farming Power the Future of Food and Energy

A farmer in Maharashtra checking their irrigation pump—not powered by diesel or erratic grid electricity, but by solar panels installed right above their crops.

Across the Atlantic in Colorado, another farmer harvests lettuce growing under those same photovoltaic panels that generate clean power for 300 homes.

Meanwhile, in a small German village, cow manure transforms into biogas that heats every home. This is not science fiction.

This is renewables in agriculture—a convergence of food production and clean energy that's reshaping how we feed the world while fighting climate change.

Renewables in agriculture represents the strategic integration of renewable energy systems directly into farming operations, creating dual-purpose land use that produces both food and power.

As global agriculture grapples with the twin challenges of feeding 8 billion people and reducing its 16.2 billion tonnes of CO₂ equivalent emissions annually, this approach offers more than just decarbonization.

It's about economic survival. It's about turning farmers into energy entrepreneurs. And it's about proving that productivity and sustainability can coexist on the same acre of land.

At Green Fuel Journal, we've tracked how innovative farmers, communities, and nations are adopting these technologies to secure their energy independence while boosting agricultural resilience. The evidence is compelling: renewable energy in agriculture is not just environmentally responsible—it's economically essential.

What Does "Renewables in Agriculture" Mean?

Renewables in agriculture refers to the integration of renewable energy generation systems with agricultural activities on the same land or within farming operations. This includes several distinct but complementary approaches:

Agrivoltaics (Agri-PV Systems)

Agrivoltaics—also called agrisolar or dual-use solar—combines solar photovoltaic panels with crop cultivation or livestock grazing beneath and around the panels. The concept maximizes land productivity by generating electricity while maintaining agricultural output.

In the United States alone, agrivoltaics capacity more than doubled from 27,000 acres producing 4.5 GW in 2020 to 62,000 acres producing 10 GW by November 2024, with nearly 600 active sites currently operational.

The global agrivoltaics market reached USD 4.44 billion in 2024 and is projected to grow at a 10.2% compound annual growth rate through 2032. Leading countries include Japan, China, Germany, France, and India, which has established the India Agrivoltaics Alliance to coordinate stakeholder inputs and develop comprehensive policy frameworks.

Bioenergy & Biomass Systems

Bioenergy systems convert agricultural waste—including animal manure, crop residues, and food processing by-products—into renewable fuel through anaerobic digestion.

This process produces biogas (typically 50-70% methane) that can generate electricity, heat, or be upgraded to renewable natural gas for vehicle fuel or grid injection.

The United States currently operates approximately 2,500 biogas sites across all 50 states, including 609 anaerobic digesters on farms, 1,180 water resource recovery facilities, 113 stand-alone food waste systems, and 583 landfill gas projects—representing an estimated $37.6 billion in capital investment. In 2024, the U.S. biogas industry saw record growth with 615 farm-based systems (an 18% increase from 522 in 2023), producing nearly 1.4 million standard cubic feet per minute of biogas—equivalent to powering 2.4 million homes annually.

Wind & Other Renewable Integrations

Beyond solar and bioenergy, agriculture integrates wind turbines on grazing land without disrupting livestock operations, uses geothermal energy for greenhouse heating in cold climates, and increasingly explores green hydrogen for powering heavy farm machinery and long-term energy storage.

The Three Pillars of Renewable Agriculture

Agrivoltaics: Synergy Between Solar and Crops

How It Works

Agrivoltaic systems elevate solar panels on structures 6 to 8 feet high (or higher for large equipment access), allowing farmers to grow crops, graze livestock, or establish pollinator habitats beneath. The panels are typically spaced with wider row gaps than conventional solar farms, permitting sunlight penetration and farm equipment operation.

Research from the National Renewable Energy Laboratory (NREL) demonstrates that both crops and solar production can actually perform better when paired together. The partial shade created by solar panels alters the microclimate—cooler during the day, warmer at night—while increasing soil moisture retention by up to 30% due to reduced evaporation.

Agrivoltaics Benefits	Impact
Water Conservation	Reduces evaporation by 30%; decreases irrigation requirements
Crop Yield Enhancement	Shade-loving crops show improved yields; protection from extreme heat
Dual Income Streams	Farmers earn from both crops and electricity generation/land lease
Carbon Sequestration	Enhanced soil moisture promotes carbon retention
Land Productivity	Studies show up to 60% increase in total land productivity value

Real-World Performance

At a fishery near China's Yellow River, solar panels installed above aquaculture ponds keep water temperatures consistently 2-3°C cooler than outdoor ponds, boosting shrimp and sea cucumber yields by 50%. In Arizona's drylands, research found farming under solar panels decreased soil water evaporation and potentially reduced irrigation requirements while improving crop resistance during droughts.

Challenges

The installation costs remain higher than conventional solar. The National Renewable Energy Laboratory reports agrivoltaic system costs range from $2.60 to $4.50 per watt, compared to $1.50 to $3.00 per watt for traditional ground-mounted solar. Complex permitting processes, specialized equipment requirements, and the need to coordinate between solar developers and farmers add operational complexity.

Machinery movement can be restricted depending on panel height and spacing. Farmers must carefully select crops compatible with altered light conditions—though this limitation often becomes an advantage, as many shade-tolerant crops thrive under partial solar canopy.

Bioenergy: Turning Waste into Power

The Circular Economy Model

Anaerobic digestion represents agriculture's ultimate circular economy: waste becomes wealth. A 1,000-pound dairy cow produces approximately 80 pounds of manure daily.

Rather than treating this as a disposal problem, farmers feed it into oxygen-free digesters where bacteria break down organic matter, producing:

1. Biogas (energy source)

2. Digestate (nutrient-rich fertilizer and soil amendment)

3. Reduced methane emissions (preventing greenhouse gases from entering atmosphere)

The process is remarkably versatile. Digesters accept animal manure, crop residues, food processing waste, and even fats, oils, and greases from food service industries. Co-digestion of multiple feedstocks can improve methane yield by 22% compared to single-feedstock systems.

Biogas Application	Current U.S. Deployment	Energy Equivalent
Renewable Natural Gas (RNG)	Leading end use as of 2024	Displaces fossil fuel in vehicles and heating
Combined Heat & Power (CHP)	Second most common	Powers farm operations + heating
Direct Electricity Generation	Declining but stable	Grid injection or on-farm use
Boiler/Furnace Fuel	Growing slowly	Heating applications

The Bioenergy Village Concept

Germany pioneered the "Bioenergy Village" model, where entire rural communities convert their electricity and heat supply to renewable biomass. Jühnde, the first bioenergy village established in 2000, serves as the global benchmark.

This 750-resident village in Lower Saxony now generates twice the electricity it consumes through a biogas plant fueled by maize, wheat, barley, and livestock manure—all grown on formerly fallow local fields.

The biomass-fueled local heating system reduced costs for average households by approximately €750 annually.

Today, more than 80 villages in Germany have replicated this model, demonstrating that community-scale renewable energy systems are both technically feasible and economically viable.

The cooperative ownership structure ensures economic benefits stay within the community. Farmers provide feedstock, residents subscribe to the heating grid, and local governments support infrastructure development. This multi-stakeholder approach has proven essential for successful implementation.

Other Renewable Integrations

• Wind Energy on Grazing Land

  Wind turbines occupy minimal ground space—typically less than 3% of a project area—allowing livestock grazing to continue uninterrupted. The lease payments from wind developers provide farmers with stable long-term income (often $3,000-$8,000 per turbine annually per landowner) while maintaining agricultural productivity.

  
  

• Geothermal for Greenhouse Heating

  Geothermal systems provide consistent, year-round heating for greenhouse operations, particularly valuable in northern climates. The technology reduces reliance on natural gas or propane while maintaining precise temperature control essential for commercial greenhouse production.

  
  

• Hydrogen Tractors & Next-Generation Storage

  While still emerging, green hydrogen—produced through renewable electricity-powered electrolysis—promises to decarbonize heavy farm machinery that's difficult to electrify with batteries. Hydrogen can also store excess renewable energy for weeks or months, addressing the seasonal mismatch between solar generation peaks and agricultural energy demand.

How Renewable Energy Improves Sustainable Farming

Reducing Fossil Fuel Dependence & Emissions

Agriculture's carbon footprint is substantial. According to the Food and Agriculture Organization (FAO), agrifood systems emissions reached 16.2 billion tonnes of CO₂ equivalent in 2022—representing about one-third of total anthropogenic greenhouse gas emissions. Farm-gate emissions increased 15% between 2000 and 2022, with livestock contributing approximately 54% of these emissions.

Breaking this down further:

• Methane (CH₄) from enteric fermentation in ruminant livestock: 2.1 Gt CO₂eq in 2018

• Nitrous oxide (N₂O) from synthetic fertilizers and manure: significant contributor

• Carbon dioxide (CO₂) from fossil fuel combustion in machinery and irrigation

Renewables in agriculture directly addresses these emissions. The American Biogas Council estimates that existing U.S. biogas systems reduce emissions equivalent to removing 2.6 million passenger vehicles from roads annually. If the 20,000+ additional biogas projects identified as technically feasible were built, they could create 740,000 short-term construction jobs and 25,000 permanent operations jobs while dramatically cutting agricultural methane emissions.

Solar-powered irrigation pumps eliminate diesel consumption entirely. The PM-KUSUM scheme in India has installed 540,499 solar pumps as of October 2024, representing 42% of the target. Each solar pump displaces approximately 1,200 liters of diesel annually, preventing roughly 3.2 tonnes of CO₂ emissions per pump per year.

Enhancing Food Security & Farm Resilience

Energy independence transforms farm economics and resilience. When electricity grids fail during storms or extreme weather events—increasingly common due to climate change—farmers with on-site renewable generation maintain critical operations like irrigation, cooling, and animal housing climate control.

Volatile fossil fuel prices create unpredictable operational costs. Diesel prices in India, for example, have fluctuated between ₹80-110 per liter over recent years, making irrigation costs unpredictable. Solar-powered pumps fix energy costs for 25+ years, allowing farmers to budget with certainty.

The PM-KUSUM Component C enables farmers to not only power their irrigation pumps with solar but also sell excess electricity to distribution companies (DISCOMs) at predetermined tariffs. This creates an additional income stream during non-irrigation seasons, effectively paying farmers to conserve water—a powerful incentive in water-stressed regions.

Jack's Solar Garden in Colorado demonstrates food security benefits at the community level. Since 2020, the site has donated over 1,500 pounds of produce to local food assistance programs while training 23 young farmers in agrivoltaic cultivation techniques through workshops and hands-on education.

Economic Uplift & Cost Savings

Return on Investment (ROI) Analysis

While upfront costs are substantial, long-term economics favor renewable energy investments:

• Agrivoltaics ROI Factors:

  • Initial Investment: Higher than conventional solar ($2.60-$4.50/watt vs. $1.50-$3.00/watt)

  • Dual Revenue: Crop income + electricity sales/lease payments

  • Federal Incentives: U.S. Investment Tax Credit (ITC) covers significant portion

  • Payback Period: Estimates suggest 4 years for energy production alone; faster when crop benefits and subsidies included

  • Lifespan: Solar panels typically warranted for 25-30 years

• Biogas Systems ROI:

  • Capital Cost: Small-scale digesters $500,000-$1 million (Europe); varies widely by region and scale

  • Operating Costs: Feedstock handling, maintenance, monitoring

  • Revenue Streams: Electricity sales, RNG sales, digestate (fertilizer/bedding), tipping fees (accepting waste)

  • Payback Period: Highly variable (5-15 years) depending on feedstock availability, energy prices, and incentive programs

  • Co-benefits: Odor reduction, pathogen reduction, nutrient management compliance

Government Support Mechanisms:

Program	Country/Region	Support Level	Details
PM-KUSUM	India	30-50% subsidy	Central government provides 30% (50% in special regions); state adds 30%; farmer contributes 20-40%
SMART Program	Massachusetts, USA	$0.06/kWh adder	Feed-in tariff premium for agrivoltaic projects
REAP	USA (USDA)	Grants + loans	$50M/year mandatory funding through 2018; supports renewable energy on farms
EEG (Renewable Energy Act)	Germany	Feed-in tariffs	Guaranteed prices for biogas electricity; updated periodically
Bioenergy Program for Advanced Biofuels	USA (USDA)	Production payments	$15M/year mandatory + $20M discretionary funding

The India PM-KUSUM scheme received ₹2,600 crore (approximately $301.97 million) in the Union Budget 2025-26, a 26% increase from the previous year's expenditure of ₹2,525 crore.

Maharashtra received the highest allocation of ₹1,154 crore in fiscal year 2024-25, accounting for 58% of total funds released.

Deployment Challenges and Mitigation Strategies

Technical Barriers

• Grid Connectivity Issues: Renewable energy systems require connection to electrical grids to sell excess power, but rural areas often lack adequate infrastructure. PM-KUSUM Component A addresses this by limiting plant size to 500 kW to 2 MW and requiring proximity to substations. However, grid upgrades remain necessary in many regions.

• Intermittency & Storage: Solar and wind are weather-dependent. Battery storage costs have declined but remain expensive for farm-scale applications. Biogas offers a partial solution through dispatchable renewable energy, as anaerobic digesters produce constant output regardless of weather.

• Technology Adaptation: Standard solar panels and inverters designed for rooftop installations may not perform optimally in agricultural environments with dust, high humidity, temperature extremes, or mechanical vibration from nearby equipment. Specialized equipment designed for agricultural conditions (like dusty, high-temperature environments above 50°C) is essential.

Policy Gaps

• Permitting Complexity: Agricultural land-use regulations often don't account for dual-use scenarios. Converting agricultural land to "solar farms" may violate zoning laws, even when crops continue growing beneath panels. Boulder County, Colorado, updated its Land Use Code specifically to enable Jack's Solar Garden with a special review process for solar arrays on prime farmland.

• Inconsistent Standards: Different states and countries have varying definitions of what qualifies as "agrivoltaics" versus conventional solar development. Some require minimum crop yields or specific farming activities to maintain agricultural land classification.

• Feed-in Tariff Structures: The economics of selling renewable electricity to utilities depends heavily on tariff structures, which vary dramatically by region and change over time. Germany's Renewable Energy Act (EEG) provides relatively stable, long-term feed-in tariffs that make biogas economically viable. In contrast, some regions offer only spot-market rates that may not cover costs.

Financing Challenges

• Small Farmer Access to Capital: A farmer with 2 hectares of land cannot typically secure the $50,000-$200,000 loan needed for even a modest solar pump installation without government subsidies. The PM-KUSUM scheme addresses this by allowing farmers to contribute as little as 10% upfront (when state and central subsidies combine for 60%) with bank financing covering the remaining 30%.

• Risk Assessment: Traditional lenders lack experience evaluating dual-use agricultural-energy projects. They may not understand how to assess collateral value when solar panels sit atop productive cropland.

• Mitigation Strategies:

  1. Cooperative Ownership Models: Pool resources among multiple farmers (as in German bioenergy villages)

  2. Public-Private Partnerships: Developers own/operate systems; farmers provide land and receive lease payments

  3. Specialized Lending Programs: State-backed agricultural development banks offering preferential terms

  4. Performance-Based Incentives: Payments based on actual energy production rather than upfront grants

  5. Technical Assistance Programs: Government-funded support for feasibility studies, project design, and permitting navigation

  
  

Global Case Studies: Success Stories & Lessons Learned

Agrivoltaics in Practice

Jack's Solar Garden (Colorado, USA)

• Location: Longmont, ColoradoCapacity: 1.2 MW from 3,276 solar panelsArea: 5 acres of a 24-acre family farmStatus: Largest commercial agrivoltaics research site in the United States

• Key Features:

  • Single-axis tracking solar panels elevated to 6-6.5 feet and 8 feet (two-thirds and one-third of property respectively) to study optimal heights

  • Community solar model: Over 50 residents, 5 commercial entities, and 2 local governments (Boulder County and City of Boulder) subscribe to electricity

  • Powers approximately 300 average Colorado homes annually

  • Research partnerships with NREL, Colorado State University, and University of Arizona

• Agricultural Activities:

  • Crop production: Over 30 vegetable varieties including lettuce, peppers, tomatoes, clary sage, raspberries

  • Pollinator habitat: Audubon Rockies established their largest Habitat Hero site with 3,000+ perennials

  • Farmer training: Sprout City Farms trains young farmers in agrivoltaic techniques; donated 1,500+ pounds of produce to local food banks

• Economic Model: Financed through federal Investment Tax Credit (ITC), state tax credits, private investment, and community solar subscriptions. Electricity sold through Xcel Energy's Solar*Rewards Community program with subscribers receiving bill credits.

• Community Impact: The Colorado Agrivoltaic Learning Center (nonprofit) has hosted 5,500+ visitors to date, including school groups, government officials, and international delegations. The site has trained 23 K-12 students through agrivoltaic workshops and reached 600+ people through off-site presentations.

• Lessons Learned:

  • Forward-looking local land-use codes are essential (Boulder County's updated code enabled the project)

  • Elevated panel design maintains land disturbance to minimum (83% of plants survived post-construction)

  • Community ownership creates local buy-in and economic benefits retention

  • Educational programming builds public acceptance for future projects

PM-KUSUM Agrivoltaics (India)

• Program: Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (Prime Minister's Scheme for Energy Security and Development of Farmers)Launch: March 2019; expanded January 2024Target: 34,800 MW of solar capacity by March 2026Budget: ₹34,422 crore (~$4.12 billion) central financial allocationCurrent Progress: Over 411,000 farmers benefited as of June 2024

• Three Components:

  1. Component A: 10,000 MW of decentralized ground/stilt-mounted grid-connected solar plants (500 kW to 2 MW capacity)

     • Farmers lease barren or cultivable land; continue farming if using stilted agrivoltaic design

     • Power sold to DISCOMs at tariff set by State Electricity Regulatory Commission

     • Creates 25-year steady income stream for land-owning farmers

  2. Component B: 14 lakh (1.4 million) standalone solar agricultural pumps

     • 540,499 pumps installed as of October 31, 2024 (42% of target)

     • Haryana leads with 69% achievement; Tamil Nadu at 73%

     • Budget: ₹11,438 crore; ₹3,748.61 crore (33%) utilized

     • Subsidy: 30-50% central + 30% state; farmer pays 20-40%

  3. Component C: 35 lakh (3.5 million) grid-connected pump solarization

     • Farmers retain grid connection but add solar capacity up to 2x pump capacity

     • Use solar for irrigation; sell excess to DISCOM

     • Dual benefit: energy independence + additional income

• Performance Highlights:

  • 2024 witnessed record progress: 4.4 lakh (440,000) pumps installed in Component B (4.2-fold increase over previous year)

  • Component C saw 2.6 lakh (260,000) pumps solarized (25 times more than FY 2024)

  • Maharashtra: Top recipient with ₹1,329.22 crore allocation

• Agrivoltaics Integration: India's PM-KUSUM explicitly allows agri-PV under Component A:

  • Overhead Stilted Systems: Panels mounted at minimum 2.1 meters high, allowing unrestricted farming

  • Inter-row Spacing Systems: Wide gaps between panel rows for large equipment

  • Shade protection reduces crop dehydration while crops cool panels, improving efficiency

  • Water used for panel cleaning drips to irrigate crops below

• Impact:

  • Displaces diesel consumption (each pump saves ~1,200 liters/year)

  • Reduces grid electricity demand during peak daytime agricultural use

  • Provides water-stressed regions with dual benefit: reduced evaporation + income from excess power

  • India Agrivoltaics Alliance established to coordinate stakeholders and develop comprehensive policy framework

Bioenergy Projects

Jühnde Bioenergy Village (Germany)

• Location: Lower Saxony, GermanyPopulation: ~750 residentsEstablished: 2000 (first bioenergy village in Germany)Model: Community cooperative ownership

• Technical System:

  • Biogas plant: Fueled by maize, wheat, barley (from ~400 hectares formerly fallow farmland) + livestock manure

  • Combined Heat & Power (CHP): Biogas burned in generator producing electricity and thermal energy

  • District heating grid: Hot water distributed directly to households via pipe network

  • Output: Generates twice the village's electricity consumption; excess fed to grid

• Economic Impact:

  • Average household heating cost reduction: ~€750 annually

  • Farmers receive stable income from feedstock sales

  • Cooperative structure ensures profits remain in community

  • Created local jobs in plant operation and maintenance

• Replication Success: More than 80 German villages adopted the Jühnde model by 2017. The German Federal Ministry of Agriculture launched a national competition awarding prizes to villages implementing similar concepts.

• Lessons Learned:

  • Community engagement from project inception critical (Jühnde used participatory action research)

  • Cooperative ownership model aligns stakeholder interests

  • National policy support (Germany's Renewable Energy Act) provides economic foundation

  • Local feedstock availability within ~30 km radius essential for logistics

  • Heat networks require minimum population density for economic viability

Nature Energy Korskro (Denmark)

• Capacity: Large-scale commercial biogas plantFeedstock: Agricultural substrates from 70 farms within 30 km radius

• Outputs:

  1. Biomethane: Injected directly into natural gas grid

  2. Biofertilizers: Returned to farmers as digestate

  3. Biogenic CO₂: Captured and sold to breweries for beverage carbonation

• Innovation: Triple-output model maximizes value extraction from feedstock while creating circular economy loop between farms, energy system, and food/beverage industry.

• Energy Storage on Farms

• Challenge: Solar generation peaks midday; agricultural energy demand varies seasonally.

• Emerging Solutions:

  • Battery systems: Declining costs (though still expensive for farm-scale applications)

  • Biogas as storage: Continuous generation provides baseload; can be ramped up/down

  • Green hydrogen: Excess renewable electricity → electrolysis → stored hydrogen → fuel cells or direct combustion when needed

• Case Example: Colorado's Jack's Solar Garden partners are exploring battery integration to store midday solar generation for evening/morning peak demand, improving economics by avoiding time-of-use rate penalties.

Practical Guide for Farmers: Implementation Checklist

Step 1: Technology Selection

Assess your resources:

• Land availability: Agrivoltaics requires 1-5 acres minimum for economically viable systems

• Organic waste generation: 100+ dairy cows or equivalent for biogas feasibility

• Water/irrigation needs: Determine if solar pumps meet requirements

• Grid connectivity: Distance to nearest substation affects grid-tied system costs

• Crop types: Identify shade-tolerant crops compatible with agrivoltaics

Technology decision matrix:

If you have...	Consider...	Typical scale
Barren/fallow land near substation	Component A agrivoltaics	500 kW - 2 MW
Irrigated cropland, unreliable grid	Solar pumps (Component B)	1-7.5 HP
Grid-connected pumps, good land	Pump solarization (Component C)	2x pump capacity
Dairy/livestock operation	Anaerobic digester	Based on herd size
Large acreage, windy location	Wind turbines	1-3 MW per turbine
Greenhouse operation	Geothermal	Site-specific

Step 2: Financing Template

Build your financial model:

1. Determine total project cost

   • Get 3-5 quotes from qualified installers

   • Include soft costs: permitting, engineering, legal, interconnection

2. Identify incentive programs

   • Federal: Investment Tax Credit (USA), accelerated depreciation

   • State/National: PM-KUSUM (India), REAP (USA), state-specific programs

   • Utility: Feed-in tariffs, net metering, renewable energy credits

3. Calculate subsidy/grant amounts

   • Example (PM-KUSUM Component B):

     • Total cost: ₹2,00,000

     • Central subsidy (30%): ₹60,000

     • State subsidy (30%): ₹60,000

     • Your contribution (40%): ₹80,000

     • Bank loan option: Borrow 30% (₹60,000), pay only 10% upfront (₹20,000)

4. Project revenue streams

   • Electricity sales/credits (25-year projection)

   • Renewable energy certificates (RECs)

   • Digestate sales (biogas systems)

   • Crop income (agrivoltaics)

   • Carbon credits (where available)

5. Calculate payback period

   • Simple payback = (Net cost after incentives) / (Annual net savings + revenue)

   • Typically 4-12 years for solar; 5-15 years for biogas

Step 3: Permitting & Compliance

Regulatory requirements checklist:

☐ Land use permits: Verify agricultural zoning allows renewable energy (or obtain variance)

☐ Environmental assessment: May be required for larger projects (biogas especially)

☐ Electrical permits: Utility interconnection agreement; state electrical inspection

☐ Building permits: Structural permits for solar arrays, biogas digesters

☐ Agricultural certification: Maintain ag land status (important for tax benefits)

☐ Water permits: Biogas may require wastewater discharge permits

☐ Air quality permits: Biogas facilities may need emissions monitoring

Timeline: Allow 6-18 months for permitting depending on project complexity and jurisdiction.

Step 4: Implementation Partners

Assemble your team:

1. System Integrator/EPC Contractor: Engineering, procurement, construction

   • Verify credentials, past projects, warranties

   • Check references from other farmers

2. Financing Partner: Bank/NBFC familiar with agricultural renewable projects

   • Compare interest rates, terms

   • Understand collateral requirements

3. Technical Consultant: Independent engineer to review proposals

   • Especially valuable for complex biogas systems

   • Can optimize system sizing

4. Agricultural Advisor: Agronomist to optimize crop selection (agrivoltaics)

   • Identify shade-tolerant varieties

   • Adjust planting/harvesting practices

5. Legal/Regulatory: Attorney familiar with energy law (for larger projects)

   • Review Power Purchase Agreements

   • Navigate interconnection processes

Step 5: ROI Calculation & Monitoring

Track these metrics:

• Financial:

  • Electricity bill savings (monthly)

  • Revenue from power sales (monthly)

  • Subsidy/incentive payments received

  • Operating & maintenance costs

  • Loan payments

• Operational:

  • Energy production (kWh or biogas volume)

  • System uptime/availability (%)

  • Crop yields (for agrivoltaics)

  • Water consumption (for solar irrigation)

• Environmental:

  • Diesel/fossil fuel displaced (liters or kg)

  • CO₂ emissions avoided (tonnes)

  • Water conserved (cubic meters)

• Set up monitoring:

  • Most modern systems include remote monitoring apps

  • Review monthly to catch performance issues early

  • Annual professional inspection recommended

  
  
  
  

Frequently Asked Questions

What are the best renewables for small farms?

Solar pumps and small biogas digesters are ideal starting points. Solar agricultural pumps (1-7.5 HP capacity) suit farms with 2-10 hectares of irrigated land, particularly where grid power is unreliable or absent. Subsidies through programs like PM-KUSUM make them affordable, often requiring farmers to pay only 10-20% of total cost. Small biogas digesters work for farms with 5+ dairy cows, providing cooking fuel and organic fertilizer while reducing methane emissions from manure storage.

Is agrivoltaics profitable for crop farmers?

Yes, when properly designed. Research shows agrivoltaics can increase total land productivity by up to 60%. Farmers earn from crops plus electricity generation or land lease payments. The Massachusetts SMART program offers an additional $0.06/kWh specifically for agrivoltaic projects. Jack's Solar Garden demonstrates commercial viability: subscribers pay for electricity, farmers continue cultivation, and researchers study optimization—creating a win-win model. Payback periods average 4 years for energy benefits alone, faster when crop protection and dual revenue are factored.

How do biogas systems work on farms?

Biogas systems use anaerobic digestion—bacteria breaking down organic waste in oxygen-free containers called digesters. Farmers feed animal manure, crop residues, or food processing waste into the digester. Over 15-60 days, bacteria convert organics into biogas (50-70% methane) and digestate (nutrient-rich solid/liquid).

The biogas powers generators for electricity, heats buildings, or upgrades to renewable natural gas for vehicle fuel. Digestate returns to fields as fertilizer, completing a circular economy. A 100-cow dairy can produce enough biogas to power farm operations and heat multiple buildings year-round.

What government incentives exist for renewable farm energy?

• India:

  • PM-KUSUM: 30-60% subsidies for solar pumps and agrivoltaic systems; covers installation through March 2026

  • National Biogas Programme: Subsidies for small biogas plants

• United States:

  • REAP (Rural Energy for America Program): Grants up to 25% + loan guarantees for renewable energy systems

  • Investment Tax Credit (ITC): 30% federal tax credit for solar (through 2032)

  • Bioenergy Program for Advanced Biofuels: Production payments for biogas/RNG

  • State programs: Massachusetts SMART ($0.06/kWh agrivoltaic adder), New Jersey pilot programs

• Europe:

  • Common Agricultural Policy: Financial support for agrivoltaics under environmental schemes

  • Feed-in Tariffs: Germany's EEG provides guaranteed prices for biogas electricity

  • National programs: France, Italy offer specific agrivoltaic incentives

Check with your national agricultural ministry, state renewable energy office, and local utility for current programs.

Can renewable systems run farm machinery?

• Currently: Solar and biogas can power stationary equipment (irrigation pumps, milking machines, cooling systems, grain dryers) very effectively. Small electric tractors exist but remain limited in power/range for large commercial operations.

• Near Future: Green hydrogen shows promise for heavy machinery. Solar/wind electricity → electrolysis → hydrogen → fuel cells or direct combustion in modified engines. Several manufacturers are developing hydrogen tractors for commercial agriculture. Battery technology improves annually; electric tractors viable for 50-100 acre operations today, expanding to larger scale as battery energy density increases and costs decline.

• Practical Approach: Prioritize renewable energy for stationary loads first (easy wins with best ROI), then transition mobile equipment as technology matures and costs fall.

Conclusion

The integration of renewables in agriculture represents far more than an environmental imperative—it's an economic opportunity that's already transforming rural communities worldwide. From the 62,000 acres of U.S. agrivoltaic systems powering 300,000 homes while growing food, to 540,000+ Indian farmers irrigating with solar pumps instead of diesel, to German villages achieving energy independence through community biogas, the evidence is clear: agriculture and clean energy are natural partners.

The numbers tell a compelling story. Global agrifood systems emit 16.2 billion tonnes of CO₂ equivalent annually, but renewable energy technologies offer pathways to reduce these emissions while increasing farm income, improving resilience, and enhancing food security. The global agrivoltaics market growing from $4.44 billion to a projected $9.66 billion by 2032 signals investor confidence in dual-use land strategies.

Challenges remain—upfront costs, financing access, regulatory complexity, technical know-how gaps. But the proliferation of government support programs (PM-KUSUM's ₹34,422 crore budget, USDA's REAP grants, Germany's feed-in tariffs), declining technology costs, and proven success models like Jack's Solar Garden and Jühnde bioenergy village demonstrate that these obstacles are surmountable.

• For farmers: Renewable energy offers predictable costs, independence from volatile fuel prices, additional revenue streams, and climate change adaptation tools. The choice isn't whether to adopt these technologies, but when and how.

• For policymakers: Supportive regulatory frameworks, financial incentives, technical assistance programs, and updated land-use codes can accelerate deployment while ensuring rural communities benefit from the energy transition.

• For researchers and investors: Agrivoltaics, biogas, and agricultural renewable integration represent frontier innovation areas with significant scaling potential and societal co-benefits.

The convergence of food and energy production on the same land isn't just technically feasible—it's economically essential and environmentally imperative.

As global population approaches 10 billion by 2050 while climate impacts intensify, maximizing land productivity through renewable energy integration may be agriculture's most powerful tool for feeding the world sustainably.

The future of agriculture is renewable. The future is now.

— The Green Fuel Journal Research Team

References and Citations

This article is backed by authoritative sources and research from leading international organizations, government agencies, academic institutions, and industry bodies.

Agrivoltaics Research & Data:

1. National Renewable Energy Laboratory (NREL). (2024). "Agrivoltaics: Solar Market Research & Analysis." U.S. Department of Energy. https://www.nrel.gov/solar/market-research-analysis/agrivoltaics

2. NREL. (2024). "Lighting the Way for Agrivoltaics: How NREL Empowers Communities To Capture the Benefits of Solar Energy, Agriculture, and Ecosystems." https://www.nrel.gov/news/feature/2024/lighting-the-way-for-agrivoltaics

3. U.S. Department of Agriculture Economic Research Service. (2024). "Common Ground for Agriculture and Solar Energy: Federal Funding Supports Research and Development in Agrivoltaics." https://www.ers.usda.gov/amber-waves/2024/april/common-ground-for-agriculture-and-solar-energy

4. U.S. Department of Energy. "The Potential of Agrivoltaics for the U.S. Solar Industry, Farmers, and Communities." https://www.energy.gov/eere/solar/articles/potential-agrivoltaics-us-solar-industry-farmers-and-communities

5. World Resources Institute. (2024). "Agrivoltaics Boosts Food and Energy Production in Asia." https://www.wri.org/insights/agrivoltaics-energy-food-production-asia

6. Global Environment Facility Scientific and Technical Advisory Panel. (2024). "Agrivoltaics Technical Advisory." https://www.thegef.org/sites/default/files/documents/2024-01/EN_GEF.STAP_.C.66.Inf_.04_Agrivoltaics.pdf

7. Maximize Market Research. (2025). "Agrivoltaics Market Size, Growth, Share | Global Report [2032]." https://www.maximizemarketresearch.com/market-report/agrivoltaics-market/184243/

Biogas & Bioenergy Data:

8. IEA Bioenergy Task 37. (2024). "A perspective on the state of the biogas industry in 12 member countries." https://www.ieabioenergy.com/wp-content/uploads/2024/10/IEA_Bioenergy_T37_CountryReportSummary_2024.pdf

9. Osman, A.I., et al. (2024). "Anaerobic digestion of agricultural waste for biogas production and sustainable bioenergy recovery: a review." Environmental Chemistry Letters, Springer Nature. https://link.springer.com/article/10.1007/s10311-024-01789-1

10. American Biogas Council. (2025). "Biogas Industry Market Snapshot." https://americanbiogascouncil.org/biogas-market-snapshot/

11. U.S. Environmental Protection Agency. (2024). "AgSTAR Data and Trends." https://www.epa.gov/agstar/agstar-data-and-trends

12. Environmental and Energy Study Institute (EESI). "Fact Sheet | Biogas: Converting Waste to Energy." https://www.eesi.org/papers/view/fact-sheet-biogasconverting-waste-to-energy

13. Market Growth Reports. (2024). "Anaerobic Digestion Market Trends | Report [2033]." https://www.marketgrowthreports.com/market-reports/anaerobic-digestion-market-112731

14. Feedstuffs. (2025). "Biogas industry sees 'record-breaking' growth in 2024." https://www.feedstuffs.com/agribusiness-news/biogas-industry-sees-record-breaking-growth-in-2024

15. Fortune Business Insights. "Biogas Plant Market Size, Growth, Share | Global Report [2032]." https://www.fortunebusinessinsights.com/biogas-plant-market-104667

Agriculture Emissions & Climate Data:

16. Food and Agriculture Organization (FAO). (2024). "FAO Statistical Yearbook 2024 reveals critical insights on the sustainability of global agriculture, food security, and the importance of agrifood systems in employment." https://www.fao.org/newsroom/detail/fao-statistical-yearbook-2024/en

17. FAO. (2024). "Greenhouse gas emissions from agrifood systems – Global, regional and country trends, 2000–2022." https://openknowledge.fao.org/server/api/core/bitstreams/111b7ee8-282b-42ff-ad95-cccecd90f8ea/content

18. FAO. (2020). "The share of agriculture in total greenhouse gas emissions. Global, regional and country trends 1990–2017." FAOSTAT Analytical Brief Series. https://openknowledge.fao.org/server/api/core/bitstreams/7fe33d41-3969-4f87-95c5-4b897229350b/content

19. Global Change Biology. (2024). "Global Greenhouse Gas Emissions From Agriculture: Pathways to Sustainable Reductions." PMC. https://pmc.ncbi.nlm.nih.gov/articles/PMC11683860/

Jack's Solar Garden Case Study:

20. AgriSolar Clearinghouse. (2024). "Case Study: Jack's Solar Garden." https://www.agrisolarclearinghouse.org/case-study-jacks-solar-garden/

21. The Nature Conservancy. "Farming the Sun: In Colorado, we are learning how it's possible to harvest more than just electricity on a solar farm." https://www.nature.org/en-us/magazine/magazine-articles/agrivoltaic-solar-farm-grows-produce/

22. NREL. (2021). "The Future of Agriculture Combined With Renewable Energy Finds Success at Jack's Solar Garden." https://www.nrel.gov/news/detail/program/2021/future-of-agriculture-combined-with-renewable-energy-finds-success-at-jacks-solar-garden

23. Journal of Agriculture, Food Systems, and Community Development. (2025). "Developing crop-based agrivoltaic systems: A case study of Jack's Solar Garden." Vol. 15 No. 1. https://www.foodsystemsjournal.org/index.php/fsj/article/view/1441

24. Jack's Solar Garden. (2025). Official Website. https://www.jackssolargarden.com/

India PM-KUSUM Program:

25. India Brand Equity Foundation (IBEF). "PM-KUSUM Yojana - Solar Energy Scheme." https://www.ibef.org/government-schemes/pm-kusum-yojana

26. Ministry of New and Renewable Energy (MNRE), Government of India. "Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM)." https://mnre.gov.in/en/pradhan-mantri-kisan-urja-suraksha-evam-utthaan-mahabhiyaan-pm-kusum/

27. International Institute for Sustainable Development (IISD). (2025). "Solar Agri Bulletin: 2025 budget special edition." https://www.iisd.org/publications/newsletter/solar-agri-bulletin-2025-budget-special-edition

28. Energetica India. (2024). "PM-KUSUM Achieves 42 Percent Solar Pump Installation Target." https://www.energetica-india.net/news/-pm-kusum-achieves-42-percent-solar-pump-installation-target

29. Ornate Solar. (2025). "PM KUSUM Yojana and Solar Water Pumps (2026)." https://ornatesolar.com/blog/solar-water-pump-and-pm-kusum-yojna-2021

German Bioenergy Villages:

30. Wüste, A. & Schmuck, P. (2012). "Bioenergy Villages and Regions in Germany: An Interview Study with Initiators of Communal Bioenergy Projects on the Success Factors for Restructuring the Energy Supply of the Community." Sustainability, 4(2), 244-268. MDPI. https://www.mdpi.com/2071-1050/4/2/244

31. Wikipedia. (2025). "Bioenergy village." https://en.wikipedia.org/wiki/Bioenergy_village

32. Jenssen, T., König, A., & Eltrop, L. (2014). "Bioenergy villages in Germany: Bringing a low carbon energy supply for rural areas into practice." Renewable Energy, 61, 74-80. ScienceDirect. https://www.sciencedirect.com/science/article/abs/pii/S0960148112004843

33. Klagge, B., & Meister, T. (2018). "Creating niches – The role of policy for the implementation of bioenergy village cooperatives in Germany." Energy Policy, 124, 95-101. https://www.sciencedirect.com/science/article/abs/pii/S0301421518304580

34. Deutschland.de. (2017). "Bioenergy village, a successful model." https://www.deutschland.de/en/topic/business/innovation-technology/bioenergy-village-a-successful-model

35. Springer Nature. (2024). "Local heat transitions—a comparative case study of five bioenergy villages in Northern and Southern Germany." Zeitschrift für Vergleichende Politikwissenschaft. https://link.springer.com/article/10.1007/s12286-024-00596-w

Disclaimer: 

This article provides general information about renewable energy in agriculture for educational purposes. While we strive for accuracy using authoritative sources, agricultural and energy systems vary significantly by location, climate, soil conditions, and regulatory environment. Returns on investment, crop yields, energy production, and cost savings mentioned are based on published research and case studies but may not reflect outcomes in all circumstances.

Before making investment decisions:

• Consult qualified agricultural engineers, renewable energy professionals, and financial advisors

• Conduct site-specific feasibility studies

• Verify current government incentive programs and eligibility requirements

• Review all contracts, warranties, and power purchase agreements with legal counsel

• Understand local permitting requirements and timeline

Technology performance depends on proper system design, installation, maintenance, and operating conditions. Past performance does not guarantee future results. Government policies, subsidies, and feed-in tariffs change over time and vary by jurisdiction.

For comprehensive guidance, visit official sources:

• India: Ministry of New and Renewable Energy (https://mnre.gov.in)

• USA: USDA Rural Development (https://www.rd.usda.gov/programs-services/energy-programs)

• General: International Renewable Energy Agency (https://www.irena.org)

Green Fuel Journal does not provide financial, legal, or professional agricultural advice. All information should be independently verified before implementation.

For complete disclaimers, visit: https://www.greenfueljournal.com/disclaimers

Published by: Green Fuel Journal Research Team

Contact: www.greenfueljournal.com

Last Updated: January 2026