The energy transition in agriculture is at a crossroads. Two developments are currently slowing down the urgently needed expansion of AgriPV systems in Germany: First, the EU has still not approved the increased feed-in tariff for AgriPV – the promised 2.5 cents/kWh bonus has been politically agreed, but is blocked by state aid law. Second, in view of climate change, with more and more hours of sunshine and rising PV output, solar power is being shut down more and more frequently – valuable green electricity is being curtailed because the grid and the market cannot keep up. This reduces profitability and slows down investment.
1. EU approval – a stumbling block for AgriPV remuneration
Many farmers and project developers had hoped for the increased feed-in tariff of up to 9.5 ct/kWh provided for in Solar Package 1. However, without the green light from Brussels, the regular EEG remuneration of 6.89 ct/kWh continues to apply – and has done so for 14 months. As a result, numerous projects are technically complete but economically blocked because the calculations were based on the bonus. The uncertainty is so great that almost all of these projects have been put on hold or not even started.
2. Climate change and shutdowns: When too much sun becomes a problem
With climate change, the number of hours of sunshine and thus PV yields are increasing – which is actually good news. Paradoxically, however, this is increasingly leading to shutdowns: when more electricity is generated on sunny days than the grid and consumers can absorb, grid operators have to take PV systems off the grid. In some regions, up to 70% of PV output is curtailed on peak days. For farmers and investors, this means lost income, reduced profitability of the systems, and further uncertainty.
3. GridParity: Solutions for both hurdles
GridParity has developed practical answers to both challenges:
a) Profitability even without bonuses: AgriPV that pays off
Instead of waiting for political favors, GridParity is focusing on radically reduced costs and well-thought-out system solutions. With a new product line, the company offers AgriPV systems starting at €350,000 per MWp (DC side), turnkey systems including transformers and medium voltage starting at around €600,000. The electricity generation costs are thus only 3–4 ct/kWh – even with full feed-in to the grid and without bonuses. This means that investments can be solidly financed even under the current EEG remuneration. Eight different system variants, optimized for different crops and locations, enable tailor-made solutions for every farm.
b) Avoid shutdowns: Large-scale storage as additional income
The second pillar is FarmHub® systems, which combine the AgriPV system with a 5 MWh battery storage unit. This storage unit absorbs excess solar power that would otherwise have to be curtailed and markets it flexibly on the electricity market or provides grid services. This creates new, attractive additional income—trading and grid services can generate five- to six-figure sums per year. Crucially, GridParity’s calculations are so favorable that a complete 1 MWp AgriPV system with 5 MWh storage, transformer, and medium voltage can be realized for less than €1 million. The first financing commitments from banks show that the concept is viable and future-proof.
4. Added value for farmers: Price advantages are passed on
GridParity places particular emphasis on ensuring that the price advantages and additional income actually reach the farmer. This is achieved through:Self-performance options (FarmerCapital®): Farmers can carry out part of the installation themselves and thus save up to 30% of the costs. The work they do themselves is recognized as equity, which makes financing easier. Transparent complete packages: Everything is included, from planning and delivery to grid connection – no hidden costs, no dependence on political bonuses. Scalable system solutions: The system can be customized and expanded as needed and depending on the location.
5. Conclusion: Investment security despite politics and climate
The current hurdles for AgriPV—lack of EU approval for higher remuneration and increasingly frequent shutdowns—are real and are slowing down the energy transition in rural areas. GridParity shows that there is another way: with economical systems that function independently of political bonuses and with integrated large-scale storage facilities that open up new sources of income and avoid shutdowns. The combination of low costs, flexible business models, and genuine participation by farmers makes AgriPV a real opportunity for the future of agriculture once again.
© GridParity AG
www.gridparity.com
