Blue Tractor

Fact Sheet: Financial Considerations for Developing an Agrivoltaic System

By Colorado Agrivoltaic Learning Center
at Jack’s Solar Garden

Compared to conventional solar energy developments, agrivoltaic systems may have different capital expenditures, cash flows, and risk impacts for a solar asset owner. Discussed herein are only broad, qualitative financial impacts, as there are too many agrivoltaic applications (e.g., over orchards, grasslands, croplands, livestock), solar designs (e.g., fixed-tilt, tracking, one or two panels in portrait), and local considerations (e.g., terrain, regulations, wildlife, agricultural markets) to share a concise financial impact assessment.

Financial impacts are labeled as either standard or potential considerations. Standard considerations are those that apply to agrivoltaic developments that can support diverse agricultural activities in addition to compatibility with small-scale machinery and agricultural laborers. Potential considerations are those that would apply only in specific circumstances.

This fact sheet focuses on new-build projects considering US federal and Colorado state-specific tax benefits, though most non-tax topics are more broadly applicable.