Access to electricity and clean cooking fuels.

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Deploy Agrivoltaics

Sector
Electricity
Mode
Cut Emissions
Cluster
Shift Production
Image
Sheep in a pasture with solar panels
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Key Takeaways

  • Deploying agrivoltaics on just 1% of global agricultural land could offset 21 PWh/yr of electricity demand, equivalent to total global electricity consumption in 2019.
  • Agrivoltaics systems generate clean, renewable electricity without displacing agricultural activities, potentially increasing overall land use efficiency up to 200%.
  • By shading crops and livestock, solar panels installed as part of an agrivoltaics system moderate soil temperatures and reduce evapotranspiration, improving agricultural water-use efficiency by 150–300% compared with conventional farming.
  • Agrivoltaics can diversify income sources for farmers and expand rural employment opportunities.
  • Agrivoltaic systems have the greatest adoption potential in arid, dry, and land-constrained regions – particularly Africa, the Asia-Pacific, and South and Central America – where solar resources are abundant and the crop-protection benefits of shading are most pronounced.
Summary

Agrivoltaics is the dual use of land for simultaneous solar photovoltaic (PV) power generation and agricultural production. It reduces GHG emissions by shifting electricity production from fossil fuels to renewables. Agrivoltaic systems can be categorized by system type, PV configuration, module tilt, and agricultural activity. These systems operate at both utility and distributed scales. We consider all combinations of system type, PV structure, module tilt, and agricultural activity in this solution.

Heat stress
Income & work,Food security,Energy availability,Health
Animal well-being,Land resources,Water resources,Air quality
Description for Social and Search
​​Agrivoltaics makes it possible to grow food and generate clean solar power on the same land. It can improve land-use efficiency, stabilize crop yields in suitable climates, and add new revenue for farmers.
Overview

Electricity generation accounts for an estimated 23% of GHG emissions on a 100-year basis (Clarke et al., 2022), with fossil fuel–based sources supplying more than 60% of electricity generated in 2023 (International Energy Agency [IEA], 2024b). Since solar PV is a clean and renewable resource, agrivoltaics produces electricity without contributing to GHG emissions or air pollution during operation. Unlike conventional utility-scale solar PV, which often competes with agriculture for space, agrivoltaics combines solar PV electricity generation and agricultural production without requiring additional land use change or sacrificing arable land (Trommsdorff et al., 2025).

The primary climate benefit is the reduction of CO₂ emissions and smaller amounts of methane and nitrous oxide from displacing fossil fuel–based electricity from the grid. This solution quantifies only emissions avoided through electricity generation and does not include emissions from agricultural activities beneath or between the solar panels.

Agrivoltaic systems come in several configurations to coexist with different agricultural activities, including crop production, animal husbandry or grazing, ecosystem services, aquaculture, and pollinator habitat (Macknick et al., 2022). As shown in Figure 1, these systems range from standard ground-mounted arrangements – with crops growing between rows or livestock grazing underneath – to more specialized alternative designs such as elevated panels, vertical bifacial mounts, stilt-mounted trackers, and solar-integrated greenhouses. Overhead configurations elevate panels 2–6 meters above ground to allow standard farm operations while providing shade and weather protection for crops or livestock. Interspace (or interrow) configurations leave wide alleys between ground-mounted PV arrays for vegetation. Rooftop and structure-mounted configurations place panels on greenhouses, barns, or other farm infrastructure, using rigid or flexible panels (Campana et al., 2025; Macknick et al., 2022; Solar Power Europe, 2024a; Trommsdorff et al., 2021).

Each configuration involves different trade-offs between energy output, crop performance, land compatibility, and cost (Campana et al., 2025; Horowitz et al., 2020; Trommsdorff et al., 2025). Well-designed systems often achieve higher overall productivity with a land equivalent ratio exceeding 1 (Trommsdorff et al., 2025). Successful implementation typically requires partnerships among farmers, agricultural cooperatives, solar developers, and utilities, supported by government policies such as subsidies, tax credits, or zoning support (Trommsdorff et al., 2025). 

Figure 1. Agrivoltaic configurations range from standard ground-mounted arrangements (top row) to more specialized alternative designs (bottom row), including elevated overhead systems, vertical mounts, stilt-mounted trackers, and solar-integrated greenhouses. These systems can support agricultural activities – including crop production, grazing, ecosystem services, and habitats – on the same land. 

Diagram demonstrating Agrivoltaic configurations

Source: Macknick, J., et al. (2022). The 5 Cs of agrivoltaic success factors in the United States: Lessons from the InSPIRE research study (No. NREL/TP-6A20-83566). National Renewable Energy Laboratory (NREL), Golden, Colo. (United States). Copyrighted.

Solution in Action

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Sorensen, A., Nogeire, T., & Hunter, M. (2022). Potential placement of utility-scale solar installations on agricultural lands in the U.S. to 2040. American Farmland Trust. Link to source: https://farmlandinfo.org/wp-content/uploads/sites/2/2023/03/AFT_FUT2040-solar-white-paper.pdf

Suri, D., de Chalendar, J. & Azevedo, I.M.L. (2025). Assessing the real implications for CO2 as generation from renewables increases. Nature Communications, 16, Article 7124. Link to source: https://doi.org/10.1038/s41467-025-59800-4

Swanson, T., Seay-Fleming, C., Gerlak, A. K., & Barron-Gafford, G. A. (2025). “Enough is enough, we like our farms”: The role of landscape ideology in shaping perceptions of solar energy and agrivoltaics in the rural American Southwest. Journal of Rural Studies, 114, 103572. Link to source: https://doi.org/10.1016/j.jrurstud.2025.103572

Trommsdorff, M., Kang, J., Reise, C., Schindele, S., Bopp, G., Ehmann, A., Weselek, A., Högy, P., & Obergfell, T. (2021). Combining food and energy production: Design of an agrivoltaic system applied in arable and vegetable farming in Germany. Renewable and Sustainable Energy Reviews, 140, 110694. Link to source: https://doi.org/10.1016/j.rser.2020.110694

Trommsdorff, M., Campana, P. E., Macknick, J., Fernández Solas, A., Gorjian, S., & Tsanakas, I. (2025). Dual Land Use for Agriculture and Solar Power Production: Overview and Performance of Agrivoltaic Systems. International Energy Agency Photovoltaic Power Systems Programme. Link to source: https://doi.org/10.69766/XAEU5008

United Nations Conference on Trade and Development UNCTAD. (2023, October 4). Italy—Adopts €2.61 billion schemes to support agrivoltaic energy production and agro-industrial development | Investment Policy Monitor | UNCTAD Investment Policy Hub. Link to source: https://investmentpolicy.unctad.org/investment-policy-monitor/measures/4543/italy-adopts-2-61-billion-schemes-to-support-agrivoltaic-energy-production-and-agro-industrial-development

U.S. Department of Energy. (n.d.). Solar photovoltaic system cost benchmarks. Energy.Gov. Retrieved March 11, 2026, from  Link to source: https://www.energy.gov/eere/solar/solar-photovoltaic-system-cost-benchmarks

Walsh, K. B., Stedman, R., & Kay, D. (2026). Imagining agrivoltaics: Farmer expectations for co-locating solar energy and agricultural production in Western New York. Energy Research & Social Science, 137, 104789. Link to source: https://doi.org/10.1016/j.erss.2026.104789

Walston, L. J., Mishra, S. K., Hartmann, H. M., Hlohowskyj, I., McCall, J., & Macknick, J. (2018). Examining the potential for agricultural benefits from pollinator habitat at solar facilities in the United States. Environmental Science & Technology, 52(13), 7566–7576. Link to source: https://doi.org/10.1021/acs.est.8b00020

Williams, H. J., Wang, Y., Yuan, B., Wang, H., & Zhang, K. M. (2025). Rethinking agrivoltaic incentive programs: A science-based approach to encourage practical design solutions. Applied Energy, 377, 124272. Link to source: https://doi.org/10.1016/j.apenergy.2024.124272

Williams, H. J., Wang, Y., & Zhang, K. M. (2024, June). Advantages and disadvantages of vertical solar racking for agrivoltaic systems. World Agrivoltaics Conference. Link to source: https://www.osti.gov/biblio/25305

Yeligeti, M., Hu, W., Scholz, Y., Stegen, R., & von Krbek, K. (2023). Cropland and rooftops: The global undertapped potential for solar photovoltaics. Environmental Research Letters, 18(5), 054027. Link to source: https://doi.org/10.1088/1748-9326/accc47

Zhang, X., & Ma, X. (2026). Vectorized agrivoltaics dataset in China from 2010 to 2022. Scientific Data, 13(1), 116. Link to source: https://doi.org/10.1038/s41597-025-06305-w

Zubi, G., Parag, Y., & Wald, S. (2024). Implications of large-scale PV integration on grid operation, costs, and emissions: Challenges and proposed solutions. Energies 2025, Vol. 18, Page 130, 18(1), 130. Link to source: https://doi.org/10.3390/EN18010130 

Credits

Lead Fellow

  • Al-Amin Bugaje, Ph.D.

Contributors

  • Ruthie Burrows, Ph.D.

  • James Gerber, Ph.D.

  • Daniel Jasper

  • Alex Sweeney

Internal Reviewers

  • Amanda D. Smith, Ph.D.

  • Christina Swanson, Ph.D.

  • Megan Matthews, Ph.D.

Effectiveness

We estimate that agrivoltaics reduces GHG emissions by 720 t CO₂‑eq /MW/yr (730 t CO₂‑eq /MW/yr, 20-year basis) (Table 1). This assumes that newly installed agrivoltaics displace an equivalent MWh of the 2023 global electricity grid mix (estimated at 530 kg CO₂‑eq /MWh (540 kg CO₂‑eq /MWh, 20-year basis; IEA, 2024b; see Methodology: Appendix A for calculation details). We used a median capacity factor of 15% based on country-level estimates (Ember, 2024; Ferreira Junior et al., 2025; McCall et al., 2024; Patel et al., 2023; Williams et al., 2024) to convert annual emissions reductions from per MWh to per MW installed capacity. 

Actual avoided emissions will depend on local grid conditions and the specific power sources displaced (see Methodology: Appendix A). Studies in the U.S. show that from 2007–2015, solar deployment avoided approximately 0.5 t CO₂ /MWh (613 t CO₂ /MW/yr; Millstein et al., 2017) emissions, and a 15% increase in deployment avoided 8.54 Mt CO₂ /yr (Biswas et al., 2025). 

Although solar PV emits negligible GHGs during operations, emissions arise during manufacturing, transportation, installation, maintenance, and decommissioning. However, these embodied emissions are paid back in approximately 1–2 yr (Badza et al., 2023; M. Ahmad et al., 2023; Mehedi et al., 2022; Pincelli et al., 2024; Smith et al., 2024). While total life-cycle emissions remain far below those of fossil fuels (National Renewable Energy Laboratory [NREL], 2021; Smith et al., 2024), decarbonizing industrial supply chains is essential to maximize climate impact (Pehl et al., 2017). In our analysis, we focused solely on emissions avoided during electricity generation. Carbon payback time, embodied life-cycle emissions, and on-farm agricultural emissions from ruminant grazing were excluded from the effectiveness and climate impact estimates. 

Table 1. Effectiveness at reducing emissions. 

Unit: t CO₂‑eq /MW/yr, 100-yr basis

Estimate 720
Left Text Column Width
Cost

We estimated a mean levelized cost of electricity (LCOE) for agrivoltaics of US$69/MWh based on industry reports and journal articles (Bhatta et al., 2025; Fraunhofer ISE, 2024; Gadhiya & Chakraborty, 2025; Hwang & Lee, 2024; Sojib Ahmed et al., 2022; U.S. Department of Energy [U.S. DOE], n.d.; see Methodology: Appendix A for details). LCOE values represent the average cost of producing one MWh of electricity over the operational lifetime of a power plant, allowing investors to compare their expected revenue to a standard set of costs. This cost metric has been used by international agencies for cost comparison across generation technologies, incorporating installed capital costs, operation and maintenance, project lifespan, and energy output. The agrivoltaics LCOE describes costs to utility-scale generators and does not include agricultural output.

The LCOE for agrivoltaics is generally higher than that for utility-scale solar PV (Trommsdorff et al., 2025), due to higher capital expenditure requirements for overhead configurations and specialized partially see-through PV modules. However, agrivoltaics has a lower LCOE than distributed solar PV. For instance, a study conducted by the U.S. DOE (n.d.) showed that the LCOE of distributed solar PV was US$142/MWh (0.006 MWdc system) compared to agrivoltaics’ US$75/MWh (3 MWdc system). In the same study, a 100 MWdc utility-scale solar PV had an LCOE of US$47/MWh. These costs do not consider any subsidies or revenue. 

In practice, revenues and costs will vary based on the ownership model structure. In developer-owned models, farmers receive fixed lease payments of US$250–2,500 per acre, while the solar provider bears the up-front cost (Daniels, 2022; Trommsdorff et al., 2025). In farmer-owned models, the farmers incur the initial investment burden and generate revenue by selling power to the grid or reducing their on-farm energy bills (Pandey et al., 2025).

Methods and Supporting Data

Methods and Supporting Data

Learning Curve

Agrivoltaics does not have an empirically derived learning rate. The technology has only scaled meaningfully since the early 2010s, and its configurations vary too widely for a clean cost reduction curve to be fitted to the data. However, agrivoltaics is built from several existing technologies with well-understood learning dynamics. 

We estimated the current global learning rate for module costs at about 34% (DNV, 2024; Masson, 2024). This high rate is heavily influenced by the accelerated growth of solar PV from 2012–2022; however, this number comes down over a longer period of time. Projections suggest it will slow to around 17% by 2050 as cost components stabilize and the largest gains from scaling are realized (DNV, 2024). Because agrivoltaic systems draw their modules from the same global supply chain as any other solar PV project, we expect that they inherit this curve directly.

What distinguishes agrivoltaics economically from utility-scale solar PV is the cost premium of its elevated or specialized mounting structures, more complex permitting, dual-use legal frameworks, and crop-specific engineering (Trommsdorff et al., 2025). These components follow slower learning curves than electronics, constrained by manufacturing scale-up and standardization of elevated racking/tracking systems. However, hardware innovations such as vertical bifacial or open-source designs, module reuse from decommissioned plants, and policy incentives (feed-in tariffs, grants, regulatory clarity) have potential to accelerate deployment and cross-sector learning (Pandey et al., 2025). 

Speed of Action

Speed of action refers to how quickly a climate solution physically affects the atmosphere after it is deployed. This is different from speed of deployment, which is the pace at which solutions are adopted.

At Project Drawdown, we define the speed of action for each climate solution as emergency brake, gradual, or delayed.

Deploy Agrivoltaics is a GRADUAL climate solution. It has a steady, linear impact on the atmosphere. As installed capacity of agrivoltaics increases over time, emissions from electricity generation are expected to decrease assuming solar PV displaces fossil fuel sources.

Caveats

Implementing agrivoltaics requires careful site and crop selection to avoid unintended consequences. In temperate climates, excessive shading can reduce yields of shade-intolerant crops such as wheat, corn, and tomatoes (Pandey et al., 2025). Significant yield declines may displace food production to other land, triggering land conversion and emissions that offset climate gains (Agostini et al., 2021; Wagner et al., 2023). The greatest benefits occur when agrivoltaics is deployed on marginal or low-productivity farmland, where dual-use systems can improve efficiency up to 200% without compromising high yield agriculture (Pandey et al., 2025). 

Farming activities also increase panel soiling from dust, pollen, or harvest residue, necessitating frequent maintenance to prevent energy losses, especially in arid or high-wind regions (Campana et al., 2025; Chirinda et al., 2024; Jung et al., 2022).

We acknowledge the partial overlap of agrivoltaics with utility-scale and distributed solar PV estimates; to avoid double-counting capacity, we treat it as a complementary pathway that expands solar adoption while mitigating land-use competition (Sorensen et al., 2022; Smith, 2024). Policy frameworks that differentiate dual-use systems through incentives, performance standards, or land-use regulations will determine the extent of overlap (Pandey et al., 2025). While proximity to the grid is essential, deployment is limited by transmission capacity and interconnection queue delays (Campana et al., 2025). Large utility-scale projects often face multi-year queues to connect to regional grids, with transmission costs sometimes approaching 50–100% of total project costs (Daniels, 2023; Macknick et al., 2022)

Our assessment assumed that each additional MWh from agrivoltaics displaces an equivalent MWh of the existing grid mix. In reality, avoided emissions vary by regional grid dynamics, marginal generation sources, and the timing and location of production. New solar generation can sometimes displace other renewables rather than fossil-based sources, especially in grids with high existing renewable, nuclear, or geothermal capacity (Baik et al., 2021; Suri et al., 2025). Because agrivoltaics is constrained to agriculturally suitable land – which is unevenly distributed globally – the degree to which these dynamics affect emissions reductions will vary by region. 

Current Adoption

As of 2023, the global installed capacity for agrivoltaics reached approximately 140,000 MW (Table 2). China leads global adoption, accounting for roughly 91% of this estimated total. The U.S. represents 8.4%, while Europe accounts for the remainder (Masson et al., 2024; Solar Power Europe, 2024b; Zhang & Ma, 2026). 

Table 2. Current adoption level (2023).

Unit: MW installed capacity

Estimate 140,000
Left Text Column Width

We estimated this global capacity by aggregating data from industry reports, journal papers, and public datasets across these three regions. However, tracking remains challenging because agrivoltaics deployment estimates partially overlap with utility-scale and distributed solar PV totals. Existing databases often count dual-use projects within broader solar capacity figures, particularly when configurations resemble conventional solar PV systems (Daniels, 2023; Smith, 2024; Sorensen et al., 2022; Trommsdorff et al., 2025). The precise degree of overlap cannot yet be quantified, but developers increasingly adopt dual-use designs to minimize land-use conflict (Campana et al., 2025; Masson et al., 2024; Trommsdorff et al., 2025). While agrivoltaics adoption is present in other regions (e.g., Japan, South Korea, and India), consistent and credible datasets to estimate accurate current adoption and growth trends are limited. Consequently, this estimate likely underestimates current global adoption. 

Adoption Trend

We estimated the median global adoption trend for agrivoltaics at 9,800 MW/yr of additional installed capacity (Table 3) by summing regional adoption values for each year from 2010–2023 and taking the year-to-year difference. Because this analysis relied primarily on data from China and the U.S., the results reflect a geographic distribution skewed toward these leading markets. 

Table 3. Adoption trend (2010–2023).

Unit: MW installed capacity/yr

25th percentile 2300
Mean 9400
Median (50th percentile) 9800
75th percentile 15000
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Estimated global agrivoltaics capacity grew roughly 200-fold from 580 MW in 2010 to approximately 140,000 MW in 2023 (Figure 2). While agrivoltaics adoption is still in its early stages – with global installed capacity roughly five times lower than distributed solar PV and seven times lower than utility-scale solar PV – growth is expected to accelerate. Supportive policies in pioneer regions such as Europe, China, Japan, and Korea have driven recent expansion. These policies address both the need for clean energy and the rising climate stresses on farmlands, including heat and drought (Trommsdorff et al., 2025). 

Figure 2. Estimated global adoption of agrivoltaics, 2010–2023.

Sources: Zhang & Ma, 2026; Agrivoltaics Map, n.d.

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Market momentum has also strengthened over the past decade. From 2010–2015, global agrivoltaics added an average of about 4,100 MW/yr. Post 2015, that rate jumped to around 14,000 MW/yr, fueled by targeted incentives. For instance, agrivoltaics capacity in the United States. more than doubled from 2020–2024 (National Laboratory of the Rockies [NLR], 2024). In Italy, the government launched a competitive bidding process in 2023 to award contracts and funding for 500 MW of agrivoltaics projects (Masson et al., 2024); the country aims to reach 1,000 MW of capacity by 2026 (United Nations Conference on Trade and Development [UNCTAD], 2023). We expect that continued cost declines of elevated structures and bifacial modules and improved profitability (Pandey et al., 2025; Keiner et al., 2025) will drive future adoption.

Adoption Ceiling

We estimated the median technical potential for agrivoltaics to arrive at an adoption ceiling of 250 million MW of installed capacity (Table 4). We determined the adoption ceiling for agrivoltaics by considering the global technical potential of solar PV and the availability of cropland or grazing land suited to shading (Yeligeti et al., 2023).

Table 4. Adoption ceiling.

Unit: MW installed capacity

25th percentile 230,000,000
Mean 250,000,000
Median (50th percentile) 250,000,000
75th percentile 270,000,000
Left Text Column Width

Cropland accounts for only one-third of total agricultural land (Food and Agricultural Organization [FAO], 2023) and global estimates for agrivoltaics across cropland vary depending on assumptions about crop suitability, panel density, and grid access. A global suitability assessment of 18 major crops found approximately 4.64 million km² (464 million ha) of cropland suitable for agrivoltaics in an optimistic scenario, corresponding to a maximum installable capacity of around 217 million MW (Yeligeti et al., 2023). This technological ceiling aligns closely with the analysis of Campana et al. (2025), which projects annual electricity output of 385 PWh (≈ 284 million MW/yr). These optimistic figures assume favorable policy environments, technological advancement in panel design, financing, grid proximity and availability, and adoption of shade-tolerant crop varieties.

Despite the abundant 1.6 billion ha of global arable land (Chirinda et al., 2024), the adoption ceiling is unlikely to be reached due to other constraints (Yeligeti et al., 2023). Considerations for technoeconomic, political, and social effects, including land use changes, economic value of land, and shading effect, determine the actual upper limit for adoption. 

Achievable Adoption

In the low achievable scenario, agrivoltaics is projected to grow more than 20-fold, from 140,000 MW in 2023 to 2.5 million MW in 2050 (Table 5). This scenario accounts for real-world constraints, including fragmented land tenure, uneven grid access, regulatory barriers, and high up-front costs.

Table 5. Range of achievable adoption levels.

Unit: MW installed capacity

Current adoption 140,000
Achievable – low 2,500,000
Achievable – high 5,600,000
Adoption ceiling 250,000,000
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In the high achievable scenario, agrivoltaics is projected to grow more than 40-fold, from 140,000 MW in 2023 to 5.6 million MW in 2050 (Table 5). This scenario assumes the continuation of supportive government policies, with adoption primarily constrained by transmission availability. 

We estimated the achievable adoption ranges from scenarios reflecting technical limits (Campana et al., 2025; Yeligeti et al., 2023). These scenarios combine crop suitability and geospatial analysis to estimate annual potential electricity supply from agrivoltaics, constrained by electricity infrastructure. We then applied a mean scaling factor of 9.2% from previous work (Beck et al., 2012; Christ & Wagner, 2025; Trommsdorff et al., 2024) to convert these potential estimates to realizable scenarios. This scaling aligns with historical patterns and complementary international assessments.

Our low and high achievable scenarios fall within the observed market trends, reflecting a still nascent industry with significant but unevenly distributed growth potential.

Beyond the technical and financial considerations, achievable adoption is shaped and often superseded by non-quantitative social forces, where cultural norms, agricultural heritage, and local traditions fundamentally shape stakeholder acceptance (Asa’a et al., 2024; Walsh et al., 2026). Rural residents can perceive solar infrastructure as an industrial intrusion that is incompatible with the pastoral identity and landscape ideology of their communities (de Falco et al., 2025; Mahim et al., 2026; Morash & Pavao-Zuckerman, 2026; Swanson et al., 2025;). If agrivoltaics is framed merely as a technological fix without regard for these cultural values, it can lead to a social gap where broad societal approval for renewables fails to translate into local project success (Pascaris et al., 2021; Walsh et al., 2026).

The achievable adoption range of 2.5–5.6 million MW represents approximately 1–2.3% of the adoption ceiling of 250 million MW. The current adoption is roughly 0.06% of that ceiling. 

The current estimated climate impact of agrivoltaics is approximately 0.1 Gt CO₂‑eq/yr of reduced emissions (Table 6), based on 140,000 MW of global installed capacity and effectiveness of 720 t CO₂‑eq /MW/yr.

Table 6. Climate impact at different levels of adoption.

Unit: Gt CO₂‑eq/yr, 100-yr basis

Current adoption 0.1
Achievable – low 1.80
Achievable – high 4.10
Adoption ceiling 180
Left Text Column Width

Under the low achievable adoption scenario (2.5 million MW), annual emissions reductions could grow to about 1.8 Gt CO₂‑eq/yr.  

In the high achievable scenario (5.6 million MW), reductions could reach approximately 4.1 Gt CO₂‑eq/yr.  

We based the adoption ceiling solely on the technical potential of agrivoltaics, while neglecting social and economic constraints and realistic scenarios of future power demand. The electricity sector in 2023 emitted 15.6 Gt CO₂ ‑eq (International Energy Agency [IEA], 2024b); therefore, even if agrivoltaics could meet all current electricity demand, emissions reductions could not surpass this value without increased demand. Consequently, agrivoltaic systems are unlikely to reach 250 million MW of installed capacity in the next 100 years. But if current grid emissions were to remain constant while capacity increases, GHG emission reductions would be approximately 180 Gt CO₂ ‑eq/yr. This maximum is unrealistic as a forward-looking climate impact because it treats grid carbon intensity as permanently fixed at 2023 levels and ignores future decarbonization and corresponding decreases in marginal avoided emissions. Real-world climate impacts will depend on not only grid decarbonization and policy support, but also on system design choices and regional agricultural contexts.

By using only 1% of global agricultural land, agrivoltaics could offset 21 PWh/yr of electricity demand, equivalent to global electricity consumption in 2019 (Adeh et al., 2019). Even as demand grows, reaching ~29 PWh in 2023 (Ember, n.d.), the opportunity remains massive. 

Additional Benefits

Heat Stress

Daytime air temperatures surrounding agrivoltaics are lower than traditional utility PV systems that are usually installed over gravel (Pandey et al., 2025). This cooling effect is mostly attributed to evapotranspiration from the crops underneath PV panels (Barron-Gafford et al., 2019). 

Income and Work

Agrivoltaics can diversify income sources for farmers (Campana et al., 2025) by allowing them to export excess power to the grid to generate revenue (Dinesh & Pearce, 2016; Trommsdorff et al., 2025). PV revenue often outweighs revenue from agriculture (Malu et al., 2017; Lytle et al., 2021). Because agrivoltaics are more expensive to install than traditional PV systems, they are often installed at larger scales on larger farms (Campana et al., 2025). In these cases, the income and revenue benefits may be shared between the farmer and a third-party investor. 

New roles in installation, maintenance, and agrivoltaics management also create rural employment opportunities, particularly in regions where energy poverty and food insecurity overlap (Chirinda et al., 2024).

Food Security

Because agrivoltaics lower daytime temperatures, they can increase yields of crops that are sensitive to high temperatures, such as fruits and seed-bearing vegetables (Scarano et al., 2025). This is especially pertinent to drought-prone areas, where agrivoltaics have been shown to increase crop yields in water-stressed systems. For example, a study of crop yields in semi-arid southwestern United States found that yields of peppers and cherry tomatoes were double in agrivoltaic systems relative to those under traditional agriculture (Barron-Gafford, 2019). In addition to shade, agrivoltaic systems can protect crops from weather events such as hail and wind (Pandey et al., 2025). Agrivoltaic fields can also be used for livestock grazing, such as cattle and sheep, maintaining meat and dairy production on solar land while panel shading relieves animal heat stress and improves forage digestibility (Andrew et al., 2021).

Energy Availability

The efficiency of PV panels starts to decrease as cell temperatures rise above 25 °C (Chirinda et al., 2024). The cooler temperatures surrounding agrivoltaic systems can increase electricity production per panel (Adeh et al., 2019). In many environments, vegetation below the PV panels provides a cooling effect that boosts annual electricity output by 1–3% (Barron-Gafford et al., 2019).

Health

Solar PV reduces the emission of pollutants such as nitrogen oxides, sulfur dioxide, and PM2.5 from fossil-fuel energy generation (Abel et al., 2018; Millstein et al., 2024; Millstein et al., 2017; Wiser et al., 2016). This offers health benefits, including reduced premature mortality. The magnitude and distribution of these benefits depend on the local electricity grid mix, the fuels used to generate electricity, and atmospheric conditions that determine how far pollutants travel (Buonocore et al., 2019). Regions with a higher proportion of coal-powered electricity generation will often see more health benefits (Buonocore et al., 2019). Pollutants can travel long distances after they are emitted, so air pollution benefits can be widespread (Millstein et al., 2024).

These health benefits often translate into cost savings associated with reductions in hospital admissions, improved respiratory and cardiovascular conditions, and work and school days that might have otherwise been missed due to illness (Millstein et al., 2017; Wiser et al., 2016).

Nature Protection

Agrivoltaic systems that integrate pollinator-friendly habitats can increase pollination and may even increase crop yields in surrounding farmland (Macknick 2022; Walston et al., 2018).

Animal Well-being

Shade from the panels can relieve heat stress for livestock when temperatures are high (Maia et al., 2020; Carvalho Fonsêca et al., 2023) 

Land Resources

Agrivoltaics can help avoid land use conflicts because the PV panels are placed on land already used for agriculture (Swanson et a., 2025). 

Water Resources

Agrivoltaics may reduce water use up to 50% compared to traditional agricultural systems (Scarano et al., 2025). Reduced solar radiation from shading can reduce soil evaporation rates and enhance water savings for crops (Amaducci et al., 2018). Additionally, water used to clean panels and suppress dust can be reused for irrigation (Patel et al., 2019 ).

Air Quality

For air quality benefits, please refer to the “health” section. 

Risks

Large-scale rollout of agrivoltaics carries several risks. Rapid deployment without adequate storage, grid flexibility, or transmission can elevate curtailment rates. This undermines financial returns and emissions reductions, creating financial risks from high solar deployment and integration (Firoozi et al., 2025; Zubi et al., 2024). Higher up-front capital requirements also expose farmers and developers to revenue risk if crop yields decrease or electricity prices fluctuate (Campana et al., 2025). These financial risks can be mitigated with policy levers, including carbon taxes, though different levers are needed at different adoption levels (Brown & Reichenberg, 2021). 

Lack of regulatory clarity regarding dual-use land may stall adoption (Campana et al., 2025). This lack of legal status often leads to reclassification of agricultural land to energy or industrial use, creating ambiguity over property-tax rates and potentially triggering farmland occupation taxes (Chirinda et al., 2024). Furthermore, reclassification can result in the loss of agricultural subsidies, such as the European Union’s Common Agricultural Policy (CAP) payments, and jeopardize eligibility for crop insurance programs (Smith, 2024; Trommsdorff et al., 2025). Without a clear regulatory framework to differentiate agrivoltaics from standard ground-mounted solar, conflicting goals between energy and agricultural ministries can cause substantial administrative delays and financial uncertainty (Chirinda et al., 2024). 

Agricultural and environmental risks include soil compaction from construction and machinery traffic, reducing infiltration, root growth, and long-term soil fertility. This effect is amplified where heavy equipment must navigate under elevated panels (Campana et al., 2025; Chirinda et al., 2024). Poorly managed end-of-life PV components also risk chemical pollution (Chirinda et al., 2024). 

Finally, social and distributive justice risks can impede adoption. Visual landscape impacts and inequitable benefit-sharing between energy developers and tenant farmers can spark opposition and erode community support. The potential displacement of tenant farmers is a major socioeconomic risk (Campana et al., 2025; Chirinda et al., 2024). Because solar developers offer lease rates that significantly outbid traditional agricultural rents, landowners are increasingly incentivized to prioritize energy production over farming (Morash & Pavao-Zuckerman, 2026 Sorensen et al., 2022; Swanson et al., 2025). Furthermore, high solar leases can drive up overall land prices, making it difficult for new or disadvantaged farmers to access land (Morash & Pavao-Zuckerman, 2026). Without inclusive participatory processes and clear land use agreements, agrivoltaics expansion risks eroding social cohesion and economic viability of the farming communities it is intended to sustain (Campana et al., 2025; Trommsdorff et al., 2025). Ensuring that projects reflect local values, such as community stewardship over simple ownership, is crucial to mitigating the risk of eroding social cohesion of agricultural communities (Seay-Fleming et al., 2025; Trommsdorff et al., 2025).

Interactions with Other Solutions

Reinforcing

The microclimate effects of agrivoltaics can reduce the volume of water required to achieve equivalent crop yields, amplifying the impact of farm-level irrigation efficiency improvements. Electricity generated by solar PV can power irrigation pumps.

By reducing evapotranspiration and moderating temperate and water stress on crops, agrivoltaic systems can reduce agricultural water demand. In water-stressed and arid regions, this interaction can improve food system resilience.

Increased availability of renewable energy from agrivoltaics helps reduce emissions from the electricity grid as a whole. Reduced emissions from the electricity grid lead to lower downstream emissions for solutions that rely on electricity use. Deploying agrivoltaics also supports increased integration of wind power technologies by diversifying the renewable energy mix and reducing exposure to wind variability.

Electrification of transportation systems will be more beneficial in reducing global emissions if the underlying grid includes a higher proportion of non-emitting power sources. Electric transportation systems can also reduce curtailment of solar energy through controlled-time charging and other load-shifting technologies.

Competing

Since wind and solar can generate electricity at the same times of day, deploying agrivoltaics could create competition for grid connections, lower daytime electricity revenues, and suppress adoption of additional wind power.

Use of agricultural land for dedicated bioenergy crop production represents a competing land use, albeit agrivoltaics may offer higher combined energy and food productivity per hectare.

Widespread agrivoltaic deployment on high irradiance agricultural land could reduce the land base available for utility-scale concentrated solar in regions where both are technically viable, albeit the two solutions target different land type and scales.

Consensus
Dashboard

Solution Basics

MW installed capacity

t CO₂-eq (100-yr)/unit/yr
720
units
Current 140,000 02.5×10⁶5.6×10⁶
Achievable (Low to High)

Climate Impact

Gt CO₂-eq (100-yr)/yr
Current 0.1 1.84.1
Gradual

CO₂ , CH₄, N₂O

Trade-offs

Agrivoltaics may involve an inherent trade-off between agricultural productivity and energy conversion efficiency. Well-sited and properly designed systems typically cause no significant declines in agricultural productivity and can even stabilize or increase biomass production in certain conditions (Pandey et al., 2025). Poorly designed systems, however, can underperform both stand-alone agriculture and stand-alone PV on key sustainability metrics (Campana et al., 2025; Trommsdorff et al., 2025).

Elevated panels require extra steel and aluminum, increasing embodied emissions by roughly 20% compared with utility-scale solar PV (Busch & Wydra, 2023). These embodied emissions are modest, up to 100 times lower than the operational savings from displacing fossil fuel–based electricity (Pandey et al., 2025). 

The net climate benefit is greatest in carbon-intensive grids. It diminishes, however, where grid decarbonization is already rapid or where yield losses on prime farmland shift food production to other land, triggering indirect land use change emissions (Agostini et al., 2021; Campana et al., 2025). Water-use efficiency and microclimate cooling can partially offset yield penalties in hot, dry climates, but gains may be small or negative in temperate or wet climates (Campana et al., 2025; Pandey et al., 2025). Overall benefits depend on careful siting, crop selection, and policies that offset higher installation costs while avoiding land-use competition.

Action Word
Deploy
Solution Title
Agrivoltaics
Classification
Highly Recommended

Lawmakers and Policymakers
  • Set ambitious long-term renewable energy goals in national climate plans and multilateral agreements; incorporate agrivoltaics into national climate, energy, and agriculture plans. 
  • Create clear and easy-to-understand regulations that support agrivoltaics deployment and attract investment; use flexible definitions to encourage innovation; ground policies in scientific evidence, incorporating the latest data on the impacts to grid stability, microgrids development, soil carbon, biodiversity, and water management; avoid rigid annual yield requirements; allow flexibility in subsidy programs and regulations to give farmers using agrivoltaics greater choice in crop selection.
  • Create clear guidelines for installing and operating agrivoltaics to optimize land productivity while minimizing soil compaction and other environmental impacts.
  • Coordinate agrivoltaic policies horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); align social and environmental safeguards with agrivoltaic policies.
  • Provide financial incentives to developers and farmers, such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, green bonds, waived grid connection fees, and forgivable or concessional loans; gradually reduce subsidies as markets mature; offer farmers increased incentives for farmer-owned systems; prioritize smallholder and low- to middle-income farmers.
  • Streamline permitting procedures for agrivoltaic projects; standardize documents such as templates for power purchase agreements (PPAs).
  • Develop long-term, flexible partnership frameworks with industry, including adaptable or aggregated PPAs, aligned with national decarbonization targets and timelines.
  • Implement or strengthen renewable portfolio standards, clean energy standards, or other similar policy mechanisms with carve-outs for agrivoltaics.
  • Implement carbon taxes and redirect fossil-fuel subsidy savings into agrivoltaics and renewables.
  • Invest in grid-enhancing technologies, flexibility, storage, and transmission infrastructure to manage variable generation.
  • Work with industry to diversify solar panel supply chains; design incentives and policies to stimulate local or regional production, and advance R&D for solar and related equipment, such as batteries.
  • Strengthen labor and human rights laws and standards around solar PV supply chains; invest in enforcement mechanisms – particularly for the extraction and use of critical minerals and panel manufacturing.
  • Strengthen land tenure rights; clarify rules allowing agrivoltaics on agricultural land; differentiate agrivoltaics from conventional ground-mounted solar panels; create supportive policies to deploy agrivoltaic systems for restoring abandoned or contaminated land.
  • Require environmental and health impact assessments before installation and during operation.
  • Co-design agrivoltaic projects with relevant stakeholders; ensure the stakeholder engagement process starts early and is transparent, inclusive, and ongoing; solicit feedback from the local community on location, design, and finance; ensure finalized projects address relevant sociological, agriculture, and ecological considerations.
  • Ensure regulations support diverse development and ownership models (e.g., build-own-operate, public-private partnerships, energy communities, and cooperatives).
  • Establish strong quality control requirements for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service for solar panels used in agrivoltaics; create certification programs for each stage of the process.
  • Require or encourage manufacturers to provide minimum warranties; establish independent grievance mechanisms to resolve customer disputes and help foster trust in the industry.
  • Work with the private sector on workforce training programs, professional certifications, and capacity development for all project phases.
  • Partner with insurance agencies to develop tailored products for farmers adopting agrivoltaics.
  • Implement strong end-of-life regulations for solar panels, including extended producer responsibility (EPR) for manufacturers; support markets for reuse, refurbishment, and recycling.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • Expand extension services with agrivoltaics-specific guidance, demonstration projects, and peer learning; work with energy agencies to raise awareness; create accessible one-stop-shop educational programs (online and in-person) on regulations, benefits, and best practices, tailored to local contexts. 

Further information:

Practitioners
  • Farmer / Solar Provider: Take advantage of government incentives such as subsidies, grants, tax credits, or waived-connection fees; as the market matures, gradually reduce reliance on these incentives to create long-term market stability.
  • Solar Provider: Conduct careful planning and thorough consultation with farmers to determine the best installation practices; minimize disruption to farming operations and customize configurations to each farmer’s needs and planting schedules.
  • Farmer / Solar Provider: AMinimize soil compaction during installation and servicing with techniques such as scheduling installations during farming off seasons or using specialized equipment.
  • Solar Provider: Use a variety of panel systems, including vertical, single-axis, and dual-axis tracking systems in addition to fixed-tilt systems; improve optimization strategies for single-axis and dual-axis systems and integrate sun-tracking with agricultural strategies, crop selectivity, and soil and weather monitoring systems.
  • Solar Provider: Offer tools or services to help farmers navigate solar arrays more easily, such as geospatial navigation systems, remote sensors, and vision-assisted navigation systems.
  • Solar Provider: Avoid the use of concrete and permanent structures when installing PV systems on farmland.
  • Solar Provider: Offer a variety of business arrangements for farmers, such as pay-as-you-go build-own-operate models, revenue-sharing agreements, and flat lease payments.
  • Solar Provider: Provide options and guidance to improve visual attractiveness of agrivoltaic systems, such as hedges, strategic spacing, and panel coloring.
  • Solar Provider: Standardize agrivoltaic system designs for different geographies and agriculture applications.
  • Farmer / Solar Provider: Consult on maintenance and cleaning protocols, accounting for food safety, the need to reduce soil compaction, and other relevant environmental or health regulations.
  • Solar Provider: Use geospatial and satellite data to assess landscape, market dynamics, and potential customer base.
  • Solar Provider: Design agrivoltaic minigrid systems for compatibility with the main grid to enable future connection. 
  • Solar Provider: Reduce customer acquisition costs using machine learning models to identify potential customers and eligible sites.
  • Solar Provider / Regulator: Collaborate with the public sector to diversify solar panel supply chains; leverage incentives and policies that stimulate local or regional production and advance R&D.
  • Solar Provider: Ensure supply chains comply with international labor and human rights laws and standards, particularly for the extraction of critical minerals and panel manufacturing.
  • Solar Provider: Work to decarbonize the full life cycle, including supply chains, production, installation, recycling, and disposal.
  • Solar Provider / Regulator: Partner with the public sector and private organizations to develop workforce training programs; ensure capacity development for all stages of deployment, including installation best practices and end-of-life services.
  • Farmer / Solar Provider: Stay abreast of and engage with changing policies, regulations, zoning laws, tax incentives, and related developments to help remove commercial barriers.
  • Farmer / Solar Provider: Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • [Farmer / Solar Provider] Help expand extension services and create educational opportunities, including demonstration projects and peer-to-peer learning, in agrivoltaics; work with energy agencies to raise awareness.

Further information:

Business Leaders
  • Set ambitious long-term renewable energy goals; incorporate agrivoltaics, where feasible, into corporate net-zero strategies.
  • Support long-term, stable contracts (e.g., PPAs) that de-risk investment in agrivoltaic technologies and incentivize local supply chain development.
  • Invest in companies that produce, deploy, or provide end-of-life servicing for solar panels used for agrivoltaic systems; seek to diversify and localize supply chains.
  • Invest in R&D and related technology, such as batteries, navigation systems for farmers, and software to manage agrivoltaic systems.
  • Support workforce development programs, offer employee scholarships, and/or sponsor training for careers in agrivoltaics; help ensure capacity development for all stages of deployment, including installation and end-of-life services.
  • Offer pro bono business advice or general support for community and cooperative agrivoltaic projects.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.

Further information:

Nonprofit Leaders
  • Advocate for ambitious long-term renewable energy goals in national climate plans and multilateral agreements; help incorporate agrivoltaics into national climate, energy, and agriculture plans. 
  • Operate or support agrivoltaic demonstration projects, equipment testing, certification, market information disclosures, and onsite supervision.
  • Conduct open-access research to improve the performance of solar PVs in agrivoltaic systems; research optimal crops and panel arrangements, forecasting, and related technologies; help standardize models across geographies and agricultural applications. 
  • Advocate for clear and easy-to-understand regulations that enable agrivoltaics deployment and investment; promote flexible definitions to allow for innovation; provide scientific evidence on the impacts to grid stability, microgrids, soil carbon, biodiversity, and water management; recommend avoiding rigid annual yield requirements and allowing farmers flexibility in crop selection in subsidy and insurance programs.
  • Contribute to clear guidelines for installing and operating agrivoltaics to optimize land productivity while minimizing soil compaction and other environmental impacts.
  • Urge governments to coordinate agrivoltaic policies horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); help align social and environmental safeguards with agrivoltaic policies.
  • Advocate for streamlined permitting procedures and standardize documents such as templates for PPAs.
  • Offer financial assistance to farmers, cooperatives, or communities seeking to deploy agrivoltaics; advocate for targeted incentives to developers and farmers, such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, green bonds, waived grid connection fees, and forgivable or concessional loans; recommend subsidies be gradually reduced as the market stabilizes; earmark funds and/or urge governments to earmark incentives for smallholder and low- and middle-income farmers.
  • Advocate for carbon taxes and redirection of fossil fuel subsidies into agrivoltaics and renewables.
  • Urge policymakers to invest in and subsidize grid-enhancing technologies, flexibility, storage, and transmission infrastructure to manage variable generation.
  • Work with policymakers and industry to diversify solar panel supply chains; help design incentives and policies to stimulate local or regional production; urge policymakers to invest in R&D for solar panels and related equipment such as batteries.
  • Help strengthen labor and human rights laws and standards around solar PV supply chains; invest in enforcement mechanisms – particularly for the extraction and use of critical minerals and panel manufacturing.
  • Help strengthen land tenure rights through documentation and advocacy; help policymakers clarify and allow agrivoltaics on agricultural land; differentiate agrivoltaics from conventional ground-mounted solar panels; create supportive policies to deploy agrivoltaic systems for restoring abandoned or contaminated land.
  • Offer services to conduct environmental and health impact assessments before installation and during operations of agrivoltaics.
  • Participate in community feedback sessions and co-design agrivoltaic projects with farmers, developers, and other relevant stakeholders.
  • Help create or support community agrivoltaics using a variety of development models and benefit-sharing arrangements (e.g., build-own-operate, publicly owned businesses, developer-owned businesses, public-private partnerships, energy communities, and cooperatives).
  • Create certification programs for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service for solar panels used in agrivoltaic systems.
  • Work with policymakers and the private sector to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services; create professional certifications for the full spectrum of roles.
  • Help create strong regulations for end-of-life services for solar panels; advocate for EPR for manufacturers; work with industry to foster a market for used, refurbished, and recycled panels.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • Help expand extension services and create educational opportunities, including demonstration projects and peer-to-peer learning in agrivoltaics; work with energy agencies to raise awareness.

Further information:

Investors
  • Offer low-interest loans and concessional financing to farmers, panel manufacturers, developers, operators, recyclers, and others involved in agrivoltaics.
  • Invest directly in agrivoltaics projects.
  • Invest in companies that produce, deploy, or provide end-of-life servicing for solar panels used in agrivoltaics; support supply chain localization and diversification.
  • Invest in supportive infrastructures, such as utility companies and grid development.
  • Invest in green bonds and/or explore blended finance structures to mobilize capital for agrivoltaics and enabling infrastructure.
  • Invest in solar panel recycling infrastructure and circular supply chains.
  • Invest in R&D for component technology and related equipment, such as batteries.
  • Help de-risk agrivoltaics adoption in low- and middle-income communities through low-interest loans, concessional financing, and/or favorable terms.
  • Align investments with existing public-private partnerships, voluntary agreements, or voluntary guidance that may apply in the location of the investment.

Further information:

Philanthropists and International Aid Agencies
  • Advocate for ambitious long-term renewable energy goals in national climate plans and multilateral agreements; help incorporate agrivoltaics into national climate, energy, and agriculture plans. 
  • Operate agrivoltaic demonstration projects, equipment testing, certification systems, market information disclosures, and onsite supervision.
  • Offer low-interest loans and concessional financing for farmers, panel manufacturers, developers, operators, recyclers, and others involved in agrivoltaics.
  • Award grants for the development of agrivoltaics projects and/or adjacent areas such as mini-grids.
  • Award grants to or invest in companies that produce, deploy, or provide end-of-life servicing for solar panels used in agrivoltaics; seek to diversify and localize supply chains.
  • Provide financing for supportive infrastructures, such as utility companies and grid development.
  • Invest in green bonds and/or explore blended finance structures to mobilize capital for companies developing or deploying agrivoltaics and supportive infrastructure.
  • Finance recycling infrastructure for solar panels and circular supply chains.
  • Help de-risk transitions to agrivoltaic systems in low- and middle-income communities by earmarking a percentage of grant funds and/or offering low-interest loans, concessional financing, and/or favorable terms.
  • Conduct open-access research to improve the performance of solar PVs in agrivoltaic systems; research optimal crops and panel arrangements, forecasting, and related technologies; help standardize models across geographies and agricultural applications. 
  • Help create clear and easy-to-understand regulations that enable agrivoltaics deployment and investment; promote flexible definitions to allow for innovation; provide scientific evidence for the impacts to grid stability, microgrids, soil carbon, biodiversity, and water management; recommend avoiding rigid annual yield requirements and allowing farmers flexibility in crop selection in subsidy and insurance programs.
  • Contribute to clear guidelines for installing and operating agrivoltaics to optimize land productivity while minimizing soil compaction and other environmental impacts.
  • Urge governments to coordinate agrivoltaic policies horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); help align social and environmental safeguards with agrivoltaic policies.
  • Advocate for streamlined permitting procedures and standardize documents such as templates for PPAs.
  • Call on governments to provide financial incentives to developers and farmers, such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, green bonds, waived grid connection fees, and forgivable or concessional loans; recommend subsidies be gradually reduced as the market stabilizes; urge governments to earmark incentives for smallholder, low- and middle-income farmers.
  • Advocate for carbon taxes and redirection of fossil fuel subsidies into agrivoltaics and renewables.
  • Urge policymakers to invest in and subsidize grid enhancing technologies, flexibility, storage, and transmission infrastructure to manage variable generation.
  • Work with policymakers and industry to diversify solar panel supply chains; help design incentives and policies to stimulate local or regional production and advance R&D for solar panels and related equipment such as batteries.
  • Help strengthen labor and human rights laws and standards around solar PV supply chains; invest in enforcement mechanisms – particularly for the extraction and use of critical minerals and panel manufacturing.
  • Help strengthen land tenure rights through documentation and advocacy; help policymakers clarify and allow agrivoltaics on agricultural land; differentiate agrivoltaics from conventional ground-mounted solar panels; create supportive policies to deploy agrivoltaic systems for restoring abandoned or contaminated land.
  • Offer or support services to conduct environmental and health impact assessments before installation and during operations of agrivoltaics.
  • Participate in community feedback sessions and co-design agrivoltaic projects with farmers, developers, and other relevant stakeholders.
  • Help create or support community agrivoltaics using a variety of development models and benefit-sharing arrangements (e.g., build-own-operate, publicly owned businesses, developer-owned businesses, public-private partnerships, energy communities, and cooperatives).
  • Finance or create certification programs for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service for agrivoltaic systems. 
  • Work with policymakers and the private sector to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services; create professional certifications for the full spectrum of roles.
  • Help create strong regulations for end-of-life services for solar panels; advocate for EPR for manufacturers; work with industry to foster a market for used, refurbished, and recycled panels.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • Help expand extension services or create educational opportunities that offer options for deployment, technical guidance, demonstration projects, and peer-to-peer learning opportunities in agrivoltaics; work with energy agencies to raise awareness.

Further information:

Thought Leaders
  • Advocate for ambitious long-term renewable energy goals in national climate plans and multilateral agreements; help incorporate agrivoltaics into national climate, energy, and agriculture plans. 
  • Operate agrivoltaic demonstration projects, equipment testing, certification systems, market information disclosures, and onsite supervision.
  • Conduct open-access research to improve the performance of solar PV in agrivoltaic systems; research optimal crops and panel arrangements, forecasting, and related technologies; help standardize models across geographies and agricultural applications. 
  • Help create clear and easy-to-understand regulations that enable agrivoltaics deployment and investment; promote flexible definitions to allow for innovation; provide scientific evidence on the impacts to grid stability, microgrids, soil carbon, biodiversity, and water management; recommend avoiding rigid annual yield requirements and allowing farmers flexibility in crop selection in subsidy and insurance programs. 
  • Contribute to clear guidelines for installing and operating agrivoltaics to optimize land productivity while minimizing soil compaction and other environmental impacts.
  • Urge governments to coordinate agrivoltaic policies horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); help align social and environmental safeguards with agrivoltaic policies.
  • Advocate for streamlined permitting procedures and standardize documents such as templates for PPAs.
  • Call on governments to provide financial incentives to developers and farmers, such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, green bonds, waived grid connection fees, and forgivable or concessional loans; recommend subsidies be gradually reduced as the market stabilizes; urge policymakers to earmark incentives for smallholder, low- and middle-income farmers.
  • Advocate for carbon taxes and redirection of fossil fuel subsidies into agrivoltaics and renewables.
  • Urge policymakers to invest in and subsidize grid-enhancing technologies, flexibility, storage, and transmission infrastructure to manage variable generation.
  • Help strengthen labor and human rights laws and standards around solar PV supply chains; invest in enforcement mechanisms –particularly, for the extraction and use of critical minerals and panel manufacturing.
  • Help strengthen land tenure rights through documentation and advocacy; help policymakers clarify and allow agrivoltaics on agricultural land; differentiate agrivoltaics from conventional ground-mounted solar panels; create supportive policies to deploy agrivoltaic systems for restoring abandoned or contaminated land.
  • Offer services to conduct environmental and health impact assessments before installation and during operations of agrivoltaics.
  • Participate in community feedback sessions and co-design agrivoltaic projects with farmers, developers, and other relevant stakeholders.
  • Help create certification programs for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service for agrivoltaic systems.
  • Work with policymakers and the private sector to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services; create professional certifications for the full spectrum of roles.
  • Help create strong regulations for end-of-life services for solar panels; advocate for EPR for manufacturers; work with industry to foster a market for used, refurbished, and recycled panels.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • Help expand extension services or create educational opportunities that offer options for deployment, technical guidance, demonstration projects, and peer-to-peer learning opportunities in agrivoltaics; work with energy agencies to raise awareness.

Further information:

Technologists and Researchers
  • Design solar panels and mounting systems that reduce material requirements and overall system weight.
  • Research lighter-weight materials for agrivoltaic systems and evaluate their technical, economic, and environmental feasibility. 
  • Advance scientific understanding of optimal crop selection for agrivoltaic systems; improve solar panel wavelength selectivity; develop standardized system configurations for specific geographies and agricultural applications; identify optimal spacing requirements for various arrangements.
  • Research soil compaction impacts in agrivoltaic systems, ways to prevent or minimize it during site preparation and installation, and ways to alleviate or reverse it post-installation – with priority on approaches compatible with ongoing PV operations and long-term soil health.
  • Identify ways to reduce the impact of agrivoltaic systems on satellite signals to improve navigation technology.
  • Improve semi-transparent photovoltaic panels to increase efficiency and reduce costs for agrivoltaic systems.
  • Examine the impacts of agrivoltaics on soil health, water management, biodiversity, and other environmental factors.
  • Create publicly accessible databases of agrivoltaic models, performance data, and best practices.
  • Assess policy frameworks and regulations that enable or inhibit agrivoltaics adoption. 
  • Identify barriers to adoption for farmers; research impacts of agrivoltaics on property value and land classification.
  • Improve and update spatial data on power grid locations and available transmission capacities, especially in rural and underserved areas.
  • Examine the impacts of agrivoltaics on food security, energy access, and rural communities.
  • Advance the use of AI or other technological tools for predictive analytics, yield forecasting, and power system control.
  • Improve recycling infrastructure and scalable technologies to repair, reuse, or recover materials from solar panels.
  • Improve related mining technologies for critical minerals, making the extraction process safer, less disruptive to local communities and ecosystems, and less energy intensive.
  • Develop ways of eliminating, reducing, reusing, and/or safely disposing of hazardous by-products of PV manufacturing.
  • Research social factors that drive community acceptance and the role of agrivoltaics in a fair and just energy transition. 

Further information:

Communities, Households, and Individuals
  • Help create or support community agrivoltaic projects using models such as build-own-operate, public-private partnerships, energy communities, and cooperatives.
  • Take advantage of available government incentives such as subsidies, tax breaks, and forgivable or concessional loans for community agrivoltaic projects.
  • Advocate for ambitious long-term renewable energy goals in national climate plans and multilateral agreements.
  • Call on governments to provide financial incentives to developers and farmers, such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, green bonds, waived grid connection fees, and forgivable or concessional loans; recommend subsidies be gradually reduced as the market stabilizes; urge policymakers to earmark incentives for smallholder, low- and middle-income farmers.
  • Advocate for carbon taxes and the redirection of fossil fuel subsidies into agrivoltaics and renewables.
  • Urge policymakers to invest in and subsidize improvements to grid integration and flexibility, storage, and infrastructure to manage variable generation.
  • Participate in community feedback sessions and co-design agrivoltaic projects with farmers, developers, and other relevant stakeholders.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • Volunteer with community agrivoltaic projects; participate in public awareness campaigns; share information with your community and networks regarding the benefits of agrivoltaic systems.

Further information:

“Take Action” Sources
Evidence Base

Consensus of overall effectiveness of agrivoltaics: High

A wide range of peer-reviewed studies, meta-analyses, and life-cycle assessments provide strong evidence that agrivoltaics reduce GHG emissions. International organizations such as the Intergovernmental Panel on Climate Change (IPCC) and IEA identify rapid solar PV deployment as a critical component in mitigation pathways and net-zero scenarios. Life-cycle assessments show that, despite 20% higher embodied emissions from elevated structures compared with conventional solar PV, agrivoltaic systems deliver significant net emissions reductions by displacing fossil generation while maintaining agricultural output on the same footprint (Agostini et al., 2021; Barron-Gafford et al., 2019; Campana et al., 2025).

There is sufficient evidence that well-sited agrivoltaic systems increase land-use efficiency, and can provide additional benefits including reduced water stress, avoided land-use conflict, and improved solar PV performance in suitable climates (Barron-Gafford et al., 2019; Campana et al., 2025; Dupraz et al., 2011; Trommsdorff et al., 2025). Meta-analyses show manageable yield responses for shade-tolerant or neutral crops, especially in arid and semi-arid regions (Chirinda et al., 2024; Mamun et al., 2022); however yields for shade-intolerant crops or in temperate and humid climates are less consistent. Higher capital costs, site-specific challenges, and limited long-term data beyond two to three growing seasons create economic uncertainty. 

Consensus is mixed regarding net emissions savings of solar PV, given the diurnal nature of solar energy and the need for storage or other energy resources to meet peak evening demand. There is also a lack of global scientific or regulatory consensus regarding the definition of agrivoltaics, with qualification thresholds for which agricultural activities and what level of activity constitutes dual-use land varying substantially across jurisdictions (Trommsdorff et al., 2025).

This summary draws from 5 reviews and meta-analyses, 25 institutional reports, 6 market reports, and 32 original studies covering more than 25 countries, with strongest evidence from Europe, North America, East Asia, and select arid regions. We recognize this limited geographic scope creates bias toward higher-income and temperate-to-arid settings. Further research and data sharing in underrepresented low-income regions is required, where land, water, and energy pressures makes agrivoltaic systems potentially most impactful.

Updated Date
Coming Soon Label
Coming Soon

Deploy Distributed Solar PV

Sector
Electricity
Mode
Cut Emissions
Cluster
Shift Production
Image
Solar panels on house roof
Coming Soon
Off
Summary

Distributed solar photovoltaic (PV) systems are small-scale solar PV systems – usually under 1 MW, and installed near the point of use, such as on homes, businesses, or local facilities – that generate electricity for on-site consumption or local grid supply. This solution reduces reliance on centralized fossil-fuel power, cutting GHG emissions and minimizing transmission losses. There are various configurations of distributed solar PV systems; our analysis includes residential systems on homes, commercial and industrial (C&I) systems on businesses or institutions, and mini-grid solar PV systems, which are often coupled with storage.

Extreme weather events
Income & work,Food security,Energy availability,Health
Air quality
Description for Social and Search
Deploy Distributed Solar PV is a Highly Recommended climate solution.
Overview

An estimated 23% of GHG emissions on a 100-yr basis comes from electricity generation annually (Clarke et al., 2022). In 2022, more than 60% of global electricity generation came from fossil fuel–based energy sources (International Energy Agency [IEA], 2024a). Since solar is a clean and renewable resource, distributed solar PV does not contribute to GHG emissions or air pollution while generating electricity. Deploy Distributed Solar PV reduces the need for electricity generation from fossil fuels, which reduces emissions of CO₂ as well as smaller amounts of methane and nitrous oxide. 

Distributed solar PV systems are decentralized energy systems that generate electricity from sunlight at or near the point of use. These systems are commonly installed on residential, commercial, and institutional rooftops, converting solar radiation directly into usable electricity through PV cells. These cells are grouped into modules, which in turn form panels and arrays (U.S. Department of Energy [DOE], n.d.) that deliver electricity to consumers (Figure 1). Their modular nature allows flexible system sizing, making distributed solar PV well-suited to varying energy demands, rooftop space, and financial capacity. Distributed solar PV systems are typically installed and operated by homeowners, businesses, municipalities, and third-party service providers. 

Figure 1. Distributed solar PV systems are commonly installed on residential, commercial, and institutional rooftops, converting solar radiation directly into usable electricity. Photovoltaic cells are grouped into modules, which in turn form panels and arrays that deliver electricity to consumers for on-site use. In some cases, excess generation can be exported to the grid. Modified from Engineering Discoveries (n.d.).

Diagram showing solar photovoltaic on a grid system

Source: Engineering Discoveries. (n.d.). Solar power plant main components, working, advantages and disadvantages.

The primary climate benefit of distributed solar PV is the reduction of CO₂ emissions. By generating zero-emissions electricity on-site, these systems displace electricity that would otherwise be supplied by fossil fuel–based grid power and reduce demand on electricity transmission from power plants to consumers. In doing so, distributed solar PV also avoids upstream emissions of methane and nitrous oxide associated with the extraction, transportation, and combustion of fossil fuels.

A significant number of distributed solar PV systems supply electricity directly to the buildings where they are installed, which offsets grid demand and lowers electricity bills for PV owners. In some cases, excess generation can be exported to the grid, contributing to the broader renewable electricity mix and reducing peak loads and system cost (Rahdan et al., 2024). Distributed solar PV systems therefore provide both emissions reductions and grid benefits (Tran et al., 2023; Uzum et al., 2021; Zhang et al., 2025). 

Although distributed solar PV systems typically have lower capacity factors than utility-scale solar systems, they require less land, avoid transmission losses, and enable clean electricity access in urban, peri-urban, and rural areas. Implementation is primarily led by households, small businesses, public entities, and local developers. Governments and utilities often provide incentives such as subsidies, feed-in tariffs, or tax credits to stimulate deployment. Continued cost declines – especially in balance-of-system (BoS) and soft costs like labor and permitting – are expected to increase adoption. Distributed solar PV offers a scalable, low-carbon electricity solution that supports both climate mitigation and energy equity.

References

Abel, D., Holloway, T., Harkey, M., Rrushaj, A., Brinkman, G., Duran, P., Janssen, M., & Denholm, P. (2018). Potential air quality benefits from increased solar photovoltaic electricity generation in the Eastern United States. Atmospheric Environment, 175, 65–74. Link to source: https://doi.org/10.1016/j.atmosenv.2017.11.049

Alboaouh, K. A., & Mohagheghi, S. (2020). Impact of rooftop photovoltaics on the distribution system. Journal of Renewable Energy, 1, Article 4831434. Link to source: https://doi.org/10.1155/2020/4831434

Al-Hanoot, A. K., Mokhlis, H., Mekhilef, S., Alghoul, M., Shareef, H., & Samatar, A. M. (2024). Distributed PV systems in Saudi Arabia: Current status, challenges, and prospects. Energy Strategy Reviews, 55, Article 101535. Link to source: https://doi.org/10.1016/J.ESR.2024.101535

Barbose, G. L., Darghouth, N. R., O’Shaughnessy, E., & Forrester, S. (2023). Tracking the sun: Pricing and design trends for distributed photovoltaic systems in the United States [PowerPoint slides]. Link to source: https://eta-publications.lbl.gov/sites/default/files/5_tracking_the_sun_2023_report.pdf

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Credits

Lead Fellow

  • Michael Dioha, Ph.D.

Contributors

  • Ruthie Burrows, Ph.D.

  • James Gerber, Ph.D.

  • Daniel Jasper

  • Megan Matthews Ph.D.

  • Alex Sweeney

Internal Reviewers

  • Al-Amin Bugaje, Ph.D.

  • James Gerber, Ph.D.

  • Amanda D. Smith, Ph.D.

Effectiveness

Based on IEA World Energy Balances, global emissions from electricity generation accounted for an estimated 530 kg CO₂‑eq /MWh (540 kg CO₂‑eq /MWh, 20-yr basis; IEA, 2024a; see Methodology: Appendix A for calculation details). To convert from MWh to MW, we used the median global average capacity factor for distributed solar PV of 14% (Jacobson et al., 2017). Distributed solar PV is estimated to reduce emissions by 650 t CO₂‑eq /MW/yr (660 t CO₂‑eq /MW/yr, 20-yr basis; Table 1).

Table 1. Effectiveness at reducing emissions.

Unit: t CO₂‑eq /MW installed capacity/yr, 100-yr basis

Estimate 650
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We assumed that newly installed distributed solar PV displaces an equivalent MWh of the global electricity grid mix. We then assumed the reduction in emissions from additional distributed solar PV capacity was equal to emissions (per MWh) from the 2023 global electricity grid mix (IEA, 2024a). Since new distributed solar PV does not displace an equivalent MWh of the global grid mix, actual avoided emissions will depend on conditions of the local grid at a particular time and place, including the level of solar already deployed, regional solar radiation, and grid carbon intensity. As a result, our global effectiveness estimate may differ significantly from regional estimates. Studies in the United States show that for 2007–2015, avoided emissions from solar were approximately 0.5 t CO₂ /MWh (613 t CO₂ /MW/yr; Millstein et al., 2017), and a 15% increase in deployment avoided 8.54 Mt CO₂ /yr (Biswas et al., 2025). For regions that rely heavily on fossil-fuel generators for electricity generation, widespread adoption of distributed solar PV could cut emissions much more than estimated here (Sustainable Energy for All, 2024). 

Distributed solar PV systems have no operational emissions and low life-cycle GHG footprints. We excluded carbon payback time and embodied life-cycle emissions from manufacturing, transport, installation, and end-of-life processing in our estimates of effectiveness and climate impacts. Life-cycle emissions of rooftop solar PV systems were 25.5–42.9 g CO₂‑eq /kWh, depending on the module technology used (IEA-PVPS, 2022). This is significantly lower than fossil fuel–based electricity generation, which can exceed 1,000 g CO₂‑eq /kWh (Gibon et al., 2021).

Cost

We estimated a mean levelized cost of electricity (LCOE) for distributed solar PV of US$145/MWh based on two key industry reports (International Renewable Energy Agency [IRENA], 2020; IEA & NEA, 2020; see Methodology: Appendix A for details). LCOE values represent the average cost of producing one MWh of electricity over the operational lifetime of a power plant, allowing investors to compare their expected revenue to a standard set of costs. International agencies have used this cost metric to estimate total costs of power generation technologies, incorporating installed capital costs, operation and maintenance, project lifespan, and energy output.

While distributed solar PV generally carries a higher cost per MWh than utility-scale solar (IRENA, 2020), rapid declines in cost have been observed across rooftop and mini-grid markets. Residential rooftop PV systems, for instance, saw their average LCOE drop from US$0.301/kWh (US$301/MWh) in 2010 to US$0.063/kWh (US$63/MWh) in 2019 – a 79% reduction driven by falling module prices, better installation methods, and policy support (IRENA, 2020). Similarly, commercial-scale rooftop PV (≤500 kW) achieved its lowest country-level LCOEs – of US$0.062/kWh (US$62/MWh) in India, and US$0.064/kWh (US$64/MWh) in China – during the same period (IRENA, 2020).

Methods and Supporting Data

Methods and Supporting Data

Learning Curve

Distributed solar PV exhibits a pronounced learning curve, most clearly reflected in the steady decline of solar module prices as global deployment expands. The median learning rate for PV modules is estimated at 34%, meaning module prices fall by roughly one-third with every doubling of installed capacity (Table 2). Significant economies of scale over the past decade have driven an even steeper learning rate of 42% (Masson et al., 2024). Similarly, a historical assessment (Philipps & Warmuth, 2025) found that module prices have decreased by 25.7% per doubling over the past 44 years, reinforcing the scale-driven cost reduction dynamics in the distributed solar market. Our estimated learning rate is based on trends of the past decade, while a longer historical estimate would reveal lower learning rates.

Table 2. Learning rate: drop in cost per doubling of the installed solution base, 2010–2023.

Unit: %

25th percentile 30
Mean 34
Median (50th percentile) 34
75th percentile 38
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Looking forward, the pace of module cost decline is expected to slow somewhat. According to the DNV 2024 Energy Transition Outlook (DNV, 2024), the current global learning rate for module costs is about 26%, but projections suggest this rate will slow to around 17% by 2050 as cost components stabilize and the largest gains from scaling are realized. 

In addition to modules, distributed solar PV costs are significantly influenced by BoS components, which include inverters, racking, labor, permitting, and customer acquisition. While these costs are more localized and less exposed to global manufacturing dynamics, they have also followed a learning trajectory. Elshurafa et al. (2018) analyzed BoS costs across more than 20 countries and found a global learning curve of 89%, corresponding to a BoS learning rate of 11%. This is lower than the module rate but nonetheless meaningful – especially in markets where soft costs dominate. 

In the United States, residential distributed solar PV system costs fell 76% between 2010 and 2024, while commercial rooftop PV system costs declined 84% during the same period (Ramasamy et al., 2025). These reductions reflect improvements in module efficiency, digital tools for system design and sales, streamlined installation, and, in some regions, lower permitting and inspection costs.

Still, challenges remain. In mature distributed markets such as the United States, costs other than hardware – such as labor, permitting, interconnection fees, and customer acquisition – continue to account for the majority of overall system prices (Barbose et al., 2023; Dong et al., 2023). 

Speed of Action

The term speed of action refers to how quickly a climate solution physically affects the atmosphere after it is deployed. This is separate from the speed of deployment, which is the pace at which solutions are adopted.

At Project Drawdown, we define the speed of action for each climate solution as emergency brake, gradual, and delayed.

Deploy Distributed Solar PV is a GRADUAL climate solution. It has a steady, linear impact on the atmosphere. As installed capacity of distributed solar PV increases over time, emissions from electricity generation are expected to decrease, assuming solar and other renewables displace fossil fuel sources.

Caveats

One limitation is our assumption that each additional MWh from distributed solar PV displaces an equivalent MWh from the grid. In practice, without net metering or export compensation, generation from distributed systems may not be fully recognized or integrated into the grid – meaning those MWh might not contribute to net electricity flows or emissions displacement. In such cases, any solar output not exported to the grid cannot contribute to grid-level emissions benefits. Owners of distributed solar PV systems are eligible to claim renewable energy certificates (RECs), but if they don’t do so, their utility may instead claim the RECs on their behalf without reducing emissions from their electricity generation. While RECs are used most widely in the United States, this additionality concern could impact any international energy market that also has tradable renewable energy certificates (NREL, 2015). 

Our definition of distributed solar PV includes both rooftop systems and mini-grids, many of which are coupled with battery storage. However, our aggregated analysis does not fully differentiate between these diverse configurations, nor does it account for their varying operational patterns, grid interactions, or backup roles. These differences are important but difficult to capture within the scope of this analysis. Consequently, the results presented should be interpreted as a high-level approximation rather than a detailed assessment of all distributed solar PV system types.

Distributed solar PV implementation comes with several limitations and uncertainties. One concern is whether new installations meaningfully reduce emissions. In regions where the electricity grid is already low-carbon or underused, adding distributed solar may have limited climate impact.

The long-term impact of distributed solar also depends on system reliability, maintenance, and policy stability. Poorly maintained systems may underperform and sudden policy changes – such as the removal of net metering or the elimination of tax credits – can reduce uptake (Gautier & Jacqmin, 2020; Leite et al., 2024; Venkatachalam et al., 2025). In many low-income regions specifically, high up-front costs, limited access to financing, and insufficient technical capacity can hinder large-scale adoption (Ukoba et al., 2024). Even when demand exists in these regions, supply chain limitations, lack of skilled labor, and inconsistent regulatory frameworks may slow progress.

Technical challenges also arise with increasing deployment. Variability in distributed solar PV generation can lead to voltage instability in distribution networks (Cook et al., 2018; Impram et al., 2020; Tamimi et al., 2013), especially when systems are not paired with smart inverters or batteries. Although emissions from manufacturing and disposal of solar PV panels are relatively lower than those from fossil fuel power, they are not zero. Another technical caveat is the growing concern of e-waste, particularly for off-grid and rural PV deployments. A recent prospective material flow analysis across 15 West African countries estimates that cumulative PV waste could reach 2.3 to 7.8 Mt by 2050, with about 70% originating from off-grid systems (Dong et al., 2025).

Current Adoption

We estimated current adoption of distributed solar PV based on IEA reports (IEA, 2023; Masson et al., 2024). As of 2023, the global installed capacity for distributed solar PV reached approximately 708,000 MW (Table 3). Although we used 2023 as our baseline for current adoption, an estimated additional 182,000 MW of distributed solar PV capacity was installed in 2024 – bringing the global total to more than 890,000 MW (IEA, 2023).

Table 3. Current adoption level, 2023.

Unit: MW installed capacity

25th percentile 702,000
Mean 708,000
Median (50th percentile) 708,000
75th percentile 715,000
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From 2011–2016, the global distributed solar PV market remained relatively stable, with annual installations ranging between 16 and 19 GW (Masson et al., 2024). This trend shifted significantly when China expanded its domestic distributed solar PV sector, implementing policy and infrastructure measures that nearly doubled market capacity between 2016 and 2018. By 2023, global distributed solar PV installations had reached 189.0 GW annually – up from 177.7 GW of new capacity added in 2022 (Masson et al., 2024). In recent years, many countries, particularly in Europe, have adopted collective and distributed self-consumption models as a new framework for residential and commercial electricity customers. This approach increases access to self-generated renewable electricity, even for consumers unable to install their own PV systems. 

Off-grid solar PV applications are expanding too, primarily driven by rural electrification efforts across Asia, Africa, and parts of South America (World Bank Group, 2024). In many remote areas, especially in Africa and Asia, off-grid and mini-grid systems with storage serve as viable alternatives to grid extension or as interim solutions before future grid connections. For further details, see the Geographic Guidance section.

Adoption Trend

Based on the IEA’s solar PV power capacity in the Net Zero Scenario (IEA, 2023), we calculated the global adoption trend by summing global adoption for each year 2015–2023 and taking the year-to-year difference. Comparing year-to-year global adoption, the median global adoption trend was adding 54,000 MW/yr of installed capacity, but expansion was unevenly distributed geographically (Table 4, Figure 2).

Figure 2. Global adoption of distributed solar PV, 2015–2023.

Source: International Energy Agency. (2023). Solar PV power capacity in the Net Zero Scenario, 2015-2030. License: CC BY 4.0

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Table 4. Adoption trend, 2015–2023.

Unit: MW installed capacity/yr

25th percentile 40,300
Mean 72,400
Median (50th percentile) 54,000
75th percentile 80,800
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Global distributed solar PV deployment more than sextupled between 2015 and 2023, growing from 116 GW to 695 GW of installed capacity (Figure 2; IEA, 2023). Growth in the mid-2010s was relatively moderate, with yearly additions rising gradually from 19 GW in 2016 to 45 GW by 2019. However, a notable acceleration began after 2020. Annual capacity additions jumped from 63 GW in 2020 to 192 GW in 2023 – more than tripling in just three years (IEA, 2023). This surge reflects growing policy support, cost declines, and higher demand for behind-the-meter solar solutions. The rolling trendline since 2015 now averages 72 GW/yr, nearly double the average before 2020. This trend is likely to continue as distributed solar PV continues to gain ground in both developed and emerging markets.

Adoption Ceiling

For this analysis, we adopt a global median estimate of 17.4 million MW installed capacity as the adoption ceiling for distributed solar PV (Table 5). The adoption ceiling for distributed solar PV is determined by the global technical potential of rooftop surfaces, parking structures, and other built environments suitable for solar PV deployment. Unlike utility-scale systems that require dedicated land, distributed solar PV leverages existing infrastructure – primarily the rooftops of residential, commercial, and government buildings.

Estimates of the technical potential for distributed solar PV vary considerably across the literature, reflecting differences in study period, system types included, and methodological approaches. Despite these variations, recent global assessments converge on the view that rooftop and other distributed solar PV systems offer substantial potential, though they are constrained by surface area availability and system efficiencies. A meta-analysis by de La Beaumelle et al. (2023) reported rooftop solar PV technical potential ranging from 6 PWh/yr to 69 PWh/yr, with a median of 15.8 PWh/yr and an average of 21.1 PWh/yr (de La Beaumelle et al., 2023). Another study estimated the global net energy potential from rooftop PV at 7.81 PWh/yr for residential rooftops and 8.02 PWh/yr for commercial rooftops. Similarly, Deng et al. (2015) estimated the global technical potential of rooftop PV systems at 33.6 PWh/yr, with an additional 25 PWh/yr from building facades (Deng et al., 2015), while Joshi et al. (2021) identified approximately 0.2 million km2 of suitable rooftop area from 130 million km2 of global land surface, corresponding to an estimated electricity generation potential of 27 PWh/yr (Joshi et al., 2021).

Key constraints to distributed solar PV adoption include rooftop suitability (such as shading, tilt, and orientation), grid integration, permitting hurdles, and up-front costs (Sengupta et al., 2024; Masson et al., 2025). While these barriers may limit near-term deployment, innovations like building-integrated photovoltaics, virtual net metering, and smart inverters offer pathways to expand deployment.

Table 5. Adoption ceiling: upper limit for adoption.

Unit: MW installed capacity

25th percentile 12,400,000
Mean 23,400,000
Median (50th percentile) 17,400,000
75th percentile 28,500,000
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Achievable Adoption

The IEA’s World Energy Outlook (WEO) 2024 presented several scenarios that explored future energy pathways under different assumptions about policies, technologies, and markets (IEA, 2024b). For this analysis, we defined the adoption achievable range for distributed solar PV based on the Stated Policies Scenario (STEPS) and the Announced Pledges Scenario (APS) (IEA, 2024b). However, the WEO does not explicitly distinguish between distributed and utility-scale solar PV in its projections. To bridge this gap, we conducted a simple linear projection using historical deployment trends to estimate the likely share of distributed solar PV within total solar PV capacity. Our analysis suggests that by 2050, distributed solar PV could represent approximately 26% of all solar PV deployment. This finding is consistent with IRENA’s REmap analysis, which projects that utility-scale systems will account for 60–80% of global solar PV capacity by mid-century (IRENA, 2019). Accordingly, for our study we assume that 26% of the IEA’s projected solar PV deployment in 2050 will come from distributed solar PV systems. This provides a reasonable basis for estimating achievable adoption, while aligning with both historical patterns and complementary international assessments.

Achievable – Low

The low achievable adoption level is based on STEPS, which reflects the current trajectory of distributed solar PV expansion under existing and announced policies. In this scenario, assuming distributed solar PV projects account for 26% of total solar PV capacity, global capacity is projected to grow about sixfold, from 708,000 MW in 2023 to approximately 4.30 million MW by 2050 (Table 6). This corresponds to an average compound annual growth rate (CAGR) of 7.3%.

Table 6. Range of achievable adoption levels.

 Unit: MW installed capacity

Current adoption 708,000
Achievable – low 4,300,000
Achievable – high 5,300,000
Adoption Ceiling 17,400,000
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Achievable – High

The high achievable adoption level is based on APS, which assumes the same policy framework as STEPS, plus full realization of announced national energy and climate targets, including net-zero commitments supported by stronger clean energy investments. Under this scenario, distributed solar PV capacity is projected to increase approximately sevenfold from 708,000 MW in 2023 to approximately 5.30 million MW by 2050 (Table 6), requiring a CAGR of 8% over the same period.

Using our adoption ceiling of 17.4 million MW, the current adoption of distributed solar PV constitutes approximately 4.1% of its technical potential. The achievable adoption range, as calculated, is 24.8–30.3% of this potential.

Based on baseline global adoption and effectiveness, we estimated the current total climate impact of distributed solar PV to be approximately 0.46 Gt CO₂‑eq (0.47 Gt CO₂‑eq , 20-yr basis) of reduced emissions per year (Table 7). We estimated future climate impacts using the emissions from the 2023 baseline electricity grid; actual emissions reductions could differ depending on how the emissions intensity of electricity generation changes over time. 

Table 7. Climate impact at different levels of adoption.

Unit: Gt CO₂‑eq/yr, 100-yr basis

Current adoption 0.46
Achievable – low 2.8
Achievable – high 3.5
Adoption Ceiling 11
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Climate impacts are highly uncertain. They will vary depending on actual emissions intensity, as well as future development of electricity grids, markets and policies, and enabling technologies, like batteries. As solar and other renewables grow to represent an increasingly high percentage of power generation sources, grid emissions are expected to decrease (DNV, 2024; IEA, 2024b), so the climate impacts presented here are likely overestimates. Additionally, in regions with significant solar radiation where utility-scale solar PV is competitive, increased adoption of distributed solar PV could displace utility-scale PV without reducing emissions (Bistline & Watten, 2025). Assuming the existing and announced policies of countries around the world for distributed solar PV installation are backed with adequate provisions for implementation, global adoption could reach 4 million MW by 2050 – resulting in an increased emissions reduction of approximately 2.8 Gt CO₂‑eq/yr (2.9 Gt CO₂‑eq/yr, 20-yr basis). Assuming full realization of all national energy and climate targets (including net-zero commitments) with the support of stronger clean energy investments, distributed solar PV adoption could reach 5 million MW by 2050, which would lead to an estimated 3.5 Gt CO₂‑eq/yr (3.5 Gt CO₂‑eq/yr, 20-yr basis) of reduced emissions. 

We based the adoption ceiling solely on the technical potential of distributed solar PV, while neglecting social and economic constraints and realistic scenarios of future power demand (Dioha et al., 2025). Distributed solar PV installed capacity is unlikely to reach 17 million MW, but if current grid emissions remained constant while capacity increased, GHG emission reductions would be approximately 11 Gt CO₂‑eq/yr (11 Gt CO₂‑eq/yr, 20-yr basis). This maximum is unrealistic as a forward-looking climate impact because it treats grid carbon intensity as permanently fixed at 2023 levels and ignores future decarbonization and corresponding decreases in marginal avoided emissions.

Additional Benefits

Extreme Weather Events

Rooftop PV systems and mini-grids have the potential to supply electricity when the grid is unstable, improving resilience during or after extreme weather events (Galvan et al., 2020; NREL, 2014).

Income and Work

Solar PV can have a positive effect on the economy because it accounts for 44% of renewable energy jobs globally and is the fastest-growing sector of renewable energy employment (IRENA, 2024). In the United States as of 2021, solar PV employed about 250,000 full-time workers, mainly in the installation, project development, and manufacturing sectors (Gadzanku et al., 2023). The National Renewable Energy Laboratory (NREL) projected that about 509,000–757,000 jobs for both utility- and distributed-scale solar PV will be added by 2030 in the United States (Truitt et al., 2022).

Factors such as local policies that allow for net metering, tax credits, weather, and the price of electricity can determine individual cost benefits and payback periods of distributed solar (Sexton et al., 2018; Vaishnav et al., 2017). After the initial investment, consumers see savings in their monthly electricity bills (NREL, 2018).

Distributed solar PV can provide access to electricity in rural areas of low- and middle-income countries (Kumar et al., 2019). Enhanced access to electricity in these countries can foster economic development of agricultural communities and increase farmer incomes (Candelise et al., 2021; Saha, 2025).

Food Security

Improved electricity access through distributed solar PV can also enhance food production and ensure resilience of agricultural systems in low- and middle-income countries (Ukoba et al., 2024). Improved electricity access strengthens food security by providing refrigeration for perishable food, ensuring higher food quality, and reducing food loss (Candelise et al., 2021; Ukoba et al., 2024).

Energy Availability

Distributed solar PV can provide electricity to households and communities where expanding grid electricity would prove too expensive or physically inaccessible (Kannan & Vakeesan, 2016; Kumar et al., 2019; Maka & Alabid, 2022). Using distributed mini-grids as a source of electricity is especially applicable to low- and middle-income countries with abundant solar resources (Maka & Alabid, 2022). For example, distributed rooftop solar has been an important source of electricity access in Bangladesh, where rooftop PV systems provide electricity to about 12% of the population (Kumar et al., 2019).

Health

Improvements in air quality offer health benefits from reduced air pollution exposure, including reduced premature mortality. The magnitude and distribution of these benefits depend on the local electricity grid mix, the fuels used to generate electricity, and atmospheric conditions that determine how far pollutants travel from emission sources (Buonocore et al., 2019). Regions with a higher proportion of coal-powered electricity generation will often see more health benefits (Buonocore et al., 2019). These health benefits often translate into cost savings associated with reductions in hospital admissions, improved respiratory and cardiovascular conditions, and work and school days that might have otherwise been missed due to illness (Millstein et al., 2017; Wiser et al., 2016). A study of the health benefits of distributed solar PV in eastern China found that reductions in air pollution were linked to a 1.2% decrease in air pollution–related premature mortality (Yang et al., 2018). Distributed solar PV can provide electricity to power electric cookstoves, which can reduce morbidities linked to poor indoor air quality (Jhunjhunwala & Kaur, 2018).

Increasing energy availability through distributed solar PV has important implications for health-care delivery in rural communities in low- and middle-income countries. By providing electricity access to health clinics located in hard-to-reach areas, mini-grid or rooftop PV systems can improve health services (Maka & Alabid, 2022; Soto et al., 2022; Ukoba et al., 2024). Electricity is essential for health-care services such as lighting during procedures, refrigeration of vaccines, sterilization of devices, and medical imaging, which can impact infection rates, neonatal mortality, and surgical outcomes (Soto et al., 2022). PV systems can deliver stable electricity to health clinics in low- and middle-income countries, which often experience power outages due to grid instability or natural disasters (Soto et al., 2022). 

Air Quality

Solar PV reduces air pollutants released from fossil-fuel energy generation, thereby avoiding the emission of pollutants such as nitrogen oxides, sulfur dioxide, and PM2.5 associated with burning coal and natural gas (Abel et al., 2018; Millstein et al., 2024; Millstein et al., 2017; Wiser et al., 2016). The amount and type of air pollutants avoided will vary regionally depending on the fossil fuel type that PV displaces (Gallagher & Holloway, 2020). For example, since coal has different emissions than gas, regions with higher levels of coal-powered electricity will experience different air quality benefits than regions with more gas-powered electricity (Millstein et al., 2017). Pollutants can be transported for long distances depending on meteorological conditions, so air pollution benefits can be widespread (Millstein et al., 2024).

Risks

A significant risk of implementing distributed solar PV involves changes or instability in policy, especially pertaining to compensation schemes such as net metering and feed‑in tariffs. The economic viability of rooftop solar systems often hinges on favorable tariff or compensation rules; when these policies are reduced or withdrawn, investment returns drop markedly. For example, a 2018 report from IEA‑PVPS shows that many emerging economies have laws enabling net metering, but suffer from delays in implementation or weak compensation levels, which limit residential uptake of rooftop PV systems under self‑consumption policies (Roux & Shanker, 2018).

Another risk is the structure of electricity rates and fixed charges. A study of the impact of fixed charges on the viability of self‑consumption found that high fixed or volumetric charges in retail tariffs can dramatically reduce the financial benefit of self‑consumed PV generation, particularly when surplus PV electricity exported to the grid receives little or no compensation (Solano et al., 2018). These risks combine to lower the real output and emissions reduction potential of distributed PV. When policies incentivize self-consumption rather than exporting electricity to the grid, a greater proportion of the PV-generated electricity is used; however, policies that reduce the financial benefit of PV generation can stymie adoption.

Interactions with Other Solutions

Reinforcing

Increased availability of renewable energy from distributed solar PV helps reduce emissions from the electricity grid as a whole. Reduced emissions from the electricity grid leads to lower downstream emissions for solutions that rely on electricity use from the grid. Deploying distributed solar PV also supports increased integration of offshore and onshore wind turbines by diversifying the renewable energy mix, and can alleviate reliability challenges associated with variability in wind alone. Increasing deployment of variable renewable sources like solar PV can also drive procurement of firm baseload power in the form of geothermal and hydropower sources.

Electrification of transportation will be more beneficial in reducing global emissions if the underlying electricity generation mix includes a higher proportion of non-emitting power sources. 

Competing

Distributed solar PV can compete with utility-scale solar PV, agrivoltaics, and wind energy for policy attention, subsidies, and grid access. Additionally, when many distributed solar PV systems are installed, they generate power during the day when the sun is shining. This can lower electricity prices at those times because solar power is cheap to produce. As a result, utility-scale solar PV and agrivoltaic power plants can earn less money from selling electricity.

Dashboard

Solution Basics

MW installed capacity

t CO₂-eq (100-yr)/unit/yr
650
units
Current 708,000 04.3×10⁶5.3×10⁶
Achievable (Low to High)

Climate Impact

Gt CO₂-eq (100-yr)/yr
Current 0.46 2.83.5
Gradual

CO₂ , CH₄, N₂O, BC

Trade-offs

Implementing distributed solar PV involves several trade-offs. Embodied emissions from module manufacturing, transport, installation, and decommissioning are estimated at 10–36 g CO₂‑eq /kWh or approximately 2–8% of typical grid electricity emissions (~530 g CO₂‑eq /kWh), which implies over 90% net savings per kWh generated (Schlömer et al., 2014; Smith et al., 2024). Manufacturing using coal-intensive grids increases embodied emissions, highlighting the necessity of decarbonizing supply chains (Gan et al., 2023; Pehl et al., 2017). These emissions could reduce the net climate benefit, especially when displacing grid electricity from other renewables. 

The temporal variability of solar energy also creates trade-offs. When demand peaks in evening hours, non-solar energy sources ramp up generation, which could lead to increases in marginal emissions (Gagnon & O’Shaughnessy, 2024). In regions with high solar deployment, increased adoption of distributed solar PV could displace utility-scale solar generation, since both operate diurnally, resulting in no net reduction in grid emissions (Bistline & Watten, 2025). However, adoption of distributed solar can be very beneficial in low- and middle-income countries, as well as in places where utility-scale projects face interconnection constraints, permitting issues, or other challenges that limit adoption (Zhang et al., 2025). 

Another trade-off arises when limited rooftop space is used for PV infrastructure instead of alternative uses, such as cool or green roofs, or cooling/HVAC systems, which could offer thermal insulation or carbon sequestration benefits (Cubi et al., 2016; Kazemian & Xiang, 2025). 

kWh/m2/yr
5502400

Annual global horizontal irradiance (GHI)

Global horizontal irradiance (GHI) measures the intensity (energy per area per year) of all solar radiant energy on a horizontal surface. GHI limits the power output of fixed solar PV systems; however, panels can capture additional solar energy if tracking systems are incorporated. Here we show annual GHI averaged over the decade ending in 2025.

Copernicus Climate Change Service. (2022). ERA5-Land monthly averaged data from 1950 to present [Data set]. Copernicus Climate Change Service (C3S) Climate Data Store (CDS). Retrieved May 4, 2026, from Link to source: https://doi.org/10.24381/cds.adbb2d47

kWh/m2/yr
5502400

Annual global horizontal irradiance (GHI)

Global horizontal irradiance (GHI) measures the intensity (energy per area per year) of all solar radiant energy on a horizontal surface. GHI limits the power output of fixed solar PV systems; however, panels can capture additional solar energy if tracking systems are incorporated. Here we show annual GHI averaged over the decade ending in 2025.

Copernicus Climate Change Service. (2022). ERA5-Land monthly averaged data from 1950 to present [Data set]. Copernicus Climate Change Service (C3S) Climate Data Store (CDS). Retrieved May 4, 2026, from Link to source: https://doi.org/10.24381/cds.adbb2d47

Maps Introduction

High-income countries such as China, Germany, and the United States are the global leaders in installed distributed solar PV capacity (Masson et al., 2024). Commercial, residential, and off-grid distributed PV systems accounted for less than half (44%) of the 2023 global PV market, but distributed deployment drove market growth in many countries, including Germany, Brazil, Italy, and Australia (Masson et al., 2024). In urban areas, consumers in multi-family buildings can benefit from increased solar PV adoption through expansion of rooftop PV or other types of  building and infrastructure integration. Mini-grids and other distributed PV systems are used to electrify areas with damaged infrastructure rather than repairing or expanding distribution networks with successful implementation in Australia (Masson et al., 2024). 

In contrast, low-income countries possess significant untapped potential for distributed solar PV, but face considerable barriers related to financing and policy (Mahn et al., 2024; Shahsavari & Akbari, 2018). In emerging markets, developing robust support mechanisms and infrastructure for distributed solar PV can encourage regional grid expansion or bypass the need for grid access altogether (Masson et al., 2024). In many regions with ample solar radiation, deployment of distributed solar PV lags significantly behind its potential. 

Countries in sub-Saharan Africa have the potential to yield substantial carbon reduction impact from solar PV installation. Capital investments in these markets could yield up to nine times the GHG emission reduction than equivalent investments in more mature markets (Peters, 2025). However, solar PV competitiveness is stifled by limited access to capital, lack of technical talent, and persistent fossil-fuel subsidies (Sustainable Energy for All, 2024). Microgrids and off-grid systems are essential for improved electricity access in sub-Saharan Africa, South Asia, and parts of Latin America (World Bank Group, 2024). These systems expand the functional ceiling of distributed solar PV beyond rooftops, contributing to broader electrification and decarbonization goals. Off-grid residential and commercial systems are ideal for low-power electricity needs, such as lighting, water pumping, navigation, telecommunications, and vaccine refrigeration – especially in rural areas, on remote islands, and in other regions that depend on diesel generators or lack electricity grid access (Masson et al., 2024). 

Regional markets show significant cost variation. A 2024 study estimated the LCOE of rooftop solar PV in Saudi Arabia at just US$0.0445/kWh (US$44.5/MWh) under favorable solar and financing conditions (Al-Hanoot et al., 2024). According to Lazard (2024), U.S. residential rooftop PV has an LCOE of US$122–284/MWh, reflecting smaller system sizes, high soft costs, and site-specific variability. Community and Commercial & Industrial (C&I) rooftop solar PV in the United States has a lower LCOE range of US$54–191/MWh owing to economies of scale, streamlined permitting, and more consistent operating conditions. 

Labor costs, permitting complexity, market maturity, and scale of deployment influence the pace and depth of cost reductions globally (Masson et al., 2024; Ukoba et al., 2024). In regions where fossil-fuel subsidies keep retail electricity prices artificially low, cheap electricity from the local grid makes distributed solar PV less attractive to consumers (Masson et al., 2024). While distributed solar PV can lower electricity costs for system owners, the impact of increased distributed solar PV on retail electricity prices for all consumers is highly context-dependent and influenced by multiple factors, including local transmission and distribution network capacities, electrification rates, policy design, and the other energy sources available at a specific time (Borenstein, 2024; Perez-Arriaga et al., 2016). 

Action Word
Deploy
Solution Title
Distributed Solar PV
Classification
Highly Recommended

Lawmakers and Policymakers
  • Set ambitious long-term renewable energy goals and incorporate them into national climate plans and multilateral agreements; design national electrification guidelines for technicians to enable renewable energy goals.
  • Ensure regulatory frameworks around solar are strong and enforced, while also being accessible and timely; coordinate solar power policies horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); seek to align social and environmental safeguards and streamline permitting processes.
  • Streamline regulations such as permitting for renewable energy projects, including both distributed solar and mini-grids; standardize documents for regular engagements, such as templates for power purchase agreements.
  • Provide incentives to consumers, such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, waived grid connection fees, and forgivable or concessional loans; simultaneously allow for grid injections and net-metering schemes; ensure policies and incentives are long term and will remain stable for at least five years; use similar financial incentives for supporting equipment manufacturers, such as those that produce batteries and inverters.
  • Offer incentives such as subsidies and tax credits to manufacturers, operators, developers, and other relevant actors; as the market matures and becomes competitive, gradually reduce these incentives to create long-term market stability.
  • Develop building codes and regulations to incentivize efficiency and self-consumption of PV-generated electricity, especially among new construction; require PV-ready buildings and infrastructure.
  • Implement carbon taxes and remove subsidies from fossil-fuel infrastructure; redirect those funds into renewable energy financing.
  • Implement or strengthen renewable portfolio standards, clean energy standards, or other similar policy mechanisms with carve-outs for distributed solar.
  • Consider using green bonds to finance mini-grids and/or de-risk markets.
  • Invest in and subsidize improvements to grid integration and flexibility, storage, and infrastructure to manage variable generation; deploy smart-grid technologies.
  • Work with industry to diversify supply chains; design incentives and policies to stimulate local or regional production and advance R&D for solar and related equipment such as batteries.
  • Earmark a percentage of financial incentives for low- and middle-income communities and/or countries; if relevant, provide technology transfers and capacity building in low- and middle-income countries.
  • Improve labor- and human-rights laws and standards around solar PV supply chains; enforce standards within industry – particularly for the extraction and use of critical minerals and panel manufacturing.
  • Ensure regulations allow for a variety of development models, such as build-own-operate, public-private partnerships, utility models, energy communities, and cooperatives.
  • Ensure strong quality control requirements for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service; create certification programs for each stage of the process.
  • Require or encourage manufacturers to provide minimum warranties; establish an independent grievance system to resolve customer disputes and help foster trust in the industry.
  • To the extent possible, regulate and standardize distributed panel components with the aim of facilitating self-installation and ensuring safety. 
  • Work with the private sector to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services; create certifications for the full spectrum of roles.
  • Ensure strong regulations are in place for end-of-life services; enact Extended Producer Responsibility (EPR) for manufacturers; work with industry to foster a market for used, refurbished, and recycled panels.
  • Join, create, or participate in public-private partnerships dedicated to de-risking markets, deployment, technology transfers, education, and other relevant areas.
  • Establish one-stop-shop educational programs that use online and in-person methods to educate industry and the public on regulations, benefits of solar, best practices for development, and other relevant information; ensure the material is both appropriate and sufficient for local contexts, paying particularly close attention to language barriers. 

Further information:

Practitioners
  • Conduct careful planning for installation, ensuring that panel tilt, maintenance, and shading are evaluated based on local climatic conditions and are accounted for properly.
  • Conduct regular maintenance and cleaning to enhance cost efficiency and energy savings, especially in arid climates.
  • Utilize geospatial and satellite data to gather information on landscape, market dynamics, and initial customer base.
  • When cost-effective, employ building-integrated photovoltaics, net metering/billing, batteries, and smart inverters.
  • Utilize pay-as-you-go, energy-as-a-service, and other financial models that offset high up-front costs for residential and off-grid customers.
  • Take advantage of government incentives such as subsidies, feed-in tariffs, auctions, tax credits, and contracts for difference; as the market matures and becomes competitive, seek to gradually reduce reliance on these incentives to create long-term market stability.
  • Offer periodic site visits and maintenance services; facilitate reselling of PV systems on the secondhand market.
  • Design distributed solar PV and mini-grid systems to be compatible with the main grid, even in areas far from the main grid, so as to allow for future connection. 
  • Consider providing feed-in tariffs or other financial incentives if they are not provided by the government; consider lease-to-own models.
  • Investigate using green bonds to finance public projects and mini-grids, or to de-risk markets.
  • Work with regulators and other industry leaders to standardize distributed panel components with the aim of facilitating self-installation and ensuring safety. 
  • Invest in strengthening grid integration and improving flexibility through expanded energy storage, upgraded infrastructure, and deployment of smart grid technologies to effectively manage variable renewable generation.
  • Reduce soft costs of customer acquisition with prediction models that use machine learning classifiers like XGBoost, which are trained on widely available socioeconomic data to identify households likely to adopt PV.
  • When developing mini-grids, work directly with the community as well as nonprofits and relevant businesses (such as appliance retailers) to help educate the community on the mini-grid’s capabilities and how to choose suitable appliances.
  • Work with the public sector to diversify supply chains; take advantage of incentives and policies that stimulate local or regional production and advance R&D.
  • Ensure supply chains comply with international labor and human rights laws and standards, particularly for the extraction of critical minerals, and panel manufacturing.
  • Seek to decarbonize the full life cycle – including supply chains, production, installation, recycling, and disposal – as much as possible.
  • Ensure strong quality control for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service.
  • Work with the public sector and private organizations to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services.
  • Adhere to regulations regarding end-of-life servicing; adopt extended producer responsibility and high-integrity end-of-life servicing standards if no policy framework exists.
  • Invest directly into, and help develop, recycling infrastructure for solar panels.
  • Participate in voluntary agreements with government bodies to increase policy support for solar capacity and power generation.
  • Stay abreast of, and engage with, changing policies, regulations, zoning laws, tax incentives, and related developments to help remove commercial barriers.
  • Join, create, or participate in public-private partnerships dedicated to deployment, technology transfers, education, de-risking markets, and other relevant areas.

Further information:

Business Leaders
  • Set ambitious long-term renewable energy goals and incorporate them into corporate net-zero strategies.
  • Install distributed solar panels when possible, focusing on available rooftops and parking lots.
  • Support long-term, stable contracts (e.g., Purchase Power Agreements) that de-risk investment in solar technologies and incentivize local supply chain development.
  • Take advantage of government incentives such as tax credits, if possible; seek to gradually reduce reliance on these incentives to create long-term market stability.
  • Invest in companies that produce, deploy, or provide end-of-life servicing for solar panels; seek to diversify and localize supply chains.
  • Invest in R&D and related technology, such as batteries.
  • Support workforce development programs, offer employee scholarships, and/or sponsor training for careers in solar power; ensure capacity development for all stages of deployment, including end-of-life services.
  • Offer pro bono business advice or general support for community solar projects, such as community-shared and cooperative business models.
  • Join, create, or participate in public-private partnerships dedicated to deployment, technology transfers, education, de-risking markets, and other relevant areas.

Further information:

Nonprofit Leaders
  • Install distributed solar panels when possible, focusing on available rooftops and parking lots.
  • Advocate for ambitious long-term national goals on solar and renewable energy; advocate to incorporate them into national climate plans and multilateral agreements; request national electrification guidelines for technicians.
  • Operate or help with equipment testing and certification systems, market information disclosures, and onsite supervision.
  • Conduct open-access research to improve the performance of solar PVs, forecasting, and related technologies.
  • Work with industry and government officials to help develop regulations and standards for distributed panel components, with the aim of facilitating self-installation and ensuring safety. 
  • Advocate for strong regulatory frameworks that are also accessible and timely; recommend coordinated solar power policies, both horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); help align social and environmental safeguards and a streamlined permitting processes.
  • Call for government incentives for consumers such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, waived grid connection fees, and forgivable or concessional loans; help ensure regulations allow for grid injections and net-metering schemes; advocate for long-term policies and incentives that will remain stable for at least five years; call for similar financial incentives for supporting equipment manufacturers, such as those that produce batteries and inverters.
  • Urge governments to provide incentives – such as subsidies, feed-in tariffs, auctions, tax credits, and contracts for difference – to manufacturers, operators, developers, and other relevant actors; recommend gradual reductions of these incentives to create long-term market stability.
  • Campaign for public investments in improvements to grid integration and flexibility, storage, and infrastructure to manage variable generation.
  • Call for a percentage of public financing to be earmarked for low- and middle-income communities and/or countries.
  • Help improve enforcement of labor and human rights laws and standards around solar PV supply chains – particularly for the extraction and use of critical minerals.
  • Help create or support community solar projects using a variety of models, such as build-own-operate, public-private partnerships, utility models, energy communities, and cooperatives.
  • Create resources and/or standards to improve quality control for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service; create and/or administer certification programs for each stage of the process.
  • Work with the public and private sectors to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services.
  • Urge governments and industry to adopt strong regulations for end-of-life services; call for extended producer responsibility; work with industry to foster a market for used, refurbished, or recycled panels.
  • Advocate for carbon taxes and the removal of subsidies from fossil-fuel infrastructure; recommend those funds be redirected into renewable energy.
  • Join, create, or participate in public-private partnerships dedicated to deployment, technology transfers, education, de-risking markets, and other relevant areas.
  • Establish one-stop-shop educational programs that use online and in-person methods to educate industry and the public on regulations, benefits of solar, best practices for development, and other relevant information; ensure the material is sufficient and appropriate for local contexts, paying particularly close attention to language barriers. 

Further information:

Investors
  • Offer low-interest loans and concessional financing for manufacturers, customers, developers, operators, and recyclers.
  • Invest directly in the development of mini-grid projects.
  • Invest in companies that produce, deploy, or provide end-of-life servicing for solar panels; seek to diversify and localize supply chains.
  • Invest in supporting infrastructures such as utility companies, grid development, and access roads.
  • Invest in green bonds and/or explore blended finance structures to mobilize capital for companies developing solar energy or supporting infrastructure.
  • Invest in the recycling infrastructure for solar panels and circular supply chains.
  • Invest in R&D, component technology, and related equipment, such as batteries.
  • Help de-risk energy transitions in low- and middle-income countries by offering low-interest loans, concessional financing, and/or, favorable terms.
  • Align investments with existing public-private partnerships, voluntary agreements, or voluntary guidance that may apply in the location of the investment.

Further information:

Philanthropists and International Aid Agencies
  • Provide catalytic financing for or help develop, distributed solar PV projects and mini-grids.
  • Award grants to enhance grid integration, flexibility, and reliability by supporting innovations in energy storage systems, advanced grid management, transmission infrastructure, and traditional infrastructure (such as access roads) that enable effective integration of solar PV generation.
  • Work with other philanthropies, investors, and implementers to develop standardized reporting mechanisms and create monitoring and evaluation frameworks.
  • Allow for extended program timelines to allow for mini-grid sector development and cost recovery. 
  • Support the development of component technology and related equipment, such as batteries.
  • Award grants to improve recycling infrastructure for solar panels, and build circular supply chains.
  • Facilitate partnerships to share solar technology and best practices between established and emerging markets, promoting energy equity and access.
  • Foster cooperation and technology transfer between low- and middle-income countries with emerging solar sectors.
  • Advocate for ambitious long-term national goals on solar and renewable energy; advocate to incorporate them into national climate plans and multilateral agreements; request national electrification guidelines for technicians.
  • Operate, fund, or support equipment testing and certification systems, and market information disclosures.
  • Conduct open-access research to improve the performance of solar PVs, forecasting, and related technologies.
  • Work with industry and government officials to help develop regulations and standards for distributed panel components, with the aim of facilitating self-installation and ensuring safety. 
  • Advocate for strong regulatory frameworks that are also accessible and timely; recommend coordinated solar power policies, both horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); help align social and environmental safeguards and a streamlined permitting processes.
  • Advocate for a percentage of public financing to be earmarked for low- and middle-income communities and/or countries.
  • Help improve enforcement of labor and human-rights laws and standards around solar PV supply chains – particularly for the extraction and use of critical minerals.
  • Help create or support community solar projects using a variety of models, such as build-own-operate, public-private partnerships, utility models, energy communities, and cooperatives.
  • Create resources and/or standards to improve quality control for all stages of deployment, including resource extraction, manufacturing, installation, maintenance, and end-of-life service; create and/or administer certification programs for each stage of the process.
  • Work with the public and private sectors to develop workforce training programs; ensure capacity development for all stages of deployment, including end-of-life services.
  • Urge governments and industry to adopt strong regulations for end-of-life services; call for extended producer responsibility; work with industry to foster a market for used, refurbished, or recycled panels.
  • Join, create, or participate in public-private partnerships dedicated to deployment, technology transfers, education, de-risking markets, and other relevant areas.
  • Establish one-stop-shop educational programs that use online and in-person methods to educate industry and the public on regulations, benefits of solar, best practices for development, and other relevant information; ensure the material is sufficient and appropriate for local contexts, paying particularly close attention to language barriers.

Further information:

Thought Leaders
  • Install solar panels at home, at the office, and/or at other properties; share your experience and tips with neighbors and the broader community.
  • Advocate for ambitious long-term national goals on solar and renewable energy; advocate to incorporate them into national climate plans and multilateral agreements; request national electrification guidelines for technicians.
  • Operate or help with equipment testing and certification systems, market information disclosures, and onsite supervision.
  • Conduct open-access research to improve the performance of solar PVs, forecasting, and related technologies.
  • Work with industry and government officials to help develop regulations and standards for distributed panel components, with the aim of facilitating self-installation and ensuring safety. 
  • Advocate for strong regulatory frameworks that are also accessible and timely; recommend coordinated solar power policies, both horizontally (e.g., across agencies) and vertically (e.g., across subnational, national, and international efforts); help align social and environmental safeguards and a streamlined permitting processes.
  • Call for government incentives for consumers such as subsidies (especially to reduce up-front cost), feed-in tariffs, tax credits, grants, waived grid connection fees, and forgivable or concessional loans; help ensure regulations allow for grid injections and net-metering schemes; advocate for long-term policies and incentives that will remain stable for at least five years; call for similar financial incentives for supporting equipment manufacturers, such as those that produce batteries and inverters.
  • Urge governments to provide incentives – such as subsidies, feed-in tariffs, auctions, tax credits, and contracts for difference – to manufacturers, operators, developers, and other relevant actors; recommend gradual reductions of these incentives to create long-term market stability.
  • Campaign for public investments in improvements to grid integration and flexibility, storage, and infrastructure to manage variable generation.
  • Advocate for a percentage of public financing to be earmarked for low- and middle-income communities and/or countries.
  • Help improve enforcement of labor and human-rights laws and standards around solar PV supply chains – particularly for the extraction and use of critical minerals.
  • Help create or support community solar projects using a variety of models, such as build-own-operate, public-private partnerships, utility models, energy communities, and cooperatives.
  • Advocate for strong regulations for end-of-life services; advocate for extended producer responsibility; work with industry to foster a market for used, refurbished, or recycled panels.
  • Advocate for carbon taxes and the removal of subsidies from fossil-fuel infrastructure; recommend those funds be redirected into renewable energy.
  • Join, create, or participate in public-private partnerships dedicated to deployment, technology transfers, education, de-risking markets, and other relevant areas.
  • Establish one-stop-shop educational programs that use online and in-person methods to educate industry and the public on regulations, benefits of solar, best practices for development, and other relevant information; ensure the material is sufficient and appropriate for local contexts, paying particularly close attention to language barriers. 

Further information:

Technologists and Researchers
  • Continue advancing the performance of monocrystalline and polycrystalline silicon cells.
  • Improve cooperation between building automation systems and monitoring and control of PV systems.
  • Investigate the ability of PV to assist in frequency regulation and other ancillary services to maintain grid stability as more renewables displace conventional power plants.
  • Develop a platform that provides up-to-date and publicly available data on mini-grid operations, related policies, technologies, standards, and other relevant information.
  • Advance energy-storage systems technologies, such as battery, hydrogen, and gravity-based.
  • Improve manufacturing efficiencies such as larger wafer formats, enhanced cell architectures, and advanced wafer-processing techniques.
  • Advance the use of AI or other technological means for predictive analytics, forecasting, and power system control.
  • Improve recycling infrastructure and scalable technologies to repair, reuse, or recover materials from solar panels.
  • Create more heat-tolerant PV technologies and systems to reduce heat exposure and/or absorption.
  • Create better protection and cleaning systems for PV to preserve functionality during extreme weather, and in extreme environments – especially deserts. 
  • Improve related mining technologies for critical minerals, making the extraction process safer, less disruptive to local communities and ecosystems, and less energy-intensive.
  • Develop ways of eliminating, reducing, reusing, and/or safely disposing of hazardous by-products of PV manufacturing.
  • Research factors that lead to community acceptance and the role of distributed solar in a fair and just energy transition. 

Further information:

Communities, Households, and Individuals
  • Install solar panels at home, at the office, and/or at other properties; share your experience and tips with neighbors and the broader community.
  • If your community is not connected to the main grid, consider developing a local mini-grid.
  • Conduct careful planning for installation, ensuring panel tilt, maintenance, and shading are evaluated based on local climatic conditions and are accounted for properly.
  • Conduct regular maintenance and cleaning to enhance cost efficiency and energy savings, especially in arid climates.
  • Help create or support community solar projects using a variety of models, such as build-own-operate, public-private partnerships, utility models, energy communities, and cooperatives.
  • If available, take advantage of government incentives such as subsidies, tax breaks, and forgivable or concessional loans for development.
  • Call for government incentives for consumers, if necessary, such as subsidies ( especially to reduce up-front cost), feed-in tariffs, tax credits, grants, waived grid connection fees, and forgivable or concessional loans; help ensure regulations allow for grid injections and net-metering schemes; advocate for long-term policies and incentives that will remain stable for at least five years; call for similar financial incentives for supporting equipment manufacturers, such as those that produce batteries and inverters.
  • Advocate for carbon taxes and the removal of subsidies from fossil-fuel infrastructure; recommend those funds be redirected into renewable energy.
  • Join, create, or participate in public-private partnerships dedicated to deployment, technology transfers, education, de-risking markets, and other relevant areas.
  • Participate in public awareness campaigns focused on solar projects; share information with your community and networks.

Further information:

“Take Action” Sources
Evidence Base

Level of consensus: High

The scientific consensus surrounding distributed solar PV is strong in support of its emissions reduction potential, cost declines, and grid benefits, although nuances and regional gaps persist. Many studies have documented adoption drivers, grid impacts, performance constraints, and social equity issues, together forming a robust evidence base.

Distributed solar PV not only reduces emissions but also enhances local grid resilience, with one study demonstrating reductions in peak load and frequency interruptions (Ovaere et al., 2020). However, careful grid integration planning, smart inverter controls, and grid upgrades are required to avoid adverse effects because rooftop PV affects voltage quality, reverse power flow, frequency stability, and protection systems (Alboaouh & Mohagheghi, 2020). High penetration of rooftop PV can also lead to voltage issues and power disruptions, create protection coordination issues, and strain regional grid elements (Tran et al., 2023; Uzum et al., 2021). 

Broad solar adoption, including household-level PV, depends on many factors, including key determinants such as affordability, policy support, infrastructure, and social norms. This is especially true in rapidly growing countries (Oliva & Atehortua Santamaria, 2025; Shakeel et al., 2023). In China, distributed solar PV development is now shaped by subsidy phase-out and grid parity dynamics after a decade of evolving policy and finance mechanisms (Zhang & Sirin, 2024). However, regardless of the regional policy landscape, distributed rooftop systems face real-world performance losses due to shading, panel tilt, temperature, and maintenance constraints (Venkatachalam et al., 2025).

The literature strongly supports the notion that distributed solar PV is an effective and scalable mitigation option that can reduce emissions, improve grid reliability, and democratize energy access. There is high consensus on its value, especially when deployed with supportive policy, proper engineering, and system integration. However, unresolved issues remain around cost dynamics of non-hardware components, performance in fragile grids, and equity of deployment. For instance, studies on environmental justice point to lower PV uptake in disadvantaged communities despite high solar potential (Lukanov & Krieger, 2019).

The results discussed in our analysis draw on 10 reviews/meta-analyses, 44 research articles, and 31 institutional reports, covering evidence from different parts of the world, primarily from North America, Europe, and Asia. Many low-income and off-grid regions remain underrepresented, limiting generalizability. Further empirical research in sub-Saharan Africa and Latin America is needed to understand distributed PV’s performance, policy interactions, and grid impacts in diverse contexts.

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