Utility-scale solar is growing, and some projects use agricultural land. That does not mean every solar farm replaces farming: some sites are solar-only, while agrivoltaic projects combine panels with crops, grazing or pollinator habitat. For landowners, the distinction matters to farm operations and income—but whether dual use works depends on the site, design and contract.
How much farmland is being used for solar?
There is no single current global figure in the available evidence. In the United States, the USDA Economic Research Service examined rural land-cover changes from 2009 through 2020. It found that 70% of rural solar farms in its analysis were sited on agricultural land. That describes where projects were located, not how much farmland solar occupies today, and it should not be generalized to other countries or newer projects. The USDA report also found substantial regional variation.
Siting on agricultural land does not necessarily mean all surrounding land stops being farmed. In the same USDA analysis, approximately 15% of land surrounding solar farms shifted out of agriculture during the study period. The figure is an observed land-cover change for that analysis, not a current rate for every solar project.
Other figures answer different questions. The U.S. Department of Energy’s Farmer’s Guide to Going Solar says U.S. agricultural land has technical potential for 27 terawatts of solar capacity and that 0.3% of U.S. farmland is expected to be used for solar energy by 2035. The first is a technical-potential estimate; the second is an expectation, not a measurement of farmland already converted.
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Expansion is also visible in Australia’s project pipeline. The Clean Energy Regulator reported that 3.0 GW of solar power stations were approved in 2025, out of 4.0 GW of total large-scale generation capacity approvals under its scheme. It described 2025 as the largest year on record for large-scale solar approvals in its series. Approvals are not completed projects, and the figures do not establish how much approved capacity is on farmland. The regulator’s report says New South Wales and Queensland led approvals.
Does a solar farm take farmland out of food production?
It can, but not always. A solar-only project may replace cultivation or grazing on the developed portion of a site. An agrivoltaic project is designed to keep some agricultural or related land use alongside electricity generation. The U.S. Department of Energy defines agrivoltaics as “the co-location of solar energy installations and agriculture beneath or between rows of photovoltaic panels.” Its examples include crops, livestock grazing and pollinator habitat. DOE’s explanation describes the concept; it is not a guarantee that farming can continue unchanged on every site.
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Solar installations also need more than panels: projects use engineered mounting structures, piles, inverters, transformers, cabling and other electrical infrastructure. The layout and equipment affect how much land is occupied and whether farm machinery, animals or crops can fit around and beneath the array.
Solar-only sites and agrivoltaics: what changes for a farm?
| Consideration | Solar-only development | Agrivoltaics |
|---|---|---|
| Land use | Electricity generation is the primary use; agricultural activity on the developed area may cease. | Designed to combine solar generation with crops, grazing or pollinator habitat, subject to site and operating conditions. |
| Farm access and layout | Panel height and row spacing are set around the solar project’s requirements. | Panel height and spacing may need to accommodate equipment, crop growth, sunlight or animal access. |
| Potential farm benefits | A landowner may receive project income under a lease or other agreement; terms vary by project and are not established by the cited sources. | May allow continued production, diversified farm revenue or on-farm electricity, depending on design and the farming operation. |
| Key trade-off | May displace agricultural use on the site. | Elevating panels can require additional steel and raise costs; wider spacing can reduce electricity produced per unit of land. |
Shade from panels may reduce irrigation needs in suitable settings, and some projects may provide ecological benefits. Those outcomes are site-specific: crop, climate, soils, water, panel configuration and farm management all matter. Agrivoltaics should not be treated as a universal way to increase crop yields or save water. DOE describes its benefits and barriers in its agrivoltaics overview and notes that the added cost of raising panels is a significant adoption barrier.
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Can sheep graze under solar panels?
Grazing can be incorporated into some solar projects, but the design and contract need to suit both the animals and the energy operation. Panel clearance, row spacing, fencing, access to water, vegetation management and maintenance responsibilities are practical issues to resolve with the project developer and the farm’s advisers. The existence of a grazing plan does not by itself establish that the land will support the same stocking rate or management practices as before.
For landholders and developers in New South Wales, EnergyCo’s Agrivoltaics Handbook, updated December 17, 2025, covers grazing, cropping, horticulture, design and checks before entering grazing contracts. EnergyCo explicitly says the handbook is a resource, not NSW government policy or formal assessment guidance.
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What should a landowner assess before agreeing to a project?
A solar proposal can create a new income stream, but the available evidence does not establish a standard lease payment or show that any particular arrangement will be financially worthwhile. Compare the project’s effects on farm operations and long-term land use, not just its headline payment.
- Continuing production: Identify what crop, livestock or habitat activity will actually continue, on which parts of the site and under whose management.
- Farm access: Check proposed panel height and row spacing against machinery, crop needs, livestock movement and maintenance routes.
- Farm and electricity economics: Ask how design choices affect installation costs, electricity output per acre and the farm income or production being replaced. Do not assume a dual-use layout will produce the same electricity per acre as a solar-only layout.
- Site suitability: Consider crop, soil, water, climate and habitat needs together with the project’s layout.
- Contract obligations: Review lease terms, responsibilities for ongoing farm operations, project access, maintenance and decommissioning. The cited public sources do not set a universal contract standard.
- Planning and land classification: Confirm the rules that apply to the specific location and how the proposal treats the land’s agricultural classification.
How do land-use rules differ by jurisdiction?
England
For England, the 2025 National Policy Statement EN-3 estimates that a large solar farm may require 1.6 to 2.25 hectares (4 to 5.6 acres) per MW of output, with variation by site and technology. The policy says developers should, where possible, use suitable previously developed, brownfield, contaminated or industrial land. If agricultural land is needed, poorer-quality land should be preferred to higher-quality land where possible. It does not prohibit ground-mounted solar on Best and Most Versatile agricultural land; applicants are expected to explain site choice and consider whether agricultural use can continue or be co-located. These provisions are specific to England and EN-3’s scope. Read EN-3.
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United States
DOE and USDA support research into solar and farming, including work on specialty and commodity crops, livestock and farms of different sizes. Their initiatives and resources are summarized on the DOE–USDA solar energy and farming initiatives page. The national-level estimates and the USDA land-cover study cited above do not replace local zoning, permitting or land-use requirements.
Australia
EnergyCo’s handbook offers practical agrivoltaics information for New South Wales, but it is not formal planning policy. Project approvals and siting decisions are governed by the rules applicable to each proposal; the national approval figures alone do not show whether a particular project uses farmland or allows agriculture to continue.
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