CMS Expert Guide to Agrivoltaics and Floating Photovoltaics in Germany

Both the permissibility under building planning law and the remuneration of electricity from agrivoltaics are explicitly regulated in Germany. Agrivoltaics is defined as the simultaneous use of the same land for agricultural purposes and for the generation of electricity through solar installations.

Agrivoltaics that are spatially and functionally connected to an agricultural or forestry operation and do not exceed an area of 25,000 m² can be permitted without the municipality having to draw up a development plan beforehand. Agrivoltaics that do not meet these requirements can generally only be permitted if they fulfil another criterion (in particular, if they are in a corridor of up to 200 m along a railway or freeway) or if the municipality draws up a development plan beforehand. This procedure can take several years. 

In addition, technical requirements for agrivoltaics are defined in DIN standards. According to the DIN standards, the loss of agriculturally usable area (in particular due to the substructure) must not exceed 15 % of the total project area. The DIN standards also set requirements for the profitability of the remaining agricultural land.  

See "financial support for agrivoltaics" under point 5 below for further information on the remuneration of electricity from agrivoltaics.

There are already several model projects for agrivoltaics in Germany, which produce a total of 14 MW of electricity combined.

One precedent in Germany is the ongoing large-scale project "Modellregion Agri-PV Baden-Württemberg" commissioned by the state government of Baden-Württemberg which aims to establish the region of Baden-Württemberg as a model region for agrivoltaics. It is coordinated by the Fraunhofer Institute for Solar Energy Systems, subsidised by multiple partners and accompanied by scientists to promote agrivoltaics in Baden-Württemberg. In the first phase of realisation agrivoltaics were established with a focus on growing stone fruits and berries. The second phase expands the focus to grasslands and agriculture as well as the combination with animal husbandry, viticulture and reforestation. The project has a total capacity of up to 1,700 kWp.

There are also several agrivoltaics projects in Bavaria, which is a region that will have to increasingly cope with high temperatures because of climate change. For this reason, experiments are being carried out to cultivate hops and cereals in conjunction with PV systems.

The current regulation about the special treatment (including higher remuneration) of agrivoltaics is still subject to confirmation by the European Commission. This leads to uncertainty about the tender process, the extent of the financial support and therefore the potential amount of remuneration. This uncertainty can keep investors from investing in agrivoltaics.

Germany has considerable potential for agrivoltaics. According to the ministry for agriculture, the country has 16.6 million hectares of agricultural land, which is almost half of Germany's land area. According to a recent study by the University of Hohenheim, 10 % of agricultural companies that are especially well equipped for agrivoltaics could cover 9 % of the national electricity demand on less than 1 % of the German agricultural area. This would be equivalent to the capacity of three nuclear power plants.

In addition, agrivoltaics can lead to greater acceptance of the energy transition, as it can help resolve the conflict over land use between the energy industry and the agricultural sector. This conflict is especially relevant as Germany is a densely populated country.

Germany supports agrivoltaics based on the German Renewable Energy Sources Act ("EEG"). Agrivoltaics are regarded as "special plants" according to the EEG. These special plants are subject to specific regulations. The operators may receive a higher remuneration for their electricity fed into the public grid than those who operate "normal" ground-mounted photovoltaic systems. In 2024, they could receive up to an additional 2.5 cents/kWh.

Various federal states support the construction of agrivoltaics. North Rhine-Westphalia, for example, covers up to 25 % of the investment costs. However, these subsidies often can't be combined with the higher payment guaranteed by the EEG. The part of the area that still counts as agricultural area can be funded within the EU's Common Agricultural Policy ("CAP").

FPV are explicitly regulated in Germany. The German Water Resources Act (WHG) sets strict requirements for FPV. They are only permitted in and above surface waters that are artificial or heavily modified. FPV may cover a maximum of 15 % of the water surface, whereby the distance to the shore must be at least 40 metres. FPV also regularly require a permit according to the water laws of the federal states. As these are state laws, the specific requirements may differ depending on the location. Furthermore, FPV need to comply with all general requirements relating to water law, such as protection of flora and fauna.

To date, FPV with a total peak output of 21 MW are installed on German waters according to the Fraunhofer Institute for Solar Energy Systems. New floating systems with a combined output of 62 MW are currently in the permit or construction phase.

The current regulation about the special treatment (including higher remuneration) of FPV is still subject to confirmation by the European Commission. This leads to uncertainty about the tender process, the extent of the financial support and therefore the amount of the possible remuneration. This uncertainty can keep investors from investing in agrivoltaics.

In addition, the impact of FPV on water bodies and their flora and fauna is still poorly researched, so a project developer will need to provide a detailed explanation of how the plant meets all water law requirements, and the information available on this is limited.

Germany has potential for developing FPV. According to the Fraunhofer Institute for Solar Energy Systems there are more than 6,000 artificial lakes in Germany with an area of at least one hectare each. Together, these lakes cover an area of more than 90,000 hectares.

Complying with the current regulations, FPV in Germany could generate up to 1.8 to 2.5 GWp of electricity, depending on their orientation in the water.

Germany supports FPV based on the German Renewable Energy Sources Act ("EEG"). According to the EEG FPV are regarded as "special plants". These special plants are subject to specific regulations. Operators may receive a higher remuneration for their electricity fed into the public grid if the FPV is built on artificial or significantly modified water bodies. In 2024, they could earn up to an additional 2.5 cents/kWh. Federal states provide support for the construction of FPV. One example is North Rhine-Westphalia which subsidises up to 25 % of the investment costs. Brandenburg even covers up to 65 % of these costs with money from the European Regional Development Fund ("ERDF"). However, the higher payments for electricity and the investment subsidies are often mutually exclusive.