The study, led by Michigan State University and conducted together with researchers at the University of Texas and University of Wisconsin-Madison, involved years of analysing satellite images of California farmland. It showed that farmers who installed solar panels on small parts of their land made more money per acre than those who didn’t. Importantly, they were able to keep farming at the same time.
Lead researcher Jacob T. Stid said that instead of focusing on either solar or agriculture, the conversation should be about both working together.
Strategic placement of solar panels benefits farmers
Instead of covering entire fields with solar panels, the study suggested that farmers install them in less productive areas for crops. These are spots where the soil is not as good or where yields are already low.
By using this approach, farmers can still grow food and, at the same time, generate clean energy to sell back to the power grid. They also save money on fertilizers, irrigation, and other farming supplies. Stid said this would alleviate farmers’ worries about yield instability, or whether it would be a wet or dry year, as two acres of solar arrays would pay them a certain amount of money per year.
Solar energy and food production do not have to compete
The project focused on California because the state is both a leader in agriculture and solar energy. It produces a large portion of the US’ fruits, vegetables, and nuts while also generating a big share of the nation’s solar power.
However, solar energy development has raised concerns about taking land away from food production. As the global population grows, so does the demand for food. Meanwhile, climate change makes farming less predictable and water more scarce.
Some farmers have tried a “co-location” method — growing crops underneath or next to solar panels. The study backed up this strategy, showing that farms with a mix of crops and solar installations often performed better financially and used less water.
Detailed economic analysis supports the findings
Using data from the University of California-Davis and other sources, the researchers estimated how much farmers earned and spent. They compared farms that installed solar panels on part of their land, farms that turned entire fields into solar farms, and farms that kept farming without any solar panels.
The results were clear — farms that combined solar with crops earned more stable income. They reduced their spending on farming supplies and earned extra money from selling electricity. In addition, they used less water, which is critical in drought-prone areas like California’s Central Valley.
The study estimated that solar arrays currently occupied land that could have fed about 86,000 people. However, the financial and water conservation benefits often outweighed the food production loss, especially in areas where water scarcity threatened long-term farming.
Potential to expand across the US
Looking forward, Stid plans to expand his research beyond California. He wants to study how combining solar energy and food production could work across the continental US.
He is also working with Anthony Kendall, an assistant professor at MSU and co-author of the study, to investigate other environmental effects of solar arrays. He believes it could be a more resilient landscape that could lead to more benefits for more people.
Agrisolar: A growing field of research
The MSU study is part of a growing area of research called ‘agrisolar’ or ‘agrivoltaics’. Simply put, agrisolar means using land for both farming and solar energy at the same time.
Carefully placed solar panels can even help crops by providing shade. This can reduce soil evaporation, keep plants cooler during hot weather, and lower the need for irrigation. In turn, farmers can improve soil health and boost profits.
However, not all solar installations count as true agrisolar projects. Some projects completely replace cropland with solar panels and do not continue any farming activity. The study highlighted that the best results came from farmers integrating both.
Important lessons for policymakers and the industry
These findings carry major implications for energy companies, farmers, and policymakers. The solar industry is growing fast, and the US must expand its solar power capacity by over 10 times by 2050 to meet climate goals. However, if solar development ignores agriculture, it risks worsening food insecurity.
This study showed that with careful planning, solar energy could actually strengthen the farming industry. Farmers could become more financially secure, more resilient to climate change, and better stewards of natural resources.
Clear financial incentives for farmers
One of the study’s most important findings is that farmers could earn steady, predictable income from solar panels. Even small installations across just a few acres could provide enough income to cover farming costs. This is critical in an industry where profits often swing wildly depending on the weather, crop prices, and other uncontrollable factors.
The study also found that farmers could offset a lot of their expenses, including fertilisers, pesticides, and water. For many farmers, this could mean the difference between staying afloat or going out of business.
Water savings add an extra bonus
The research also highlighted that co-locating solar panels and crops could lead to major water savings. Farmers could use less water because they would irrigate fewer acres. This is significant in a region like California, where water is extremely limited.
The study calculated that water savings from solar installations could supply drinking water for millions of people or irrigate thousands of acres of crops over 25 years. This makes solar-crop systems not only good for farm profits but also good for water conservation efforts.
A call for more research and smarter policies
While the findings were promising, the researchers said there was still much to learn. They hope more research will focus on how different crops interact with solar panels, how soil health changes, and how to optimise these systems across different climates.
They also called on policymakers to support smart solar development that would benefit farmers, communities, and the environment. Stid added that the goal should be to design renewable energy projects but not at the expense cost of food security or natural resources.
Source: Nature Sustainability
“Impacts of agrisolar co-location on the food-energy-water nexus and economic security”
https://doi.org/10.1038/s41893-025-01546-4
Authors: Jacob T. Stid, et al.
