China Solar Update: Agrivoltaics Pilot Expanded — Key Takeaways

China Solar Update: Agrivoltaics Pilot Expanded — Key Takeaways

The National Energy Administration (NEA) announced in July 2026 the expansion of China’s agrivoltaics pilot program to 28 provinces, targeting 150 GW of combined solar and agricultural land-use capacity by 2028. This represents a tripling of the initial pilot scale announced in 2024 and signals China’s strategic commitment to resolving the land-use competition between renewable energy deployment and food production. For foreign firms in the solar energy sector, agricultural technology, and land development, the expanded pilot program opens significant opportunities for investment, technology supply, and project development partnerships.

Agrivoltaics — the co-location of solar photovoltaic panels with agricultural crop production — has emerged as a critical solution to China’s competing demands for arable land. China possesses approximately 120 million hectares of cultivated land, of which an estimated 18 million hectares are suitable for agrivoltaic integration without reducing crop yields. The expanded pilot program targets demonstrating commercial viability across diverse crop types, climate zones, and farming scales, with a particular emphasis on staple crops such as rice, wheat, and corn.

Pilot Program Structure and Expansion Details

The expanded agrivoltaics pilot program introduces a tiered structure designed to accelerate adoption while maintaining agricultural productivity. The program designates three tiers based on the intensity of solar coverage and the compatibility with agricultural activities. Tier 1 installations, which cover up to 30 percent of land with elevated solar panels (minimum 4-meter clearance), are designed for staple crop production with full机械化 (mechanized) farming compatibility. Tier 2 installations, covering 30 to 60 percent of land, are suitable for shade-tolerant crops including leafy greens, root vegetables, and certain medicinal herbs. Tier 3 installations, covering 60 to 80 percent of land, are reserved for specialty applications including greenhouse-integrated PV and aquaculture-solar hybrid systems. Each tier has specific requirements for minimum crop yield maintenance, soil quality preservation, and biodiversity protection.

Technology Requirements and Standards

All agrivoltaic installations under the expanded pilot must comply with updated technical standards issued jointly by the NEA and the Ministry of Agriculture and Rural Affairs. Key requirements include the use of bifacial solar modules (minimum 85 percent bifaciality ratio) to allow light penetration to crops below, adjustable tilt angle systems to optimize both power generation and crop growth across seasons, and integrated soil moisture monitoring sensors connected to the agricultural IoT platform. The standards also mandate a minimum light transmission ratio that varies by crop type: for Tier 1 staple crops, the combined system must transmit at least 70 percent of ambient photosynthetically active radiation (PAR) to ground level during the growing season.

Foreign technology providers have several market entry points in the agrivoltaics ecosystem. These include:

• Bifacial solar module manufacturing and supply — foreign firms with advanced bifacial technology can supply modules to Chinese developers, particularly for high-efficiency variants required for Tier 2 and Tier 3 installations.
• Smart tracking and mounting systems — adjustable-tilt and single-axis tracking systems designed for agricultural compatibility are in high demand, with an estimated market value of CNY 45 billion by 2028.
• Agricultural IoT and monitoring platforms — integrated sensors, data analytics, and automation systems for soil, water, and crop health monitoring in agrivoltaic environments represent a growing niche for foreign agtech firms.
• Specialized crop genetics — seed varieties optimized for reduced light conditions are being developed in partnership with Chinese agricultural research institutes, creating licensing and collaboration opportunities for foreign seed companies.

Economic Viability and Incentive Structure

The economic case for agrivoltaics in China has strengthened considerably with the expanded pilot program. Project developers benefit from a dual revenue stream — electricity sales from the solar installation and agricultural income from crop production. The NEA has introduced a feed-in tariff (FIT) premium of RMB 0.05 per kWh for agrivoltaic installations across all tiers, on top of the standard renewable energy FIT. Additionally, the Ministry of Finance has extended the green tax credit framework (see CG360-CLEAN-ENERGY-NEWS-045) to cover agrivoltaic projects as qualifying green technology investments. Combined with reduced land lease costs (agricultural land leases are typically 40 to 60 percent cheaper than dedicated solar farm land), the levelized cost of electricity (LCOE) for agrivoltaic projects is projected to be competitive with conventional solar farms within 12 to 18 months. With payback periods of 6 to 9 years under the enhanced incentive structure and stable dual-revenue streams, agrivoltaics presents a compelling risk-adjusted return profile for foreign investors with medium-term China market horizons.

Implementation and Approval Process

The approval process for agrivoltaic projects under the expanded pilot follows a structured pathway:

1. Land suitability assessment — Conduct a soil quality analysis and crop compatibility study for the proposed site, certified by a provincial-level agricultural research institute. This assessment determines which tier classification applies to the project.
2. Agricultural impact plan — Submit a detailed agricultural production plan demonstrating that crop yields will be maintained at or above the tier-specific minimum retention threshold. The plan must include crop selection rationale, irrigation and drainage designs, and a 5-year crop rotation schedule.
3. Solar system design approval — The PV system design must be reviewed and approved by both the provincial Energy Bureau and the Agriculture Bureau to confirm compliance with technical standards, including panel height, spacing, and light transmission specifications.
4. Construction and monitoring — During construction, soil disturbance must be minimized through directional drilling for cabling and temporary access road planning. A real-time monitoring system for both energy output and agricultural metrics must be operational before commissioning.
5. Certification and operations — Upon completion, the project receives a dual-purpose land-use certification that protects the site from reclassification for non-agricultural purposes for the project’s 25-year lifespan. Annual compliance audits verify ongoing agricultural productivity.

Regional Focus: Key Pilot Provinces

While the pilot has expanded to 28 provinces, six provinces have been designated as demonstration hubs with enhanced incentives and faster approval pathways. Shandong, Jiangsu, and Henan — China’s top three agricultural provinces by output — are leading the Tier 1 staple crop agrivoltaics deployment. Yunnan and Sichuan are focusing on Tier 2 and Tier 3 systems for high-value cash crops including tea, coffee, and medicinal herbs. Inner Mongolia is piloting large-scale agrivoltaics combined with desertification control, integrating solar panels with drought-resistant grass cultivation and livestock grazing. Each demonstration hub is required to publish quarterly performance data, creating a publicly accessible repository of agrivoltaic best practices that foreign firms can reference for project planning and feasibility studies.

Provincial governments are offering additional incentives beyond the national framework to attract agrivoltaics investment. Shandong province provides an extra RMB 0.02 per kWh FIT premium for agrivoltaic projects that demonstrate at least 90 percent crop yield retention in their first year of operation. Jiangsu offers expedited land-use approvals for Tier 1 agrivoltaic projects, reducing the typical 6-month land certification process to just 60 working days. Henan has established an Agrivoltaics Technology Innovation Fund with CNY 500 million in initial capital, co-investing alongside private developers in demonstration projects. Foreign firms should engage with multiple provincial investment promotion bureaus to identify the combination of incentives that best matches their technology offerings and project scale. The competition among provinces to attract agrivoltaics investment means foreign firms are in a strong negotiating position for incentive packages.

Strategic Recommendations for Foreign Firms

Foreign firms seeking to participate in China’s expanded agrivoltaics market should prioritize three strategic approaches. First, establish technology partnerships with Chinese module manufacturers or system integrators before the end of 2026, when the majority of pilot project tenders are expected to be awarded. Second, register for the NEA’s Foreign Supplier Qualification Program, which provides expedited certification for imported solar components meeting Chinese standards. Third, consider participating in the China-Germany Agrivoltaics Cooperation Initiative, a bilateral program launched in May 2026 that provides joint funding and technology transfer support for collaborative research and demonstration projects. As the agrivoltaics market matures, early entrants will benefit from relationship networks, regulatory familiarity, and reference installations that provide a competitive advantage in future commercial-scale deployments. Foreign firms should also evaluate whether their home-country export credit agencies offer financing support for agrivoltaics technology exports to China — several European ECAs have already signaled interest in supporting agrivoltaics under climate finance mandates, potentially reducing the cost of capital for qualifying technology providers by 100 to 200 basis points.

Where to Go From Here

Based on what you just read about China’s expanded agrivoltaics pilot:

• Ready to act? Read a step-by-step guide to entering China’s agrivoltaics market as a foreign technology provider
• Still comparing? See a side-by-side comparison of agrivoltaics incentive programs across Chinese provinces
• Need numbers? Try an interactive calculator for estimating agrivoltaics project returns in different Chinese regions

China Solar Update: Agrivoltaics Pilot Expanded — first published on China Gateway 360. Last updated: July 2026.