Israel to Link Solar Tariffs to Agricultural Activity in Agri-voltaic Projects

Israel's Ministry of Agriculture and Food Security and the Electricity Authority are introducing new regulations to ensure that agri-voltaic projects, which combine solar energy generation with agricultural cultivation on the same land, maintain their agricultural output. The proposed rules aim to prevent solar panels from replacing farming, a growing concern as the sector expands.

Under the new framework, agri-voltaic installations that fail to meet required agricultural activity standards could face a gradual reduction of up to 20% in their electricity tariff. The Ministry of Agriculture is releasing a draft procedure defining "optimal agricultural cultivation" and outlining supervision and reporting rules. Concurrently, the Electricity Authority is proposing an economic mechanism for non-compliant facilities.

Initially, if an installation is found to be non-compliant, its tariff could be reduced by 5%-10%. Continued non-compliance, following a second notice, could lead to a tariff reduction of 15%-20%. The exact reduction percentages are still subject to public comment.

"The solar panels join agriculture, they do not replace it," stated Natalie Brodner-Mor, Deputy Director General of the Ministry of Agriculture. She emphasized that the joint initiative with the Electricity Authority will ensure farmers and developers act responsibly in integrating energy production with the continuation of agriculture, thereby promoting both energy and food security.

The regulations are significant given the projected growth of the agri-voltaic sector, which is expected to contribute approximately 6 gigawatts of renewable energy capacity in Israel over the next decade. This dual-use approach is seen as crucial for a country with limited land resources, allowing for increased solar power generation without dedicating land solely to solar farms. The Ministry of Energy and Infrastructure anticipates that by 2035, agri-voltaic technology will account for over a fifth of all solar production.