Bacolod City, Philippines — On Thursday, November 28, Bacolod hosted the launch of the first-of-its-kind Philippines-focused feasibility study  that supports a national program to enhance both food security and energy security amid escalating pressures brought by extreme weather events. This innovative study highlights the potential of agrivoltaics, the co-location of solar photovoltaic (PV) systems and agriculture activities on the same land, to address growing challenges in food security, renewable energy (RE), and climate resilience.

 

Agrivoltaics provides a much-needed solution to critical issues such as extreme weather events, land-use competition, and rising energy demands driven by population and economic growth. By promoting land-use efficiency, it enables communities to simultaneously enhance agricultural productivity and RE generation, paving the way for a sustainable future.

 

In the Philippines, where agriculture contributed 9% of the GDP in 2023, productivity is increasingly threatened by 20 typhoons annually and intensifying droughts. Agrivoltaics helps mitigate these risks by providing shade to crops, reducing water evaporation, and stabilizing microclimates, benefits that studies show can increase crop yields by 10–30%.

 

Meanwhile, the country remains heavily dependent on imported fossil fuels, with RE contributing just 22% of its energy mix in 2024. With targets of achieving 35% RE by 2030 and 50% by 2040, agrivoltaics could be a game-changer, integrating food production into energy systems and driving progress toward these goals.

 

Negros Occidental, known as an RE hub with abundant solar, geothermal, hydro, and biomass energy sources, is the ideal host for the launch of the pioneering Feasibility Study on Agrivoltaics in the Philippines, conducted by the Asia Engine for Net Zero (AENZ), a newly established non profit dedicated to an inclusive, responsive, and sustainable net-zero future. The province’s commitment to food security and clean energy positions it to lead the way in integrating agrivoltaics into national strategies. Agrivoltaics is not new, in fact it is already a growing trend in countries like China, USA, Germany, Italy, France, and Japan.

Key Findings from the Study

The feasibility study provides a comprehensive model for agrivoltaics adoption in the Philippines, addressing technical, economic, and social considerations. Some of the study’s key findings are:

• Enhanced Solar Output: Cooling effects from crops beneath solar panels can boost electricity production by up to 10%.

• Optimized Land Use: Panels are spaced to allow sunlight for crops, balancing energy production and agricultural needs.

• Farmer Benefits: Revenue-sharing, upfront fees during construction, and fixed annual compensation are arrangements seen in agrivoltaics, allowing farmers to benefit financially in a more holistic manner, even with reduced arable land.

• Smaller, Localized Systems: With installations at about 5 to 10MW each, agrivoltaics projects can qualify as embedded generators, exempting them from competitive selection processes that often contribute to longer project development timelines

• Pros Outweighing the Cons: Although agrivoltaics systems demand higher initial investments and modified layouts compared to conventional solar installations, the rewards in terms of energy efficiency, agricultural gains, and community impact far outweigh the added investment.

A Call for Collaboration

Agrivoltaics presents a vital opportunity for the Philippines to tackle food and energy challenges while building climate resilience. To scale this innovation, collaboration, policy alignment, and capacity building are essential. AENZ, a nonprofit dedicated to advancing RE finance and corporate decarbonization, is leading efforts to unite stakeholders—farmers, policymakers, financial institutions, and developers—to establish an agrivoltaics consortium that can mitigate financial risks and ensure the scalability and sustainability of agrivoltaic projects. In addition, AENZ is scoping a fund-of-funds blended finance vehicle  to lower project costs and accelerate the scaled deployment of agrivoltaic systems in the Philippines.

“By investing in pathfinder projects, building partnerships for a consortium, and enacting supportive policies, the Philippines can create a sustainable model for rural development and energy security,” said Marlon Apanada, Founding Director of AENZ. “This approach not only aligns with the country’s sustainable finance goals but also positions agrivoltaics as a valuable asset for future economic resilience and climate adaptation. The benefits are clear, the next step is to make them a reality.”