Swiss Agrivoltaics: Why They’re Still Missing

Agrivoltaics barely exist in Switzerland – 0 % of PV capacity today

Switzerland’s ground‑mounted solar installations make up only 0.1 % of total PV capacity, while agri‑PV (agrivoltaics) accounts for virtually 0 % – the report rounds it down to zero. In concrete terms, fewer than 100 agrivoltaic sites are operating, most of them research pilots, according to a 2024 ZHAW survey.

The untapped potential could double Swiss electricity demand

The ZHAW study estimates a theoretical annual generation potential of 323 TWh for agrivoltaics. Even when limiting sites to a maximum of 300 m from the nearest grid connection, the figure stays at 113 TWh – roughly twice Switzerland’s recent electricity consumption (≈ 60 TWh) and far above the 45 TWh target for 2050. By contrast, the country’s 8.2 GW of installed PV produced just 8.2 TWh in 2025, meaning annual capacity additions of 2–2.5 GW would be needed to meet the Energy Act goals.

Legal and administrative rules choke growth

Switzerland’s Spatial Planning Act (Article 24) mandates that any solar use on agricultural land must not impair agricultural production and should provide a benefit to farming or research. This “benefit‑first” clause makes it hard to justify even modest installations. Adding to the hurdle, about half of Swiss farmland is leased, creating uncertainty over who can grant permission. The combination of strict land‑use rules and fragmented cantonal authority has kept agrivoltaic projects at a research‑only stage.

Investment certainty and incentives are missing

Current support schemes are tuned to rooftop PV and do not address the specific cash‑flow profile of agrivoltaics. The ZHAW report recommends adapting the sliding market premium used in auctions since 2025, or adding a dedicated premium for agrivoltaic projects – similar to the premiums already granted for parking‑area PV and steep‑tilt systems. Without clear, long‑term revenue guarantees, investors see agrivoltaics as too risky.

Neighbouring countries are already ahead

Germany, France, Italy and Austria have significantly higher agrivoltaic deployment thanks to clearer regulations, dedicated funding streams, and strong farmer participation models. The Swiss report urges policymakers to study these markets and avoid repeating their early‑stage mistakes, such as ambiguous permitting processes or insufficient subsidy frameworks.

What it means for Israel – a quick look at agrivoltaic economics

Israel already enjoys high solar irradiance and a mature rooftop market, but agrivoltaics could unlock additional land‑based generation while preserving agriculture. Using the verified Israeli figures:

• Installation cost: ₪3,150 per kW‑p (≈ ₪3.15 M per MW).
• Typical yield (central region): 1,700 kWh/kW‑p / year.
• Commercial tariff: ₪0.41 per kWh.

A 1 MW agrivoltaic system would therefore generate about 1.7 GWh / year, earning roughly ₪697,000 annually (1.7 M kWh × ₪0.41). At the stated cost, the simple payback period is ≈ 4.5 years (₪3.15 M ÷ ₪697k). Over a 25‑year lifetime, the system would generate revenue many times its initial investment, illustrating that, even with modest yields, agrivoltaics can be financially attractive in Israel’s tariff environment and could help meet the national 30 % renewable electricity target for 2030.

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Key take‑aways:

• Switzerland’s agrivoltaic share is effectively zero despite a theoretical potential of over 100 TWh.
• Legal requirement that solar must benefit agriculture and fragmented land‑ownership are the biggest roadblocks.
• Introducing a dedicated premium and clarifying land‑use rules could unlock gigawatts of capacity, as demonstrated by neighbouring European markets.
• For Israel, a 1 MW agrivoltaic plant would pay back in under five years and generate multi‑million‑shekel returns, offering a template for policy makers to consider.

For readers wanting to run their own numbers, try our solar ROI calculator and explore the latest market data on our data page.