This article offers a critical analysis of the evolving legal framework governing advanced agrivoltaic systems in Italy, with a focus on their structural integration into sustainable land use and rural energy policy. Distinct from conventional ground-mounted photovoltaics, these systems support the simultaneous performance of agricultural and energy-producing functions. The study examines recent regulatory interventions—most notably the Unified Renewable Energy Act and the NRRP incentive programme—while addressing persistent implementation challenges. Particular emphasis is placed on the legal qualification of agrivoltaics, procedural complexities, and the need for coherent governance strategies within a multifunctional territorial paradigm.
Table of contents
1. Technical and Regulatory Distinction Between Agrivoltaics and Photovoltaics
Advanced agrivoltaic systems1 exhibit marked distinctions from conventional photovoltaic installations due to their structural configuration, which exerts a direct influence on land utilisation and agricultural practices2.
Agrivoltaic modules are installed on elevated supports, typically at a minimum height of 2.5 to 3 metres, and are spaced apart to permit direct cultivation of the land beneath them3. This configuration facilitates the absorption of sunlight and precipitation by the soil, while simultaneously enabling the operation of agricultural machinery between the modules. This, in turn, ensures the continuity of conventional farming practices (De Luca, 2024).
Conversely, photovoltaic modules are installed directly on the ground, thereby creating an extensive surface that limits or entirely prevents agricultural activity. This results in the land being transformed from agricultural use to one dedicated exclusively to energy production4.
The technical configuration of agrivoltaic systems is also referenced in both national and regional regulations5, which promote the sustainable use of agricultural land, especially in areas of high landscape and natural value. Ministerial Decree No. 436 of December 22, 20236, establishes specific criteria for advanced agrivoltaics, requiring that modules be elevated and spaced apart to preserve the agricultural functionality of the land, and provides significant incentives for projects that meet these criteria. This regulatory approach is intended to promote a model of “solar sharing” in which the integration of energy production and agriculture is achieved in a genuine manner (Muratori, 2024).
Despite the numerous advantages offered by advanced agrivoltaic systems, the installation of such structures continues to face resistance from public administrations, which often invoke landscape protection and alleged issues related to changes in land use. While these arguments may be more understandable in the case of traditional ground-mounted photovoltaic systems—which, by their nature, prevent agricultural land from being used for purposes other than energy production—they appear less justified in the presence of innovative technological solutions such as advanced agrivoltaic systems. These systems adopt energy production models that allow for the hybrid use of agricultural land, thereby preserving and often enhancing the underlying agricultural activity.
The lack of a clear regulatory and administrative distinction between the two types of installations perpetuates a restrictive approach, potentially slowing progress toward ecological transition goals.
The distinction between agrivoltaic and traditional photovoltaic installations, both technically and legally, has been repeatedly affirmed in case law. Courts have emphasized that agrivoltaics represent a technological solution more integrated with agricultural and landscape requirements. The Council of State, in several rulings7, has established that landscape(Casini, 2022; Tubertini, 2022; Fracchia, 2022; Gola, 2002/2023; Bartolini, 2024)8 restrictions applicable to traditional photovoltaic installations cannot be automatically extended to advanced agrivoltaics. This position is founded on the recognition that the technical configuration of agrivoltaic systems (Goetzberger et al., 1982; Schindele et al., 2020; Proctoret al., 2021) —characterized by spaced support columns designed to hold photovoltaic panels without altering the characteristics of the underlying land—preserves and often enhances agricultural activity. Additionally, these systems have a lower landscape impact and ensure a more sustainable use of land compared to traditional ground-mounted photovoltaics.
Nonetheless, case law has clarified that agrivoltaic systems cannot be automatically exempted from landscape and environmental restrictions. It is incumbent upon the competent authorities to assess, on a case-by-case basis, the compatibility of the installation with the territorial context, evaluating its technical features designed to minimize land consumption and preserve the agricultural functions of the land.
In this context, the Council of State recently addressed the issue of “agricultural continuity” in agrivoltaic systems. This concept, however, remains inadequately defined. The judges of Palazzo Spada recognized that, although these systems may theoretically allow agricultural activities such as sheep grazing, olive cultivation, or beekeeping beneath the panels, insufficient attention has been paid to the actual implementation of these activities9. The court deemed it sufficient, albeit in a somewhat generic manner, to merely ensure the theoretical possibility of carrying out agricultural activities on most of the land occupied by the panels, without effectively verifying the practical impact on the rural environment.
This approach, however, fails to address the central issue of whether and to what extent agrivoltaic projects can concretely integrate energy production and agriculture in a sustainable manner. Consequently, there is a need to define stricter parameters and detailed evaluation criteria to ensure that each project is genuinely compatible with land conservation objectives and the functional integration of agriculture and photovoltaics.
This assertion is further substantiated by lower court rulings that have clarified the absence of buffer zones around protected assets does not inherently render an area unsuitable for agrivoltaic installations10.
In such cases, it is imperative to conduct a comprehensive analysis of the specific project, examining its technical characteristics and evaluating the impact of the installation on both the landscape and natural resources. This evaluation must be conducted on a case-by-case basis to determine its compatibility with conservation requirements.
Notwithstanding the aforementioned judicial orientations, the implementation of landscape regulations in Italy remains intricate and frequently disparate. In numerous regions and municipalities, local authorities adopt restrictive approaches, necessitating the acquisition of additional permits or subjecting agrivoltaic installations to specific environmental assessments. While these practices aspire to safeguard the land, they frequently result in delays and bureaucratic encumbrances, impeding investment in agrivoltaic technologies in domains where they could offer the most substantial benefits.
In conclusion, although case law has clarified that advanced agrivoltaics deserve differentiated treatment compared to traditional photovoltaics, implementing these principles requires greater uniformity at the territorial and regulatory levels. It is therefore essential that a balance is struck between environmental protection and the promotion of renewable energy in order to encourage the dissemination of these innovative technologies while respecting agricultural and landscape values.
2. NRPP and the Regulatory Framework for Advanced Agrivoltaics
The National Recovery and Resilience Plan (NRPP), in implementing European directives, has allocated substantial financial resources to the promotion of advanced agrivoltaic systems, with the objective of preserving the agricultural functionality of the land.
The provisions of Ministerial Decree No. 63/202411, in conjunction with the Operational Rules of the GSE (Gestore dei Servizi Energetici), delineate the eligibility criteria and incentive mechanisms for agrivoltaic projects. To qualify for funding, installations must meet agricultural and landscape sustainability requirements, including a minimum elevation of photovoltaic panels between 2.5 and 3 meters above the ground level, and sufficient spacing between modules to enable continuous cultivation underneath. These technical criteria are mandatory for all operators seeking access to NRPP funds, which provide non-repayable grants covering up to 40% of the installation cost.
An additional economic incentive set forth in the GSE Operational Rules (Muratori, 2024) concerns the remuneration of energy generated by agrivoltaic systems. For installations that meet the requisite technical specifications, the GSE offers incentive tariffs that are calculated based on the portion of energy shared or fed into the grid.
This ensures a substantial economic return for operators. This mechanism is analogous to the previous feed-in tariff12 model, as it guarantees remuneration rates above the market average and complements the capital contributions available for installation.
In order to ensure that the integration of energy sources does not have a detrimental effect on the agricultural utilisation of land, the GSE stipulates the implementation of monitoring systems that must remain operational throughout the project’s duration.
Each incentivized installation is required to be equipped with a network of sensors to monitor soil moisture, permeability, and annual agricultural productivity. These systems are essential for assessing the impact of the installation on the surrounding environment and for recording real-time data on soil health and agricultural biodiversity. The data collected must be periodically submitted to the GSE, which uses it to verify ongoing compatibility between agricultural production and energy generation. In instances of non-compliance, operators may be subject to administrative penalties, including the partial or total revocation of incentives (De Luca, 2024).
The system of incentives and regulations under discussion places advanced agrivoltaic systems in a relatively superior position in comparison to ground-mounted photovoltaic installations. This is due to the fact that it promotes an energy production model that preserves the use of agricultural land and reduces landscape impact. In contrast to photovoltaic systems, agrivoltaic installations are regarded as multifunctional technologies and benefit from dedicated regulatory support that enhances their hybrid use and environmental functionality.
2.1. Characteristics and Differences Between Standard and Advanced Agrivoltaic Systems
The distinction between standard and advanced agrivoltaic systems is a pivotal factor in the regulation and evaluation of integrated energy solutions, significantly affecting the degree of integration between agricultural and energy production, access to incentives, and the feasibility of installing systems in constrained areas.
A fundamental distinguishing element between “standard” and advanced systems lies in the minimum height of the modules from the ground. While the Guidelines (Colantoni et al., 2021)13 do not encompass any specific height requirements for standard agrivoltaic systems, they stipulate minimum heights of 1.3 meters for livestock activities and 2.1 meters for agricultural cultivation in the case of advanced systems. This technical disparity implies that, in contrast to advanced plants, standard systems are not obligated to implement innovative solutions or hybrid land use14.
In advanced systems, the spatial configuration of the modules allows agricultural activities to be undertaken underneath the structures, thereby facilitating effective integration between agricultural and energy components. By contrast, standard systems are limited to a combined use of the land, allowing cultivation only in the portions left free between the rows of panels15.
However, both types are required to meet minimum requirements, including allocating a minimum of 70 per cent of the surface area to agricultural activities and limiting the overall coverage of the modules to 40 per cent of the surface area.
2.2. Authorisation schemes and reference legislation
The regulation of advanced agrivoltaic plants is governed by a complex and constantly evolving legislative framework, the primary objective of which is to reconcile energy production from renewable sources with the protection of agricultural land and the landscape. Legislative Decree No. 199 of 8 November 2021, which transposes Directive (EU) 2018/2001 (RED II), constitutes the initial regulatory foundation, delineating the criteria for the classification of areas suitable for the installation of photovoltaic and agrivoltaic systems16.
In accordance with Decree-Law No. 63 of 15 May 2024, which is colloquially referred to as the ‘Agriculture Decree’ (Scalia, 2024), Article 20 of Legislative Decree 199/2021 was supplemented by Paragraph 1-bis. The purpose of this addition was to impose stringent limitations on the installation of ground-mounted photovoltaic systems in agricultural areas. These systems may now be installed only in specific contexts, such as degraded areas or areas already used by existing systems.
By contrast, advanced agrivoltaic facilities are exempt from these restrictions due to their design characteristics (Clarich, 2021; Cartei, 2022; Strambi, 2021)17 and are considered a priority for achieving the objectives of the NRPP and the National Plan for Complementary Investments (PNC). This recognition translates into a simplification of the authorisation processes for such facilities, which can also be built in areas not classified as ‘suitable’, provided they meet the requirements for the advanced category18.
The regulatory framework for agrivoltaic systems has recently been enriched by the approval of the Unified Renewable Energy Act (Testo Unico FER; Tedioli, 2024)19, which represents a significant tool for streamlining and rationalising the renewable energy sector. The act aims to streamline the approval process for such systems, while acknowledging the strategic importance of advanced agrivoltaic systems in promoting environmental sustainability and safeguarding agricultural land.
Among the most significant new features, Article 6 introduces three simplified administrative regimes: free activity, simplified authorisation procedure (PAS) and single authorisation (AU). These regimes are applied in accordance with the power and location of the installations, but are subject to specific conditions and limits.
1) Free Activity Regime
This regime, applicable to agrivoltaic installations with a capacity of up to 5 MW that ensure the continuity of agricultural and pastoral activities, eliminates the need for approvals or authorisations, except in cases involving landscape or environmental restrictions. Such administrative simplification marks a significant step toward the broader adoption of agrivoltaic systems, particularly in agricultural areas not classified as suitable, provided specific criteria for biodiversity protection and the preservation of local agro-food traditions are met.
As outlined in the relevant legislation, under this regime, no declarations or approvals are required unless landscape restrictions apply. In such cases, the competent authority must render its decision within thirty days, instead of the usual forty-five-day period. For refurbishment or upgrading interventions on existing or previously authorised installations, landscape authorisation is not required, regardless of the location of the installation.
2) Simplified authorisation procedure (PAS)
This applies to installations with a capacity ranging between 5 MW and 10 MW, or in cases where non-absolute landscape restrictions are present. In order to comply with the PAS, stricter documentation requirements must be met, including the obligation to provide a surety bond to ensure site restoration at the end of the installation’s operational lifespan20.
As stipulated in Article 7, paragraph 2, of the Unified Renewable Energy Act (Testo Unico FER), PAS is mandatory when the project area falls within: a) areas subject to cultural heritage restrictions (Legislative Decree No. 42/2004); b) protected areas. Law No. 394/1991) or Natura 2000 sites; and c) other restrictions outlined in Article 20, paragraph 4, of Law No. 241/1990, such as the protection of landscape, environmental assets, and public safety.
An additional innovation introduced by PAS is the possibility of expropriating land designated for works associated with installations, pursuant to Article 8, paragraph 1-bis, of the Testo Unico FER.
Lastly, the legislature has established a maximum timeframe of one year for the commencement of work on installations authorised through PAS, representing a significant acceleration compared to the previous regulations, which allowed a three-year period exclusively for project completion.
3) Single Authorisation (AU)
This procedure is a prerequisite for installations with a capacity exceeding 10 MW or those located in areas subject to significant restrictions. The procedure may include an Environmental Impact Assessment (EIA)21 and can be conducted through the Regional Single Authorisation Measure (Provvedimento Autorizzatorio Unico Regionale, PAUR), in accordance with Article 27-bis of Legislative Decree No. 152/2006. However, regions retain the option to adopt the single procedure outlined in Article 9 of the Unified Renewable Energy Act (Testo Unico FER), equivalent to the single authorisation provided under Legislative Decree No. 387/200322.
Advanced agrivoltaic installations have specific features and regulatory provisions. Projects located in agricultural areas with a capacity equal to or exceeding 12 MW are subject to a regional environmental screening process, unless they are situated in areas classified as suitable under Article 20 of Legislative Decree No. 199/2021.
A salient element enshrined in the Consolidated RES Act pertains to the unequivocal proscription of the artificial dissociation of the capabilities of facilities, with a view to evading the implementation of the Single Authorisation (AU).In such circumstances, the regions are endowed with the prerogative to oversee the aggregation of capabilities emanating from the erection of multiple facilities within a congruent territorial milieu, thereby establishing the imperative to employ the AU to guarantee a more meticulous and transparent administration of authorisations.
The Operating Rules of Ministerial Decree No. 436 of 22 December 2023 (Agri-Voltaic Incentives Decree) remain a central reference, establishing technical criteria and methods for accessing incentives (Spina, 2024). In particular, the decree sets ambitious targets, including the installation of 1.04 GW of new capacity by 2026, financed through NRPP funds. The incentives encompass feed-in tariffs for shared energy and capital grants, which have the potential to cover up to 40 per cent of expenses. A specific reserve of 300 MW is allocated to farmers for installations up to 1 MW23.
However, the regulatory framework governing standard agri-voltaic plants24 remains subject to interpretation. The author contends that these plants should be subject to the restrictions outlined in the Decree on Agriculture, as they bear similarities to traditional ground-mounted photovoltaic plants. This standpoint is founded on an interpretation of Article 65 of Decree Law no. 1 of 24 January 2012, which explicitly differentiates between traditional photovoltaic systems and advanced agrivoltaic systems with regard to access to incentives, while making no explicit mention of basic agrivoltaic systems. Conversely, there are those who advocate a broader interpretation of the ratio legis, emphasising that the legislation should promote all forms of integration between energy and agriculture, including those that are not advanced.
The Unified Renewable Energy Act (Testo Unico FER) introduces a number of innovations, including the establishment of acceleration zones. The purpose of these zones is to expedite and simplify the authorisation processes for renewable energy installations, as outlined in Article 12. The identification of these zones is to be conducted by the Energy Services Operator (Gestore dei Servizi Energetici, GSE) by 21st May 2025, with a view to prioritising anthropised areas or locations that are deemed suitable for renewable energy development. Potential candidate areas include, but are not limited to, decommissioned industrial sites, parking lots, built-up surfaces, waste disposal sites, and degraded lands that are unsuitable for agricultural activities.
By 21 February 2026, regions will be required to adopt specific plans to define these acceleration zones, ensuring their alignment with Strategic Environmental Assessment (SEA) procedures. This planning phase will be pivotal in coordinating the newly introduced provisions with existing regional regulations concerning “Suitable Areas” (Aree Idonee), thereby guaranteeing a consistent application of the principle of environmental protection, as specified in Article 12, paragraph 2.
From a procedural standpoint, the introduction of acceleration zones promises a significant reduction in the time required for authorisation processes. For agrivoltaic installations located within these zones, the applicable authorisation regime depends on the procedural framework in use. In cases where the free activity regime or the Simplified Enabling Procedure (PAS) is applied, any landscape restrictions will necessitate a mandatory but non-binding opinion from the competent authority.
Conversely, for installations requiring Single Authorisation (AU), the issuance timelines are significantly shortened, facilitating a swifter and more efficient approval process.
Nevertheless, this innovation is not without its critical issues.The absence of integration between acceleration zones and the recently issued “Suitable Areas” Decree (Tedioli, 2024), coupled with the lack of uniform national criteria, poses a significant risk of generating disparities in application across regions. Such inconsistencies could compromise the overall efficacy of what is otherwise a potentially crucial tool for advancing the energy transition (Lucifero et al., 2019; Favaro, 2020; Boeve et al., 2021;Krämer et al., 2024) European Environment Agency, 2023).
The Testo Unico FER represents a pivotal step in the regulatory rationalisation of agrivoltaic systems, consolidating existing principles while establishing a clear and consistent framework that carefully balances the imperatives of energy development and agricultural protection. In particular, the decree reaffirms the possibility of constructing advanced agrivoltaic systems even in areas classified as agricultural under urban planning regulations. However, this is subject to the condition that specific criteria are met, including the protection of biodiversity25, the preservation of local agro-food traditions26, and the safeguarding of the landscape context27. The practical implementation of these provisions will require meticulous harmonisation with regional and local regulations, alongside a concerted effort to foster effective collaboration between industry operators and public authorities. Such measures are essential to maximise the potential of this innovative technology and ensure its alignment with broader sustainability and land use goals.
The SUER Platform28 (Sportello Unico Energie Rinnovabili)29 operates through an interoperable system that enables integration and data exchange with other digital platforms at national, regional, and local levels. This interoperability ensures that data and documents provided by operators or involved administrations can be transmitted, utilised, and updated automatically among various entities, thereby eliminating the need to submit the same information multiple times to different systems.
The SUER Platform facilitates a more streamlined and coordinated management of all applicable administrative regimes, ranging from notifications for free-building activities to Single Authorisation (AU), including the Simplified Enabling Procedure (PAS).
Recent regulatory innovations have seen the emergence of the SUER Platform, a digital tool developed and managed by the GSE. The primary objective of the SUER Platform is to centralise and simplify authorisation procedures for new renewable energy installations, including agrivoltaic systems. In the context of agrivoltaic projects, the platform offers the potential to reduce documentary burdens and expedite the approval process.
In the context of advanced agrivoltaic systems, the platform is designed to facilitate continuous monitoring of authorisation procedures, with the objective of ensuring the attainment of the Integrated National Energy and Climate Plan (PNIEC)30 goals and ecological transition objectives. It is further intended to provide personalised assistance to operators and administrations throughout the entire process, and to reduce bureaucratic burdens through its integration with other digital systems, thereby facilitating streamlined information flows and enhancing access to incentives.
This innovative approach promises greater efficiency and transparency in managing renewable energy projects and strengthens the alignment between administrative processes and national sustainability objectives.By fostering seamless collaboration among stakeholders, the SUER Platform underscores its potential as a transformative tool for the renewable energy sector.
Finally, from a technical standpoint, the Operational Rules delineated in Ministerial Decree No. 233 of May 16, 2024, which was developed in conjunction with CREA, ENEA, GSE, and RSE, underscores the significance of innovative spatial configurations31. A notable element of these rules is the stipulation of a minimum height requirement of 2.1 meters for modules, a provision that facilitates the undertaking of agricultural activities beneath the panels, thereby enabling a hybrid utilisation of the land.
This approach has been endorsed by recent jurisprudence, which has reaffirmed the need to assess the landscape and agricultural impact of installations on a case-by-case basis. This judicial stance underscores the importance of avoiding overly simplistic comparisons between advanced agrivoltaic systems and traditional ground-mounted photovoltaic installations, recognising the distinctiveness and added value of agrivoltaic solutions (Gioia, 2023)32.
2.3. Implementation Challenges and Regulatory Lessons from the 2024–2025 Incentive Cycle
The “AgriVoltaic Development” programme (Tedioli, 2025)33 is part of the interventions financed under Italy’s National Recovery and Resilience Plan (NRRP)34. The initiative was refinanced and regulated through Ministerial Decree No. 436 of 22 December 2023, and its implementation has recently been extended through the adoption of Directorate Decree No. 123 of 27 March 2025, issued by the General Directorate for Financial Incentives and Programmes of the Ministry of the Environment and Energy Security (MASE), which reopened the application window for accessing the relevant incentives.
The rationale underlying this initiative lies in the Ministry’s clearly perceived need to overcome the critical issues encountered during the 2023 implementation phase, particularly the failure to exhaust the available funding despite a high number of applications. The reopening is intended to ensure a more efficient use of the remaining NRRP resources and to recalibrate access mechanisms to better align with actual market conditions. Accordingly, the measure seeks to accelerate investments in advanced agrivoltaic systems, in line with both the ecological transition goals and the multifunctional use of agricultural land35.
From a functional perspective, the programme is designed as an integrated policy tool bridging the gap between renewable energy transition and the sustainable and productive enhancement of agricultural land. This convergence is not merely aspirational: it finds concrete legal grounding in both the European Green Deal and the binding principles set forth in Regulation (EU) 2021/24136, establishing the Recovery and Resilience Facility, which requires that investment measures respect the principle of no net land take.
This structural approach has been further consolidated through the inclusion of advanced agrivoltaic systems within the framework of the new Consolidated Act on Renewable Energy Sources (so-called “T.U. FER”)37. This legislative act assigns agrivoltaic installations a distinct legal status compared to conventional ground-mounted photovoltaic systems. Notably, Article 12(4) of the T.U. FER provides for streamlined authorisation procedures for agrivoltaic installations, subject to compliance with the specific technical and environmental standards identified by subsequent ministerial decrees.
Such differentiation — both substantive and procedural — confirms the recognition of agrivoltaics as a strategically autonomous model of sustainable development, capable of combining renewable energy generation with the preservation of rural landscapes and agricultural productivity. Agrivoltaics is thus no longer perceived as a mere variant of photovoltaics, but rather as a standalone regulatory and technological paradigm with its own coherence within both EU environmental law and national agricultural policy.
This strategic importance is further reflected in the financial commitment made under the NRRP: a budget of €1.1 billion has been allocated to support the deployment of advanced agrivoltaic systems. This allocation signals the Italian government’s ambition to transform agrivoltaics into a structural lever for the future of the agricultural sector, and a key instrument in achieving the climate and energy goals set out in the National Integrated Energy and Climate Plan (PNIEC), while aligning with the evolving trajectories of European agri-environmental law.
2.4. Objectives and Structural Issues in the First Competitive Procedure (2024)
The first operational phase of the “AgriVoltaic Development” measure was launched by the Gestore dei Servizi Energetici (Energy Services Operator, GSE) through the implementation of Ministerial Decree of 12 September 2022. The related online application window was open from 4 June to 2 September 2024. The initiative drew significant attention from stakeholders, with a total of 643 applications submitted for a cumulative capacity of 1,547.9 MW. Of these, 540 projects were deemed eligible and ranked within the available incentive quotas (GSE, 2024).
Despite the substantial interest and the fact that the capacity requested exceeded the initially available quota of 1,040 MW, the outcome of the procedure highlighted several structural weaknesses that hindered the full allocation of the financial resources — which amounted to more than €1.1 billion under the NRRP38.
A significant number of projects that were initially deemed eligible and placed in a favourable position in the ranking were subsequently withdrawn, not finalised, or excluded, due to a combination of administrative39 and market-related challenges. Among the latter, increased implementation costs — driven by inflationary pressure and supply chain disruptions — undermined the bankability of many proposals. Moreover, applicants faced uncertainties regarding the technical definition and legal scope of “advanced agrivoltaic systems,”40 which impose stringent integration requirements between agricultural activity and energy production through technologically complex and often costly solutions41.
These difficulties prompted the Ministry to reopen the application window through Directorate Decree No. 123 of 27 March 2025, aimed at reallocating the unspent resources in a more targeted manner. The new call is open from 1 April to 30 June 2025, and submissions must be made through the GSE’s dedicated digital platform (Portale Agrivoltaico).
The rationale for the reopening — though expressed in general terms — clearly refers to the dual objective of maximising the utilisation of residual NRRP funding42 and adapting the procedural design to evolving market dynamics. It is not merely a corrective technical measure, but rather a strategic response to ensure the selection of mature projects capable of achieving financial closure and construction within the tight NRRP deadlines, which expire on 30 June 202643.
2.5. Withdrawn, Rejected, or Non-Implemented Projects
A further structural issue concerns the significant number of projects that, despite having been ranked as eligible, were not ultimately developed, thereby leaving a considerable portion of the financial allocation unused. According to official data released by the GSE, a notable share of selected applicants either withdrew from the incentive scheme or failed to submit the required supporting documentation, undermining the actual feasibility of project execution.
Multiple factors contributed to this outcome. Some applicants encountered delays or obstacles in securing the necessary permits, often due to interpretive uncertainty on the part of competent authorities regarding the classification of “advanced agrivoltaic systems.” In other cases, projects were hampered by flawed financial planning, including overestimated revenue projections that proved unsustainable in light of rising material costs and the operational burdens associated with dual-use integration — especially on plots with marginal agronomic value or regulatory constraints.
Compounding these challenges was a widespread lack of clarity surrounding the technical eligibility of certain agrivoltaic configurations, particularly in relation to: agronomic monitoring systems (e.g. required sensors, data collection platforms); module elevation or rotational support structures; the actual feasibility of agricultural coexistence beneath or around the photovoltaic arrays.
One of the most problematic provisions — Article 4(3) of Ministerial Decree No. 436/2023 — requires applicants to ensure either the preservation or the improvement of agricultural productivity. This condition, while consistent with EU principles on land use neutrality, has proved extremely difficult to comply with in practice. It presupposes a detailed agronomic design already at the application stage, often in the absence of any historical yield data (e.g. on previously uncultivated land or following ownership changes)(CREA, 2024).
In light of these widespread and well-documented issues, the Ministry’s decision to reopen the call in 2025 appears to be grounded in a systematic analysis of inefficiencies that emerged during the first round. Not only is the reopening aimed at “maximising the use of residual funds,” as expressly stated in the decree, but it also reflects an effort to align administrative procedures with actual implementation conditions and to prioritise projects that are already mature and capable of meeting the NRRP’s strict timeline.
2.6. Mandatory Agricultural Integration as an Eligibility Criterion
One of the defining features of the “advanced” agrivoltaic model, as outlined in Ministerial Decree No. 436 of 22 December 2023, is the strict requirement of functional integration between agricultural activity and solar energy production. Access to capital grants under the NRRP is conditional upon demonstrated compatibility between the photovoltaic installation and the continuous and effective performance of agricultural operations on the same land.
This principle is rooted in Article 65(1)(d) of Regulation (EU) 2021/241, which mandates the preservation of agricultural land use when deploying measures financed through the Recovery and Resilience Facility. In accordance with this obligation, the decree requires applicants to submit, already at the initial application stage, a comprehensive agronomic plan drafted by a certified professional. This plan must not only demonstrate the theoretical possibility of dual use but also provide technical and economic proof of feasibility, taking into account soil characteristics, crop types, and the interaction with the photovoltaic structures44.
Multiple operational issues have arisen in this context. Firstly, there is significant territorial variability in the availability of historical agronomic data and in the applicants’ ability to document agricultural productivity trends. As a result, fulfilling the requirement of “productivity invariance or improvement” — as set out in Article 4(3) of the decree — is particularly challenging, especially in cases involving newly cultivated land or plots previously left fallow.
Secondly, uncertainty persists regarding the level of detail required in the agronomic plan. According to GSE guidance, the plan must include a year-by-year crop rotation schedule, indicating: surface areas and species to be cultivated; cultivation techniques and machinery to be used; irrigation methods; the deployment of monitoring technologies capable of verifying both productivity and the synergy between crops and solar structures45.
Although such equipment is commercially available, it entails additional costs that are often prohibitive for small and medium-sized farms.
Another often overlooked but legally significant issue concerns the nature of the title granting legal availability of the land. In many cases, applicants are not the landowners but operate under agricultural lease or loan agreements. For this reason, the contractual title must explicitly authorise, in addition to farming, the installation of an agrivoltaic plant in compliance with NRRP regulations. As agrivoltaic installations may significantly alter the structural and functional characteristics of the land, generic lease clauses are insufficient and have led to several rejections. Even more problematic are cases where lease agreements explicitly prohibit energy use of the land, especially within simplified lease regimes under Law No. 203/1982.
Furthermore, Article 10(2) of the decree stipulates that the incentive is contingent upon maintaining the plant in operation for at least twenty years. Accordingly, the applicant’s legal entitlement to the land — whether based on real rights, lease, or gratuitous loan — must cover the entire duration of the incentive scheme. Contracts that do not meet this criterion or lack automatic renewal clauses have been deemed ineligible unless supplemented by formal declarations from the landowner.
Complicating matters further are overlapping legal constraints derived from agricultural law, land use planning, and environmental protection, such as pre-emption rights, common land regimes (usi civici), or landscape conservation restrictions. Failure to assess these aspects at the planning stage has often led to project exclusion, not due to technical deficiencies, but because of legal inadequacies in the documentation.
Therefore, the legal structuring of land rights is not a mere formality but a substantive requirement for eligibility. Numerous exclusions have been recorded due to insufficient lease terms, missing agrivoltaic clauses, or inconsistencies with binding agrarian rules. This reality underscores the need for multidisciplinary coordination between agronomists, legal experts, and energy consultants — a practice that, while once optional, has now become essential for successful access to public incentives.
2.7. Reconfiguring the Surface Right for Advanced Agri-Voltaics: From Exclusive Use to Functional Coexistence
One of the most intricate legal challenges raised by the deployment of advanced agri-voltaic systems in Italy concerns the compatibility between this dual-purpose land model and the traditional civil law instrument of the diritto di superficie (surface right), as regulated by Article 952 of the Italian Civil Code. This right, originally designed to derogate from the principle of accessio (Article 934 c.c.), allows a party to construct and retain ownership of buildings or installations on another’s land. Historically, the surface right has been extensively used in conventional ground-mounted photovoltaic (PV) projects, where its exclusive nature grants the energy operator full and sole control over the land for the duration of the installation. Such exclusivity, while suited to PV fields that exclude any other productive use of the soil, becomes structurally inconsistent with the normative requirements of advanced agri-voltaics.
Under the regulatory framework introduced by Ministerial Decree of 22 December 2023, no. 436 and further detailed by the GSE’s Operational Rules of 16 May 2024, no. 233, advanced agri-voltaic plants are characterized by mandatory and monitored coexistence between agricultural activity and solar energy production. The agricultural function must remain primary, traceable, and uninterrupted, with the photovoltaic infrastructure physically and functionally integrated to support such continuity. This entails not only spatial compatibility (e.g., elevated modules, adequate spacing) but also legal compatibility in the form of land titles that preserve the usability of the soil for farming purposes. In this context, the conventional diritto di superficie, typically construed as an exclusive and long-term real right of enjoyment, must be re-examined and recalibrated.
Recent doctrinal interpretations and contractual practices suggest a reconceptualization of the surface right as a functional and coexistent legal instrument. This approach involves limiting the right’s object to only those portions of land physically occupied by PV structures (modules, cabling, foundations), excluding any blanket exclusivity over the entire plot. Moreover, specific clauses should be incorporated to impose obligations of non-interference with agricultural practices, to reserve cultivation rights to the landowner or a third-party operator, and to ensure shared monitoring obligations aligned with the CREA-GSE guidelines. From a civil law perspective, such redefinition is fully legitimate, provided the content of the right is clearly determined, publicly registrable, and consistent with the social function of real rights (see Cass., sez. trib., ord. 23 April 2024, no. 10930). These modified surface rights also retain full economic and legal transferability, and they remain eligible for use as guarantees in project financing frameworks.
On the fiscal side, the legal evolution of the diritto di superficie in agrivoltaic settings has triggered significant implications. The transfer or constitution of such a right is subject to a registration tax of 9% under Art. 1, Tariff I, d.P.R. 131/1986, regardless of whether the land is classified as agricultural. However, following the 2024 Budget Law, income deriving from the establishment or transfer of surface rights—including for land held for over five years—must now be treated as taxable miscellaneous income (redditi diversi) under Art. 67 of the TUIR. This reform overturned the previous principle that excluded long-held land from capital gains taxation and was recently clarified by the Revenue Agency in its responses to official queries (interpello nos. 224/2024 and 129/2025). Additionally, where the surface right is paired with usufruct or similar rights, or where the income surpasses thresholds defined under legislative decree no. 99/2004, the agricultural nature of the enterprise itself may be jeopardized. The risk is particularly acute in cases where proceeds from non-agricultural uses of the land exceed the 10% cap on ancillary income, potentially resulting in the loss of status as a società agricola, with direct repercussions on tax regimes and eligibility for subsidies.
In sum, the surface right—if restructured as a non-exclusive, purpose-specific, and spatially limited legal construct—can play a pivotal role in enabling compliant and economically viable agri-voltaic installations. Far from being obsolete, this centuries-old legal tool is undergoing a doctrinal and contractual renaissance, adapting to the demands of multifunctional land use, environmental sustainability, and energy transition in the rural economy.
2.8. The Role of the GSE in the Post-Admission Phase: Assessing Technical and Agronomic Coherence
Admission to the ranking list under the agrivoltaic incentive scheme does not automatically entitle the applicant to receive public funding. Rather, it constitutes the first stage of a multi-phase evaluation process in which the Energy Services Operator (GSE) plays a central role as the implementing body. After the initial selection, the applicant must undergo a second technical-agronomic review, the outcome of which determines whether the project will be granted access to the incentive scheme through the formal signing of a performance-based funding agreement.
During this post-admission phase, the GSE is responsible for assessing both the engineering design of the photovoltaic system and the technical viability of the agronomic component, based on the criteria set forth in Ministerial Decree No. 436/2023 and its annexes46. The evaluation includes a cross-check of: declared data in the application; content and internal consistency of the agronomic plan; soil characteristics and climatic conditions; system layout and potential interference between structural elements and arable surfaces.
The review is not merely formal or documentary in nature. Instead, it is a qualitative technical assessment aimed at verifying: the actual compatibility between the plant configuration and agricultural activities; the agronomic rationale for the chosen crop types; the appropriateness of proposed cultivation methods given the site-specific pedoclimatic conditions; and overall compliance with the productivity preservation requirement.
Failure to ensure internal coherence within the project documentation — or the submission of generic, non-contextualised agronomic information — may lead to the exclusion of the project, even if it was previously ranked as admissible47.
The GSE has explicitly stated that this post-admission review is mandatory, comprehensive, and applies to every applicant, regardless of size or project category. It is not conducted by random sampling, nor is it subject to discretion. Rather, it constitutes an essential filtering mechanism designed to ensure that only projects with verifiable, high-quality agricultural integration are ultimately eligible for public support. In this sense, the GSE’s role in the post-ranking phase confirms the structural centrality of agriculture in the Italian conception of “advanced” agrivoltaic systems.
3. Post-Admission Supporting Documentation: Obligations, Contents, and Operational Challenges
Following admission to the ranking list, applicants are required to submit a complete set of supporting documents, without which the incentive agreement cannot be formalised and the corresponding funds cannot be disbursed. This documentation plays a pivotal role in the second-level assessment conducted by the GSE, which is designed to verify the internal consistency between what was declared at the application stage and what has actually been designed and planned in technical and agronomic terms.
Among the documents to be submitted is the final engineering project of the photovoltaic system, which must include precise layout diagrams, structural drawings, and technical specifications. Equally essential is the revised agronomic plan, which must be signed by a qualified professional and must clearly illustrate the type and rotation of crops to be cultivated, the cultivation methods and machinery intended for use, the irrigation techniques to be adopted, and, above all, the compatibility of the proposed agricultural activities with the physical configuration of the photovoltaic system. The agronomic plan must also describe the monitoring systems in place to ensure ongoing verification of agricultural productivity and the actual integration between energy production and farming operations.
A further document of crucial legal relevance is the declaration of compliance with urban, planning, and landscape regulations, which must confirm that the project is legally admissible under applicable land use rules and environmental constraints. Finally, the applicant must provide the legal title to the land, which must expressly authorise both the conduct of agricultural activities and the installation of an agrivoltaic system for a period that is consistent with the 20-year operational timeframe prescribed by the incentive regime.
One of the main challenges reported by stakeholders concerns the short time window allowed for the submission of this additional documentation, which often requires new technical elaborations or substantial revisions of previously submitted materials. This issue has been particularly acute in the case of medium- and large-scale projects, where the agronomic plan originally attached to the application has frequently proven inadequate or lacking in detail, requiring full revision and renewed professional validation.
The GSE has also stressed the importance of coherence between the technical documentation and local spatial planning instruments. It has been made clear that even a project that has secured a Unified Authorisation (AU) may still be excluded from the incentive scheme if it conflicts with territorial constraints such as hydrogeological risks, landscape protections, or agricultural zoning policies. In other words, authorisation for construction or grid connection is not sufficient in itself; applicants must also demonstrate that the project aligns with broader territorial, environmental, and agronomic planning frameworks, as required under Article 20 of Legislative Decree No. 199/2021.
All documents must be submitted digitally, bearing a qualified electronic signature, and accompanied by the relevant self-declarations under Presidential Decree No. 445/2000. Failure to submit the full documentation within the prescribed deadlines results in automatic exclusion from the procedure, and the corresponding quota of incentives is reallocated to other applicants through roll-down mechanisms in the ranking list.
3.1. GSE Clarifications: Practical Guidance on the Implementation of the Agrivoltaic Decree
Although not formally binding in a legal sense, the clarifications issued by the Gestore dei Servizi Energetici (GSE) are of significant interpretative value, as they reflect the operative framework the implementing authority intends to apply when assessing compliance with Ministerial Decree No. 436 of 22 December 2023 (commonly referred to as the “Agrivoltaic Decree”). These clarifications — many of which were published as responses to frequently asked questions (FAQs) — shed light on several technical and legal issues that are pivotal to understanding how the incentive scheme is actually administered.
One of the key points addressed concerns the eligibility of applicants. The GSE has unequivocally stated that the project owner must be a professional farmer as defined by applicable national legislation. Third parties who are not recognised as agricultural operators are excluded from participating in the scheme, although consortia and cooperatives composed exclusively of eligible farmers are allowed to apply. Moreover, an agricultural holding may consist of either a single cadastral parcel or multiple non-contiguous parcels, provided that evidence of operational unity and business coherence is submitted.
Significant attention has also been devoted to the agronomic component. The GSE reiterated that the submitted agronomic plan must demonstrate both the continuity of agricultural activity and its effective integration with energy production. It is not required that the entire surface beneath the modules be cultivated, but the cultivated area must be agronomically meaningful, relative to the scale and design of the project. Interestingly, land that is not currently under cultivation may still be considered eligible, as long as the plan includes a concrete and credible proposal for agricultural reactivation.
Another essential topic addressed is the obligation to implement agronomic and energy monitoring systems.
The GSE has confirmed that beneficiaries will be required to report data throughout the entire duration of the incentive, using a dedicated digital platform. The data must include, inter alia, crop types, yields, farming techniques, any treatments applied, and how agricultural operations interact with the photovoltaic infrastructure. A static agronomic plan submitted at the application stage is insufficient: applicants must demonstrate ongoing compliance with the dual-use objectives, or risk forfeiting the incentive.
Further clarification has been provided with regard to the design of the photovoltaic system, particularly the support structures. These must be conceived in such a way as to ensure mechanised agricultural operations and must not impede access to the cultivated area. Both fixed and movable systems are permitted, provided that they are specifically engineered to support dual-use integration. Notably, the GSE has emphasised that structures mounted on greenhouses or that merely allow for incidental planting do not qualify as advanced agrivoltaic systems.
The GSE has also responded to procedural questions about the application process. For instance, it has confirmed that possession of all relevant permits is required at the time of application; it is not sufficient to have merely initiated the permitting process. Likewise, missing or essential documentation cannot be integrated after submission, except within the narrow limits allowed by the decree. The current call applies exclusively to the incentive regime established by Decree No. 436/2023, and the compatibility with other aid schemes (e.g., under the CAP or the NRRP) must be evaluated on a case-by-case basis, according to the specific rules on cumulation.
Taken together, these clarifications demonstrate the GSE’s strict but coherent approach to the implementation of the agrivoltaic incentive scheme. They reflect a consistent commitment to upholding the agricultural integrity of supported projects, reaffirming that the dual-use requirement is not ancillary, but a structural condition for eligibility. Far from being a mere technical formality, the agronomic integration must be planned, implemented, and monitored throughout the entire project lifecycle. This interpretative stance reinforces the idea that advanced agrivoltaics in Italy is conceived as a genuinely hybrid model, requiring not only technical compatibility but also functional synergy between land-based energy production and agricultural productivity.
3.2. Beyond the Call for Proposals – Towards a Systemic Governance Model for Advanced AgriVoltaics
The reopening of the application window for agrivoltaic incentives marks a significant turning point in the institutional consolidation of Italy’s advanced agrivoltaic model. Far from being a mere technical adjustment to a previously flawed procedure, the measure reflects a broader awareness of the implementation barriers that emerged during the initial 2023 call and constitutes an effort to adapt the regulatory framework to the operational realities faced by agricultural operators and energy developers.
Yet, beyond the procedural dimension, a fundamental need remains: the development of a coherent and integrated governance framework for agrivoltaics — one that cannot rely solely on time-limited NRRP schemes or on the fragmented evolution of administrative case law. What is still lacking is a systemic legal vision capable of reconciling the dual imperatives of ecological transition and agricultural sustainability.
4. Costs of Installations and Financing Solutions
Despite the numerous advantages of advanced agrivoltaic systems, regulatory and financial challenges often represent significant obstacles for potential investors and farmers. The stringent requirements imposed by the GSE are a primary barrier to the adoption of this technology, particularly by small and medium-sized agricultural enterprises (SMEs). These include specifications for module configuration, environmental monitoring obligations, and high upfront installation costs, which are only partially covered by NRPP funding. This underscores the necessity for supplementary subsidies or financing mechanisms to facilitate access to incentives without imposing unsustainable financial burdens(Muratori, 2024) on businesses. Potential measures include the introduction of progressive financing systems48 or targeted incentives specifically designed for SMEs.
To address these challenges, innovative financing solutions are gaining traction, such as long-term energy purchase contracts, commonly known as Power Purchase Agreements (PPAs). These instruments, which have gained prominence on the global stage, empower energy producers by ensuring a predetermined price for electricity over a period of 10 to 15 years, thereby providing a stable and predictable revenue stream.
Agrivoltaic installations represent a particular area of benefit for farmers, as they can be financed through PPAs, thus eliminating the need for traditional bank loans. This mechanism not only facilitates the adoption of agrivoltaic technology by agricultural SMEs but also serves to reduce financial constraints.
4.1. Technical Challenges, Maintenance, and Innovative Solutions
The elevated and spaced configuration of agrivoltaic modules, while advantageous for agricultural integration, introduces technical complexities in both construction and maintenance. Support structures must be significantly more robust than those used for traditional photovoltaic panels to withstand mechanical stresses and weather conditions. This increases installation costs and necessitates regular maintenance to ensure structural integrity and operational efficiency. Additionally, maintaining energy efficiency and the safety of agricultural operations requires frequent technical interventions. These include cleaning the panels and adjusting their tilt angles to optimise solar capture while minimising excessive shading of the underlying soil. Such intensive management can lead to higher operational costs over time, potentially limiting the economic sustainability of the installation, particularly in regions with moderate agricultural profitability.
4.2. Durability and Long-Term Sustainability
A critical challenge associated with advanced agrivoltaic systems is their durability and environmental sustainability over the long term. Designed to operate on elevated structures, these systems are exposed to adverse environmental conditions, such as wind, rain, thermal fluctuations, and ultraviolet radiation, which accelerate wear and corrosion. These issues necessitate both routine and extraordinary maintenance, potentially incurring significant costs that could impact the overall profitability of the project and the energy efficiency of the installation.
Another key concern pertains to the sustainability of materials utilised for support structures and photovoltaic modules. These materials must not only be durable but also recyclable and environmentally friendly to avoid disposal issues at the end of the system’s operational life. Disposing of modules and metallic components poses a considerable challenge, particularly as environmental regulations become increasingly stringent (Quaranta, 2024).
Current research efforts are focused on the development of innovative and more sustainable materials, such as corrosion-resistant metal alloys, advanced protective coatings, and biodegradable polymers for certain components49. Concurrently, technical solutions are being tested to reduce maintenance needs, including self-cleaning surface treatments for panels and remote monitoring systems capable of detecting faults or malfunctions in real time.
The transition to more advanced materials and technologies will require time, substantial investments, and coordinated efforts among institutions, industry, and research entities. However, enhancing the durability and sustainability of agrivoltaic systems is imperative to ensure the long-term success of this technology, making it not only economically viable but also aligned with the objectives of the circular economy and ecological transition.
5. Durability and Long-Term Sustainability
In addition to the challenges posed by regulatory and technical obstacles, agrivoltaic systems face challenges related to social acceptability (Disconzi). While these systems are designed to preserve the agricultural functionality of the land, some segments of the population perceive them as a threat to the rural landscape and local biodiversity. This perception partially stems from the limited availability of long-term studies on the environmental impacts of such installations, particularly concerning their effects on wildlife and the ecological integrity of agricultural areas. Furthermore, residents in rural areas often voice concerns that these structures may modify the landscape or hinder local recreational activities, such as rural tourism, thereby potentially compromising the cultural value of the territory.
In this context, it is imperative to differentiate between acceptability and acceptance (Corrias et al., 2019). As emphasised by sociological studies, acceptability signifies a predisposition—either favourable or unfavourable—towards the introduction of a technological innovation, whereas acceptance is the outcome of a sustained process over time. Ensuring broad acceptability necessitates a proactive and transparent approach, with particular emphasis on involving local communities during the initial stages of project design and authorisation.
At present, environmental impact assessment procedures do not always include structured public consultation processes. Making such processes mandatory, especially for projects located in sensitive areas or regions of high agricultural value, would represent a significant step forward. Community participation should not be merely symbolic; it is crucial to ensure that public proposals receive tangible consideration, thereby strengthening trust between citizens, operators, and policymakers.
At present, environmental impact assessment procedures do not always include structured public consultation processes. However, the mandatory requirement of such consultations, particularly for projects located in sensitive areas or regions of high agricultural value, would represent a significant step forward in enhancing local community involvement. It is essential to emphasise that this participation should not be conceived merely as a formal right to legal-administrative opposition, but as an opportunity to transparently and proactively gather and incorporate citizens’ opinions. Furthermore, it is imperative to ensure that community involvement is not merely symbolic; it is crucial to guarantee that the concerns and proposals of citizens are meaningfully reflected in the final decisions. This approach would strengthen the trust between operators, public administrations, and local populations, fostering a more collaborative and transparent decision-making process.
Finally, a governance model that fosters continuous interaction between companies, institutions, and citizens can play a pivotal role in mitigating social conflicts. This approach should ensure transparent communication about administrative processes and the environmental and economic benefits of the project, as well as mechanisms to guarantee that the advantages generated by the installation are distributed equitably.
Such mechanisms could include, for instance, economic incentives for local communities, territorial development programs, or reduced energy costs for residents in the area. These measures would help strengthen the sense of belonging and foster greater acceptance of the project among the population. In this context, agrivoltaics, with its ability to integrate energy production and agriculture, represents a unique opportunity to build a sustainable and inclusive energy transition (Salvia, 1998; Fracchia, 2012)
6. Technological innovation and optimisation of agrivoltaic systems
In the field of agrivoltaic systems, bifacial solar cells (BSCs) represent a cutting-edge technology for enhancing the efficiency of such systems. These cells have the capacity to capture solar radiation from both sides, thereby increasing energy production without the need for additional land area. The light reflected from the ground, known as “albedo“, serves as an additional source of radiation that can be converted into energy by BSCs. This feature is particularly advantageous in agrivoltaic installations, where the soil is often left uncovered and permeable to support crop growth, thereby enhancing light reflection. The use of BSCs can also improve the efficiency of crops that require variable levels of shading. I n experimental settings, these cells have been installed at specific tilt angles to optimise the reflection onto their rear side, achieving energy production increases of up to 20% compared to traditional solar panels. This innovation enables additional energy generation without compromising the land available for cultivation, thus preserving the multifunctionality of agricultural land.
Another technology that has been implemented in advanced agrivoltaic systems is solar tracking, which enables the modules to follow the sun’s movement throughout the day.
This system, commonly referred to as tracking, offers significant advantages by increasing the energy output of the panels by 10% to 30%, depending on environmental conditions and light intensity. In agricultural contexts, solar tracking proves particularly valuable for managing shading on the underlying soil. The tilt of the panels can be adjusted to maximise direct sunlight exposure for crops while minimising any negative impact the structure may have on the photosynthetic processes of plants. Solar tracking systems are especially effective for crops with high light requirements, such as vegetables and orchards. In some pilot installations, light sensors automatically adjust the modules based on light intensity and weather conditions, providing a level of flexibility that allows the system to adapt to the seasonal needs of the crops. This technology is in alignment with the objectives of the National Recovery and Resilience Plan (NRPP), which promotes synergy between energy production and the optimisation of agricultural land use.
Water scarcity is a major environmental concern, and advanced agrivoltaic systems are being developed to address this issue. Some installations are equipped with rainwater harvesting systems, which channel water collected on the panel surfaces directly to the crops below. In areas affected by water stress, this integrated irrigation system reduces reliance on external water resources, making agrivoltaic systems viable even in arid regions.
A particularly promising innovation is the use of irrigation water as a cooling system for the panels, a technique which enhances energy efficiency during the hottest periods while subsequently allowing the water to be reused for irrigating the soil. This approach integrates energy management with water resources, increasing agricultural resilience under drought conditions50, and facilitates the reclamation of marginal or abandoned agricultural land, making it productive once again.
In regions such as Apulia and Sicily, the implementation of these technologies has been shown to support traditional high-value crops, including vines and olives, without compromising their quality or yield. Furthermore, the integration of controlled shading with integrated irrigation systems has been demonstrated to have a positive impact on the agro-food supply chain51.
In addition to the benefits already described, an additional advantage for agricultural enterprises is the opportunity to electrify their machinery fleet, thereby reducing reliance on agricultural diesel and increasing energy self-consumption. This transition not only contributes to more sustainable farming practices but also significantly lowers operational costs. Furthermore, the electricity generated by agrivoltaic installations can enhance the efficiency of integrated processing chains by reducing energy costs associated with the processing and storage of agricultural products.
Another rapidly growing sector within advanced agrivoltaics is the use of artificial intelligence (AI) models for monitoring and optimising system performance. AI systems can collect and analyse data on climate, water use, and agricultural yields, adapting in real-time the orientation of the panels, shading management, and water usage. This approach enables more precise system management, minimising waste and maximising both agricultural and energy production. Furthermore, AI models have the capacity to forecast the energy demands of the installation and optimise energy input to the grid based on demand fluctuations. Additionally, data collected by AI systems can enhance maintenance planning: temperature and humidity sensors connected to smart networks perpetually monitor the health of the installation, allowing anomalies to be detected early and reducing the risk of malfunctions. These innovations have the potential to transform advanced agrivoltaics into an even more reliable and sustainable technology, fostering integrated and predictive system management.
It is evident that the development of the agrivoltaic sector exerts a direct impact on technological innovation and the creation of new production chains, thereby driving demand for specialised components for agrivoltaic systems. The growing market for bifacial modules, elevated support structures, and solar tracking systems has encouraged technology companies to develop tailored solutions aimed at enhancing system efficiency without increasing production costs52.
The expansion of agrivoltaic supply chains is also fostering the establishment of a network of highly specialised professionals, including farmers, technicians, and agronomists, who collaborate to optimise available technologies53. The construction of these systems requires qualified personnel for design and installation, with expertise in renewable energy, agricultural engineering, and agronomy. Once installed, these systems require regular maintenance, involving technical interventions on photovoltaic modules, management of support structures, and monitoring of the underlying agricultural activities54. This dynamic process is instrumental in fostering an innovation-oriented agricultural supply chain, thereby positioning agrivoltaics as a highly competitive and sustainable sector over the long term.
7. Income Diversification for Agricultural Enterprises and Sustainability in Rural Areas
Advanced agrivoltaic systems serve as a strategic tool for diversifying the income streams of agricultural enterprises, offering dual sources of revenue: agricultural production on the one hand and the sale of generated energy on the other. This diversification is particularly advantageous in rural areas marked by economic instability, where price volatility in agricultural markets and the impacts of climate change pose significant risks to the sustainability of traditional farming activities.
Agrivoltaics stabilises agricultural income by reducing reliance on seasonal crops, with income from energy sales, supported by incentives such as premium tariffs provided by the GSE, able to offset potential losses during periods of lower agricultural yields. The integration of agricultural and energy production fosters self-consumption within enterprises, with electrification of agricultural machinery or energy efficiency improvements in processing activities reducing operational costs and enhancing competitiveness.
Finally, the integration of ESG (Environmental, Social, and Governance) criteria is increasingly prevalent, with advanced agrivoltaic systems serving as a model for economic, social, and environmental sustainability. These systems underscore the pivotal role of agricultural enterprises in promoting the energy transition and safeguarding rural landscapes55.
7.1. Renewable Energy Communities (CER): An Inclusive Model for the Energy Transition
Renewable Energy Communities (CERs) represent a strategic evolution in Italy’s energy landscape, offering a new model of decentralised and inclusive management of energy produced from renewable sources. Article 2 of Directive (EU) 2018/2001 (RED II)56 defines a CER as a legal entity based on open and voluntary participation, autonomous and effectively controlled by shareholders or members located in the vicinity of renewable energy production facilities.
CERs comprise a diverse range of participants, including citizens, local authorities, small and medium-sized enterprises (SMEs), cooperatives, research institutions, and third-sector organisations57. These stakeholders collaborate58 to produce, consume, and share renewable energy, pursuing goals that extend beyond mere economic profit to include the creation of social and environmental value. By reducing dependence on centralised grids and fossil fuels, CERs contribute to a more sustainable and resilient energy system.
The legislator has not imposed rigid legal forms for CERs, allowing flexibility in their organisational structure; however, the regulatory framework emphasises that CERs must prioritise environmental, economic, and social benefits for their members and the local community over profit-making objectives. In practice, CERs predominantly adopt associative structures, often governed by dedicated statutes, or cooperative models, with these frameworks providing clear guidelines for resource management and reinvestment of profits to serve collective interests.
In accordance with Article 32, paragraph 1, letter c), of Legislative Decree No. 199/2021, the relationships between a Renewable Energy Community (CER) and its members must be governed by private law contracts, allowing the cooperative to be structured based on the specific needs of its members. This regulatory flexibility enables CERs to adopt the following configurations:
- Consumer/User Cooperatives, where members access shared energy services in exchange for a fee59;
- Production Cooperatives, where members contribute renewable energy and benefit economically from incentives provided for distributed self-consumption60;
- Mixed Cooperatives, which combine elements of the first two types, balancing energy consumption and production within the community.
The choice among these configurations affects not only contractual arrangements but also fiscal and mutualistic aspects (Capelli, 2022 – 2023). Specifically, qualifying a CER as a cooperative allows access to certain tax benefits, such as the partial exemption of profits allocated to indivisible reserves, enhancing the community’s economic sustainability. Furthermore, regulations stipulate that any surpluses derived from incentive tariffs designated for non-entrepreneurial consumers or allocated for social purposes must be explicitly governed, as outlined in Ministerial Decree No. 414/2023.
This flexible regulatory framework, which is characterised by a paucity of stringent rules on internal contractual models, supports the statutory autonomy of Renewable Energy Communities (CERs) and allows for the customisation of operational methods based on the specific needs of the territory and their members.This approach enhances the ability of CERs to fulfil their mission of delivering environmental, economic, and social benefits to local communities while simultaneously promoting widespread energy self-consumption and facilitating the ecological transition.
As previously mentioned, the fundamental principle underpinning CERs is one of maximum openness, meaning that participation in the community must be open and voluntary for all members, without the imposition of excessively restrictive rules for admitting new participants. Consequently, legal forms such as consortium companies61, which impose limitations on the transfer of shares or increases in share capital, are considered incompatible with this principle62. It is also important to note that, in cases where public entities are part of a CER, the Court of Auditors (Corte dei conti) has focused its oversight activities on ensuring compliance with the principle of maximum participation63.
In the context of a Renewable Energy Community (CER), installations can be either directly owned by the Community itself or provided by a third party, which may also manage them on its behalf. According to Article 30, paragraph 1, letter a), point 1, of Legislative Decree No. 199/2021, third parties are authorised to perform activities such as installation, operational management—including maintenance and meter monitoring—provided they act in accordance with the instructions of the renewable energy prosumer.Furthermore, third parties that provide or manage installations on behalf of the CER can have energy-related services as their primary economic activity.
This arrangement contributes to the professionalisation and optimisation of the Community’s energy operations, enhancing its overall efficiency and functionality.
Renewable Energy Communities (CERs) are obligated to allocate the energy they produce primarily for on-site direct consumption or for distribution among its members, in accordance with the stipulations outlined in Article 31, paragraph 2, letter c), of Legislative Decree No. 199/2021. These stipulations enumerate the following conditions:
- The production facilities must be under the control and availability of the CER, with a maximum incentivised capacity per individual installation not exceeding 1 MW;
- The energy produced must be utilised within the geographical boundaries of the same primary substation, ensuring physical proximity between production and consumption;
- The installations must be operational after the entry into force of Legislative Decree No. 199/2021.
In addition, as outlined in the GSE Technical Rules, an external producer with an installation connected to the same primary substation as the CER is permitted to assign a mandate to the Community’s Representative. This configuration enables the electricity produced and fed into the grid by the external producer to be incorporated into the calculation of shared energy, thereby expanding the avenues for energy collaboration within the Community.
The incentive system for CERs is recognised as one of the most significant tools for advancing the energy transition in Italy, combining capital grants with premium tariffs to encourage adoption. The specific provisions of these incentives are delineated by Ministerial Decree No. 414 of December 7, 2023, promulgated by the Ministry of Environment and Energy Security (MASE), and are further reinforced by regulations including Legislative Decree No. 199/2021 and ARERA Resolution No. 727/2022/R/EEL.
One of the most significant measures introduced is the provision of incentive tariffs, which apply to the share of self-consumed energy generated by renewable energy installations within CERs. Incentivised energy is defined as the amount of energy virtually shared each hour among Community members located within the segment of the electricity grid served by the same primary substation. These incentives, valid for a period of 20 years from the commencement of operations, are designed to encourage self-consumption and energy sharing, thereby promoting a more decentralised and participatory energy model.
In addition to tariffs, the MASE Decree establishes provisions for capital grants, with the potential to cover up to 40% of expenses incurred in the construction of renewable energy installations within CERs. These grants hold particular significance for communities situated in small municipalities with populations of less than 5,000 inhabitants, where they can play a pivotal role in stimulating local investments.
It is imperative to note that applications for these grants must be submitted by 31 March 2025, with the stipulation that approved installations commence operations within 18 months of approval, and in any case, no later than 30 June 2026.This measure is supported by the National Recovery and Resilience Plan (NRPP), with the objective of generating at least 2 GW of new capacity by 2026, leveraging a total budget of €2.2 billion64.
To ensure the effective and consistent management of CERs, ARERA65 introduced the TIAD (Testo Integrato Autoconsumo Diffuso66) through Resolution No. 727/2022/R/EEL. This technical document establishes rules to facilitate collective self-consumption and energy sharing, promoting innovative configurations and simplifying administrative procedures67.
Additionally, the Implementing Decree envisaged under Article 8 of Legislative Decree No. 199/2021 outlines the criteria for accessing incentives, detailing both the methods for granting premium tariffs and the requirements for non-repayable grants. Together, these measures encourage the establishment of robust and sustainable CERs that integrate advanced renewable technologies while actively engaging local communities.
Ultimately, the current regulatory and incentive framework represents a significant opportunity for Renewable Energy Communities (CERs). Beyond contributing to the ecological transition, CERs promote inclusive energy models deeply rooted in local contexts, capable of generating economic, social, and environmental value. At the regional level, many local administrations are enacting laws to support CERs, identifying local authorities as key promoters of this model. These regional regulations encourage the use of renewable energy sources in rural communities, fostering energy self-sufficiency and driving economic development in marginal areas.
Ministerial Decree No. 414/2023, issued by the Ministry of Environment and Energy Security, which establishes the incentive tariff for renewable energy installations integrated into CERs, has further enhanced the appeal of this model for both public and private stakeholders68.
The innovation of Renewable Energy Communities (CERs) lies in their potential to transform local communities into active participants in the energy transition, fostering the development of shared infrastructures such as agrivoltaic systems that integrate energy production with agricultural sustainability. The synergy between CERs and advanced agrivoltaic systems maximises territorial benefits: while the installations reduce land consumption through elevated and multifunctional structures, CERs ensure that the energy produced remains within the communities, generating both economic and social value.
It is therefore vital to understand CERs not merely as an innovative energy model, but as a paradigm of sustainable development that links ecological transition, social inclusion, and territorial enhancement. The success of CERs is predicated on the implementation of a clear regulatory framework, supported by targeted incentive policies and the full engagement of local communities, so that they can become a cornerstone of Italy’s energy transition.
7.2. Management and incentives for agrivoltaic energy
The incentive system for advanced agrivoltaic installations is legally based on Ministerial Decree of December 22, 2023 (commonly referred to as the “Agrivoltaic Incentives Decree”) and the Interministerial Decree of June 19, 2024 (“FER 2”). These decrees regulate access to incentive tariffs for agrivoltaic systems and those employing innovative or high-cost generation technologies. The provisions outlined in these decrees are operationalised by ARERA Resolution No. 468/2024/R/efr of November 12, 2024, which establishes the rules for the acquisition and management of electricity produced by such installations.
Installations that are incentivised through the provision of all-inclusive fixed tariffs are obligated to sell the entirety of the electricity injected into the grid to the Energy Services Operator (GSE), even when the incentivised energy constitutes a fraction of the total production69. This obligation ensures a centralised management of energy by the GSE, which is responsible for placing the purchased energy on energy markets, in accordance with the Testo Integrato Dispacciamento Elettrico70 (TIDE), effective from January 1, 2025.
Terna71, in collaboration with the GSE, is tasked with defining operational procedures for integrating incentivised energy production units into the GSE’s dispatching contracts, ensuring guaranteed management throughout the conventional operational life of the installation as defined by the ministerial decrees72. Any modifications to the dispatching contract by the producer must receive prior approval from the GSE. Non-incentivised energy, meanwhile, will be managed under standard market conditions, while imbalance charges will be applied to incentivised energy, with certain exceptions for isolated installations.
Furthermore, the GSE will allocate any charges or revenues resulting from participation in the Intraday Market (MI) in accordance with the criteria outlined in Article 9 of Annex A to ARERA Resolution No. 280/07. Administrative costs related to the management of incentive tariffs and activities of verification and control will be covered by the Fund for New Renewable and Assimilated Energy Plants73.
This integrated management system offers both benefits and obligations for agrivoltaic operators. On the one hand, the incentive tariffs established by the Ministerial Decrees of December 22, 2023, and June 19, 2024, provide a stable and predictable revenue stream, enhancing the bankability of projects. Conversely, operators are obligated to ensure the prompt submission of production and energy injection data to the GSE, in accordance with the Testo Integrato Misura Elettrica (TIME) regulations. The latter stipulates a maximum retrieval period of five years for historical data requested by the GSE.
Despite the intricacy of the regulatory framework, its objective is to achieve a balance between the efficiency of the energy market and the economic sustainability of advanced agrivoltaic systems. It is therefore vital to acknowledge the simultaneous support of this regulatory framework for the achievement of energy transition goals for 2030 and beyond.
7.3. The versatility of agrivoltaic systems in energy markets
Advanced agrivoltaic systems also provide specific advantages in terms of flexibility within energy markets. In contradistinction to ground-mounted photovoltaic panels, which are designed primarily to generate energy for sale to the grid, advanced agrivoltaic systems enable a more dynamic management of energy production, including the capability to store and distribute energy based on local demand. The GSE has expressed support for initiatives that allocate a portion of the energy produced for self-consumption, with the objective of reducing operational costs for agricultural enterprises and enhancing the overall energy efficiency of the system.
In this regard, select pilot installations in Italy are integrating storage systems to accumulate energy production and release it during periods of high demand or low irradiation74. This adaptability confers a competitive advantage upon agrivoltaic operators, enabling them to respond to market fluctuations and optimise revenues, particularly during periods of heightened electrical grid demand and escalating energy costs.
7.4. ESG and integrated sustainability: measuring environmental and social value
The integration of Environmental, Social, and Governance (ESG) (Conte, 2022)75 criteria has profoundly impacted the manner in which agricultural enterprises, including those engaged in agrivoltaics, approach sustainability. These criteria, which have already been firmly established in the industrial sector, are progressively gaining importance in the primary sector. Consequently, agricultural businesses are being encouraged to measure and document their environmental, social, and governance impacts. Agrivoltaic systems, in particular, exemplify a seamless integration of environmental and economic sustainability. They not only facilitate income diversification but also contribute to mitigating greenhouse gas emissions and enhancing climate resilience.
Advanced agrivoltaic systems, through their integration of agricultural and energy production, deliver substantial advantages in terms of social responsibility. These systems can incorporate innovative practices such as carbon farming, which contributes to carbon sequestration76 in soils and supports the achievement of climate neutrality goals outlined in the 2030 Agenda77. Participation in Renewable Energy Communities strengthens the connection between agricultural enterprises and local communities, generating tangible benefits and fostering an inclusive model of rural development.
From a governance perspective, the adoption of ESG criteria helps businesses improve transparency and management efficiency, attracting investments and facilitating access to credit through specialised banking programs. However, it is critical to ensure that ESG requirements do not become a bureaucratic burden, which could disadvantage small agricultural enterprises and diminish the sector’s competitiveness.If effectively implemented, the integration of ESG parameters in agrivoltaics can become a strategic advantage, promoting the economic and environmental sustainability of Italy’s agricultural sector.
8. The role of advanced agrivoltaic systems in Italy's ecological transition
Advanced agrivoltaic systems represent a pivotal component of Italy’s strategy for the ecological transition, with the overarching objectives being to reduce greenhouse gas emissions and to promote the sustainable utilisation of energy resources. As delineated in the Integrated National Energy and Climate Plan (PNIEC), Italy’s target is to augment its photovoltaic renewable energy capacity by 70% by 203078, with a substantial proportion of this production being attributed to agrivoltaic systems79. The multifunctionality of these systems is in alignment with the need to valorise local resources while simultaneously reducing reliance on imported fossil fuels — a critical factor for the country’s energy security. Italy aspires to implement a “solar sharing” model, where agricultural areas are not merely converted into energy production sites but remain productive80. This approach ensures the preservation of biodiversity and agricultural resilience in regions vulnerable to extreme climate change events81.
8.1. Environmental challenges, soil Protection, and sustainable management
Whilst advanced agrivoltaic systems represent a state-of-the-art and sustainable technology, they also pose significant challenges related to sustainable land use and environmental conservation. The installation of panels alters the microclimate of the underlying soil, as the modules create shaded areas that reduce the amount of direct sunlight reaching the plants. While solar tracking technologies can adjust this shading, careful management is required to prevent impairment to crop photosynthesis82. To address this challenge, some pilot projects have adopted configurations with spaced and variably angled modules, allowing for adaptation of shading to the needs of seasonal crops. This technological approach, in combination with light and moisture sensors, ensures high agricultural productivity even under partial solar coverage.
Furthermore, the benefits of agrivoltaics extend beyond the provision of controlled shading. This technology provides a tangible solution to counter the effects of climate change, which over the past decade has caused 146 extreme weather events with significant damage to Italian agriculture (Legambiente, 2024). Agrivoltaic systems help reduce soil evaporation, maintain optimal moisture levels, and support crop health. Furthermore, the shade provided by the panels offers protection against extreme weather conditions, such as hail, heatwaves, and frost, thereby increasing crop resilience and enabling more efficient water management through rainwater recovery systems.Another critical challenge pertains to the impact of photovoltaic module supports on the soil. These structures must be installed in a manner that does not compromise soil permeability, which is essential to prevent erosion and reduce the risk of soil water depletion83.
Finally, agrivoltaics demonstrate that the perceived “land-use conflict” between photovoltaics and agriculture can be overcome through virtuous integration. Some studies (Adeh et al., 2019) have highlighted yield increases of 20% to 60% in crops such as aromatic herbs, vegetables, and fruit, attributable to the partial shading provided by panels. This synergy between renewable energy and agriculture represents a sustainable development model, combining environmental conservation, productive efficiency, and climate adaptation.
9. Conclusions
Advanced agrivoltaic systems represent a pioneering and strategic solution within the renewable energy landscape, offering a model of integrated sustainability that successfully combines environmental, energy, and agricultural needs. As highlighted in this analysis, this technology provides a tangible response to contemporary challenges posed by the climate crisis, energy security concerns, and the decline of rural areas. By enabling a multifunctional and efficient use of land, advanced agrivoltaics preserve soil productivity while simultaneously generating clean energy.
However, the implementation of advanced agrivoltaic systems is not without complexities. Effective governance is essential to balance the promotion of renewable energy with the protection of landscapes and natural resources, and this requires a clear and consistent regulatory framework that overcomes regional disparities and provides legal certainty for operators. At the same time, a fair incentive strategy is crucial to ensure access for small-scale agricultural entrepreneurs, preventing the indiscriminate appropriation of agricultural land by entities outside the primary sector.
From a technical standpoint, advancements in bifacial modules, solar tracking systems, and integrated irrigation solutions have precipitated a qualitative leap, enhancing energy efficiency and reducing environmental impact. These features distinguish advanced agrivoltaics from traditional photovoltaics, making them competitive not only as a source of energy but also as a tool for territorial regeneration. However, as previously mentioned, it is imperative to guarantee that genuine and continuous agricultural activity occurs beneath the panels. Failure to ensure this continuous agricultural activity may result in the overlap with traditional photovoltaics, potentially leading to the loss of the agricultural function of the land.
Furthermore, advanced agrivoltaics have been identified as a means of combatting rural abandonment and promoting territorial cohesion. The integration of agricultural and energy production offers a unique opportunity to diversify agricultural income and encourage participatory models, such as energy communities, actively involving local populations in resource management. Nevertheless, sustained efforts are necessary to prevent agrivoltaics from becoming a pretext for replacing high-quality agriculture with a production model focused exclusively on energy generation. Such a transition could potentially compromise the agricultural sector’s custodial role in preserving land and biodiversity.
The ultimate success of advanced agrivoltaics is contingent on the harmonious integration of innovation and tradition, thereby facilitating an ecological transition that is inclusive, sustainable, and respectful of local particularities. The future of energy and agriculture may be found in this technology, providing a balance between economic progress, environmental protection, and the enhancement of rural landscapes. The challenge for policymakers will be to translate this potential into reality through the implementation of regulatory policies, targeted incentives, and a long-term vision that ensures the virtuous integration of the energy and agricultural sectors.
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The full text of the article is published in Visegrad Journal on Bioeconomy and Sustainable Development 14- 1/2025.
DOI: https://doi.org/10.2478/vjbsd-2025-0005
Author: Francesco Tedioli
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- Agricultural Law, Commercial Law
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