Discover how Agrisolar turns sunlight into opportunity

Australia’s surging demand for clean, reliable electricity – driven by electrification, data centres and artificial intelligence – is creating a powerful new opportunity for rural and regional NSW: agrisolar.

Agrisolar combines solar energy generation with active agricultural production, allowing land to deliver food, fibre and renewable energy at the same time. For farmers, especially those with high-energy operations, it offers a way to contribute to the energy transition while strengthening farm resilience, local economies and nature-positive land use.

The opportunity is significant. Data centres alone are forecast to account for around six per cent of electricity demand on Australia’s east coast grid by 2030, rising to 11 per cent by 2040. Without clean energy solutions, that growth risks adding millions of tonnes of emissions to the electricity system over coming decades.

Julia Tauber, CEO of the Agrisolar Cooperative Research Centre bid, said large-scale uptake of agrisolar could help power energy-intensive users while supporting farmers and strengthening food systems.

“Deploying solar-energy systems in regional and rural areas can help meet Australia’s energy demands, while also helping farmers adapt to changing conditions and protect their productivity,” she said.

“The benefits will extend from the farm to the factory and throughout the food supply chain, making it more resilient and ensuring food security.”

Rethinking rural land use

For agriculture, agrisolar reframes the conversation about land use by focusing on how energy generation and farming can coexist on the same land.

As utility-scale solar projects expand to meet growing electricity demand, agrisolar offers a way to demonstrate multi-land-use solutions that support agricultural productivity alongside renewable energy generation.

International experience shows that well-designed agrisolar can improve agricultural production, soil carbon sequestration, water efficiency and farm profitability, while also delivering biodiversity and landscape benefits.

The effects would be particularly beneficial in Australia’s hot and dry climate, with solar panels providing shading and rainfall capture that improves conditions for crop production and animal welfare.

Done well, agrisolar can also help address community concerns about renewable infrastructure by demonstrating tangible on-farm, environmental and regional benefits.

Powering local economies

Economic modelling suggests agrisolar could become a major driver of economic growth across rural and regional Australia.

“There is potential for a multi-billion-dollar agrisolar goods and services sector, built on Australian innovation and supported by local manufacturing,” Julia said.

NSW is well positioned to lead this opportunity, given its central role in the National Electricity Market and its mix of agricultural land, renewable resources and transmission infrastructure.

NSW Decarbonisation Innovation Hub interim CEO Dani Alexander said the state has a critical role to play in shaping Australia’s energy future.

“NSW is Australia’s most populous state and sits at the heart of the national electricity market,” she said. “That gives NSW an enormous opportunity to influence the broader national transition and become a global leader for decarbonisation in action.”

📬 Get involved

The NSW Decarbonisation Innovation Hub’s Land and Primary Industries Network is currently supporting a number of agrisolar initiatives, including a project to develop three-dimensional solar panels that capture more sunlight without shading crops, and a bid to establish an Agrisolar Cooperative Research Centre.

If you would like to explore agrisolar or other decarbonisation initiatives, contact the Land and Primary Industries Network’s Business Development Manager Fiona McCredie at fiona.mccredie@decarbhub.au.

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