The Potential of Agrivoltaics

Across the globe, rural areas struggle with grid interconnection and chronic energy instability, leading to widespread energy poverty. Distributed Generation (DG) solar and agrivoltaics offer enormous potential to close this energy accessibility gap. By generating power locally, these solutions can bring much-needed energy independence and agricultural resilience to underserved communities.

Rural areas, in particular, face significant barriers to accessing reliable energy due to their distance from centralized generation sources. However, the rise of distributed generation solar has already helped meet some of these challenges. Through decentralized energy systems, communities can produce and consume power near the point of use, reducing reliance on a centralized utility, cutting transmission losses, and increasing overall efficiency.

Agrivoltaics , the dual use of land for both solar generation and agriculture, can amplify the benefits of DG solar – especially in rural economies dependent on farming. By integrating solar panels into agricultural land, farmers can generate clean energy while also protecting crops and livestock. The shade and cooling provided by solar arrays can reduce heat stress, preserve soil moisture, and promote biodiversity, creating a symbiotic relationship between energy and agriculture. Ultimately, agrivoltaics has the potential to enhance rural livelihoods while addressing chronic energy poverty.

Mexico is an excellent candidate to leverage agrivoltaics. Rich in solar radiation, rural Mexico stands to gain significantly from DG solar projects. Mexican farmers could benefit from healthier crops, additional revenue streams through energy sales, and greater community energy independence. Yet, despite these opportunities, Mexico faces substantial regulatory and structural barriers to DG solar adoption.

In conversation with Cecilia Aguillon, a solar industry specialist with experience across North and South America, she discussed her work advocating for DG in Latin America and highlighted these barriers. According to Aguillon, Mexico has struggled to adopt DG solar due to regulatory hurdles imposed by a centralized energy utility system and the political influence of oil and gas interests. An estimated 34% of Mexican households experience energy poverty, disproportionately impacting rural communities.

[caption id="attachment_285" align="alignnone" width="675"] Deer Graze under the PV Array at NREL's National Wind Technology Center: Photo by Dennis Schroeder, NREL[/caption] Aguillon then contrasted Mexico's situation with Brazil, which has experienced rapid DG growth. Brazil now has over 36 GW of installed DG solar, accounting for over 67% of their installed solar energy, thanks to favorable policies like ANEEL's Normative Resolution 83 and their net metering policy . By comparison, at the end of 2024, Mexico had only 4.42 GW of DG solar, highlighting how far behind it lags.

Although Mexico has passed a promising plan to add new power capacity , much of it focuses on large-scale solar projects that often bypass rural populations. While DG solar is included in Mexico's energy roadmap, stringent permitting rules remain a significant barrier. Currently, small-scale self-supply can be done up to .7 MW without a permit,but anything above that – up to 20 MW – requires navigating a complex permitting process.

As emphasized by Aguillon, permitting and bureaucracy remain among the most significant barriers to scaling DG solar in Mexico. Other barriers include a lack of financing models for community-scale projects, the entrenched utility monopoly and fossil fuel lobbying, and a general lack of awareness among farmers and policymakers about DG solar and agrivoltaics. To overcome these hurdles, Aguillon recommends community ownership models for DG projects backed by government subsidies that could be repaid over time through energy sales. Integrating agrivoltaics into these projects could enhance their value by directly supporting agricultural productivity and combating climate risks.

[caption id="attachment_286" align="alignnone" width="675"] Flowers Growing to Attract Pollinators at Jack's Solar Garden in Colorado: Photo by Werner Slocum, NREL[/caption] For this to succeed, Mexico would need to implement stronger government support and incentives for DG solar, possibly through public-private partnerships that address financing gaps. Policy reform is also critical—both to improve rural grid interconnections and to streamline the DG project permitting process. Additionally, farmer engagement and education around the benefits of agrivoltaics will be crucial to ensuring that DG solar reaches its full potential and delivers a meaningful impact on rural communities.

Mexico has an opportunity to address both energy poverty and agricultural vulnerability by embracing distributed generation and agrivoltaics. Community-led, decentralized energy solutions can transform rural economies, providing energy independence while supporting farmers and strengthening local ecosystems. A stronger, more resilient energy future for Mexico –and for rural communities worldwide–lies in leveraging local resources, innovative land use, and community ownership to ensure no community is left behind in the energy transition.