Introduction
Agrivoltaics is not only a promising solution—it’s gaining real traction in Michigan. By combining solar power generation with farming, this model offers water conservation, income diversification, resilience, and environmental benefits. At the same time, the Big Beautiful Bill and related executive orders are reshaping financing and policy landscapes. This article breaks down exactly how agrivoltaics works in Michigan, the pros and cons, and what impact federal policy shifts will have as of mid-2025.
1. What Agrivoltaics Offers
1.1 Improved Water Use and Crop Resilience
Solar shade cuts soil moisture loss by 14 to 29 percent. This helps crops handle heatwaves more effectively. Michigan Solar Partners+15Michigan Solar Partners+15Michigan Advance+15
1.2 Maintaining or Improving Crop Yields
Studies, including MSU pilot trials, show basil, lettuce, peppers, and alfalfa perform as well or better under partial shade in Michigan’s climate.
1.3 Dual Revenue and Cost Savings
Farmers earn energy or lease income while harvesting crops. Sheep grazing under panels can cut vegetation costs by up to 50 percent. Michigan Solar Partners+15Michigan Solar Partners+15PV Tech+15
2. Agrivoltaic Progress in Michigan
2.1 MSU Research and Field Trials
MSU Extension is actively testing crop performance and microclimate effects under panels in ag areas.
2.2 Supportive Backstory
Earlier MSU studies pointed to benefits for pollinators and soil water conservation—these form the foundation of today’s pilot work. Bridge Michigan+2Public News Service+2Wikipedia+2
2.3 Lessons From Other States
Successful agrivoltaic farms like Jack’s Solar Garden (CO) and UMass (MA) demonstrate viability—even for cherry tomatoes and kale—when well-designed. Wikipedia+1pv magazine USA+1
3. Challenges and Practical Considerations
3.1 Higher Installation Costs
Agrivoltaic systems often cost 3–4 times more than fixed solar arrays due to elevated structures and wider spacing needs. The Wall Street Journal
3.2 Balancing Energy and Agriculture
Designs must consider panel height, spacing, and tilt carefully to allow machinery access while maximizing solar gain. Advanced tracking systems help but add cost.
3.3 Incentive Gaps and Markets
There are no Michigan-specific agrivoltaic tax credits. Without federal ITC (where applicable) or private funding, lease rates may need to compete against standard agriculture returns. The Wall Street Journal
4. How the Big Beautiful Bill Affects Agrivoltaics
The Big Beautiful Bill and its enforcement via executive order are reshaping agrivoltaic economics in several ways.
4.1 Reduced Federal Support
The Big Beautiful Bill ends or limits clean energy tax credits unless construction begins by mid-2026 and projects go into service by late 2027. That affects commercial-scale agrivoltaic systems relying on federal credits. PV Tech+13Reuters+13Michigan Solar Partners+13
4.2 Domestic Sourcing Requirements
Commercial ITCs are still available if projects meet stricter domestic sourcing criteria—a challenge for agrivoltaic equipment supply chains.
4.3 Loss of Brownfield Redevelopment Incentives
Credits that helped finance solar on contaminated or idle farmland are now gone. That makes rural and farm-based agrivoltaic installations harder to justify financially.
4.4 Federal Enforcement Pressure
Federal departments are being instructed to de-prioritize renewable energy incentives and could create new restrictions. This introduces uncertainty for long-term agrivoltaic planning.
5. Who Should Pay Attention
- Farmers and landowners: Model your financial forecast with tighter timelines and limited credit eligibility.
- Solar developers: Build sourcing compliance into system specs and explore state/private financial mechanisms.
- Policymakers and researchers: Advocate for state grants, pilot programs, and adaptation of zoning for dual-use systems.
- Equipment suppliers: Source domestically or partner with U.S. manufacturers to maintain eligibility.
6. Outlook and Next Steps
6.1 Near-Term (2025–2026)
Agrivoltaic projects must begin construction by mid-2026 or miss remaining credits. Developers and farmers should use this window strategically.
6.2 Mid-Term (2027–2028)
Remaining commercial ITC may extend some projects, but growth will depend on state policy and market incentives.
6.3 Long-Term (2030+)
If Michigan introduces agrivoltaic-focused incentives, the state could emerge as an East Coast leader. Public support is high, with surveys showing more than 80 percent community approval when combined with farming.
Conclusion
Agrivoltaics offers multiple benefits for Michigan—water conservation, diversified farm income, and support for pollinators and livestock. It is technically proven, locally relevant, and institutionally supported. However, higher upfront costs and recent federal policy changes from the Big Beautiful Bill introduce new financial challenges.
Michigan Solar Partners can help align agrivoltaic solutions with current fiscal and regulatory realities. Farmers, developers, and policymakers stand to gain by understanding the evolving incentive landscape and planning strategically.
References
- Reuters: Trump executive order directs phaseout of wind, solar tax credits after 2026. Michigan Solar Partners+1Michigan Solar Partners+1Reuters
- MSU Farm News: MSU explores agriculture-solar co-use in Michigan. Bridge Michigan+3The Wall Street Journal+3Agri College+3
- MSU Extension/WSCU: Agrivoltaic field testing in Michigan. Fox 47 News+8Agri College+8Wikipedia+8
- Michigan Solar Partners: Socioeconomic benefits of agrivoltaics. Michigan Solar Partners+1Michigan Solar Partners+1
- WSJ: Agrivoltaic adoption rising despite higher cost. The Wall Street Journal
- Wikipedia: Definition and benefits of agrivoltaics.
- Reuters: Big Beautiful Bill overall impact on solar and wind credits. Center for American Progress+13Wikipedia+13Sullivan & Cromwell+13
- SEC: Effects on clean-energy tax credit structure. Landgate+6Sullivan & Cromwell+6Barclay Damon+6
- American Progress: Repeal of brownfield solar tax incentives. Wikipedia+2Center for American Progress+2Wikipedia+2
