Sustainable Business Model for Agrivoltaic Pilot Project in Bangladesh

This research program investigates agrivoltaics (AgPV) as a potential pathway to support Bangladesh’s renewable energy transition while addressing agricultural land scarcity. The study explores whether combining solar energy generation and agricultural production on the same land can improve land-use efficiency, generate additional income, and contribute to national decarbonization goals, particularly in energy-intensive sectors such as textiles. The project builds on previous BIGD macroeconomic research that identified agrivoltaics as a promising model for improving rural livelihoods, enhancing land productivity, and reducing gender disparities in agricultural labor. However, the earlier study also highlighted the need for empirical, field-based evidence under Bangladeshi conditions. To address this gap, the project adopts a comparative experimental design involving three systems; agriculture-only, solar-only, and agrivoltaic systems—to assess differences in crop yield, electricity generation, net revenue and cost structures.

The core objective is to determine whether dual-income generation from agrivoltaics can outperform the combined returns of separate agricultural and solar land use. The study also evaluates existing solar developer and farmer business models against the proposed agrivoltaic model to identify operational and institutional barriers to adoption. Ultimately, the research aims to inform policy reform in a context where the use of agricultural land for solar energy remains restricted, despite the urgent need to increase renewable energy generation from just over 4% to 40% by 2041. In addition to assessing the technical and economic feasibility of agrivoltaics, the study employs GIS mapping, field surveys, and qualitative research to understand how past solar energy developments have impacted local communities, particularly women workers. By combining spatial, quantitative, and community-level evidence, the research seeks to develop practical recommendations that support a socially equitable and gender-responsive transition to agrivoltaic systems in Bangladesh.

Why Agrivoltaics?

Bangladesh faces significant challenges in expanding solar energy due to land scarcity, high population density, and competing demands for agricultural land. Solar power requires considerably more land per unit of energy generated than fossil-fuel-based alternatives, while agriculture remains a critical source of income for low-income households, low-skilled workers, and rural women. Current policy restrictions on the use of agricultural land for power generation further complicate renewable energy expansion. Despite growing international interest in agrivoltaics, research in Bangladesh remains limited. To date, there are no agrivoltaic farms in Bangladesh that were designed from the outset to optimize both agricultural production and solar generation. Most existing projects have introduced agriculture as an add-on to solar farms, often resulting in significant crop yield losses. There is also no yield data on counter factual comparison for each crop, controlling for soil and microclimatic conditions. This project is the first to design an integrated agrivoltaic system in which panel placement and system configuration are planned around agricultural requirements from the beginning. Agrivoltaics also offer potential environmental benefits. Solar panels can reduce water evaporation through shading, particularly during dry periods, while large-scale deployment could contribute to reducing carbon emissions. With an appropriate business model, agrivoltaics could generate both environmental and socio-economic benefits while supporting Bangladesh’s renewable energy transition.

Objectives

The project seeks to generate evidence on how Bangladesh can pursue agrivoltaics at scale and use these findings to complement existing macroeconomic analysis and support policy reform. Specifically, it aims to:

• Assess the economic viability of agrivoltaics compared to separate agricultural and solar land use.
• Examine the impacts of agrivoltaics on agricultural productivity, farmer livelihoods, and renewable energy generation and identify technical, operational, institutional, and business-model barriers affecting adoption by farmers and solar developers.
• Explore land-sharing arrangements, incentives, technical support mechanisms, and agricultural extension services that could facilitate adoption.
• Provide evidence to support a just and inclusive renewable energy transition while contributing to Bangladesh’s renewable energy targets.
• Design equitable AgriPV land-sharing frameworks for Bangladesh’s just energy transition by leveraging mixed-method insights (GIS analysis, surveys, and ground-truthing) on the gendered and community impacts of historical solar energy expansion.