What Is Agrivoltaics?
Agrivoltaics — also called agrophotovoltaics (APV) — is the simultaneous use of land for both solar power generation and agricultural production. Developed in Germany in 1982 and now deployed across Japan, South Korea, France, and the United States, agrivoltaics is arriving in Malaysia at scale.
The core principle: elevated solar panels (mounted 2–4m above ground) allow agricultural activity to continue beneath, while the panels themselves generate clean electricity. Malaysia's high solar irradiance (1,400–1,600 kWh/kWp/year) combined with the tropical need for shade creates a natural fit.
30–50% shade from elevated panels reduces heat stress on shade-tolerant crops. Water evaporation drops 20–30%, lowering irrigation needs during Malaysia's dry spells.
Solar generates electricity income (PPA rate RM0.25–0.40/kWh or self-consumption savings) simultaneously with crop/livestock/aquaculture revenue — on the same acre.
Land Equivalent Ratio (LER) for agrivoltaics typically reaches 1.3–1.7 — meaning you need 30–70% LESS land to produce the same combined agricultural + energy output.
Types of Agrivoltaics in Malaysia
Malaysia's agricultural diversity — from paddy fields to aquaculture ponds, palm oil estates to cattle ranches — creates multiple agrivoltaic configurations suited to different land types.
Fishvoltaics
Solar panels mounted over aquaculture ponds. The shade reduces water temperature by 2–4°C, cuts algae growth, and reduces evaporation by 30–40%. Fish — particularly catfish (keli), tilapia, and shrimp — grow faster in cooler, more stable conditions. Already deployed in Kedah and Perak.
Cowvoltaics
Elevated solar arrays over grazing pasture. The shade reduces heat stress on cattle — a major productivity issue in tropical Malaysia. Cattle under panels show 15–20% higher milk production and improved weight gain. Grass grows more evenly with partial shade. The MARii project in Sabah includes large cowvoltaic components.
Crop-Solar Integration
The classic agrivoltaic model: elevated panels (2–4m) over crop rows. Shade-tolerant vegetables, herbs, and root crops grow beneath. Best for smallholders and FELDA settlers who can intercrop high-value specialty crops under their existing land. Requires no land category conversion if panels remain elevated and agriculture continues below.
Agroforestry Solar
Panels installed between rows of fruit trees or timber species. Works well with banana, papaya, starfruit, and young rubber or palm before canopy closure. The trees eventually provide additional shade management. Long-term land value appreciation alongside energy income.
Best Crops Under Solar Panels in Malaysia
Not all crops benefit equally from partial shade. The following compatibility chart is based on agrivoltaic trials in tropical climates and UPM (Universiti Putra Malaysia) research on shade-tolerance in Malaysian crops.
| Crop | Optimal Shade | Agrivoltaic Benefit | Yield Impact | Notes |
|---|---|---|---|---|
| 🍄Mushrooms | 80–100% | Excellent | +40–60% vs open field | Best agrivoltaic crop in Malaysia. Needs shade. Premium prices RM12–25/kg. Shiitake, oyster, king oyster all viable. |
| 🌶️Chili Padi | 30–50% | Very Good | +15–25% yield | Shade reduces fruit drop and sunscald. Higher moisture retention improves yield in dry season. |
| 🌿Pegaga / Centella | 40–60% | Excellent | +20–35% yield | High-value medicinal herb. Naturally shade-preferring. Export demand from Korea and Japan. RM8–15/kg. |
| 🫚Ginger & Turmeric | 30–50% | Good | +10–20% yield | Root crops that naturally grow under forest canopy. Shade reduces bolting. Domestic and export demand steady. |
| 🥬Kangkung / Sawi | 20–40% | Good | Neutral to +15% | Fast-growing leafy vegetables. Partial shade extends harvest window and reduces bolting in hot months. |
| 🌾Lemongrass | 20–30% | Moderate | Neutral to +10% | Low maintenance, multi-cut harvest. Used in essential oil extraction. Popular for biogas co-product. |
| 🌾Rice (Padi) | 0–10% | Not Suitable | -20–40% yield | Full-sun crop. Shade above 10% significantly reduces grain yield. Not recommended for agrivoltaic integration. |
| 🌽Corn / Maize | 0–10% | Not Suitable | -15–30% yield | C4 photosynthesis crop requiring maximum sunlight. Yield loss is significant under panels. |
Source: UPM agrivoltaic crop trials (2024–2025), tropical agrivoltaic literature review. Yield impacts are indicative and vary by microclimate, soil, and management.
Mushroom cultivation under solar panels is the single highest-value agrivoltaic application in Malaysia. Shiitake and oyster mushrooms require 80–100% shade, making the solar panel canopy ideal. A 1,000 sq ft agrivoltaic mushroom house can yield 200–400kg/month at RM12–25/kg — generating RM2,400–10,000/month in agricultural income alongside solar generation. Investment in mushroom substrate and spawn: RM8,000–15,000/setup.
Dual Income Projection Calculator
Estimate your combined solar + agricultural income based on land size and agrivoltaic type. Figures are illustrative estimates based on Malaysian market rates (2026).
Indicative only. Actual income depends on location, solar resource, crop yield, market prices, and PPA/NEM tariffs. Contact Trexon for a detailed feasibility study.
Agrivoltaic Projects in Malaysia
Malaysia's agrivoltaic sector is moving from pilot to commercial scale in 2026. These are the key projects and research programmes shaping the industry.
The Malaysian Automotive, Robotics and IoT Institute (MARii) has signed preliminary agreements for a 1GW agrivoltaic development in Sabah targeting underutilised government land. The project combines large-scale cattle ranching with solar generation, with electricity exported under the Large Scale Solar (LSS5) programme.
A 50MW fishvoltaic installation over 300 acres of aquaculture ponds in Kedah's coastal aquaculture zone. Solar panels mounted 3m above ponds cover 60% of surface area. Operators report 28% reduction in operational costs (less aeration needed, reduced algae treatment) alongside electricity income of RM1.2M/year.
Universiti Putra Malaysia is conducting the country's most comprehensive agrivoltaic crop trials at its Serdang campus. Twelve crop species are being evaluated under different panel spacings and heights. Early data confirms strong performance for mushrooms, pegaga, and chili. Results will inform Malaysia's first National Agrivoltaic Guidelines (2026).
A consortium of Johor rubber smallholders is exploring agrivoltaic integration across 5,000 acres of aging rubber plantations. Solar panels mounted between rubber tree rows allow continuation of rubber tapping while generating electricity during the trees' productive lifespan. The project also provides a transition pathway as rubber trees age past peak productivity.
Agrivoltaics for FELDA Settlers
FELDA settlers managing palm oil smallholdings (typically 10–30 acres) are among the best-positioned Malaysians to benefit from agrivoltaics. The combination of large land areas, existing agricultural infrastructure, and the need to supplement palm oil income during commodity price dips makes the economics compelling.
Illustrative. Based on CPO price RM3,500–4,000/tonne, solar PPA rate RM0.32/kWh, and agrivoltaic crop revenue. Actual figures vary.
FELDA settlers on Hak Milik Sementara (HMS) land need FELDA's approval before proceeding. Full title holders can approach solar developers directly.
Three options: (A) Roof/Land Lease — developer pays RM800–2,500/month per acre, zero capital. (B) Revenue Share — 20–40% of solar income, developer funds installation. (C) Full ownership — take a GTFS green loan, own the asset.
Maintain your palm oil, rubber, or crop production below the panels. This is non-negotiable for land category compliance and to retain DOA agricultural support schemes.
Under the land-lease model, the developer handles all SEDA and TNB registrations. Under ownership models, Trexon handles the full regulatory pathway on your behalf.
For Plantation Owners: Integration Options
Large-scale plantation operators (rubber, palm oil, banana, pineapple) can integrate solar at multiple points — from estate perimeters and buffer zones to inter-row spacing — without disrupting core production.
Inter-Row Solar
Panels mounted between tree rows (for rubber, young palm oil). Works during the early years before canopy closure. System can be relocated as trees mature.
Perimeter + Buffer Zone Solar
Install panels on estate perimeters, road margins, and buffer zones without affecting core production areas. Lower installation complexity, zero yield impact.
Estate Building Rooftop Solar
Solar panels on mill buildings, worker housing, processing facilities, and estate offices. Self-consumption model eliminates TNB bills for estate operations.
Degraded Land Rehabilitation
Convert unproductive degraded plantation land (too eroded, flooded, or infertile for crops) to solar generation while beginning soil rehabilitation through shade and vegetation below panels.
Regulatory Guide: Solar on Agricultural Land
Installing solar on agricultural land in Malaysia involves multiple regulatory touchpoints across state land offices, SEDA, the Energy Commission, and the Department of Agriculture. Here is the step-by-step pathway.
Malaysia's land law is a state matter (National Land Code administered by states). What is acceptable in Selangor may require full conversion in Kelantan. Always get written PTG confirmation before committing capital. Trexon's pre-installation team handles the land category assessment as part of feasibility studies.
Verify current land category (agricultural, industrial, etc.). For true agrivoltaics where farming continues below, most states do not require conversion. Get written confirmation from PTG before any investment.
Register your solar generation system with SEDA. Required for all grid-connected systems above 72kW. The RPVSP registration gives you the right to sell or offset electricity under NEM/Solar ATAP or LSS programmes.
Required for generation capacity above 1MW (and for selling electricity to third parties at any scale). The Electricity Supply Act requires an EC license for commercial generation. For smaller systems under Net Energy Metering, this is handled through SEDA.
Environmental Impact Assessment required for solar installations above 50MW or those near sensitive ecosystems (mangroves, forest reserves, wildlife corridors). Most agrivoltaic projects under 50MW do not require full EIA — a Preliminary EIA (PEIA) may suffice.
Register your crop/livestock operation with DOA to maintain agricultural land status and access government agricultural support schemes, fertiliser subsidies, and insurance programmes. This also strengthens your case with the land office that agricultural use is continuing.
Apply for grid connection with TNB. Required for grid-tied systems. TNB will evaluate your interconnection request, specify technical requirements, and sign a Connection Agreement. Timeline varies by state and connection voltage level.
Frequently Asked Questions
Ready to Explore Agrivoltaics for Your Land?
Trexon Energy provides agrivoltaic feasibility studies, system design, and turnkey installation for Malaysian landowners, plantation companies, and cooperatives. Get a free remote land feasibility assessment based on maps and project data.