Renewable energy and agriculture are increasingly collaborating to address overlapping challenges. A three-year study at the Wellington Solar Farm in New South Wales, led by Lightsource bp with EMM Consulting and Elders Rural Services, shows that grazing 1,700 Merino sheep among solar arrays can improve animal welfare and wool quality without compromising energy output. The model, known as agrivoltaics, offers a scalable approach to utilizing land more efficiently while enhancing farm resilience.
A dual-purpose landscape that works harder
Agrivoltaic systems layer livestock grazing with solar generation to extract more value from the same acreage. Panels create a patchwork of shade and sun that moderates temperature swings, especially during harsh Australian summers. That moderated microclimate, paired with thoughtful site design, supports both power production and easy animal movement, revealing a land-use approach that is both efficient and climate-ready.
Why shade from solar helps sheep
Solar arrays do more than block sunlight; they shape microclimates that influence pasture and animal health. Shade reduces heat stress and sudden temperature shocks, while cooler ground retains moisture longer and supports a steady flush of pasture growth. Healthier, denser grasses translate into better nutrition and overall condition, and the slightly cooler, cleaner conditions can help deter some parasites common in open paddocks. The cumulative effect is less environmental stress and more energy for growth and wool rather than thermoregulation.
Wool quality: measurable and marketable
The standout result from the Australian trial is a consistent uplift in key wool metrics. Sheep grazing within the arrays showed faster wool growth and stronger fibre compared to those on open pasture—traits that underpin premium pricing and market positioning. These gains appear to stem from a combination of richer forage in shaded areas, lower stress loads thanks to thermal protection and parasite deterrence, steadier daily conditions that support consistent physiology, and overall comfort that enables the body to direct more energy toward keratin production, the protein that determines fibre strength and value. As Brendan Clarke of Lightsource bp noted, coordinated planning between energy operators and producers can unlock these shared benefits.
Design choices that make agrivoltaics work
To protect both kilowatt-hours and animal health, the site layout is crucial. Adequate panel height and spacing create clear movement corridors for animals and equipment, while orientation and tilt balance energy yield with shade patterns that benefit pasture and sheep comfort. Grazing should be rotational to protect groundcover and prevent overuse, and access and fencing must support low-stress handling while safeguarding electrical components. Ongoing monitoring of pasture regrowth, parasite pressure, and wool metrics helps refine practices over time, and pairing arrays with storage where feasible can stabilize output and bolster local resilience.
Operational and ecological upside
Solar grazing can lower vegetation management costs by utilizing sheep as natural lawnmowers, thereby reducing the need for mechanical mowing, fuel consumption, and site disturbance. The structural diversity created by panels and pastures can support local biodiversity, while farmers gain additional revenue through land leases and potentially improved wool value. In short, agrivoltaics can enhance, rather than displace, agricultural productivity and environmental quality.
Evidence beyond Australia
Findings from INRAE in France, conducted in collaboration with Statkraft and CVE and tracking 24 ewes over a two-year period, mirror the Australian results. Researchers reported enhanced thermal comfort and more reliable access to quality forage in agrivoltaic settings. The cross-continental alignment, despite differences in herd size, climate, and farm systems, strengthens the case that well-designed solar grazing delivers consistent welfare and productivity benefits.
Canadian momentum: economics, practicality, and policy signals
Recent Canadian work strengthens the case for sheep-based agrivoltaics, particularly in terms of economics and day-to-day practicality for producers. A Western University–led study, published in Applied Energy, models profitability for “solar sheep” across both family-scale (200 kW) and utility-scale (465 MW) contexts, finding higher-than-industry EBITDA margins due to reliable grazing-service revenue and projected returns on investment ranging from 16–31% (breeding ewe model) to 22–43% (auction lamb model) for comparable scenarios. The Western University news release summarizing the study emphasizes that partial shading under panels can increase grass yield, improve animal comfort, make nearly 100% of the site grazable, and enhance site security thanks to fencing and cameras; it also highlights Canada’s reliance on imported lamb/mutton as a domestic market opportunity for agrivoltaics.
Across Alberta, Olds College of Agriculture & Technology is standing up a multi‑year agrivoltaics research program to generate Canadian, prairie‑specific data on livestock, crops, microclimates, and site design, alongside a survey of up to 500 farmers, a provincial agrivoltaics status report, and applied studies with producers and developers that explicitly include rotational sheep grazing and mechanized access between rows. These efforts align with Alberta’s policy direction, which requires projects on prime Class 1 and Class 2 farmland to demonstrate coexistence with crops and/or livestock, positioning agrivoltaics as both a compliance pathway and a design accelerator for dual-use installations.
A climate-ready model for more regions
As heat extremes intensify, shade-based thermal regulation becomes essential to animal welfare. The consistent performance of agrivoltaic systems in Australia and France suggests broad potential across varied geographies and production systems. With Canada’s emerging peer-reviewed economics, on-farm experience, and supportive policy direction, the case for dual-use solar is compelling—and growing stronger.
Zooming out: how this fits the broader solar shift
This farm-level success echoes a much larger transformation underway in the energy sector. See our recent analysis for context on the accelerating solar transition—from rapid deployments and battery storage scale-up to grid modernization and policy support.
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