"Solar Sharing" in Japan: Can Agricultural Land Be Used for Solar Power Generation?

Japanese Attorney at Law - Bengoshi L.L.

• 7 min read

In Japan, a nation that highly values both its agricultural land and its pursuit of renewable energy, an innovative approach known as "solar sharing" has emerged. Officially termed eino-gata taiyoko hatsuden (営農型太陽光発電), or "farming-type solar power generation," this system allows for the dual use of farmland: continuing agricultural cultivation while simultaneously generating electricity via solar panels installed overhead. This concept holds particular appeal in a country with limited flat land, offering a potential way to balance food production with clean energy goals. However, installing such systems on regulated agricultural land (nochi, 農地) is subject to a specific and stringent regulatory framework under Japan's Farmland Act (Nochi Ho, 農地法).

What is Solar Sharing?

Solar sharing involves mounting photovoltaic (PV) panels on elevated structures—such as long stilts or specially designed frames—at a sufficient height above the ground to allow farming activities to continue underneath. The design aims to provide adequate space for crop cultivation, the movement of farmers, and the operation of agricultural machinery. Key design considerations include the angle and spacing of the PV panels to ensure that sufficient sunlight still reaches the crops below, or in some cases, the use of semi-transparent PV modules. The fundamental principle is the continuation of viable agricultural production on the land concurrently with solar power generation.

While this model offers the potential for farmers to gain a supplementary income stream from electricity sales, thereby potentially improving the economic viability of their farms, its implementation is not without challenges, including initial investment costs, potential impacts on farming efficiency, and navigating the specific legal requirements.

The installation of a solar sharing system on land legally classified as farmland is not considered an outright or permanent conversion of that land to an industrial use. Instead, it is treated as a temporary change in use for the specific portions of land occupied by the support structures of the solar array. Consequently, a temporary farmland conversion permit (ichiji tenyo kyoka, 一時転用許可) under the Farmland Act is required. This permit may fall under Article 4 if the landowner is undertaking the project themselves, or Article 5 if a third party is leasing the land or acquiring rights for the installation.

Crucially, the permit applies only to the land area directly occupied by the foundations or support pillars of the solar equipment. The land beneath and between these structures remains designated as farmland and must continue to be used for agricultural cultivation.

MAFF Guidelines: The 2013 Circular

The foundational administrative guidance for solar sharing installations on farmland is a circular issued by Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) on March 31, 2013 (Circular No. 24 Nōshin Dai 2657 - 平成25年3月31日付け24農振第2657号). This document outlines the conditions under which temporary conversion permits for solar sharing can be granted and maintained.

A remarkable aspect of these guidelines is that, because the primary agricultural use of the land is intended to continue, temporary conversion permits for solar sharing support pillars can be considered even on high-quality, traditionally protected farmland categories. This includes land within Agricultural Land Zones (Noyochi Kuiki, 農用地区域) of Agricultural Promotion Areas, Superior Farmland (Koshu Nochi, 甲種農地), and Type 1 Farmland (Dai Isshu Nochi, 第1種農地), where permanent conversion for non-agricultural uses would typically be prohibited or face insurmountable hurdles. This provision makes solar sharing a unique proposition for utilizing such prime agricultural land for renewable energy.

Requirements for the Initial 3-Year Temporary Permit

The MAFF circular lays out specific criteria that must be met for an initial temporary conversion permit to be granted, which is typically for a period of up to three years:

  1. Nature of Structures: The support pillars and mounting system for the solar panels must be of a simple construction and easily removable at the end of the permit period or project lifecycle. The land area occupied by these pillars must be the minimum necessary for the installation.
  2. Design for Agricultural Coexistence: The overall design of the solar array (including panel height, angle, spacing between panels, and distance between support structures) must ensure:
    • Sufficient Sunlight for Crops: Adequate sunlight must reach the crops cultivated underneath to ensure their proper growth and development.
    • Workability for Farming: There must be enough clear space beneath and around the panels for the efficient operation of necessary agricultural machinery and for farmers to carry out their work.
    • No Adverse Impact on Surroundings: The installation must not negatively affect neighboring agricultural land (e.g., through excessive shading, water runoff) or interfere with local irrigation and drainage systems.
  3. Financial Viability for Removal: The applicant must demonstrate that they possess sufficient financial resources and creditworthiness to cover the costs of dismantling and removing the entire solar installation and restoring the land to its original cultivable state upon termination of the project or permit.

Maintaining the Permit: Ongoing Obligations and Performance Metrics

Once an initial 3-year permit is granted, the operator of the solar sharing facility has several ongoing obligations to ensure its continuance:

  1. Continued Viable Farming: The paramount condition is the appropriate and continuous execution of agricultural activities on the land beneath the solar panels. The support pillars are permitted solely on the premise that they facilitate this dual use.
  2. Annual Reporting: The permit holder is required to submit an annual report to the local Agricultural Committee detailing the status of agricultural production under the panels. This report must include data on crop types, yields, and quality. Importantly, the MAFF guidelines stipulate that the information in this report concerning crop production should be verified by a knowledgeable third party, such as an agricultural extension officer, a recognized agricultural consultant, or another qualified expert.
  3. The "80% Yield Rule" (or "20% Yield Reduction" Benchmark): A critical performance metric for assessing the viability of continued farming is the crop yield. The MAFF guidelines indicate that farming is generally considered compromised if the yield of the crops grown under the solar panels is approximately 20% or more below the average yield for the same crop in that region, in a comparable year, on land without solar panels. This effectively means that yields should be maintained at roughly 80% or more of the regional average.
  4. Maintaining Crop Quality: The quality of the agricultural produce (e.g., size, sugar content, appearance) must not be significantly deteriorated due to the presence of the solar installation.
  5. Ensuring Farm Workability: The setup must continue to allow for the efficient use of standard agricultural machinery and not unduly impede farming operations.
  6. Corrective Measures: If, during the permit period, it is found that agricultural production is being negatively affected (e.g., due to insufficient sunlight, issues with machinery access), the permit holder must promptly implement necessary corrective measures. This could involve adjusting panel angles, increasing spacing, or even removing some panels to improve conditions for the crops.
  7. Notification of Changes: The permit holder must immediately report to the Agricultural Committee if continued farming becomes compromised or is likely to become compromised, or if there are any plans to modify the solar equipment or decommission the power generation business.

Permit Renewal

After the initial 3-year term, the temporary conversion permit for solar sharing can be renewed. The renewal application is assessed based on the same fundamental criteria as the initial permit, with a strong emphasis on the actual agricultural production record during the preceding term. Consistent failure to meet the agricultural performance standards, particularly the ~80% yield benchmark or a significant decline in crop quality, can be grounds for the denial of permit renewal.

Conditions for Permit Revocation or Termination

The temporary conversion permit is conditional and can be revoked, or renewal denied, under several circumstances:

  • If agricultural activities cease on the land beneath the panels.
  • If crop yields consistently fall significantly below the ~80% benchmark or crop quality is substantially degraded without adequate corrective action.
  • If the solar installation is found to impede the efficient use of farm machinery to an unacceptable degree.
  • If the permit holder fails to implement required corrective measures when farming is compromised.
  • Upon the cessation of the power generation business or if the farming operation is discontinued for other reasons, the permit holder is obligated to promptly remove the entire solar installation, including all support structures, and restore the land to a fully cultivable state.
    Non-compliance with permit conditions or Farmland Act provisions can lead to formal administrative actions by the Agricultural Committee or prefectural governor under Article 51 of the Farmland Act. This can include permit cancellation, orders to suspend work or operations, or orders to undertake necessary measures for rectification, including site restoration.

Potential and Challenges of Solar Sharing in Japan

Solar sharing offers a compelling vision for integrating renewable energy production with agriculture:

  • Benefits for Farmers: It can provide a stable, supplementary income stream from the sale of electricity, potentially enhancing the overall economic viability of farming operations, especially for farms with lower profitability from agriculture alone.
  • Contribution to Renewable Energy Goals: It allows for the expansion of solar power generation capacity without taking productive agricultural land completely out of commission, a crucial consideration in land-scarce Japan.

However, practical challenges remain:

  • Initial Investment Costs: The specialized mounting structures required for solar sharing are typically more expensive than ground-mounted systems for dedicated solar farms.
  • Impact on Agricultural Practices: While the aim is to minimize impact, some degree of shading is inevitable, which can affect crop choice, yield, and quality. Farming operations may need to be adapted, and not all crops are suitable for shaded conditions.
  • Technical and Managerial Complexity: Operators must effectively manage two distinct businesses—farming and power generation—on the same piece of land.
  • Navigating Regulations: The permitting process, annual reporting, and ongoing compliance with agricultural performance standards require diligence and administrative effort.

Conclusion: A Regulated Path for Dual Land Use

Solar sharing in Japan represents an innovative attempt to achieve synergy between agriculture and renewable energy. However, its implementation on farmland is strictly regulated to ensure that agricultural production remains the primary and viable use of the land. The temporary farmland conversion permit system, with its initial 3-year term, renewable nature, and stringent conditions focused on continued farming viability—particularly the ~80% yield benchmark and mandatory annual reporting—is designed to strike this balance. Businesses or farmers considering solar sharing projects must be prepared for diligent agricultural management beneath the panels and unwavering compliance with MAFF guidelines and the requirements set forth by their local Agricultural Committee. This regulated approach seeks to ensure that the "sharing" in solar sharing genuinely benefits both energy goals and the future of farming.