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Agrivoltaics in Japan: A Legal Framework Analysis

Authors:
  • Independent Researcher
  • Institute for Sustainable Energy Policies

Abstract

A comprehensive and supportive legal framework is a key factor for the expansion of agrivoltaics. This study analyzed, therefore, the existing laws, regulations, and policies related to agrivoltaics in Japan and assessed its actual effects on relevant stakeholders. An increasing horizontal policy integration on the federal level was identified. However, the vertical policy integration is still insufficient with often skeptical municipalities and local agricultural councils. The key barriers are related to the land-use conversion process, financing of agrivoltaic projects, socio-political and market acceptance, and grid constraints in rural areas. There are, however, opportunities for addressing these challenges in recently established councils that include a variety of members from industry, academia, and government.
AgriVoltaics World Conference 2022
Environmental, Legal and Socio-Economic Aspects
https://doi.org/10.52825/agripv.v1i.533
© Authors. This work is licensed under a Creative Commons Attribution 4.0 International License
Published: 06 Feb. 2024
Agrivoltaics in Japan
A Legal Framework Analysis
Christian Doedt1[https://orcid.org/0000-0003-1415-6615], Makoto Tajima1,2[https://orcid.org/0000-0002-8202-254X], and
Tetsunari Iida1,2[https://orcid.org/0000-0002-9082-6097]
1 Institute for Sustainable Energy Policies, Japan
2 Japan Community Power Association, Japan
Abstract. A comprehensive and supportive legal framework is a key factor for the expansion
of agrivoltaics. This study analyzed, therefore, the existing laws, regulations, and policies
related to agrivoltaics in Japan and assessed its actual effects on relevant stakeholders. An
increasing horizontal policy integration on the federal level was identified. However, the verti-
cal policy integration is still insufficient with often skeptical municipalities and local agricultur-
al councils. The key barriers are related to the land-use conversion process, financing of
agrivoltaic projects, socio-political and market acceptance, and grid constraints in rural areas.
There are, however, opportunities for addressing these challenges in recently established
councils that include a variety of members from industry, academia, and government.
Keywords: Agrivoltaics, Japan, Legal Framework, Policy Integration, Policy Barriers
1. Introduction
The Japanese government released its Sixth Strategic Energy Plan in October 2021 aiming
for a share of 36-38% renewable energy including 14-16% of solar photovoltaics by 2030 [1,
2]. With only 8.5% of solar PV in the Japanese energy mix at the time of the announcement,
this equals to the need for almost doubling the capacity of solar energy in less than a decade
[3]. Achieving this solar PV goal is challenging since only 34% of Japan’s area is flatland and
most of this land has already been developed during the solar boom after the introduction of
the Feed-In Tariff in 2012 [4]. Photovoltaic projects on mountainsides and in forests face in-
creasing opposition from local stakeholders due to concerns about deforestation and land-
slides [5]. Therefore, it is important to find alternative spaces to develop solar PV.
Agrivoltaics is a promising concept to reduce these land-use conflicts since it allows
for dual use of land on agricultural land [6]. Moreover, it also has the potential to tackle other
pressing challenges in Japan, such as the increasing areas of abandoned farmland. The ex-
tra income from the agrivoltaic system can be an incentive for the younger generation to con-
tinue the agricultural businesses of the aging farmers who currently struggle to find succes-
sors [7]. On a macro level, this can help to increase both the low food and energy self-
sufficiency of Japan.
Even though Japan is a pioneer in agrivoltaics and recognizes its potential, agrivolta-
ics only has a share of under 1% of the non-residential photovoltaic systems in Japan [4]. It
is important to analyze the socio-political context to understand why agrivoltaics is still a
niche technology almost 20 years after its first introduction in Japan [8]. In this context, laws
and regulations play a crucial role in the diffusion of new technologies such as agrivoltaics
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since only a comprehensive legal framework including its uncomplicated implementation on
the local level will enable a fast expansion. This study, therefore, analyzes the existing legal
framework and identifies barriers and opportunities in the laws and regulations related to
agrivoltaics in Japan.
2. Literature Review
Institutional barriers have been identified as a barrier to the diffusion of renewable energies
in previous studies. Some common challenges are ambiguous energy policies, unsuitable
legal frameworks, complicated bureaucracy in the approval process, conflicting interests
among stakeholders, and the lack of research and institutions [9]. These factors can have
negative effects on the willingness of stakeholders to invest in renewable energy technolo-
gies [10]. Well-designed laws and regulations are, therefore, crucial to establishing a predict-
able and secure environment that is also flexible for innovations in the sector [11].
The case of agrivoltaics is even more complicated than it is for other renewable energy tech-
nologies since it does not only directly affect the energy but also the agricultural sector.
Moreover, the involvement of all levels of government is necessary to enable effective im-
plementation. Thus, it creates the need for multi-sector and multi-level governance interac-
tions [12]. Therefore, it is crucial to achieving policy integration that surpasses established
policy sectors and enables the sharing of information, the establishment of transparency, and
the aim of reinforcing policies based on the same goals [13]. The resulting joined-up policies
can create win-win situations for all sectors and should be the aim for agrivoltaics. Policy
integration can take place both in horizontal and vertical alignment. Horizontal alignment de-
scribes the interaction within the same level of government [14], whereas vertical alignment
describes the interaction between the national, regional, and local levels of government. The
municipalities play a key role in the adaption of policies and often decide its success or fail-
ure [15]. Therefore, capacity building and awareness-raising on the local level are crucial for
successful implementation [16]. A comprehensive approach that includes both vertical and
horizontal activities is important to establish a shared vision and foster an understanding of
stakeholders from different sectors and governmental levels [17]. Japan is a unitary state
with a strong central government. Research on climate change adaptation indicates that ver-
tical integration in unitary countries is low and sub-national actors are hardly involved in the
formulation of policies [16]. Moreover, Japan has traditionally had a strong departmentaliza-
tion in which each ministry focuses on its own priorities and plans its policies accordingly with
limited interdepartmental coordination or even in rivalry with ministries that have opposing
interests [18]. However, there are also positive examples of horizontal policy integration in
Japan [19].
3. Methods
A Legal Framework Analysis is applied to (1) identify the relevant components of Japan’s
legal framework for agrivoltaics, (2) analyze the law in action, and (3) assess the feasibility of
revising the existing laws and regulations to remove policy constraints. We follow the con-
cepts and guidelines for a Legal Framework Analysis for rural and agricultural projects by the
Food and Agriculture Organization of the United Nations [11]. Legal Framework Analyses
have been successfully employed in energy policy research [20, 21], including a recent study
about the legal framework for agrivoltaics in the U.S. [12].
Regulatory and policy documents were used as a primary source to understand the existing
laws and regulations, as well as to understand the dynamics of the different levels of the
governments related to agrivoltaics. Moreover, a thorough review of the existing Japanese
literature on agrivoltaics was conducted to identify challenges in the law-in-action and at the
same time make Japanese research accessible to a wider international audience.
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4. Results
4.1 Relevant Regulation and Policies
Regulations from both the agricultural as well as the energy sector are crucial for the imple-
mentation of agrivoltaics and will be discussed in the following section.
Unlike traditional ground-mounted PV systems, agrivoltaics are allowed on all categories of
farmland in Japan since a directive by the Agricultural Promotion Bureau of the Ministry of
Agriculture, Forestry and Fisheries (MAFF) was issued in March 2013 [22]. However, the
area of the mounting frame of the agrivoltaics system must be approved for partial land-use
conversion for non-agricultural use by the responsible local Agricultural Councils. Initially, a
permit was permitted only for 3 years after which a re-permit had to be obtained. The re-
quirements for approval are as followed: 1) the mounting structure is only temporary and
easily removable, 2) the shading rate ensures enough sunlight for plant growth, 3) the mini-
mum panel height is 2 meters, 4) the system should not hinder agricultural practices in sur-
rounding areas nor negatively affect the implementation of the “Agricultural Promotion Plan”
and 5) a yield reduction of under 20% compared to the average level of the surrounding
farmland must be ensured which is monitored by annual reporting. The agrivoltaics systems
must be removed in the case that agricultural production cannot be conducted accordingly. In
the 2nd directive on agrivoltaics by the MAFF in May 2018, conditions to receive a 10-year
permit were added if 1) a farmer can demonstrate competence in agricultural practices and
management, or 2) the system is installed on “devastated farmland” or 3) the system is in-
stalled on “second class or third class farmland” [23]. The most recent 3rd directive by the
MAFF in March 2021 allowed for exceptions to the established rules by 1) waiving the height
requirement of 2 m for vertically mounted agrivoltaic systems and 2) abolishing the need for
temporary land conversion and yield requirements for agrivoltaics on devastated land [24].
An Environmental Impact Assessment (EIA) is necessary for solar PV projects, in-
cluding agrivoltaics, with a capacity of over 30-40 MW since an amendment of the EIA Act in
April 2020 [25]. Currently, the agrivoltaic systems in Japan do not reach this large-scale size,
but stricter regulations that include also smaller projects can be enforced by ordinances on a
local level. Agrivoltaics that fulfill the requirements for temporary land-use conversion are not
considered as “buildings” and therefore do not fall under the Building Standard Act according
to the Ministry of Land, Infrastructure, Transport and Tourism notification No. 3762 [26].
The Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities, also known as the Feed-In-Tariff (FIT) Act, was first
introduced in 2012 under the jurisdiction of the Ministry of Economy, Trade and Industry
(METI). It plays a key role in the sale of electricity from the agrivoltaic system by providing a
stable and predictable income for 20 years. The second amendment of the FIT Act was en-
forced in April 2022 and for the first time, provides preferential treatment for small-scale agri-
voltaic systems, which is the most common form of agrivoltaics in Japan. The amendment
requires photovoltaic projects with a capacity between 10-50 kW to allocate 30% of their
electricity to regional use. However, this clause is waived for agrivoltaics if it already received
a ten-year land-use conversion permit and can provide electricity for regional use during
times of disasters [27].
Major national policies in recent years also recognized the importance of agrivoltaics
for both the energy transition and a sustainable agricultural sector. In 2019 and 2020, the
nationwide expansion of agrivoltaics was mentioned in the Follow-up on the Growth Strategy,
which is a yearly governmental report that is approved by the Cabinet Office after the draft is
being discussed with ministries and agencies [28, 29]. The content has a strong influence on
future legislation and policies. For the energy sector, the Basic Energy Plan is a key policy
document by METI. The sixth and newest plan from October 2021 states thatthe expansion
of the introduction of farm-based solar power generation, where both the power generation
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and farming are possible, should be promoted” [2]. For the agricultural sector, MAFF recom-
mended using agrivoltaics in their Basic Plan for Food, Agriculture and Rural Areas, which
stipulates governmental goals for the medium to long-term. Moreover, the Green Growth
Strategy for 2050 Carbon Neutral which is a strategy document to “enable sustainable
growth and innovation by mobilizing all policies” drafted by all relevant ministries in 2021 also
mentions agrivoltaics as a solution to decarbonize the rural areas [30]. These major policies
in recent years by all relevant ministries and legal authorities indicate an increasing horizon-
tal policy integration on the federal level with an aligned goal to strengthen and promote agri-
voltaics to achieve carbon neutrality in 2050.
Horizontal policy integration on the highest level of government is important, especial-
ly in a unitary country like Japan. Nevertheless, vertical policy integration with supportive
measures on a prefectural and local level is also crucial for the actual implementation and
expansion of agrivoltaics. So far, there are only a few examples of supportive measures ex-
plicitly for agrivoltaics, such as subsidies for the necessary equipment [31].
4.2 Law in action
After clarifying that agrivoltaics is legally possible on all categories of farmland if the require-
ments are fulfilled and that there is generally the goal of promoting agrivoltaics by the gov-
ernment, it is important to assess the actual effect of the laws and policies on the ground.
The analysis of the Japanese academic literature on agrivoltaics shows four main barriers to
agrivoltaics in Japan (Table 1):
Table 1. Barriers to a successful implementation of agrivoltaics in Japan.
Category
Barriers
References
Land-use
conversion
a. Yield requirement not based on scientific evidence
b. Arbitrary approval process by local Agricultural Councils
c. Approval process is too complicated/time-consuming
d. Re-permit at least once necessary
[4, 7, 32-40]
Financing
of projects
a. Difficulty to receive loans
b. Declining FIT that does not take higher cost of agrivolta-
ics into account
[4, 33, 36,
37, 39, 41]
Social Ac-
ceptance
(Socio-
political
and mar-
ket)
a. Municipalities and farmers lack awareness and
knowledge about agrivoltaics
b. Concerns about the impact of agrivoltaics on agricultural
production, landscape, living and natural environment and
resulting conflicts with residents/neighbors
c. Increasing bad-practice examples and good-practice
examples are not shared
d. Old farmers without successors cannot commit to 20
years of continuous farming
[7, 32-34,
36-
40, 42,
43]
General
problems
a. Grid constraints
b. High costs of grid connection
[38, 43]
The land-use conversion to non-agricultural land was identified as one of the major barriers
to the implementation of agrivoltaics [4, 7, 31-39]. Especially problematic is the aspect that
the yield requirement is not based on scientific evidence since there is a lack of academic
research regarding the growth of crops under shading in the Japanese environment. Farmers
need to know which crops can be successful in an agrivoltaics setting to be able to make an
informed decision on such a high-cost investment. A failure to meet the yield requirements
would result in the removal of the installation and a severe financial loss.
The yearly yield can also be affected by various factors (e.g., weather, diseases, or
pest) that are not related to the installation of agrivoltaic systems. Moreover, it is difficult to
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access the yield of certain crops that need years until their first harvest, such as cleyera ja-
ponica (Sakaki).
The arbitrary approval process by local Agricultural Councils which often lack suffi-
cient knowledge and have a negative attitude towards agrivoltaics is also seen as problemat-
ic, especially in areas with low numbers of installed agrivoltaic projects. The time needed for
the approval process varies widely between the different municipalities within a range of ap-
proximately three months to two years. 60% of 1174 members of local Agricultural Councils
who were asked about agrivoltaics in 2018 answered that they do not believe that sufficient
agricultural production can be conducted under solar panels [35]. The decisions after a gen-
erally complicated and time-consuming application for a land-use conversion permit are,
therefore, unpredictable and lead to high uncertainty for farmers.
Even if the decision is made to invest in agrivoltaics, it is difficult to secure the financ-
ing for the project [4, 32, 35, 36, 38, 40]. Especially, the need for a re-permit during the pro-
ject duration is seen critically by financial institutions which are reluctant to take this risk and
provide loans. Moreover, the declining FIT rates for solar PV that do not take the higher pric-
es of agrivoltaics into account are challenging [7, 39].
The lack of social acceptance [44] of agrivoltaics is another barrier to the implementa-
tion of agrivoltaics [7, 31-33, 35-39, 41, 42]. The socio-political acceptance is hindered by the
skepticism of municipalities about the impact of agrivoltaics. The potential of agricultural
promotion is only recognized by a few local government and concerns about the negative
impact on the living and natural environment, landscape, and agricultural sustainability pre-
vails. Possible conflicts with residents are feared in this context by municipalities. The occur-
rence of bad practices and the lacking awareness of good practice examples that demon-
strate the wide range of positive effects of agrivoltaics strengthens these beliefs. Most munic-
ipalities are unwilling to enact supportive policies in this context. The market acceptance is
also still low. Many farmers have little knowledge and awareness about agrivoltaics. There
are concerns about soil run-off, agricultural sustainability, and difficult consensus-building
processes with neighbors. Some farmers had bad experiences with PV companies in the
past and are hesitant to allow other businesses than agriculture on their land. Moreover, the
long commitment of 20 years of continuous farming is seen as a burden by older farmers
who have no successors. These factors indicate a low willingness to implement agrivoltaics
for many farmers. Community acceptance also is a concern of municipalities and farmers but
has no empirical backing so far and further research is necessary.
In addition to these specific challenges, there are still general problems with the ener-
gy transition in Japan that also affect agrivoltaics. First and foremost, the grid constraints and
high grid connection costs, especially in rural areas [38, 43].
4.3 Feasibility of addressing legal constraints
The Taskforce for Review of Regulations on Renewable Energy was established in Decem-
ber 2020 with the aim to review and reduce legal barriers in a joint approach of relevant min-
istries and agencies. The regulations of agrivoltaics are also being reviewed and already led
to the 3rd directive by MAFF that exempts the yield requirements for devasted farmland [45].
In February 2022, the MAFF initiated the Advisory Council to Study the Desirable Future of
Agrivoltaics with experts from industry, academia, and government to promote agrivoltaics
that are compatible with the maintenance of prime farmland and in harmony with the local
community [46]. Both efforts present opportunities to address the legal constraints and fur-
ther improve policy integration.
The land-use conversion, especially the uncertainty about the yield requirement, was
identified as a major barrier. Yield requirement is a useful measure to avoid bad practices
that prioritize electricity generation over agricultural production. More research on agricultural
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productivity, crop choice, and agricultural-friendly equipment design can help to reduce the
uncertainty for all stakeholders without the need for a legal change. Moreover, the research
can provide the basis for standardization of the land-use conversion process that reduces the
burden on local governments and agricultural councils.
5. Conclusion
The legal framework analysis identified the directives of the MAFF that set the requirements
for the land-use conversion and the FIT Act for the sale of electricity as the key regulations
for agrivoltaics. Recent policies from various relevant ministries show an alignment of the
goal to promote agrivoltaics and indicate an increased policy integration on the federal level.
However, vertical policy integration is still insufficient with municipalities and local agricultural
councils that often lack understanding and do not share a common vision for agrivoltaics.
Awareness raising and the sharing of good-practice examples are necessary since the local
governments play a key role in the actual implementation of agrivoltaic projects. 702 local
governments already announced their commitment to net-zero carbon emission by 2050 [47]
and can become important facilitators if they realize the potential of agrivoltaics for their
communities and their decarbonization ambitions.
More research on agrivoltaics in the Japanese context is necessary to reduce the re-
maining uncertainties for all relevant stakeholders. This would help to increase the social
acceptance of farmers, municipalities, and agricultural councils. It would also provide finan-
cial institutions with better information for their decision on financing agrivoltaic projects.
Moreover, suitable crops can be identified that guarantee high agricultural production under
the shade of the agrivoltaics systems.
Overall, there are still many challenges to accelerating agrivoltaics from a niche to a
well-established technology in Japan. A comprehensive legal framework based on horizontal
and vertical policy integration can provide a robust basis for a successful expansion.
Author contributions
Christian Doedt: Conceptualization, Data curation, Formal analysis, Investigation, Method-
ology, Project administration, Validation, Writing original draft, Writing review & editing
Makoto Tajima: Guidance, Analytical Framework Tetsunari Iida: Supervision, Funding ac-
quisition
Competing interests
The authors declare no competing interests.
Funding
This work was supported by the Japan Fund for Global Environment.
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... The methodology applied in this study can be further developed through the elaboration of key drivers and barriers for agrivoltaics and social constraints for land use conversion to energy infrastructure [98][99][100]. Given multiple stakeholders and decision-making processes across the agricultural and energy sectors, views on whether, how, and where agrivoltaics is beneficial may vary depending on the agricultural situation, the landscape, and the stakeholders' interests and public expectations [101,102]. ...
... Agrivoltaics should be embedded in the landscape in a co-design process following procedural justice criteria, such as transparency, early and accurate information and participation possibilities [104] and enabling an equitable distribution of benefits and burdens among stakeholders and citizens. Farmers' participation in the co-design of agrivoltaics can help to understand crop varieties and yields' importance and the difference between soil quality and value, which are not always similar [98]. Social acceptance of agrivoltaics as for other renewable energy infrastructure is crucial for the German energy transition. ...
... Social acceptance of agrivoltaics as for other renewable energy infrastructure is crucial for the German energy transition. Although agrivoltaics is seen as superior to GM-PV by combining energy and agriculture production and is popular among experts and farmers [64], public support is not given everywhere and at all times, in particular when it comes to the concrete planning of systems [98,99]. Thus, the potential for agrivoltaics must be developed with stakeholders and citizens to understand their values, expectations and concerns, and feelings according to the principle of the NIMBY (not in my backyard) [105,103]. ...
... In Japan, legislation has been in place since 2013, when an official ordinance was published setting out the conditions for converting agricultural systems to AVs [108]. This included, for example, demonstrating that the conversion would not negatively affect agricultural production (no more than 20% reduction in production), the minimum height of the panels so as not to hinder machinery activities, or the need to include easily removable structures. ...
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This review article focuses on agrivoltaic production systems (AV). The transition towards renewable energy sources, driven by the need to respond to climate change, competition for land use, and the scarcity of fossil fuels, has led to the consideration of new ways to optimise land use while producing clean energy. AV systems not only generate energy but also allow agricultural and livestock yields to be maintained or even increased under PV structures, offering a sustainable production strategy that may be more acceptable to local communities than traditional PV installations. This review assesses the technical feasibility of AV systems, the environmental, economic and social benefits, as well as the challenges faced and the legal framework regulating their implementation. It is highlighted that despite the advantages in land use efficiency and dual food and energy production, there are important challenges related to the initial investment required, the need for technological adaptation, social and regulatory obstacles, or the effects of shading on production. This paper underlines the importance of further research and development of these systems to overcome technical and economic constraints and maximise their potential benefits. It is concluded that although they present significant challenges, AV management offers promising opportunities to improve land efficiency and contribute to several sustainable development goals.
... While the increasing horizontal policy integration on the national level [16] and the recognition that agrivoltaics can help to ease pressing societal problems is positive, agrivoltaics is only mentioned very briefly in the above-mentioned key strategy papers. A concrete vision and specific numerical targets for agrivoltaics are still missing. ...
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