Solar in the Vineyard: Is Agrivoltaics the Next Big Solar Trend for BC Farms and Canadian Small Businesses?

Ever feel like you’re constantly battling two enemies you can’t control: rising BC Hydro rates and unpredictable Okanagan weather?

I hear this frustration from business owners every week. You aren’t the only one worried about how a sudden heat dome or a cold snap could wipe out a season’s hard work.

But what if the solution to protecting your vines was the same one that lowered your power bill?

Double Barrel Vineyard in the South Okanagan is betting on exactly that. They are planning to be the first commercial-scale vineyard in North America to use agrivoltaics—installing solar panels directly above their grapevines.

In my 12 years as a solar energy consultant, I’ve seen many trends come and go, but this combination of farming and energy generation is the most promising shift I’ve witnessed for Canadian agriculture.

This guide will walk you through how agrivoltaics works, the real numbers behind the savings, and why this might be the protection plan your farm needs.

Key Takeaways

• Double Barrel Vineyard plans to install agrivoltaic solar racks directly above their vines. Similar projects and modelling work in New York use vertical bifacial panels between vine rows.
• The new Federal Clean Technology Investment Tax Credit (ITC) allows Canadian businesses to claim a refundable 30% tax credit on solar capital costs, significantly lowering the barrier to entry.
• Agrivoltaic systems can generate roughly $400 per acre in extra revenue annually; a 200-acre operation could see an $80,000 boost from power production alone.
• Panels create a microclimate that can reduce water evaporation by up to 20%, lowering irrigation costs and protecting vines from extreme heat domes.
• While the initial investment is high—estimated at $33 million for Double Barrel’s massive project—the payback period is around 12–13 years, securing long-term land stability.

What is Agrivoltaics and How Is It Used in Canadian Vineyards?

Agrivoltaics is the practice of using the same plot of land for both solar energy generation and agriculture.

It’s not just about slapping panels on a roof; it’s about integrating them into the field itself. At Double Barrel Vineyard, the plan involves using vertical bifacial panels.

Unlike traditional panels that face the sky, these stand upright like a fence. This design is brilliant for Canada because it captures sunlight from both sides—morning sun on the east face and afternoon sun on the west.

Plus, during our snowy BC winters, vertical panels don’t get covered in snow. In fact, they generate up to 30% more energy by capturing the sunlight reflecting off the white snow on the ground, known as the “albedo effect.”

Smart Technology for Better Grapes

These systems do more than just generate power. They act as a shield.

The setup includes thermal shade curtains that can deploy to create an enclosure. This protects vines from the kind of sudden cold snaps that devastated 95% of the BC grape crop in early 2024.

The technology is incredibly precise. Sensors and hyper-spectral cameras mounted on the racking system constantly monitor plant health. They can spot mildew or pests before you can see them with the naked eye, allowing you to treat only the affected area rather than spraying the whole field.

Research suggests that replacing every fifth row of vines with these solar arrays creates a stable microclimate. This setup can add $400 per acre in annual revenue while improving moisture retention in the soil—critical during those dry Okanagan summers.

A similar pilot project at Cornell AgriTech is currently studying these benefits to help more growers adopt the technology.

Benefits of Agrivoltaics for Vineyards and Small Businesses in Canada

The financial argument for agrivoltaics is getting stronger, especially with new government support.

Farmers can increase their revenue by approximately $400 per acre each year through energy generation. For a standard 200-acre vineyard, that is an extra $80,000 annually just from electricity.

The 30% Tax Credit Advantage

The biggest recent change for Canadian business owners is the Clean Technology Investment Tax Credit (ITC).

This federal incentive offers a refundable 30% tax credit on the capital cost of eligible solar property. If you spend $1 million on a system, you could get $300,000 back at tax time. This drastically changes the ROI calculation for farms considering a major upgrade.

Beyond the tax credits, the operational savings are real:

• Water Conservation: Panels provide partial shade, reducing soil evaporation. You could see irrigation costs drop by close to 20%.
• Disease Control: Dual-sided upright arrays encourage better airflow compared to tilted panels, which helps keep fungal diseases like powdery mildew at bay.
• Land Optimization: You don’t need to buy new land to build a solar farm. You are simply adding a second “crop” (energy) to the land you already own.

With projects projected to generate over 16,000 megawatt-hours annually, this system strengthens both your bottom line and your brand’s sustainability story.

How Agrivoltaics Cuts Energy Costs and Creates Revenue

Generating your own power creates an immediate buffer against rising utility rates.

By producing your own electricity, you reduce your dependence on the grid. This means your operating costs become predictable, rather than fluctuating with every rate hike BC Hydro announces.

Understanding BC Hydro’s Self-Generation Program

In British Columbia, you can connect your system to the grid through the Self-Generation Program (formerly Net Metering).

Here is how it works: when your panels produce more power than your farm needs (like on a sunny July afternoon), that excess energy is sent to the grid. You get a credit for it, which you can use to offset the power you draw at night or during the winter.

Pro-Tip: Be aware of the 100 kW limit. BC Hydro’s standard program is designed for systems up to 100 kilowatts. If you are planning a massive array like Double Barrel’s, you will need to enter into a more complex interconnection agreement. Always consult with a specialized electrical engineer early in your planning phase to navigate these specific utility rules.

For rural businesses, this stability is a game-changer. You turn a variable monthly expense into a fixed asset that pays you back.

Protecting Crops and Improving Yields in a Changing Climate

We all remember the heat dome of 2021. Temperatures in the interior soared past 40°C, effectively cooking berries on the vine.

Agrivoltaics acts as a physical insurance policy against these extremes.

The shade from the panels lowers the ambient temperature around the vines by 2-3 degrees Celsius during peak heat. This might sound small, but it is often the difference between a healthy grape and a sunburned raisin.

Agrivoltaics vs. Traditional Farming

Canadian studies confirm that some crops actually produce higher yields under this filtered light. It prevents the plant from shutting down photosynthesis due to heat stress.

By leasing space for solar projects while keeping the fields productive with crops like berries, beans, or grapes, you are optimizing every square metre of your land.

What Are the Common Challenges When Implementing Agrivoltaics?

While the benefits are clear, I always tell my clients to be realistic about the hurdles. This is a major construction project, not a weekend DIY job.

The Financial Barrier

The upfront cost is the biggest shock. The Double Barrel Vineyard project estimates a $33 million investment.

Even for smaller setups, the racking and installation for agrivoltaics are more expensive than standard rooftop solar because the structures must be elevated and reinforced. A payback period of 12 to 13 years is typical, which requires a long-term view on capital.

Regulatory Hurdles

You must navigate the rules of the Agricultural Land Reserve (ALR).

Historically, placing non-farm structures on ALR land was difficult. However, the BC government recently introduced Bill 14, which streamlines permitting for renewable energy projects on farm land. This is a positive step, but you still need to ensure your design prioritizes agriculture to get approval.

Technical Constraints

Wind is a serious threat. In the open valleys of BC, gusts can be powerful.

Your racking system needs to be engineered to withstand high wind loads, which adds to the cost. You also need to plan your row spacing carefully. Standard tractors might not fit between solar rows, meaning you might need to invest in narrower machinery or custom agrivoltaic layouts.

Finally, there is a knowledge gap. Since this is new technology in Canada, finding experienced installers who understand both high-voltage electrical work and delicate viticulture needs can be tough.

Conclusion

Agrivoltaics is taking root in BC vineyards because it solves two problems at once: the need for clean energy and the need for crop protection.

Projects like Double Barrel Vineyard are proving that you don’t have to choose between farming and solar power. By using vertical bifacial panels and smart design, you can lower your risk from harsh weather while building a reliable, passive income stream.

It is a big investment, but with the new 30% Federal Investment Tax Credit and the promise of stabilizing your long-term costs, it is a path worth exploring.

If you have land and you are tired of worrying about the next heat wave or rate hike, it might be time to look at the sun in a whole new way.

FAQs

1. What is agrivoltaics and how does it work in a vineyard or on Canadian farms?

Agrivoltaics involves installing raised solar panels directly over active farmland, allowing crops like Okanagan grapes or Fraser Valley berries to thrive underneath. This dual-use setup generates clean electricity without sacrificing valuable agricultural land, effectively allowing you to harvest the sun twice.

2. Are there real benefits for BC farms and small businesses using agrivoltaic systems?

Beyond offsetting energy costs, these systems act as a shield against BC’s intense summer heat domes, reducing water evaporation by up to 30% and protecting sensitive fruit yields.

3. Is installing solar in vineyards expensive for small business owners?

While the initial investment is significant, the federal Clean Technology Investment Tax Credit now covers 30% of the capital cost for Canadian businesses. When combined with energy savings and potential surplus sales to BC Hydro, the return on investment often makes sense within 8 to 10 years.

4. What practical steps should BC farm operators take before starting an agrivoltaic project?

Your first step must be checking with the Agricultural Land Commission (ALC) to ensure your project meets current non-farm use regulations. I always recommend working with an installer who understands BC’s specific sun angles and can design a system that accommodates your tractor height and crop spacing. Finally, secure your funding by applying for the federal Agriculture Clean Technology Program before breaking ground.

References

1. https://cals.cornell.edu/news/2025/09/solar-panels-offer-new-revenue-stream-for-grape-farmers
2. https://www.smallfarmcanada.ca/news/could-agrivoltaics-makes-grape-farms-more-profitable-in-cana/ (2025-09-12)
3. https://www.pentictonherald.ca/life/article_18da92cc-c92e-4f3d-88de-6eab93e81262.html
4. https://www.climatehubs.usda.gov/hubs/northwest/topic/agrivoltaics-pairing-solar-power-and-agriculture-northwest
5. https://news.cornell.edu/stories/2025/02/solar-solutions-agrivoltaics-offer-array-options-farmland-use (2025-02-25)
6. https://theconversation.com/the-gift-that-keeps-on-giving-how-solar-panels-on-farms-can-help-increase-crop-yields-269264
7. https://www.mdpi.com/2071-1050/16/18/8271
8. https://www.pentictonherald.ca/life/article_18da92cc-c92e-4f3d-88de-6eab93e81262.html