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What farmland conditions allow agrivoltaics (solar sharing)?

Watercolor illustration of a low-rise office building reflecting the sky
浦松 丈二

浦松 丈二

代表取締役・宅地建物取引士(四葉不動産株式会社)

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Agrivoltaics (solar sharing) does not convert farmland wholesale into residential land; it uses only the post foundations under the Agricultural Land Act's 'temporary conversion permit,' while farming continues underneath. So even First-class farmland, normally hard to convert, may be eligible if certain conditions are met. The key is that yield under the panels must not fall by roughly 20% or more. A Tokyo real estate agent and administrative scrivener in Bunkyo-ku explains the farmland conditions.

In short: Agrivoltaics (solar sharing) does not convert farmland wholesale into residential land; it uses only the post foundations under the Agricultural Land Act's "temporary conversion permit," with farming continuing underneath. So even First-class farmland, where conversion is normally difficult, may be installable if certain conditions are met. The key is that the yield under the panels must not fall by roughly 20% or more. Permit applications go to an administrative scrivener, post-installation registration to judicial and land/house surveyors, and tax on power-sale income and inheritance to a tax accountant — each referred separately.

This is written for landowners considering how to use inherited or held First-class farmland or farmland in an urbanization-control area, and for real estate operators handling farmland deals. We organize the "farmland conditions for installing agrivoltaics" from the Agricultural Land Act and the Ministry of Agriculture, Forestry and Fisheries (MAFF) guidelines. We handle property and use-related information; farmland conversion permit applications, registration, tax, and disputes are each referred to the appropriate qualified professional.

Is agrivoltaics a "conversion" of farmland, or a "temporary conversion"?

It is a "temporary conversion" of only the post foundations, not a wholesale conversion. Farming continues under the panels.

Agrivoltaics installs posts in farmland with solar panels above, and farming continues underneath. MAFF's "Guidelines on the treatment of agrivoltaic power generation under the farmland conversion permit system" (25 March 2024, No. 5-Noshin-2825; effective 1 April 2024) treats the post foundations as subject to a temporary conversion permit under Article 4(1) (self-conversion) or Article 5(1) (conversion with a transfer of rights) of the Agricultural Land Act (Act No. 229 of 1952), while the farmland below continues to be farmed.

TopicFull conversion (ordinary solar)Agrivoltaics (solar sharing)
Treatment under the ActFarmland converted to residential etc. (Art. 4/5 conversion permit)Only post foundations: temporary conversion permit
Land belowCeases to be farmlandRemains farmland; farming continues
Permit periodPermanent conversionFixed temporary conversion (3 years in principle, 10 in certain cases)
Farming requirementNoneYield under the panels must not fall by roughly 20% or more

Ordinary solar is a full conversion that extinguishes the farmland, so depending on the farmland class the permit is not granted. Agrivoltaics is decisively different in that "the farmland stays farmland and is used while only the posts are temporarily converted." The general flow of farmland conversion permits is in The flow of farmland conversion permits (Art. 4 / Art. 5), and selling or leasing inherited farmland in First things to check when selling or leasing inherited farmland.

Can it be installed even on First-class farmland or control-area land?

If certain conditions are met, there is room for a temporary conversion permit of the post foundations even on First-class farmland. But farmland inside an agricultural-use zone (so-called "blue zone") involves separate procedures.

In an ordinary full conversion, First-class farmland (highly productive land such as contiguous blocks of about 10 hectares or more) is in principle not permitted for conversion. But because agrivoltaics keeps farming going, MAFF shows a treatment under which even First-class farmland may receive a temporary conversion permit if certain conditions are met. Farmland in an urbanization-control area is likewise considered on the premise that farming continues.

Farmland classFull conversionTemporary conversion of agrivoltaic posts
Second/Third-classReadily permittedPossible; the period may be up to 10 years
First-classIn principle not permittedRoom for a permit if certain conditions are met
Agricultural-use-zone land (blue zone)In principle not permittedRemoval from the agricultural-promotion plan etc. may be required first

Farmland inside an agricultural-use zone (a "blue zone") is included in an agricultural-use area under the Act on Establishment of Agricultural Promotion Areas, and removal from the development plan etc. may become a prerequisite for conversion. Which class the land falls into, and which procedure comes first, should be confirmed with the agricultural committee and prefecture, and with an administrative scrivener for the application. Whether a permit is granted is an individual judgment for each parcel.

What happens to the permit if the farming requirement (shading / 80% yield) is not met?

If yield under the panels falls by roughly 20% or more against the regional average, continued farming is not recognized, and the permit may be revoked or restoration required.

The agrivoltaic temporary conversion permit is conditioned on "farming continuing appropriately under the equipment." The guideline's criterion is that the yield per unit area of the farmland under the equipment does not fall by roughly 20% or more compared with the regional average yield of the same crop — in other words, maintaining 80% or more of the yield. There is no uniform numeric standard for "shading ratio" itself; actual yield is now the measure.

Item to checkContent
Maintaining yieldYield under the panels is roughly 80%+ of the regional average (no drop of 20%+)
Annual reportReport the farming situation once a year to the agricultural committee etc.
If farming is impairedWhere no improvement is expected, revocation of the permit / removal of posts / restoration may be required
Choice of cropA crop tolerant of shading; whether sunlight and panel layout coexist with farming

If yield cannot be secured, the premise of the permit collapses even if power sales continue. Before installing, design which crop can maintain yield and who the farming operator will be. Farmland valuation and inheritance treatment are also touched on in Points when selling inherited productive green land.

How often must the temporary conversion permit be renewed, and who applies?

The temporary conversion permit period is 3 years in principle, and up to 10 years in certain cases. It can be re-permitted at expiry if there is no problem. Because it is a farmland conversion permit procedure, an administrative scrivener handles it.

The guideline divides the temporary conversion permit period as follows.

PeriodWhen it applies
Up to 10 years(1) a certified farmer or similar operates the land below; (2) abandoned/idle farmland is reclaimed; (3) Second/Third-class farmland
Up to 3 yearsCases other than the above

Even at expiry, re-permission allows continuation if farming continues appropriately and there is no impairment to surrounding farming. Conversely, if yield is not maintained or reports are missing, re-permission may not be granted.

Have a question about your situation?

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The temporary conversion permit application and the annual report — preparing documents submitted to a public office is the business of an administrative scrivener. In the Yotsuba group, property and use consultations are handled by Yotsuba Real Estate Co., Ltd., and farmland/temporary conversion permit applications by the affiliated Yotsuba Administrative Scrivener Office under a separate contract. Subdivision and other registrations of physical description after installation go to a land/house surveyor, and ownership and other rights registrations to a judicial scrivener — each engaged directly.

Where should power-sale income and inheritance tax be discussed?

Power sales operate under the Agency for Natural Resources and Energy's FIT/FIP scheme, and tax on income and on inheriting equipment/farmland is for a tax accountant. We limit ourselves to property and use information and make no tax judgments.

Agrivoltaic power sales rest on the feed-in tariff (FIT) or market-linked premium (FIP) scheme administered by the Agency for Natural Resources and Energy. Income tax/corporate tax on power-sale income, depreciation of equipment, and valuation and taxation when inheriting farmland or equipment are all areas for a tax accountant; neither we nor our office judges them.

Where to consultWhat they handle
Yotsuba Real Estate Co., Ltd.Information on property/farmland use; brokerage of sales and leases
Yotsuba Administrative Scrivener Office (separate contract)Farmland/temporary conversion permit applications; annual reports
Land/house surveyorSubdivision and other registrations of physical description
Judicial scrivenerRegistration of ownership and other rights
Tax accountantTax on power-sale income, equipment, and farmland inheritance
LawyerDisputes over leases or with neighbors

We and our office, and the various professionals, are each independent business entities. Where roles overlap, we clarify before the contract who handles what, and you contract with each separately. We neither receive nor pay any referral fee or introduction commission. Consultations are free. Inheritance including farmland is at Inheritance consultations; business use of farmland at Investment & commercial real estate.

FAQ

Q. Does agrivoltaics turn farmland into residential land?
A. No. Rather than fully converting farmland to residential etc., it uses only the post foundations under the "temporary conversion permit" of Article 4(1)/5(1) of the Agricultural Land Act, and farming continues underneath. The land below remains farmland. This is decisively different from the full conversion of ordinary solar, which extinguishes the farmland.

Q. Can it be installed even on First-class farmland?
A. If certain conditions are met, there is room for a temporary conversion permit of the post foundations even on First-class farmland. Full conversion of First-class farmland is in principle not permitted, but agrivoltaics, which continues farming, is considered exceptionally. However, agricultural-use-zone land (blue zone) may first require removal from the agricultural-promotion plan. Confirm the individual case with the agricultural committee/prefecture and an administrative scrivener.

Q. What happens to the permit if the harvest drops?
A. The guideline requires that yield per unit area under the panels not fall by roughly 20% or more against the regional average of the same crop (maintaining 80%+). The farming situation must be reported once a year, and if yield drops so much that no improvement is expected, the temporary conversion permit may be revoked and removal of posts / restoration required.

Q. How often is the permit renewed, and who applies?
A. The temporary conversion permit period is 3 years in principle, and up to 10 years where a certified farmer or similar farms the land, where abandoned farmland is reclaimed, or for Second/Third-class farmland. At expiry it can be re-permitted if farming is sound. Preparing the application and annual reports submitted to a public office is handled by an administrative scrivener (separate from our company).

Sources (primary information)

  • Which farmland class applies, whether a permit is granted on First-class or agricultural-use-zone land, and any required prerequisite procedures (removal from the agricultural-promotion plan etc.) are judged per parcel. This article does not assert whether a specific permit is granted; applicability is treated as [unverified], assuming confirmation by the agricultural committee/prefecture and an administrative scrivener.
  • The period divisions, yield judgment, and report formats may change with local practice or the latest notices. Confirm against e-Gov Law Search and MAFF's latest guidelines.
  • Tax treatment of power-sale income, equipment, and farmland inheritance varies with the business form and circumstances. This article does not assert specific tax amounts/rates.
  • This article is general information, not an individual legal or tax judgment. Farmland/temporary conversion permit applications are for an administrative scrivener, physical-description registration for a land/house surveyor, rights registration for a judicial scrivener, tax for a tax accountant, and disputes for a lawyer.
  • Property and use information and brokerage are handled by Yotsuba Real Estate Co., Ltd. (real estate brokerage); the various professionals contract with you separately as independent business entities. There is no exchange of referral fees or introduction commissions.

About the author

Joji Uramatsu — Licensed Real Estate Transaction Specialist (Tokyo Governor registration No. 293544) and Administrative Scrivener (registration No. 25087022). Representative Director of Yotsuba Real Estate Co., Ltd. (real estate brokerage, Tokyo Governor (1) No. 113304) / Head of Yotsuba Administrative Scrivener Office. Kohinata, Bunkyo-ku, Tokyo, about 5 minutes' walk from Myogadani Station. For the use of inherited or held farmland, the farmland class, the Act's permit/temporary conversion, and the farming-continuation requirement are confirmed side by side. See the author page for the full profile.

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