A newly released report has found better planning, more research, and targeted government policy are needed to meet the "enormous potential" of agrisolar projects in Australia.
Agrisolar, or agrivoltaics, refers to co-locating agricultural production systems with solar development.
The report by Farm Renewables Consulting, Pursuing an Agrivoltaic Future in Australia highlighted the potential for agriculture under solar panels but emphasised the need for good planning.
Co-author of the report and Farm Renewables Consulting director Karin Stark said agrisolar adoption had been slow for many reasons, including knowledge gaps, poor planning, and technical and economic impediments.
"I found there was considerable optimism for the feasibility of agrisolar in Australia, but change is required to ensure future solar developments are undertaken in a way that guarantees successful outcomes," Ms Stark said.
"International studies have highlighted several benefits associated with solar over crops, such as enhanced yields in the case of certain produce like berries, tomatoes and leafy greens.
"Solar over vineyards has also demonstrated benefits to the sugar and alcohol content of grapes given the fruit's sensitivity to hot weather.
She said research overseas had shown increased soil moisture, reduced irrigation demands, and protection from extreme weather like hail or heat.
"We know that we can combine agriculture and solar in really beneficial ways when it's done properly with good consultation with the farmers and communities with a design that you can enable tractors and small equipment to go through, and particularly with viticulture," Ms Stark said.
"In places like France, they've put solar panels over grapes because they are very susceptible to heat damage, and they've shown quite good improvements in sugar and alcohol content of grapes with partial shade.
"In warming climates like Australia that'll become even more important for viticulture."
Another recommendation in the report was for the insurance sector to cooperate in developing a workable and industry-wide grass height policy for solar facilities.
"Insurance companies generally require less than 10 millimeters of vegetation height for solar farms and that is not conducive to the health of animals when farmers want large amounts of biomass," she said.
"They need seeds to be able to develop and grow."
The report comes as a proposal to construct the Meadow Creek Solar Farm - a 566-hectare agrisolar facility on premium agricultural grazing land in the King Valley has drawn criticism.
The proposed agrisolar farm is located on four recognised government overlays on strategic agricultural land, in a special water catchment zone, a bushfire-prone zone and high-value terrestrial land.
Local beef farmer and spokesman for the Meadow Creek Agricultural Community Action Group, John Conroy, Bobinawarrah, said there was concern about the lack of liability insurance surrounding the proposed solar farm.
"If we start a fire with a slasher or a grinder and we burn the next door neighbour out, we can always cover them with our liability insurance but when it's a solar farm... with its initial estimates of its cost at $750 million, that leaves you selling your farm to cover the costs." he said.
He said liability could equate to "hundreds of millions of dollars."
"If we can't get insured, who on earth is going to insure a solar facility in a bushfire prone zone with lithium batteries and 566-hectares of electrical components?" Mr Conroy said.
"Will the solar company have insurance to cover damages if they burn our community out?"
Mr Conroy said there was an "unnecessary risk" the proposed solar facility would pose on the community and said that agrisolar had some production limitations.
"There is about 96 per cent of Australian land classed as non-arable, so why are we not focusing on using this land for renewables?" he said.
In an online document addressing agricultural land use, the Meadow Creek Solar Farm said that they intend to maintain the site as an agrisolar facility with sheep grazing, but grazing may be limited in wetter months.
"Sheep grazing is considered the most suitable agricultural enterprise to implement at Meadow Creek Solar Farm as it is an existing agricultural activity in the region, and sheep are less likely to cause damage to solar infrastructure," the document states.
However Mr Conroy disputes this and said the area is primarily best for cattle, and sheep would not be able to manage spring growth.
The solar farm's website FAQ states the area was chosen as it was near the Dederang to Glenrowan transmission line sand grid assessments showed "there would be available capacity in this transmission line to support the project."
Feasibility and environmental assessments are completed, but a planning application has not yet been submitted for the solar farm.
Federal MP for Indi Helen Haines had also recently met with the Meadow Creek farmers and gave recommendations when the Australian Energy Infrastructure Commissioner, Professor Andrew Dyer recently visited her electorate to conduct roundtables.
His visit was part of a review to advise on how best to engage with communities about renewable energy and transmission projects.
Dr Haines's submission to the review said there was a need to "develop clear mapping defining land that isn't suitable for development of renewable energy infrastructure."
The report also underscored the need for further research and demonstration sites to increase agrisolar use.
"Solar grazing can have clear economic benefits for both solar developers and graziers and play an important role in achieving community support for large scale solar development in rural areas," report co-author Andrew Bomm said.