Agrivoltaic systems, comprising photovoltaic panels placed over agricultural crops, have recently gained increasing attention. Emerging interest in these systems led us to investigate their influence on rice crops. Various factors affecting rice crop yield, including fertilizer application, temperature, and solar radiation, were directly observed, and measured to evaluate changes associated with the shading rates of photovoltaic systems installed above rice crops. The results suggest that the allowable upper limit of the shading rate for agrivoltaic installations ranges from 27 to 39%, which sustains at least 80% of the rice yield, a condition set by the Japanese Ministry of Agriculture, Forestry and Fisheries for these systems. If such systems are applied to rice paddies in Japan at 28% density, they could generate 284 million MWh/yr. This is equivalent to approximately 29% of the total Japanese electricity demand, based on 2018 calculations. This projection indicates the potential of agrivoltaic systems for efficient land use and sustainable energy generation.