Agrivoltaics Market Size, Share, By Crop (Vegetables, Fruits, Crops, and Others), Placement (Ground Mounted, Shading Nets, Greenhouses, and Others), System Design (Fixed Solar Panels and Dynamic), Application (Grassland Farming, Horticulture and Arable Farming, Indoor Farming, Pollinator Habitat, and Others) and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the market is contemplated to enlarge at USD 13.3 Billion.
• Agrivoltaics market size was calculated at USD 4.4 Billion in 2024.
• Target market is expanding at a CAGR of 12.4%.

Agrivoltaics is the use of land for both agriculture and solar photovoltaic energy generation. This system looks at agriculture and solar energy production as compliments to the other instead of as competitors. By allowing working lands to stay working, agrivoltaic systems could help farms diversify income. The agrivoltaics market is growing due to a combination of factors, including government support, technological advancements, a growing demand for renewable energy, the need for more sustainable farming, increasing demand for agricultural land, and the need to adapt to climate change.

Influence of AI on Agrivoltaics Market:

• The integration of AI and ML into the operational and planning phases of agrivoltaic systems represents a ground-breaking leap forward. These advanced algorithms have the capacity to analyze vast amounts of data, identify intricate patterns, and uncover correlations that traditional methods might overlook. AI and ML can gain valuable insights into system performance, leading to data-driven decisions for enhanced efficiency and productivity.

Key Drivers of Target Market:

Growing Adoption of Agrivoltaics to Increase Farm Productivity is Driving Market Growth

Agrivoltaics is an approach that utilizes solar energy production with conventional farming practices to optimize the use of land resources of limited nature. This approach allows solar panels to be installed above crops or grazing areas. This is due to the fact that while generating renewable energy, the panels create a beneficial microclimate. This leads to reduction in water evaporation, lowering temperatures, amongst others that enhance the growth of certain crops.

• For instance, in 2024, according to Harbingerland, agrivoltaics contributes to increase in productivity of the farm by 35% to 73% by addressing high level priorities including sustainable agriculture and clean energy generation amongst others.

Restraints:

High Initial Investments for Installation and Designing of the Site are Further Restraining the Agrivoltaics Market Expansion

The primary factor restraining the agrivoltaics market is associated with the high initial investment of equipment such as solar panels and the high cost of designing systems for the farm. Moreover, the cost of solar panels for a 1-acre farm typically ranges from USD 180,000 to USD 220,000 acts as a restraining factor for small and medium-sized farmers. Additionally, the average cost of photovoltaic (PV) power purchase agreements cost is increasing and varied with respect to the region.

• Counterbalance Statements: To address the high initial cost of installing and designing an agrivoltaic site, potential solutions include government incentives such as subsidies and loans, optimizing system design based on crop needs, utilizing innovative technologies such as adjustable panels, and so on.

Opportunities:

Integration of Sophisticated Technology may help to Expand Market in Future

AI and ML advancements in optimization and forecasting are pivotal in unlocking the transformative power of agrivoltaics. Through predictive analytics, real-time monitoring, and continuous improvement, these cutting-edge technologies empower researchers and developers to make data-driven decisions, ultimately enhancing efficiency, productivity, and sustainability of agricultural activities.

• For instance, in July 2024, Israeli startup agRE.tech, which is developing a robotic operating system tailored for agrivoltaics projects, announced that it has completed a pre-seed fundraising round of USD 2 million. agRE.tech has been dedicated to developing an advanced robotic operating system tailored for agrivoltaic areas. This system, integrated into existing photovoltaic infrastructure, utilizes artificial intelligence to execute complex agricultural tasks autonomously, such as selective spraying, pruning, and harvesting.

The market is distributed into crop, placement, system design, application, and region.

Crop

Appertaining to crop, the market is categorized into vegetables, fruits, crops, and others. Crops are expected to have the largest agrivoltaics market share as they require less direct sunlight than leafy greens and fruits.

• For instance, in January 2024, RWE, a major energy company, has recently operationalized an agrivoltaic (Agri-PV) plant in North Rhine-Westphalia, Germany. The plant cultivated various crops such as alfalfa, broad beans, forage grass, cereals, sugar beet, potatoes, and vegetables.

Placement

Ground mounted, shading nets, greenhouses, and others are placements upon which market is divided. The greenhouses contribute to the enormous market growth, as it allows for optimal control of the microclimate under the solar panels, enabling precise temperature and humidity management.

System Design

By system design, the market is segmented into fixed solar panels and dynamic. The dynamic solar panels segment dominates the market as they are designed to track the sun's movement and adjust the position of the solar panels to maximize sunlight exposure for crops.

• For instance, in March 2023, TeraLight, an Israeli renewable energy firm, and Sun’Agri of France have announced a strategic partnership in Israel’s field agrivoltaics. This partnership combines TeraLight’s expertise in solar-energy Pollinator Habitat and project development with Sun’Agri’s dynamic software for managing solar fields.

Application

The market is pigeonholed into grassland farming, horticulture, and arable farming, indoor farming, pollinator habitat, and others, on account of application. Pollinator habitat is the leading application segment in the global agrivoltaics market. This is due to it's a key part of the shift to sustainable agriculture and renewable energy.

• For instance, in December 2022, The US-based Electric Power Research Institute (EPRI) and the Sacramento Municipal Utility District (SMUD) launched a project aimed at restoring prairie lands and pollinator habitat under solar arrays along a 20-acre plot of land in Sacramento County, California. The team created a pollinator habitat under a 160 MW utility-scale solar project and measure changes in energy, soil carbon, and management costs at the site.

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Europe: Europe holds the largest agrivoltaics market share of 37.1%, primarily due to a significant shortage of farmland, driving the adoption of agrivoltaic systems to maximize crop efficiency and food production within limited agricultural land space; coupled with supportive government policies promoting renewable energy and green farming technologies.

• For instance, in May 2024, Portugal, with the support of the Ministry of Agriculture and Rural Development, has awarded Akuo, a renewable energy developer, an experimental agrivoltaic project as part of the National Agricultural Modernization Program. The project, part of Europe's NextGenerationEU recovery plan via the Recovery and Resilience Facility, is located in Alcobaça, a key agricultural region of the country.

Asia Pacific: Asia Pacific is considered the fastest growing market for agrivoltaics, primarily due to its rapidly growing population, increasing demand for sustainable energy solutions, and government initiatives promoting the adoption of agrivoltaic technology in countries like China, India, and Japan; all while facing challenges of limited arable land and the need to maximize land use efficiently.

• For instance, in October 2024, Trinasolar, a global leader in smart photovoltaic (PV) and energy storage solutions has joined forces with Kiwi Solar and Trilect to launch Waikato's first-ever agrivoltaics project and marking Trinasolar's third foray into dual use agricultural and solar farming in New Zealand.

Agrivoltaics Market Report Scope:

Segmentation:

By Crop:

• Vegetables
• Fruits
• Crops
• Others

By Placement:

• Ground Mounted
• Shading Nets
• Greenhouses
• Others

By System Design:

• Fixed Solar Panels
• Dynamic

By Application:

• Grassland Farming
• Horticulture and Arable Farming
• Indoor Farming
• Pollinator Habitat
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The companies operating in the agrivoltaic market include TSE, BayWa r.e. AG, Insolight, JA SOLAR Technology Co.,Ltd., and others. These players are concentrating on optimizing system design to maximize both crop yield and solar energy generation by carefully selecting crops suitable for shade, tailoring panel configurations to specific agricultural practices, and collaborating with farmers to develop customized solutions for development of agrivoltaics market.

List of Key Players in the Market:

• Agrivoltaic Solutions
• TSE
• BayWa r.e. AG
• Insolight
• JA SOLAR Technology Co., Ltd.
• Enel Spa
• Sun’Agri
• Ombrea
• Soltec
• SolarEdge
• Trinasolar
• Boralex Inc.
• TotalEnergies
• REM TEC s.r.l.

• In July 2024, Agri-Light Energy Systems, an Israeli agrivoltaic startup, recently launched its first pilot project in the Negev Desert. The company used patented technology based on two-axis sun tracking. The first project features a rail system to move the solar panels horizontally above the crops, while the second will position them at an optimal angle toward the sun.
• In May 2024, IEA PVPS started a new format for expert engagement: an Action Group on Agrovoltaics; a collaborative effort to harness the synergy between agriculture and solar energy generation. Through international cooperation and interdisciplinary engagement, the group aims to unlock the potential of agrivoltaics, optimizing land use efficiency, enhancing agricultural resilience to climate change, and fostering social consensus towards solar energy development.
• In December 2023, Turkey has inaugurated its first agrivoltaic research project featuring a single-axis solar tracking system in the country’s Ankara province. The project is the first and most comprehensive application in Turkey of a solar power plant with a solar tracking system on an open agricultural field, according to ODTÜ-GÜNAM, part of the Middle East Technical University (ODTÜ/METU).

Analyst View:      

The market for agrivoltaics is expanding as a result of several factors, such as government assistance, technological developments, rising demand for renewable energy, the need for more environmentally friendly farming practices, rising demand for agricultural land, and the need to adjust to climate change.

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