by Agrivoltaics refers to an integration of photovoltaic solar power generation with agriculture on the same land. It involves planting various crops such as tomatoes, cucumbers, berries etc below solar panels installed on horizontal structures with single-axis horizontal trackers or dual-axis trackers. This optimizes land usage by enabling simultaneous generation of solar power as well as crop cultivation.
The global agrivoltaics market is estimated to be valued at US$ 7.61 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the agrivoltaics market are Ombrea, SunAgri, SunSeed APV Private Limited, JA Solar Holdings Co. Ltd., Enel Green Power Spa, Mirai Solar, Namaste Solar, BayWa AG, Next2Sun Technology GmbH, and Insolight SA.
The key opportunities in the Agrivoltaics Market Demand include increased dual usage of agricultural lands, financial incentives provided by governments across regions to promote solar agriculture, and improvement in module efficiency through innovation.
Technological advancements such as single-axis and dual-axis solar trackers have enabled optimization of solar energy generation along with minimal shading impact on crops. Innovations are ongoing to develop agrivoltaic systems suitable for different crops and climatic conditions.
Market Drivers
The primary market driver for agrivoltaics is the urgent need to optimize agricultural land usage. With increasing population and urbanization, arable lands for agriculture are shrinking significantly. Agrivoltaic systems help utilize same piece of land for both electricity generation as well as crop farming, through judiciously placed solar panels. This dual usage optimally addresses the challenge of land scarcity.
Current Challenges in Agrivoltaics Market
The Agrivoltaics Market Size And Trends is still at a nascent stage and facing multiple challenges. One major challenge is widespread lack of awareness among farmers about the integration of agriculture and solar power generation. Educating farmers about the benefits of agrivoltaic systems requires concerted efforts. Proper crop management underneath solar panels is another challenge as insufficient natural light can negatively impact yields. Finding the right crop-panel configuration balance is critical. High initial setup costs also limit the adoption of agrivoltaic systems. Despite subsidies and incentives, upfront investments remain unaffordable for many smallholder farmers. Technical challenges like livestock interference and dust accumulation on panels also need solutions. Overall, overcoming these challenges requires coordinated efforts from governments, agriculturists, and solar industry players.
SWOT Analysis
Strength: Integration of agriculture and solar power offers multiple environmental and economic benefits. It optimally utilizes available land for dual purpose of food and renewable energy production.
Weakness: Agrivoltaic systems require careful designing and management to minimize negative impacts on crop yields. Higher setup costs also limit widespread adoption.
Opportunity: Growing global population and increasing demand for both food and clean energy offer huge market potential. Supportive government policies and incentives are expanding agrivoltaics application worldwide.
Threats: Lack of infrastructure, technical expertise, and proper crop management skills pose challenges. Cost competitiveness against conventional mono-use systems also threatens large-scale commercialization. Adverse climatic conditions can damage integrated agriculture-solar projects.
Geographical Regions
North America accounts for the largest share of the global agrivoltaics market currently both in terms of value and volume. Favorable government policies and presence of leading solar industry players have boosted installations. The Asia Pacific region is expected to be the fastest growing regional market during the forecast period backed by widespread solar energy adoption in China, India, Japan, and other Asian countries facing land constraints. Governments in Asia are increasingly incentivizing integrated agrivoltaic projects. Europe is another major geographical concentration area for the market driven by the EU’s agricultural and renewable energy goals.
The Asia Pacific region is projected to exhibit the highest CAGR in the agrivoltaics market during the forecast period. Presence of densely populated countries such as China and India facing twin challenges of ensuring food and energy security with limited cultivable lands, is driving innovative agrivoltaic projects. Governments in the region are aggressively promoting renewable energy adoption and implementation of integrated agrivoltaic models for efficient space utilization. Rising government investments and supportive policies will accelerate market growth rates across Asia Pacific over the coming years.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
