Agrivoltaics Market Growth at 11.3% CAGR Until 2034

Overview

New York, NY – August 07, 2025 – The Global Agrivoltaics Market is projected to reach USD 12.0 billion by 2034, growing from USD 4.1 billion in 2024, with a CAGR of 11.3% from 2025 to 2034. North America leads the market, holding a 42.8% share, valued at USD 1.7 billion in 2024.

Agrivoltaics integrates solar energy generation with agriculture on the same land. Solar panels are strategically placed above or alongside crops, allowing simultaneous farming and electricity production. This dual-use approach optimizes land efficiency, reduces water loss, shields crops from extreme weather, and provides farmers with additional revenue from solar energy. Panel height, spacing, and tilt are tailored to ensure crops receive adequate sunlight, enhancing land productivity and sustainability.

The agrivoltaics market encompasses the development, installation, and management of photovoltaic systems on agricultural land, involving technology providers, farmers, and energy producers. It is gaining traction due to rising land use demands, climate change challenges, and the global transition to renewable energy.

Agrivoltaic systems enhance climate resilience by reducing crop heat stress and conserving soil moisture through partial shading, which is vital in drought-prone regions. These benefits stabilize food production amid changing environmental conditions, making agrivoltaics a key solution for sustainable agriculture.

Governments worldwide are promoting agrivoltaics through incentives, subsidies, and supportive policies, recognizing its potential as a climate-smart strategy. Funding for research and pilot projects is boosting farmer confidence and driving large-scale adoption, creating significant growth opportunities for the market.

Key Takeaways

• The Global Agrivoltaics Market is expected to be worth around USD 12.0 billion by 2034, up from USD 4.1 billion in 2024, and is projected to grow at a CAGR of 11.3% from 2025 to 2034.
• In the Agrivoltaics Market, fixed solar panels over crops account for a dominant 68.2% share.
• Fruits and other crops dominate by crop type in agrivoltaics, capturing around 56.4% market share.
• Standalone system placement leads with a 43.7% share in the global agrivoltaics market.
• Panels dominate by material type in the agrivoltaics market, holding a strong 87.1% share.
• Monocrystalline cells are preferred in agrivoltaic systems, contributing 62.9% to the overall market share.
• Vegetables are key in crop collaboration setups, accounting for approximately 45.8% in agrivoltaics projects.
• Overhead tilted structures are most widely used in agrivoltaics, securing a 46.1% share globally.
• Opaque solar panels are prominently used in agrivoltaics, holding 48.5% of the market share.
• Strong government support drives agrivoltaics growth in North America’s USD 1.7 Bn market.

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Key Market Segments

By System Design: Fixed Solar Panels Over Crops

In 2024, fixed solar panels over crops led the agrivoltaics market’s system design segment, capturing a 68.2% share. Their popularity stems from simple design, cost-effective installation, and compatibility with diverse crops. These systems support consistent farming practices while generating renewable energy, making them ideal for rural and semi-urban areas with limited resources. Fixed panels provide stable shading, reducing soil water evaporation and moderating ground temperatures, which enhances crop health in warmer climates.

By Crop Type: Fruits and Other Crops

Fruits and other crops dominated the crop type segment in 2024, holding a 56.4% share. These crops, including berries, grapes, and select vegetables, thrive under the partial shade of solar panels, benefiting from reduced heat stress and improved soil moisture retention. This setup boosts resource efficiency, particularly in regions with rising temperatures and irregular rainfall. Farmers favor agrivoltaics for high-value crops due to dual benefits: stable yields and solar energy revenue.

By Placement: Standalone Systems

Standalone systems led the placement segment in 2024 with a 43.7% share. Their flexibility and ease of integration into existing farm layouts without disrupting crop arrangements make them a top choice. Standalone setups adapt to various terrains, optimize sunlight exposure, and enhance energy output. They simplify maintenance and reduce operational costs, improving efficiency.

By Material Type: Solar Panels

Solar panels dominated the material type segment in 2024, commanding an 87.1% share. Their maturity, energy efficiency, and durability make them the go-to choice for agrivoltaic installations. Panels perform reliably across diverse climates, are easy to install, and integrate well with various mounting systems. Their widespread availability supports large-scale deployment.

By Cell Type: Monocrystalline Cells

Monocrystalline cells held a 62.9% share in the cell type segment in 2024, driven by their high efficiency and long lifespan. These cells maximize energy output in limited spaces, making them ideal for agrivoltaics where land productivity is key. Their compact design integrates seamlessly into fixed structures without hindering crop growth, and their minimal degradation ensures long-term performance.

By Crop Collaboration: Vegetables

Vegetables led the crop collaboration segment in 2024 with a 45.8% share. Their growth cycles align well with solar energy production, optimizing both agricultural and energy outputs. Vegetables benefit from controlled heat, moisture, and sunlight under panels, supporting yield quality in intensive farming setups. Elevated panel designs ensure accessibility for farming tasks.

By Type of Agrivoltaic Plant: Overhead Tilted Plants

Overhead tilted plants dominated the agrivoltaic plant type segment in 2024, holding a 46.1% share. These systems position panels at elevated heights and tilted angles, allowing sunlight to reach crops while providing protective shade. The tilted design optimizes solar energy capture, especially in high-irradiance regions, and supports farming activities like irrigation and machinery use.

By Type of Solar Panel: Opaque Panels

Opaque solar panels led the solar panel type segment in 2024 with a 48.5% share. Their high energy efficiency and cost-effectiveness make them ideal for agrivoltaics, maximizing electricity output. Opaque panels provide shade that reduces soil moisture loss and protects crops from intense sunlight, with strategic placement ensuring adequate light for growth. Their durability and availability support widespread use.

Regional Analysis

In 2024, North America led the global agrivoltaics market with a 42.8% share, valued at USD 1.7 billion. Supportive policies, a focus on sustainable farming, and renewable energy adoption drive growth, particularly in the U.S. and Canada, where vast farmland supports agrivoltaic expansion.

Europe follows with steady adoption, fueled by EU-backed programs and sustainable agriculture initiatives. Asia Pacific is advancing as countries address land scarcity and energy demands. The Middle East & Africa and Latin America are emerging markets, with growing interest and policies poised to accelerate adoption.

Top Use Cases

• Crop Production with Solar Energy: Agrivoltaics combines solar panels with crop farming on the same land. Panels provide shade, reducing water loss and heat stress, which boosts crop yields. Farmers gain extra income from solar power while maintaining food production, making it ideal for fruits, vegetables, and shade-tolerant crops like berries.
• Livestock Grazing (Solar Grazing): Solar grazing integrates livestock, like sheep, with solar farms. Animals graze under panels, controlling grass growth naturally, reducing mowing costs for solar companies. Farmers earn from grazing contracts, and the setup supports eco-friendly land management by cutting fuel use and emissions.
• Pollinator Habitat Enhancement: Agrivoltaics creates habitats for pollinators like bees by planting wildflowers under solar panels. This boosts biodiversity, supports crop pollination, and improves ecosystem health. It also lowers maintenance costs for solar sites while appealing to environmentally conscious communities and regulators.
• Water Conservation: Solar panels in agrivoltaics reduce soil evaporation by providing shade, lowering water needs for crops. This is especially valuable in dry regions, helping farmers save on irrigation costs and maintain soil health. It supports sustainable farming in areas facing water scarcity.
• Climate Resilience: Agrivoltaics protects crops from extreme weather like heatwaves, frost, or hail by using panels as a shield. This stabilizes yields in changing climates, ensuring food security. Farmers benefit from consistent production and solar revenue, making it a smart solution for climate adaptation.

Recent Developments

1. Agrivoltaic Solution LLC

Agrivoltaic Solution LLC has been advancing modular solar designs tailored for agricultural use, focusing on crop-specific light requirements. Recent projects include pilot installations in the U.S. combining high-value crops like berries with elevated solar panels. Their systems optimize land use while maintaining crop yields. The company is also collaborating with research institutions to study microclimate effects under solar arrays.

2. BayWa AG

BayWa AG, through its subsidiary BayWa r.e., has expanded agrivoltaic projects across Europe, including a 4.1 MW installation in the Netherlands integrating raspberry farming. They recently published studies showing increased land productivity and water efficiency. BayWa is also testing dynamic agrivoltaic systems that adjust panel angles to balance light for crops and energy generation.

3. Boralex

Boralex has entered the agrivoltaic sector with pilot projects in France, combining solar energy with sheep grazing and crop cultivation. Their latest initiative focuses on vineyards, using semi-transparent PV panels to protect grapes while generating energy. The company aims to scale agrivoltaics in its renewable energy portfolio.

4. Enel Green Power

Enel Green Power is testing agrivoltaic systems in Spain and Italy, including a 1.7 MW solar array paired with aromatic herbs and vegetables. They are developing “smart” agrivoltaics using sensors to monitor crop health and optimize energy output. Enel plans to integrate agrivoltaics into more renewable projects.

5. Insolight SA

Insolight SA specializes in translucent solar panels for greenhouses, recently deploying their technology in Switzerland and Spain. Their patented optical design allows high energy generation while transmitting optimal light spectra for plant growth. Insolight is now scaling production for commercial greenhouse applications.

Conclusion

Agrivoltaics is a game-changer, blending solar energy with farming to tackle land use, climate, and economic challenges. It boosts crop yields, saves water, and diversifies farmer income while supporting clean energy goals. With growing global demand for food and renewable energy, agrivoltaics offers a sustainable, scalable solution, driving adoption across diverse regions and agricultural practices.

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