Agrivoltaics systems combine solar panels and farming and offer various advantages to the agricultural sector. They help utilize land more efficiently by generating solar power while allowing cultivation underneath. This saves agricultural land from being converted into solar farmlands. Agrivoltaics systems also regulate temperature, protect crops from excess heat, and increase yield by 15-30% by providing partial shade.



The United States Agrivoltaics Market is estimated to be valued at USD 323.6 Mn in 2024 and is expected to reach USD 721.4 Mn by 2031, growing at a compound annual growth rate (CAGR) of 11.6% from 2024 to 2031.



Key Takeaways

Key players operating in the United States Agrivoltaics are Enel Green Power, Longi Solar, Trina Solar, Canadian Solar, JA Solar, Risen Energy, and Yingli Solar. Enel Green Power is a leader in the market with multiple large-scale agrivoltaic installations across the United States.



The demand for . United States Agrivoltaics systems is increasing as farmers and food companies aim for more sustainable agricultural production. Agrivoltaics help optimize land usage for both energy generation as well as farming, which has sparked interest.



Technological advancements are making agrivoltaic systems more efficient. Companies are developing new solar panel designs that allow higher light transmission to crops. Improved mounting and tracking solutions are also optimizing energy generation below solar panels.



Market Trends

One of the major trends in the United States Agrivoltaics market is the rise in large-scale installations. States like California and Colorado have seen multiple projects of 50+ MW capacity set up to power nearby communities as well as support agricultural activities.



There is also a growing focus on demonstration agrivoltaic farms and research. Organizations like Department of Energy are funding several pilot projects to study crop yields, temperature regulation, and technical design aspects under real farm conditions. This is helping improve agrivoltaic systems design and performance.



Market Opportunities

The COVID-19 pandemic has underscored the importance of sustainable and localized food production systems. This presents an opportunity for agrivoltaics to leverage government subsidies and grower interest in resilient solar-plus-farming models.



Another growth area can be the commercial vegetable sector. Greenhouses paired with overhead solar panels can provide dual benefits of energy as well as microclimate control suited for high-value crops. This is gaining traction in the United States.



Impact of COVID-19 on United States Agrivoltaics Market

The COVID-19 pandemic has impacted the growth of United States agrivoltaics market. During the pandemic, implementation of new agrivoltaic projects reduced significantly due to supply chain disruptions and lockdown restrictions imposed by the governments. The demand from the agriculture sector declined sharply as farms faced challenges of low manpower availability and inability to transport crops to markets. Even operational agrivoltaic farms experienced decreased productivity levels due to restriction in farm visits and maintenance activities. However, post COVID some of the pandemic induced challenges also opened new opportunities. With need to enhance food security and make agriculture resilient, governments and organizations recognized the role of agrivoltaics in improving farm output sustainably. This has boosted investments to expand existing agrivoltaic capacities. Some US states also provided fiscal incentives for new agrivoltaic projects.



California is the largest market for United States agrivoltaics by value. It accounts for over 40% market share driven by supportive policies and initiatives promoting clean energy agriculture. Being an early adopter, California saw significant agrivoltaic capacity additions over the past decade. Various ag-tech companies, farms and research institutes are located in California working on advancing agrivoltaic technologies. States like Florida, Texas and Arizona are also emerging markets with growth rates higher than national average during the forecast period. Texas market is expected to witness strongest growth post pandemic supported by favorable solar irradiation levels and increasing focus on diversifying energy sources in agriculture.



The Midwestern region consisting of states like Iowa, Illinois and Minnesota is fastest growing for United States agrivoltaics market in terms of new project implementation. Supported by favorable government incentives and programmes launched recently to modernize agriculture through sustainable technologies, annual agrivoltaic capacities in these states are projected to increase at a CAGR of over 15% during forecast period. Many large scale agrivoltaic projects are under development across Midwestern farmlands which will boost regional market size.

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Author Bio:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)