Agrivoltaics Market (2026-2036)

The growth of this market is mainly driven by competition for land between solar energy and agriculture, government policies and incentives that support dual land use in Italy, France, Germany, Japan, South Korea, China, and the U.S., the need to protect crops and livestock from heat, drought, hail, and extreme weather, the opportunity for farmers to earn stable additional income from energy production, public and local acceptance benefits compared with conventional ground-mounted solar, falling costs of solar modules, bifacial technology, and trackers, and the growing interest of food companies and utilities in sustainable land use. However, factors such as higher capital costs than conventional solar farms, complex permitting and unclear legal definitions in many countries, the need to balance agricultural yields with energy output, limited long-term field data for some crops and climates, and the difficulty of coordinating farmers, landowners, and energy developers are expected to restrain the growth of this market to some extent.

Agrivoltaics, also called agri-PV, agrophotovoltaics, or solar sharing, refers to the combined use of the same land for agricultural production and solar photovoltaic power generation. In an agrivoltaic system, solar modules are installed above crops, between rows of crops, along field edges, or on greenhouses, or livestock graze under or around the modules, so that the land continues to be used for farming while also producing electricity. Well-designed agrivoltaic systems can increase the total productivity of land, protect crops from excessive heat, sun, hail, and drought, reduce water evaporation, provide shade for animals, and give farmers a second source of income.

This market covers the global value of agrivoltaic systems installed each year, including solar modules, mounting structures and trackers designed for agricultural use, inverters and electrical balance of system, and engineering, procurement, and construction services, for systems in which agricultural production continues on the same land. It is segmented by system type, mounting type, agricultural application, and geography. Conventional ground-mounted solar farms without continued agricultural use, rooftop solar on farm buildings, floating solar, and fishery-solar complementary projects on ponds are not included, and the value of agricultural produce and electricity sales is not counted.

There are several types of agrivoltaic systems, which differ in height, layout, cost, and the farming activities they support. Elevated or overhead systems place modules on high structures, typically several meters above the ground, so that farm machinery can work underneath and crops grow under partial shade. Inter-row ground-mounted systems place modules in rows with wide spaces between them for crops or grazing. Vertical bifacial systems use bifacial modules mounted vertically in rows, usually facing east and west, which take up very little land and allow farming between rows. Greenhouse-integrated systems install modules on greenhouse roofs. Systems can use fixed-tilt structures or single-axis trackers, which can also be adjusted to control shading for crops.

Agrivoltaics has grown because of the increasing competition for land between food production, energy, housing, and nature. Large solar farms require significant land areas, and in many countries, farmers, local communities, and governments are concerned about converting productive farmland to energy production. Agrivoltaics addresses these concerns by keeping land in agricultural use, which can make projects easier to permit and more acceptable to local communities. At the same time, climate change is increasing heat stress and drought for crops and livestock, and partial shade from solar modules can protect some crops, reduce water use, and improve animal welfare.

Asia-Pacific has the largest installed base of agrivoltaics, while Europe has the most active policy environment. Japan pioneered solar sharing in the early 2000s and has thousands of small farm systems. China has built very large agrivoltaic projects that combine solar with crops, herbal medicines, and other agricultural uses, often as part of rural development programs. South Korea is promoting agrivoltaics to support farmers and meet renewable energy targets, and India is piloting agrivoltaics under its farmer solar programs. In Europe, Italy, France, Germany, and the Netherlands have introduced legal definitions, standards, and incentives, and Italy's EUR 1.7 billion PNRR measure has made it one of the most active markets. In the U.S., agrivoltaics is growing through state programs, research, and projects that combine solar with sheep grazing and pollinator habitats.

The economics of agrivoltaics differ from conventional solar in several important ways that affect project returns. Elevated structures and wider spacing increase capital costs, and energy output per hectare is often lower because of lower module density. However, these costs can be offset by incentives, higher land acceptance, faster permitting, agricultural benefits, and premium electricity prices in some markets. Falling module prices, bifacial modules, and specialized agrivoltaic trackers have improved the economics, and many developers now offer agrivoltaic designs as standard options.

The market includes energy developers, specialized agrivoltaic technology companies, mounting structure and tracker suppliers, and module manufacturers. Leading participants include BayWa r.e., Enel Green Power, TotalEnergies, EDF power solutions, Next2Sun, Sun'Agri, REM Tec, Axial, Insolight, Ombrea, LONGi Green Energy Technology, and Arctech Solar.

Over the forecast period, the agrivoltaics market is expected to grow rapidly, as more countries adopt legal frameworks and incentives, developers seek land-efficient and socially accepted solar sites, and farmers look for climate protection and additional income. Asia-Pacific is expected to remain the largest market, while Europe is expected to grow fastest at a CAGR of 16.2%.