Agrivoltaics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Array Configuration (Fixed, Single-Axis Tracking), By Photovoltaic Technology (Monofacial Solar Panels, Bifacial Solar Panels, Translucent Photovoltaic Technology, Others), By Site of Installation (Grassland Farming, Horticulture and Arable Farming, Indoor Farming, Pollinator Habitat), By Region and Competition, 2021-2031F

Market Overview

The Global Agrivoltaics Market will grow from USD 6.49 Billion in 2025 to USD 9.13 Billion by 2031 at a 5.85% CAGR. Agrivoltaics is the practice of co-locating solar photovoltaic power generation and agricultural activities on the same land, enabling the simultaneous production of food and renewable electricity. The primary drivers supporting the market's growth include the critical need for land-use efficiency, which allows nations to meet renewable energy targets without compromising food security or arable land availability. Additionally, the technology enhances climate resilience by providing shade that reduces soil water evaporation and protects crops from extreme weather events, a benefit distinct from general solar industry trends.

However, a significant challenge that could impede market expansion is the complexity of regulatory frameworks and permitting processes, which often lack clear definitions for dual-use projects. According to France Agrivoltaisme, in 2025, agrivoltaic installations accounted for 20% of the 1.6 GW of ground-mounted solar capacity deployed in France during 2024. This figure illustrates the sector's growing market penetration in key regions, even as developers navigate the intricate policy landscapes required to scale these projects globally.

Key Market Drivers

Supportive government initiatives and renewable energy subsidies serve as the most critical catalyst for the Global Agrivoltaics Market. Governments worldwide are increasingly implementing dedicated tenders and financial incentives to de-risk these complex dual-use projects and accelerate their deployment. These policy frameworks not only provide necessary capital but also establish clear regulatory standards that encourage developer participation. For instance, according to Renewables Now, April 2025, Germany's Federal Network Agency awarded 2.64 GW of solar capacity in a single tender, underscoring the massive scale of state-backed support available for ground-mounted and non-building structures. Such robust public funding mechanisms are essential for overcoming initial cost barriers and driving the widespread adoption of agrivoltaic technologies across key regions.

Increasing global demand for efficient land utilization and dual-use applications is effectively reshaping the market by prioritizing agricultural productivity alongside energy generation. This driver addresses the competition between arable land and energy infrastructure by demonstrating that photovoltaic installations can enhance farming activities through microclimate regulation. According to SolarPower Europe, November 2024, in the 'Agrisolar Handbook', agrivoltaic setups can increase crop yields by up to 60% depending on the specific crop and regional climate, while simultaneously offering protection against extreme weather. This agronomic synergy provides farmers with economic diversification, further supported by continuous market activity. Illustrating this ongoing momentum, according to pv magazine, October 2025, Germany successfully awarded 485.7 MW of capacity in an innovative tender for solar-plus-storage projects, highlighting the sector's rapid evolution toward integrated, resilient systems.

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Key Market Challenges

The complexity of regulatory frameworks and permitting processes presents a substantial impediment to the expansion of the Global Agrivoltaics Market. Inconsistent policies and the absence of clear definitions for dual-use projects create a high degree of uncertainty for developers and investors. This ambiguity often results in prolonged approval timelines and increased administrative costs, which can render otherwise viable agricultural solar projects financially unfeasible. When regulations fail to distinguish effectively between standard ground-mounted solar and agrivoltaic systems, projects that support agricultural continuity face unnecessary restrictions or outright bans, directly stalling capacity additions.

This regulatory uncertainty has tangible economic consequences. According to Italia Solare, in 2024, the introduction of restrictive regulations concerning solar installations on agricultural land was estimated to potentially cost the country €60 billion in lost investments. Such policy hurdles deter capital allocation and disrupt the project pipeline, forcing developers to navigate an intricate and often prohibitive compliance landscape. Consequently, the lack of a streamlined and supportive regulatory environment restricts the sector's ability to scale operations and hampering the global adoption of agrivoltaic technologies.

Key Market Trends

The Adoption of Vertical Bifacial Photovoltaic Systems is gaining prominence as a vital solution for integrating solar energy with large-scale arable farming operations that utilize heavy machinery. Unlike conventional overhead structures, these vertical arrays are installed in fence-like rows, preserving wide corridors for tractors and harvesters while capturing sunlight from both east and west orientations to align with peak demand periods. This configuration is particularly beneficial for broad-acre crops like cereals and oilseeds, as it minimizes physical obstruction and optimizes land access without requiring expensive high-elevation mounting hardware. According to Sunhub, September 2025, in the article 'Agrivoltaics In 2025: Scaling Food And Solar Together', field trials for high-clearance vertical PV systems revealed that sensitive crops such as corn and soybeans sustained yield reductions of less than 3% while simultaneously benefitting from improved soil water retention.

Integration of Dynamic Solar Tracking Technology is advancing beyond simple energy optimization to prioritize specific agronomic light requirements through intelligent control algorithms. These systems actively adjust the tilt of solar panels to regulate the Photosynthetically Active Radiation (PAR) reaching the understory, balancing electricity generation with the biological needs of the plants during critical growth stages. This precise light-sharing approach is facilitating the cultivation of light-sensitive high-value crops by ensuring they receive adequate solar exposure while shielding them from excess heat. According to CleanTechnica, March 2025, in the article 'New Agrivoltaic Tool Optimizes Solar Generation And Crop Production', a recent study demonstrated that dynamic tracking strategies could achieve 91% of the targeted light saturation required for growing apples over an annual cycle, proving the commercial viability of active shading management.

Segmental Insights

The Horticulture and Arable Farming segment is currently positioning itself as the fastest-growing category within the Global Agrivoltaics Market. This rapid expansion is primarily driven by the ability of photovoltaic structures to create a protective microclimate that safeguards high-value crops against extreme weather events such as hail and intense heat. Research by the Fraunhofer Institute for Solar Energy Systems highlights that these dual-use installations significantly enhance land-use efficiency by allowing agricultural production and energy generation to coexist. Furthermore, the partial shading reduces soil water evaporation, offering essential climate resilience and economic stability for producers.

Regional Insights

Europe holds the dominant position in the global agrivoltaics market, driven by comprehensive government support and the critical need to optimize limited agricultural land. The European Commission accelerates this expansion through frameworks like the European Green Deal, which incentivizes the simultaneous production of food and solar energy. This strategic approach mitigates land competition, allowing nations to implement projects that align with ambitious renewable energy targets. The established regulatory environment provides distinct guidelines for project development, ensuring agricultural viability remains a priority and establishing the region as the primary hub for agrivoltaic adoption.

Recent Developments

• In September 2025, Vattenfall commissioned its largest agrivoltaic facility to date, located in Tützpatz, Germany. The 76-megawatt unsubsidized project spans 93 hectares and integrates solar power generation with agricultural activities, including free-range chicken farming and crop cultivation. The plant utilizes approximately 146,000 bifacial solar modules and was developed to foster multifunctional land use without state funding. To ensure economic viability, the company secured a ten-year power purchase agreement with a subsidiary of Deutsche Telekom AG. This development highlights the scalability of combining renewable energy infrastructure with commercial farming operations.
• In September 2025, Insolight inaugurated a new agrivoltaic installation at the Agroscope Federal Center for Agronomy in Conthey, Switzerland. The 250-kilowatt pilot project was designed to test the compatibility of solar energy production with tree crops, specifically apples, pears, and apricots. Developed in collaboration with Romande Energie and the Canton of Valais, the system features dynamic translucency to regulate light transmission and protect the orchards from extreme weather events such as hail and frost. Sensors integrated into the structure monitor environmental conditions to optimize both agricultural yield and electricity generation, demonstrating a dual-purpose approach to fruit farming.
• In August 2024, Trinasolar announced the commencement of commercial operations for its agrivoltaic project in Fukuchiyama, Kyoto Prefecture, Japan. The facility utilizes the company's Vertex modules, which incorporate 210mm wafer technology and high-efficiency n-type i-TOPCon cells to maintain energy output. The project was specifically engineered to support the cultivation of Japanese yam, a shade-tolerant crop, beneath the solar array. This initiative, developed by the company’s International System Business Unit, represents a strategic expansion in the Japanese market, addressing the requirements for renewable energy generation alongside agricultural land preservation.
• In June 2024, TotalEnergies completed the installation of a 2.1 MWp agrivoltaic system in partnership with Hiep Phat International Agricultural Co. Ltd in Vietnam. This project, marking the energy company's first agrivoltaic venture in the Asia-Pacific region, involved installing over 3,600 ground-mounted photovoltaic panels. The system was designed to power a significant portion of the starch manufacturer's facility while allowing for the cultivation of organic herbs and chicken farming beneath the solar structure. The collaboration operates under a long-term agreement where the energy provider funded and manages the system, enabling the agricultural partner to utilize renewable electricity and reduce its carbon footprint.

Key Market Players

• Jinko Solar Co., Ltd
• Invenergy LLC
• Nextracker Inc.
• Iqony Sustainable Energy Solutions
• First Solar, Inc.
• BayWa AG
• Enel Green Power S.p.A.
• Sun’Agri
• Trina Solar
• Lightsource bp

Report Scope:

In this report, the Global Agrivoltaics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Agrivoltaics Market, By Array Configuration:

• Fixed
• Single-Axis Tracking

• Agrivoltaics Market, By Photovoltaic Technology:

• Monofacial Solar Panels
• Bifacial Solar Panels
• Translucent Photovoltaic Technology
• Others

• Agrivoltaics Market, By Site of Installation:

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

• Agrivoltaics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE