US Agrivoltaics Market to Witness Growth Owing to PV Integration

US Agrivoltaics Market to Witness Growth Owing to PV Integration

Agrivoltaics solutions combine photovoltaic (PV) panels with agricultural practices to maximize land use efficiency, support sustainable farming, and generate renewable energy. In the United States Agrivoltaics Market, solar arrays are mounted above crop fields, orchards, and grazing lands, providing shade that can improve crop yields, reduce water evaporation, and enhance biodiversity. This dual-use model addresses rising energy demand in rural areas while ensuring farmers earn supplementary income through energy sales.

United States Agrivoltaics Market Advances in bifacial panels, adjustable mounting systems, and smart monitoring platforms enable precise light management and remote performance tracking, boosting both farm productivity and solar output. As the drive for decarbonization intensifies, agrivoltaics projects are gaining attention from utilities, agribusinesses, and research institutions. Government incentives, falling PV module prices, and growing market insights around co-location benefits are accelerating project pipelines. Rigorous market research and detailed market analysis report higher system yields and faster returns on investment compared to standalone solar or conventional farming.

The United States Agrivoltaics Market is estimated to be valued at USD 361.8 Mn in 2025 and is expected to reach USD 789.9 Mn by 2032, growing at a compound annual growth rate (CAGR) of 11.8% from 2025 to 2032.

Key Takeaways

Key players operating in the United States Agrivoltaics Market are Enel Green Power S.p.A., Boralex, Sunrise Power Solutions, McIntosh Energy Japan Co., Ltd., and SolarEdge. These market companies are focused on strategic partnerships, technology licensing, and pilot projects to expand their industry footprint and gain greater market share.

Key opportunities lie in leveraging growing market trends toward sustainable agriculture and renewable energy integration. Favorable federal and state policies—including tax credits, grants, and renewable portfolio standards—are unlocking significant market opportunities for agrivoltaics developers. Increased investor interest in green infrastructure offers funding for demonstration projects, while collaboration between universities, extension services, and private players is driving product innovation and commercialization. Moreover, the need to address climate volatility and food security is prompting agribusinesses to adopt agrivoltaics as a resilience strategy, thereby widening the market scope across grain, fruit, and livestock segments.

Technological advancements in PV integration are reshaping the United States Agrivoltaics Market by introducing smart farming solutions and adaptive solar structures. Innovations such as solar tracking systems, IoT-based agronomic sensors, and machine-learning algorithms for yield optimization are redefining market growth strategies. These breakthroughs enhance real-time monitoring of soil moisture, panel performance, and weather conditions, enabling precision farming and predictive maintenance. As agrivoltaics moves from pilot to commercial scale, improved module efficiency and modular mounting kits are reducing installation costs, shortening project timelines, and supporting seamless grid integration.

Market drivers
One of the primary market drivers for the United States Agrivoltaics Market is the growing emphasis on sustainable land use and renewable energy generation. Dual land utilization models allow producers to harness solar power without sacrificing arable acreage, leading to higher farm revenue streams and diversified business growth. Solar energy adoption mitigates climate-related risks by providing on-farm power for irrigation, cooling, and processing, reducing dependence on fluctuating grid tariffs. Moreover, government incentives such as the Investment Tax Credit (ITC) and state-level grants encourage developers to invest in agrivoltaics projects, thereby fueling market dynamics. Advancements in PV module design and mounting technology further lower system installation and operational costs, making agrivoltaics financially attractive. This integration of agriculture and photovoltaics addresses market challenges related to land scarcity, carbon footprint reduction, and energy security, positioning agrivoltaics as a pivotal market driver in the evolving renewable energy landscape.

Challenges in the United States Agrivoltaics Market
The United States agrivoltaics sector faces a series of interrelated market challenges that could slow down business growth and industry adoption. Complex permitting processes and zoning restrictions often lead to project delays and increased costs, acting as significant market restraints. Balancing optimal solar panel orientation with agricultural land use can compromise crop yields if not managed carefully, raising concerns among farmers and investors alike. Inconsistent state-level incentive structures and evolving policy frameworks add another layer of uncertainty, making long-term planning a challenge. Supply chain disruptions for specialized mounting systems and bifacial modules exacerbate installation bottlenecks, pushing up upfront capital requirements. Additionally, a limited pool of skilled labor and technical expertise in this niche intersection of solar energy and agriculture hampers widespread deployment. These market challenges underscore the need for robust market research and targeted market growth strategies to drive broader industry acceptance.

SWOT Analysis
Strength:
• Dual land use capability enhances land efficiency and provides diversified revenue streams for agricultural operators, strengthening the market proposition.
• Integration of renewable energy with crop production aligns with sustainability goals, improving industry share and overall brand reputation for adopters.

Weakness:
• High initial capital expenditure and complex engineering designs can deter small-scale farmers, limiting the market scope among fragmented agricultural segments.
• Knowledge gaps in system maintenance and agronomic compatibility often result in suboptimal performance, undermining confidence in long-term market forecast.

Opportunity:
• Rising interest in carbon neutrality and regenerative agriculture opens up new market opportunities; policymakers may offer incentives for combined solar-crop systems.
• Advances in smart farming technologies and IoT integration allow better solar tracking and precision irrigation, creating synergy that could boost market dynamics.

Threats:
• Potential crop shading and microclimate alterations pose biophysical risks, leading to apprehension around consistent yields and food security.
• Fluctuations in federal funding priorities and shifts in subsidy frameworks could curtail financial support, threatening ongoing project pipelines.

Geographical Regions—Value Concentration
In terms of value concentration, Western and Southwestern states dominate the agrivoltaics landscape, leveraging abundant sunlight and extensive arable land. California leads with a substantial market share due to its progressive renewable energy mandates and well-established agricultural infrastructure. Arizona and New Mexico follow closely, benefiting from high solar irradiance and favorable state incentives that drive market revenue. The Central Valley region of California, in particular, has become a hotbed for agrivoltaics demonstration projects, attracting significant private investments. Texas also contributes notably, blending its vast farm acreage with emerging solar-friendly policies. Collectively, these regions account for the lion’s share of installed capacity, underpinned by strong market insights and ongoing market research that continually refine best practices for combining photovoltaic arrays with crop cultivation.

Fastest-Growing Region
The Midwestern Corn Belt is currently the fastest-growing region for agrivoltaics in the United States. States like Iowa, Illinois, and Indiana are witnessing accelerated deployment as local stakeholders recognize the potential to enhance land productivity amid volatile commodity prices. Growing interest in soybean and corn intercropping under solar panels is driving new pilot programs, supported by state research institutions and agricultural extension services. This region’s relatively flat terrain simplifies installation logistics, while cooperative partnerships between utilities and farming cooperatives spur market growth. Moreover, bipartisan legislative support for renewable energy paired with agricultural diversification has unlocked fresh market opportunities. As business growth strategies pivot towards resilience and sustainability, the Corn Belt’s agrivoltaics segment is poised to expand rapidly, setting benchmarks for future statewide and regional rollouts.

Get this Report in Japanese Language: 米国の農業市場

Get this Report in Korean Language: 미국농업용태양광시장

About Author:

Ravina Pandya, 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, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)