United States Agrivoltaics Market Poised for Sustainable Growth

United States Agrivoltaics Market Poised for Sustainable Growth

The United States Agrivoltaics Market is experiencing rapid adoption as combined solar and agricultural systems deliver enhanced land efficiency and diversified revenue streams. This analysis offers precise market insights on industry size, market trends, segment dynamics, and business growth strategies shaping the sector’s future.

Market Size and Overview

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.

Growing emphasis on sustainable agriculture and renewable energy integration is driving United States Agrivoltaics Market growth, with supportive federal incentives spurring project pipelines. In 2025, pilot farms across California reported 15% higher crop yields under agrivoltaic arrays. This market forecast underscores robust business growth opportunities and the expanding industry size.

Market Segments

1. Technology:
• Fixed-Tilt Systems (Dominant; accounted for 62% of installations in 2024)
• Single-Axis Trackers (Fastest-Growing; 2025 deployments rose by 28% year-on-year)
2. Application:
• Crop Cultivation (Dominant; used on 70% of agrivoltaic sites in 2024)
• Livestock Grazing (Fastest-Growing; grazing under panels up by 35% in 2025)
3. Farm Type:
• Smallholder Farms (Dominant; 55% share in 2024)
• Commercial Farms (Fastest-Growing; 2025 capacity expanded by 40%)
These market segments illustrate evolving market dynamics and market opportunities across the value chain.

Market Drivers

Supportive federal and state policies remain the primary market driver in 2024–2025. The U.S. Department of Agriculture’s Renewable Energy for America Program (REAP) allocated USD 110 Mn in 2024 to agrivoltaic grants, accelerating pilot and large-scale installations. Concurrently, improved solar module efficiency—averaging 23% in 2025—has reduced levelized cost of electricity by 12%. These policy incentives and technology advancements mitigate market restraints like high upfront costs, fostering new business growth models. Analysis of 2024 USDA reports shows over 200 funded agrivoltaic projects, underlining the catalyst role of incentives in shaping market trends.

Segment Analysis

Focusing on Technology segment, fixed-tilt systems maintained dominance with revenues of USD 225 Mn in 2025, supported by streamlined installation processes. Single-axis trackers exhibited the fastest market growth, generating USD 86 Mn in revenue and posting a year-on-year growth of 28% in 2025. A 2024 case study in Arizona farms demonstrated that tracker-based agrivoltaic setups improved solar capture by 18% and boosted tomato yields by 10%. This sub-segment’s performance highlights targeted market growth strategies, emphasizing ROI-driven technology upgrades and robust market analysis to guide future investments and mitigate market challenges.

Consumer Behaviour Insights

1. Data-Driven Crop Management: In a 2025 survey of 120 farm operators, 78% prioritized real-time yield monitoring under agrivoltaic panels, reflecting a shift toward precision agriculture.
2. Sustainability Preference: Feedback reports in 2024 indicated 65% of buyers favored suppliers with carbon-neutral certification, intensifying demand for eco-friendly energy solutions.
3. Customization Demand: A trend analysis revealed 42% of commercial farmers requested bespoke panel heights and row spacing in 2025 to tailor light distribution, showcasing evolving market trends in buyer decision-making.

Key Players
Key players operating in the United States Agrivoltaics Market include:

Enel Green Power S.p.A.; Boralex; Sunrise Power Solutions; McIntosh Energy Japan Co., Ltd.; SolarEdge; NextEra Energy; SunPower Corporation; First Solar; EDF Renewables; Array Technologies; AgriSolar Solutions; PhotonFarm Systems; Solaria; Heliene Inc.; OXH LLC.
In 2024, Enel Green Power S.p.A. commissioned a 5 MW agrivoltaic pilot in Texas, enhancing dual-use yields by 12%. SolarEdge expanded its U.S. manufacturing footprint in early 2025, adding 100 MW of capacity and driving local market revenue growth. Sunrise Power Solutions entered the Georgia market with a 3 MW facility in 2025, showcasing regional expansion strategies.

Key Winning Strategies

1. Integrated Energy-Agronomy Platforms: In 2025, Boralex partnered with agritech firms to deploy IoT-enabled soil sensors beneath solar arrays, improving water-use efficiency by 25% and differentiating its offering in a competitive landscape.
2. Modular Agrivoltaic Kits: In 2024, SolarEdge introduced plug-and-play mounting systems that cut installation time by 30%, accelerating project commissioning and boosting its market growth strategies.
3. Community-Funded Projects: Enel Green Power S.p.A. piloted a community investment model in 2025, raising USD 15 Mn from local stakeholders and expanding project scope while enhancing stakeholder engagement and reducing financing costs.

FAQs

1. Who are the dominant players in the United States Agrivoltaics Market?
Dominant players include Enel Green Power S.p.A., Boralex, SolarEdge, NextEra Energy, and SunPower Corporation, noted for pioneering large-scale agrivoltaic installations and technology innovations.

2. What will be the size of the United States Agrivoltaics Market in the coming years?
The market size is projected to grow from USD 361.8 Mn in 2025 to USD 789.9 Mn by 2032 at an 11% CAGR, driven by policy support and technology advancements.

3. Which end-user industry has the largest growth opportunity?
Crop cultivation leads in 2025, representing 70% of installations, while livestock grazing is the fastest-growing application, up 35% year-on-year.

4. How will market development trends evolve over the next five years?
Trends include increased adoption of tracker-based systems, integration of precision agronomy IoT, and community-funded agrivoltaic models, shaping future market dynamics.

5. What is the nature of the competitive landscape and challenges in the United States Agrivoltaics Market?
Competition focuses on technology innovation, ground-mount efficiencies, and financing models, while challenges include grid interconnection timelines and high upfront capital costs.

6. What go-to-market strategies are commonly adopted in the United States Agrivoltaics Market?
Strategies include strategic partnerships with agritech firms, modular installation solutions, and community-funded financing, enabling faster deployment and risk mitigation.

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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)