Agrivoltaics Growth: A $9.3 Billion Market by 2031

November 10, 2023

In the ever-evolving realm of renewable energy, the agrivoltaic, or agrisolar sector has emerged as a frontrunner, poised to become a $9.3 billion global market by 2031, according to a report by the Indian research firm, Allied Analytics 

With an impressive average annual growth rate of 10.1 percent, this market has witnessed substantial progress, surging from a $3.6 billion turnover just a year ago. 

Unveiling the Growth: 

Currently, 14 EU Member States have incorporated solar PV under their Common Agriculture Policy (CAP) Strategic Plans. These countries are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Spain and Slovenia. This surge is attributed to the technological strides made in photovoltaics, enabling the creation of plants that seamlessly integrate solar power generation with agricultural development. 

Agrivoltaic Unveiled: 

Agrivoltaic plants distinguish themselves from traditional solar installations due to their multifunctional purpose. These plants necessitate a unique operational approach, considering factors such as plant height, maintenance, and installation practices, all of which must harmonize with the agricultural functionality of the land. By elevating the height of solar panels through technological advancements, the ground beneath becomes a valuable asset for agricultural activities. 

Beyond Energy Generation: 

The advantages of agrivoltaics extend beyond energy generation. These plants offer shade that proves beneficial in protecting grass from excessive heat, mitigating the potential effects of drought exacerbated by rising temperatures. The symbiotic relationship between energy production and agriculture underscores the versatility and sustainability of agrivoltaics. 

Challenges on the Horizon: 

While the potential benefits of agrivoltaics are undeniable, ambiguous legislation and fluctuating government regulations have emerged as major obstacles to widespread implementation.  

In Italy, for instance, indecisiveness regarding the use of agricultural land for solar energy projects has hindered development. Bureaucratic hurdles in the approval process, coupled with misalignment of interests between landowners and solar developers, pose significant barriers to progress. 

Future of Agrivoltaics 

As the agrivoltaic sector continues to flourish, bridging the gap between renewable energy and agriculture, overcoming regulatory challenges will be crucial for unlocking its full potential. With a projected $9.3 billion market on the horizon, the symbiotic relationship between energy production and agriculture holds promise for a sustainable and innovative future.