The United States agrivoltaics market is estimated to stand USD 361.8 million in 2025. It can reach a USD 789.9 million valuation by 2032, displaying a CAGR of 11.8% during the forecast period (2025-2032).  

The aim to decarbonize electricity generation and adhere to sustainable food producing techniques are factors expected to drive the market growth. Various government subsidy schemes to incentivize farmers to participate in agrivoltaics power projects can boost the market growth.

However, the lack of international standards and high initial capital investment for the installation of agrivoltaics systems can act as barriers to market growth.

Key Market Insights

The United States agrivoltaics market is anticipated to grow due to increasing solar targets, declining prices of photovoltaic (PV) panels, and water issues in various regions of the United States.

• By system design, the dynamic agrivoltaics system segment is expected to capture a 42% market share in 2025. They are designed and customized as per the land size, type of crop cultivated, weather, and other factors. Algorithms are utilized to predict weather patterns and plan the growth cycles of crops accordingly. The positive impact on crop yields and energy production can drive the segment growth significantly over the forecast period.
• By structure, the interspace photovoltaics segment is expected to account for over 30% market share in 2025. The lack of arable land for cultivating crops is likely to drive the demand for solar farms, where energy production occurs in tandem with crop cultivation.

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United States Agrivoltaics Market Report Coverage

Report Coverage	Details
Market Revenue in 2025	USD 361.8 million
Estimated Value by 2032	USD 789.9 million
Growth Rate	11.8%
Historical Data	2020–2024
Forecast Period	2025–2032
Forecast Units	Value (USD million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By System Design and Structure
Growth Drivers	Government Support and Incentives Additional Revenue Generation Through Dual Use of Land
Opportunities	Growing Focus on Sustainability and Emissions Reduction Technological Advances in Agrivoltaic Modules
Trends	Setting of Standards for Agrivoltaics Projects Supplemental Income from Dual-use Solar Farming
Restraints & Challenges	High Initial Investment Costs Lack of Large-scale Commercial Projects

Market Dynamics

The declining prices of PV panels and favorable policies for the construction of solar farms are major drivers of the market growth. Favorable policies by states to encourage the installation of agrivoltaics systems can augur favorably for the market.

For instance, the state of Massachusetts offers financial incentives for agrivoltaics projects through the Solar Massachusetts Renewable Target (SMART) program since November 2018. Additionally, a reduced per-acre mitigation fee in New York for encouraging solar farm production can bolster the United States agrivoltaics market.

Market Opportunity: Standards for Agrivoltaics

The setting of standards for agrivoltaics is essential to ensure farmer participation and continuous government funding to drive innovation in the sector. Solar energy plays an essential for the U.S. government to reach its target of generating electricity from renewable sources by 2030.

For instance, The American Society of Agricultural and Biological Engineers (ASABE) and the Solar Energy Industries Association (SEIA) have decided to collaborate to define standards for agrivoltaics in January 2025. The new standards can make it clear for land owners and energy storage producers to come to a mutual agreement and invest in dual-use farming projects.

Market Challenge: High Initial Investment Costs to be a Barrier

The high initial investment capital required for the setup of an agrivoltaics system can be a deterrent for the United States agrivoltaics market. The procurement of solar panels and engineering expertise required for a successful setup may raise costs. The lack of awareness among farmers to lease their land for energy farming may prove to be a noticeable challenge. But incentives and subsidies from federal or state-level schemes may alleviate the pressure faced by farming companies. The government’s focus on achieving the cost-effectiveness of agrivoltaics systems to ensure solar energy becomes affordable to the public will favor the market growth.

Analyst’s View

• The United States agrivoltaics market growth is driven by renewable energy production schemes and the construction of solar farms.
• Dynamic agrivoltaics systems are predicted to gain massive market demand owing to the use of algorithms to control the direction of PV panels and precise planning of water and irrigation.
• Key players are focusing on product development and partnerships with agricultural companies to increase their market share.

Recent Developments

Trina Solar and Lodestone Energy jointly launched Te Herenga o Te Rā, one of New Zealand's latest and largest agrivoltaics farm, on April 3, 2025. The solar farm consists of 71,000+ modules and encourages sheep grazing under the shade of solar panels. It aims to generate power for nearly 10,000 homes in New Zealand.

Competitor Insights

• First Solar
• Enel Green Power S.p.A.
• Jack’s Solar Garden
• National Renewable Energy Laboratory (NREL)
• McIntosh Energy Japan Co., Ltd.
• Sunrise Power Solutions
• Soltec
• Boralex
• SolarEdge

Market Segmentation

• System Design
• Fixed Agrivoltaics
• Dynamic Agrivoltaics
• Structure
• Overhead Photovoltaics
• Interspace Photovoltaics
• Photovoltaic Greenhouse