United States Agrivoltaics Market reach USD 789.9 Mn by 2032

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.

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.

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.

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.

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.

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.