The agrivoltaics market in the United States refers to integrated solar and agricultural systems, which involves installing solar panels above crop fields or grazing land. Agrivoltaic systems allow crops to be grown under solar panels while simultaneously generating solar power. The practice helps to maximize land use by doubling up on crop and energy production. Agrivoltaics provides various advantages such as reduced water needs for crops due to shading from solar panels, protection of crops from excessive heat, cold, and hail damages. It also allows the use of marginal land for crop production. The growing need for sustainable land use and food security is propelling the adoption of agrivoltaic systems in the country.
The United States Agrivoltaics Market is estimated to be valued at US$ 323.6 Mn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the United States agrivoltaics are Enel Green Power S.p.A., Boralex, Sunrise Power Solutions, McIntosh Energy Japan Co., Ltd., and SolarEdge.
– Enel Green Power S.p.A is one of the major producers of electricity from renewable sources and are actively involved in solar-plus-crop farming projects across Italy and U.S.
– The growing emphasis on dual-use of marginal lands for solar power generation and crop cultivation is expected to create significant opportunities for agrivoltaic players over the coming years.
– Technological advancements such as use of thin-film solar panels and optimized designs are allowing for higher crop yields under solar panels compared to traditional farming. This is increasing farmer acceptance of agrivoltaic systems.
Market Drivers
The primary driver for the United States agrivoltaics market is the rising need for sustainable land use practices. With rapid population growth exerting pressure on available arable lands, agrivoltaics help maximize agricultural output from limited land parcels through dual-use of spaces for solar and crops. The practice prevents conversion of natural landscapes and encourages regeneration of degraded farmlands. Furthermore, agrivoltaic systems provide important climate change adaptation solutions such as reducing evapotranspiration, moderating soil temperatures, and protecting crops from extreme weather events – thereby ensuring food security in the region.
Challenges In United States Agrivoltaics Market
The agrivoltaics market in the United States faces several challenges which need to be addressed for healthy growth of this sector. Farmland owners are hesitant to install solar panels over their agricultural fields due to lack of technical know-how and awareness about benefits of agrivoltaic systems. High initial investment cost of setting up agrivoltaic projects also discourages many potential farmers. There are still gaps in standardization of technologies and lack of financial incentives or subsidies from the government for promoting agrivoltaics. Interconnection challenges with existing power distribution grids especially in remote rural areas limit the scope for large scale commercial agrivoltaic projects. Development of advanced monitoring systems capable of precisely analyzing crop growth and microclimate variations under solar panels is another challenge.
SWOT Analysis
Strength: Ability to generate dual benefits of solar power and crop production from same land. Better utilization of available cultivable areas.
Weakness: High costs involved due to requirement of specialized agrivoltaic infrastructure. Technical complexities of maintaining optimal conditions for crops beneath solar panels.
Opportunity: Potential to meet growing energy needs through sustainable solar power while preserving agricultural landscapes.lucrative financial incentives offered by some U.S. states encourage farmers to adopt agrivoltaics.
Threats: Concerns over impact of panel shading on crop yields unless properly designed systems are installed. Lack of widespread consumer acceptance limits market expansion.
Regarding geographical concentration of the United States agrivoltaics market, currently states like California, Arizona, Massachusetts and New Jersey account for over 60% share due to supportive renewable energy policies and abundance of agricultural regions. Among all regions, the West is emerging as the fastest growing regional market given strong solar irradiation and presence of major agrivoltaic project developers in western states.
What Are The Key Data Covered In This United States Agrivoltaics Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United States Agrivoltaics’s growth between 2024 and 2031.
:- Accurate calculation of the size of the United States Agrivoltaics and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United States Agrivoltaics Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United States Agrivoltaics vendors
FAQ’s
Q.1 What are the main factors influencing the United States Agrivoltaics?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United States Agrivoltaics companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the United States Agrivoltaics’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile