AGRIVOLTAICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The high initial investments required for setting up agrivoltaic projects is one of the major factors restraining the growth of the global agrivoltaics market. Agrivoltaic systems involve combining solar panels with agricultural crops which allows dual use of land for both energy production as well as cultivation. However, this integrated approach makes the installation and construction of agrivoltaic farms quite costly.

Setting up agrivoltaic systems involve high costs related to land procurement, installation of robust solar panel structures, tracking equipment, wiring, inverters, battery storage solutions and other ancillary equipment. Moreover, specialised smart technologies and sophisticated designs are required to ensure optimal sunlight and shadow distribution between crops and solar panels throughout the day. This makes the overall project cost per unit of installed capacity for agrivoltaic farms higher than conventional ground-mounted solar parks. Additional costs are also involved for feasibility studies, certification, policy support and farmer training.

Market Opportunities: Emerging markets in Asia Pacific and Latin America

The agrivoltaic market has strong growth prospects in emerging economies across Asia Pacific and Latin America. These regions have ideal geographic and climate conditions to implement agrivoltaic solutions at scale. Countries like India, China, Brazil and Mexico have enormous potential for agricultural production but face challenges of lack of electricity access in rural areas and effects of climate change like erratic rainfall patterns. Agrivoltaic systems offer a sustainable solution by generating solar power while providing partial shading for crops below the panels. This helps increase yield by protecting crops from excessive heat and moisture loss, ensuring year-round harvest. The dual benefit of energy generation and enhanced crop productivity makes agrivoltaics highly appealing for these markets.

According to United Nations World Food Programme, an estimated 18 million hectares of agricultural land in India lies abandoned each year due to lack of adequate irrigation facilities. Agrivoltaic projects integrated with micro-irrigation solutions have the potential to revitalize millions of hectares of abandoned farmland, empower smallholder farmers and boost rural incomes levels. Successful pilot projects in India and China have demonstrated agrivoltaics enhancing crop yields by 15-25% compared to conventional farming techniques.