United States Agrivoltaics Market Is Driven By Rise In Demand For Sustainable Farming Practices

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The United States agrivoltaics market has been gaining significant traction over the past few years. Agrivoltaic systems, also known as solar farms, integrate solar panel installation with agricultural lands or livestock grazing areas. The dual-land usage enables generation of solar power without hampering agricultural production below the panels. Agrivoltaic setups help reduce soil evaporation, modulate local climate, and cut out weed management costs. Additionally, the shade provided by panels helps certain crops withstand high temperatures and increases their yield.

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.,SolarEdge. These companies have been investing in technology advancements and new system designs to boost efficiencies of agrivoltaic installations.

The growing demand for sustainable food production systems is ...
... propelling the United States agrivoltaics market. Agrivoltaics help increase crop yield through innovative designs that regulate microclimate under panels. This aids in meeting the rising global food demand in an environmentally-friendly manner.

Advancements in agrivoltaic technology designs are further facilitating their global expansion. Manufacturers are developing versatile setups suitable for diverse farming conditions. Their dual usage of land and ability to generate power while supporting agricultural activities is attracting interests worldwide. This is expected to drive the United States agrivoltaics market growth during the forecast period.

Market Drivers

The major market driver for the United States agrivoltaics industry is the rise in demand for sustainable farming practices. The increasing focus on reducing agriculture's carbon footprint is prompting growers to adopt integrated agrivoltaic systems. By maintaining crop production levels, these setups help farmers optimize land usage and contribute to decarbonizing the power sector. The incentive policy support provided by local governments for agrivoltaic projects is another key factor fueling their deployment across the country.

Impact Of Geopolitical Situation On United States Agrivoltaics Market Growth

The current geopolitical instability across various nations is expected to have moderate impact on the growth of United States agrivoltaics market in the coming years. The ongoing Russia-Ukraine war and increasing diplomatic tensions between major economies like US and China have disrupted global supply chains over the past year. This has caused delays and price hikes of key agrivoltaic equipment like solar panels and mounting structures imported into the US market. In particular, the dependence on China and Taiwan for importing PV cells and modules is a concern. The companies operating in the US agrivoltaics sector will need to diversify their supply base by collaborating with local Tier-1 manufacturers and exploring alternate sourcing options from other Asian and European countries to minimize supply disruptions. They should also focus on developing innovative use of domestic resources and technologies to strengthen energy independence through agrivoltaics systems. Additionally, proactive government policies supporting indigenous manufacturers combined with incentives for sourcing critical materials locally can help mitigate risks from geopolitical tensions to a large extent and boost sustainable growth of the market over the long run.

Geographical Regions With High Concentration Of United States Agrivoltaics Market

The western states in the US, especially California, Arizona and New Mexico have traditionally been the major hotspots for agrivoltaic installations in terms of value, given tremendous solar resources and large-scale agricultural activities in these regions. California alone accounts for over 35% of the country's total agrivoltaic market value led by the central valley region ideal for dual use of land. Other key agriculture producing states like Florida and Texas are also emerging rapidly with dual use solar projects increasingly adopted across various crops. In particular, the citrus growing belts and cattle ranches in central and south Texas have demonstrated high potential for agrivoltaics to boost farm profits through power generation and livestock protection. Going forward, states like Colorado, Utah and Nevada are projected to witness higher deployments to tap their abundant sunshine coupled with expanding agricultural production.

Fastest Growing Region For United States Agrivoltaics Market

The Midwestern United States comprising states like Illinois, Minnesota, Iowa, Nebraska and North Dakota has immense potential for agriculture and presents one of the fastest growing regions in terms of agrivoltaic adoption rates and value additions. Traditionally dominated by corn and soybean cultivation, the Midwest welcomes agrivoltaic systems as a profitable option to diversify crop production while generating clean energy. Backed by supportive state-level incentives, pilot projects covering vegetable farming, pastures for dairy cattle are gaining traction across these states. Additionally, the Midwest’s exposure to extreme weather volatility makes it an ideal testing ground for agrivoltaics ability to shield crops. This has prompted innovative research and commercial projects, positioning the region as a leader with high headroom for agrivoltaics market expansion relative to current installed capacity. The availability of large flat expanses of farmland and rising willingness of farmers to adopt new technologies are key drivers for the Midwest’s accelerated growth prospects.

Get more insights on this topic: https://dailygram.com/blog/1316306/the-united-states-agrivoltaics-market-will-grow-at-highest-pace-owing-to-in/

Author Bio:

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, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )

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