According to research by Allied Analytics, the global agricultural electricity market is pegged for annual growth of 10.1 percent.
Agrivoltaics, The combination of agricultural practices and solar energy is projected to become a $9.3 billion market by 2031, growing at a compound annual growth rate (CAGR) of 10.1 percent during that period, up from $3.6 billion a year ago. For a research note by Allied Analytics, an Indian market research firm.
Experts believe agrovoltaics can minimize barriers to food security and the transition to clean energy, Allied Analytics said. Although the agricultural electricity market is still in its infancy, it is expected to grow as the solar market continues to rise due to demand for clean energy and sustainability.
The market for the agri-electricity sub-sector has advanced as the industry’s learning curve grows around best use cases in recent years, with the global installed capacity of agri-electricity increasing from 5 MW in 2012 to around 2.9 GW in 2020, according to Allied Analytics.
In order to promote a healthy growth environment, subsidies from state authorities are needed. The introduction of agricultural electricity solutions requires joint ventures, lease agreements, reduced loan interest rates and risks, the market research states. Also, as yields are significantly reduced, regulations on solar installations must be enforced to minimize land use.
Based on climate change and increasing drought and extreme weather events, agrovoltaics offers key benefits such as emission-free solar electricity combined with food production and crop protection from drought and damage caused by hail or heavy rain.
So far, the world’s largest agricultural power plant has been built in China on the edge of the Gobi desert, where berries are grown under solar modules, with a total capacity of 700 MW and is expected to reach 1 GW.
According to Allied Analytics, major developers in the agri-electricity market include BayWa, Insolight SA, JA Solar, Enel Green Power, Sunseed APV, Mirai Solar, Namaste Solar, Ombrea, Sun’Agri and Next2Sun.