PUBLISHER: The Business Research Company | PRODUCT CODE: 1717313
PUBLISHER: The Business Research Company | PRODUCT CODE: 1717313
Solar (on-farm) refers to the use of solar energy systems on agricultural farms to power various operations and enhance sustainability. This includes generating electricity for equipment, powering irrigation systems, and improving greenhouse and livestock facility operations, all while reducing dependence on fossil fuels and lowering energy costs.
The main types of solar (on-farm) applications include drip irrigation, sprinkler irrigation, and surface irrigation. Drip irrigation delivers water directly to plant roots through a network of tubes, valves, and emitters, minimizing water waste by focusing on the root zone. Solar-powered drip irrigation systems provide a sustainable solution for conserving water and reducing energy costs in agriculture. Key components used in these systems include solar panels, pump controllers, submersible water pumps, and inverters, with applications spanning agriculture irrigation, landscaping, gardening, and more.
The solar (on-farm) market research report is one of a series of new reports from the business research company that provides solar (on-farm) market statistics, including solar (on-farm) industry global market size, regional shares, competitors with an solar (on-farm) market share, detailed solar (on-farm) market segments, market trends and opportunities, and any further data you may need to thrive in the solar (on-farm) industry. This solar (on-farm) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The solar (on farm) market size has grown rapidly in recent years. It will grow from $256.02 billion in 2024 to $302.66 billion in 2025 at a compound annual growth rate (CAGR) of 18.2%. The growth in the historic period can be attributed to rising fossil fuel costs, government incentives and subsidies, growing awareness of environmental issues, public awareness and education, and climate change concerns.
The solar (on farm) market size is expected to see strong growth in the next few years. It will grow to $369.72 billion in 2029 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to enhanced government support, decreases in solar technology costs, increased focus on sustainability, rising energy costs, and increasing consumer demand for sustainably produced food. Major trends in the forecast period include advancements in photovoltaic technology, battery technology improvements, advanced metering infrastructure, dual-use systems, and hybrid systems.
The increase in energy costs is expected to drive the growth of the solar (on-farm) market in the future. Rising energy costs are influenced by factors such as heightened global demand, disruptions in supply chains, geopolitical issues affecting oil and gas supplies, and the shift towards more expensive renewable energy sources. Implementing solar energy on farms offers a renewable and cost-effective power solution for irrigation, equipment operation, and other farm activities, thereby reducing dependence on costly fossil fuels or grid electricity. For example, in July 2024, The House of Commons Library reported significant increases in energy prices, with the energy price cap rising by 12% in October 2021, 54% in April 2022, and projected to increase by 80% by October 2022. Gas prices surged by 91% and electricity prices by 70% during this period. Consequently, the rising energy costs are anticipated to boost the growth of the solar (on-farm) market.
Leading companies in the solar (on-farm) market are concentrating on innovations in renewable energy generation integrated with agricultural land use to enhance irrigation efficiency, lower energy costs, and improve water management in farming practices. This strategy, referred to as Agri-PV (Agricultural Photovoltaics), involves the installation of solar panels on agricultural land to produce clean energy while still permitting ongoing farming activities, such as crop production or livestock grazing, beneath or around the panels. For example, in May 2024, BayWa r.e., a renewable energy firm based in Germany, collaborated with VELUX, a building materials company from Denmark, to establish Spain's first Agri-PV solar park with a capacity of 54 MW. This project exemplifies dual land use, with roughly 10% of the park's area allocated for agricultural machinery to navigate between the rows of solar panels, facilitating both energy production and farming operations. This pioneering initiative not only highlights the potential of Agri-PV systems but also sets a benchmark for future projects, demonstrating how renewable energy can harmonize with agricultural practices while promoting biodiversity.
In September 2023, Nithio Holdings Limited, an energy finance platform based in Kenya, invested in SunCulture Kenya Ltd. This investment, part of the Productive Use Appliance Financing Facility (PUAFF) managed by CLASP and supported by the Global Energy Alliance for People and Planet, aims to promote the adoption of productive use appliances across Africa to improve energy efficiency and support sustainable development. SunCulture Kenya Ltd. specializes in solar-powered irrigation systems and agricultural solutions.
Major companies operating in the solar (on farm) market are Xylem Inc., Grundfos Holding A/S, SunPower Corporation, Netafim Limited, Wien Energie GmbH, Tata Power Solar Systems Limited, Jain Irrigation Systems Limited, Rain Bird Corporation, Shakti Pumps (India) Limited, SunCulture Kenya Ltd., HydroPoint Data Systems Inc., Gautam Solar Pvt. Ltd., Rainbow Power Company Limited, Driptech India Pvt. Ltd., EnSol Technologies Pvt. Ltd., LORENTZ GmbH, CRI Pumps Private Limited, Sunray Power Co. Ltd., Aqua Solar Pvt. Ltd., Bright Solar Limited, Bonergie, Dankoff Solar Pumps, Solar Water Solutions Oy, AquaVita S.r.l.
North America was the largest region in the solar (on farm) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the solar (on farm) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the solar (on farm) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The solar (on-farm) market consists of revenues earned by entities by providing services such as installation services, consulting services, energy management services, maintenance, and repair. The market value includes the value of related goods sold by the service provider or included within the service offering. The solar (on-farm) market also includes sales of battery storage systems, mounting systems, monitoring systems, and hybrid systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Solar (On Farm) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on solar (on farm) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for solar (on farm) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The solar (on farm) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.