Solar (on Farm) Market Report 2026

The solar (on farm) market size has grown strongly in recent years. It will grow from $300.21 billion in 2025 to $317.13 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to increasing rural electrification gaps, rising irrigation energy requirements, expansion of water-intensive farming practices, adoption of diesel replacement solutions, availability of basic solar pumping technologies.

The solar (on farm) market size is expected to see strong growth in the next few years. It will grow to $406.51 billion in 2030 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to increasing government subsidies for solar irrigation, rising focus on farm-level decarbonization, growing adoption of smart irrigation systems, expansion of off-grid farming operations, increasing demand for energy self-sufficiency. Major trends in the forecast period include increasing adoption of solar-powered irrigation systems, rising integration of smart pump controllers, growing use of off-grid solar installations, expansion of modular on-farm solar solutions, enhanced focus on energy cost optimization.

Rising energy costs are expected to drive the growth of the solar (on-farm) market in the coming years. These increasing costs are primarily influenced by factors such as growing global demand, supply chain disruptions, geopolitical tensions affecting oil and gas supplies, and the shift to more expensive renewable energy sources. Implementing solar energy on farms helps offset rising energy costs by providing a renewable and cost-effective power source for irrigation, equipment operation, and other farming activities, reducing dependence on costly fossil fuels or grid electricity. For example, in February 2023, according to Consumers Unified LLC, a US-based legal entity, ten states experienced electricity price increases of over 10% compared with September 2022. Therefore, rising energy costs are driving the expansion 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, Tata Power Solar Systems Limited, Jain Irrigation Systems Limited, Rain Bird Corporation, Shakti Pumps (India) Limited, SunCulture Kenya Ltd., 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 2025. 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, South East Asia, 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, Taiwan, 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.

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