Photovoltaic Greenhouse Market

Market Overview

The global photovoltaic greenhouse market size was valued at approximately USD 734.4 million in 2024 and is projected to reach USD 2214.9 million by 2033, expanding at a CAGR of 14.8% during the forecast period (2026–2033). Photovoltaic (PV) greenhouses integrate solar panels with traditional greenhouse structures, allowing for the simultaneous cultivation of crops and generation of renewable energy. This dual-purpose infrastructure aligns with global sustainability goals and provides farmers with diversified income streams.

The increasing need for energy-efficient agricultural practices, government incentives for solar integration in farming, and the rising demand for organic and locally produced crops are propelling the photovoltaic greenhouse market. Additionally, technological advances in transparent and semi-transparent solar panels have enhanced the feasibility of PV greenhouses without compromising plant photosynthesis.

Market Dynamics

Photovoltaic Greenhouse Market Drivers

Rising Adoption of Renewable Energy in Agriculture

Growing environmental awareness and the need to reduce carbon emissions in the agriculture sector are significant drivers of the photovoltaic greenhouse market. Governments across Europe, Asia-Pacific, and North America are promoting agrivoltaics, integrating solar panels with farming practices as part of green energy transition policies. Incentives such as subsidies, feed-in tariffs, and tax credits are accelerating the adoption of PV greenhouses globally. According to the International Renewable Energy Agency (IRENA), the installed capacity of agrivoltaic systems grew by over 35% in 2023 compared to the previous year. Solar panels can offer plants and animals partial shade and protection from extreme heat and drought, while evapotranspiration from plants can cool solar panels and improve their energy generation.

The U.S. government set a goal to decarbonize the U.S. electricity sector by 2035. Northwest states are working to meet this goal through emission reduction mandates and renewable energy projects. For instance, Washington is working to reduce 95% of the state’s greenhouse gas emissions by 2050. Oregon is requiring that 50% of the electricity sold in Oregon comes from renewable sources by 2040. Renewable energy accounts for 70% of Oregon’s and 75% of Idaho’s total in-state electricity.

Agrivoltaics could provide an energy and agricultural solution. A recent Oregon State University study found that converting less than 1% of U.S. agricultural land to agrivoltaics could meet 20% of the country’s energy needs. Although traditional solar project sites can compete with agricultural land for space and contribute to land-use conversion, agrivoltaics could help the Northwest transition to renewable energy while minimizing impacts to agriculture and agricultural land.

Increased Demand for Sustainable Crop Production

Photovoltaic greenhouses allow year-round cultivation with controlled environments while minimizing reliance on fossil fuels. According to the Research Institute of Organic Agriculture (FiBL), the global organic farming area increased by over 20 million hectares in 2022, reaching 96 million hectares. The number of organic producers also saw a significant rise, surpassing 4.5 million. The sales of organic food reached nearly 135 billion euros in 2022. This aligns with consumer preferences and emerging food security challenges due to climate variability. Moreover, climate variability and extreme weather events are threatening traditional open-field agriculture.

PV greenhouses provide a resilient alternative by shielding crops from unpredictable conditions such as droughts, floods, and temperature extremes. This technology aligns with global efforts to enhance food security and adapt to climate change. According to the FAO, food by 2050 the world’s population will reach 9.1 billion, 34% higher than today. Nearly all of this population increase will occur in developing countries. Urbanization will continue at an accelerated pace, and about 70 % of the world’s population. The rising focus on eco-friendly farming, combined with the increasing popularity of organic and locally grown produce, is fueling the photovoltaic greenhouse market.

Market Restraints

High Initial Installation Costs and Efficiency Trade-offs, and Crop Yield Concerns

Despite long-term savings, the upfront capital investment for PV greenhouse systems remains a barrier, particularly for small-scale farmers. Costs associated with integrating solar technologies, structural reinforcement, and energy storage systems may deter adoption without financial assistance. There is an ongoing debate regarding the impact of photovoltaic panels on crop productivity. Shading effects caused by opaque or partially opaque solar modules may reduce photosynthetically active radiation (PAR) levels, affecting yield in light-sensitive crops. However, advances in light-managing PV materials are mitigating these limitations.

Segmental Analysis

By Type

Based on type, the market is segmented into Tunnel Greenhouses, Gable Greenhouses, Even-Span Greenhouses, Lean-to Greenhouses, and Gothic Greenhouses. Tunnel Greenhouses held 18.1% of the photovoltaic greenhouse market in 2024, favored for their simplicity, cost-effectiveness, and ease of installation with solar arrays. Gothic and Gable Greenhouses are gaining popularity for their structural resilience in extreme weather conditions, especially in Europe and North America. Lean-to and Even-Span Greenhouses cater to smaller or residential-scale applications.

By Material

Based on the material segment photovoltaic greenhouse market is segmented into Glass, Plastic, and Polycarbonate. Polycarbonate emerged as the dominant material in 2024, due to its high durability, UV protection, and lightweight properties, making it suitable for solar integration. Glass greenhouses continue to be preferred for premium installations, offering maximum light transmission. Plastic-based greenhouses are common in developing regions for low-cost deployment.

By Mounting System

Based on the mounting system segment photovoltaic greenhouse market is segmented into Roof-Mounted and Ground-Mounted. Roof-mounted systems accounted for over 61.3% of market share in 2024, owing to optimal use of space and compatibility with existing greenhouse designs. Ground-mounted systems are used where separate solar generation and farming activities are spatially segregated or in large-scale commercial farms.

By Application

Based on the application segment the market is segmented into vegetables, fruits, nursery crops, and flowers. Vegetables dominated the application segment, accounting for more than 47.8% of market share in 2024, driven by year-round demand for tomatoes, cucumbers, peppers, and leafy greens. Fruits such as strawberries and berries are increasingly being cultivated under PV greenhouses, particularly in high-latitude regions. Nursery crops and flowers also represent growing segments due to the controlled environment benefits offered by PV systems.

Regional Analysis

North America held 34.6% of the global photovoltaic greenhouse market share in 2024, led by the United States and Canada, supported by federal solar incentives and a growing push for sustainable agriculture.

Europe continues to lead innovation and adoption, particularly in France, Germany, and the Netherlands, where agrivoltaics is being adopted to meet EU Green Deal goals.

Asia-Pacific is projected to register the fastest CAGR of 17.2% from 2026 to 2033, driven by expanding solar capacity in China, India, and Japan, and a growing emphasis on climate-resilient agriculture.

Middle East and Africa are emerging markets, where PV greenhouses offer solutions for arid and semi-arid regions with high solar insolation.

Latin America is experiencing steady growth, particularly in Brazil, Chile, and Mexico, where agricultural innovation is converging with renewable energy deployment.

Recent Development

1. April 2025: Reden Solar inaugurated its first photovoltaic power station in Italy on the former military site of Mangiarotti, located in Codroipo, in the Friuli-Venezia Giulia region. This facility, with an installed capacity of 23.5 megawatt-peak (MWp), is designed to generate electricity to meet the consumption needs of 11,000 households.
2. October 2024: Solitek announced two new 435 W modules for integrated PV roofs featuring 22.04%-efficient cell technology. The Solitek’s Solid Solrif in-roof product line is paired with mounting systems supplied by Swiss-based Ernst Schweizer AG. SoliTek unveiled a new line of semi-transparent PV panels designed specifically for horticultural greenhouses with light modulation technology.