Key Findings
- The Indonesia Agrivoltaics Market is gaining momentum as dual-use land systems combining solar energy generation with agriculture prove valuable for both farmers and renewable energy developers.
- Rising pressure to maximize land efficiency in Indonesia is accelerating the deployment of agrivoltaic systems across rural and semi-urban areas.
- Farmers in Indonesia are adopting agrivoltaics to improve crop yields by reducing heat stress and optimizing water use under solar panel shading.
- Renewable energy targets in Indonesia are driving large-scale investments in solar PV, with agrivoltaics providing a sustainable and socially acceptable pathway.
- Technology providers in Indonesia are introducing adjustable solar panel designs that optimize both electricity output and crop growth.
- Pilot projects and demonstration farms in Indonesia are validating agrivoltaic benefits, encouraging broader adoption among agricultural communities.
- Partnerships between utility companies, agricultural cooperatives, and local governments in Indonesia are facilitating new business models.
- Supportive regulatory frameworks in Indonesia are enabling subsidies, land-use policies, and incentives that favor agrivoltaics deployment.
Indonesia Agrivoltaics Market Size and Forecast
The Indonesia Agrivoltaics Market is projected to grow from USD 1.4 billion in 2025 to USD 6.9 billion by 2031, at a CAGR of 30.5%during the forecast period. This growth will be driven by rising renewable energy demand, land-use efficiency goals, and government incentives supporting sustainable farming. As both food security and clean energy generation become strategic priorities, agrivoltaics will increasingly be recognized as a vital solution for Indonesia’s sustainable development agenda.
Introduction
Agrivoltaics refers to the simultaneous use of land for agricultural production and solar photovoltaic (PV) energy generation. In Indonesia, this approach is gaining traction as it helps farmers increase income, reduce crop vulnerability, and contribute to renewable energy targets. Solar panels provide shading that mitigates heat and drought stress, improving crop quality while reducing irrigation needs. At the same time, electricity production creates an additional revenue stream. This dual-use model is proving particularly valuable in regions facing land scarcity, rising energy demand, and climate change challenges.
Future Outlook
By 2031, agrivoltaics in Indonesia is expected to become a mainstream agricultural and energy practice, integrated into both small-scale farms and large commercial solar projects. Technological innovations, including bifacial panels, automated trackers, and smart irrigation systems, will improve efficiency and output. Government support for climate resilience, energy transition, and rural economic growth will further drive adoption. Farmers will increasingly view agrivoltaics as a reliable method to diversify income while enhancing crop sustainability. Collaborative financing and co-ownership models will expand participation across Indonesia.
Indonesia Agrivoltaics Market Trends
- Integration of Smart Solar Technologies
Agrivoltaics in Indonesia is evolving with the integration of advanced solar technologies such as bifacial panels, single-axis trackers, and IoT-enabled monitoring systems. These innovations allow for real-time adjustments of panel orientation to maximize both sunlight availability for crops and electricity generation efficiency. Smart systems also collect data on soil conditions, weather, and crop health, improving decision-making for farmers. By merging precision agriculture with energy optimization, these solutions are driving the appeal of agrivoltaics. - Rising Demand for Land-Use Efficiency
In Indonesia, rising population density and limited availability of arable land are creating pressure to maximize productivity. Agrivoltaics provides a dual-use framework that ensures both food production and renewable energy generation on the same land. This is particularly critical for rural communities where land scarcity limits economic expansion. The approach helps avoid conflicts between agricultural and energy sectors, creating harmony in land-use policy. Governments and planners are increasingly recognizing agrivoltaics as a strategic land management solution. - Expansion of Pilot and Demonstration Projects
Demonstration farms and pilot initiatives in Indonesia are playing a critical role in validating the agronomic and economic benefits of agrivoltaics. These projects serve as proof-of-concept, attracting attention from policymakers, farmers, and investors alike. By showcasing improvements in water efficiency, crop resilience, and energy returns, pilot programs are building confidence in the technology. Expansion of such projects across diverse geographies is paving the way for large-scale commercial adoption. This gradual scaling is helping establish best practices for broader deployment. - Collaborations Between Agriculture and Energy Stakeholders
Agrivoltaics adoption in Indonesia is being accelerated by partnerships between farmers, renewable energy developers, cooperatives, and government agencies. These collaborations ensure that system designs are optimized for both agricultural productivity and solar output. Joint ownership and profit-sharing models are creating win-win scenarios for all parties involved. Collaboration also fosters knowledge transfer and addresses cultural or technical barriers to adoption. As agrivoltaics grows, these multi-stakeholder partnerships will remain central to long-term success. - Government Support and Policy Incentives
Policies in Indonesia are increasingly designed to encourage agrivoltaics as part of renewable energy expansion and sustainable agriculture programs. Subsidies, tax breaks, and feed-in tariffs are making investments more attractive for farmers and developers. Governments are also integrating agrivoltaics into rural development strategies to promote local job creation and climate resilience. This policy support is helping to overcome financial and adoption barriers. With stronger regulatory backing, agrivoltaics is expected to expand rapidly across Indonesia.
Market Growth Drivers
- Rising Renewable Energy Demand
The growing need for renewable energy in Indonesia is driving adoption of agrivoltaics as it allows for scalable solar deployment without competing with agriculture. By combining food and energy production, agrivoltaics helps meet climate goals while ensuring rural economic participation. This dual-use approach aligns with government targets for reducing carbon emissions. Investors see agrivoltaics as a promising solution to diversify renewable portfolios. As renewable energy demand accelerates, agrivoltaics will be positioned as a critical contributor. - Food Security and Sustainable Agriculture
Food security challenges in Indonesia are encouraging innovative approaches to maximize agricultural output while ensuring sustainability. Agrivoltaics helps stabilize crop yields by reducing environmental stresses such as excessive heat and water scarcity. Shaded crops require less irrigation, supporting water conservation in regions facing shortages. Farmers benefit from diversified income streams, reducing reliance on volatile crop markets. This dual benefit for both food and energy security is a key driver for market expansion. - Government Incentives and Policy Support
Policymakers in Indonesia are actively supporting agrivoltaics through subsidies, grants, and land-use reforms. These incentives are making the economics of adoption favorable for farmers and investors. Regulatory frameworks are also encouraging utilities to integrate agrivoltaic power into national grids. This supportive environment is reducing risk and creating long-term confidence in the market. With stronger institutional backing, agrivoltaics adoption will continue to accelerate across the region. - Technological Innovation in Solar and Agriculture
Advances in solar PV technology, data analytics, and precision agriculture tools are making agrivoltaics more efficient in Indonesia. Farmers can now monitor crop health, soil quality, and water needs in real-time while optimizing energy generation. Innovations in adjustable panels ensure that crops receive adequate sunlight at different growth stages. This technological convergence is reducing trade-offs between agriculture and energy. Continuous R&D will keep driving performance improvements and expanding market adoption. - Climate Change Adaptation Strategies
Rising temperatures and extreme weather events in Indonesia are threatening agricultural productivity, forcing the adoption of resilient practices. Agrivoltaics provides shade that lowers crop stress while generating clean energy, offering a practical adaptation strategy. By reducing water consumption and improving soil health, agrivoltaics enhances sustainability. Governments and NGOs are promoting agrivoltaics as part of climate adaptation programs. This resilience factor is increasingly making agrivoltaics a priority investment in Indonesia.
Challenges in the Market
- High Initial Investment Costs
Establishing agrivoltaic systems in Indonesia requires significant capital investment in solar panels, mounting structures, and irrigation integration. These upfront costs are often beyond the reach of smallholder farmers without external support. Financing solutions are limited, which slows adoption rates. Long-term economic benefits are evident, but initial affordability remains a barrier. Expanding access to credit and subsidies is essential to overcome this challenge. - Limited Awareness Among Farmers
In Indonesia, many farmers remain unfamiliar with agrivoltaics and its potential benefits. Lack of awareness creates skepticism and reluctance to adopt the technology. Training, demonstration projects, and extension services are needed to bridge this knowledge gap. Without targeted education campaigns, adoption will remain limited to larger, more resourceful farms. Effective outreach and farmer engagement will be key to scaling adoption in rural communities. - Technical Complexity of System Design
Designing agrivoltaic systems requires balancing agricultural needs with solar performance, which can be technically challenging. In Indonesia, variations in crops, soil conditions, and climate make standardization difficult. Farmers may lack access to expertise for customizing systems to their land. This complexity increases the reliance on consultants and developers, raising costs. Simplified design tools and training will be necessary to expand adoption at scale. - Regulatory and Land-Use Barriers
In Indonesia, land-use regulations and permitting processes can slow down agrivoltaics projects. Conflicting policies between agriculture and energy sectors create uncertainty for investors. Farmers may face challenges securing approvals or grid connections. Without streamlined regulations, projects risk delays and added costs. Policy harmonization will be essential to unlock the full market potential of agrivoltaics. - Uncertain Long-Term Performance Data
While pilot projects in Indonesia show promising results, there is still limited long-term data on agrivoltaics performance across diverse conditions. Investors and farmers are cautious about committing without evidence of sustained benefits. Questions remain about panel durability, crop compatibility, and maintenance costs. Lack of proven benchmarks slows adoption beyond early-stage projects. Ongoing research and monitoring will help build confidence and accelerate market maturity.
Indonesia Agrivoltaics Market Segmentation
By System Design
- Fixed Solar Panels
- Adjustable/Tilting Panels
- Vertical Solar Panels
By Crop Type
- Vegetables
- Fruits
- Grains
- Others
By Application
- Food Production
- Renewable Energy Generation
- Research & Pilot Projects
By End-User
- Farmers & Agricultural Cooperatives
- Renewable Energy Developers
- Research Institutes
- Government Agencies
Leading Key Players
- Enel Green Power
- BayWa r.e.
- Sun’Agri
- Next2Sun GmbH
- JA Solar Technology Co., Ltd.
- LONGi Green Energy Technology Co., Ltd.
- Iberdrola, S.A.
- First Solar, Inc.
- Trina Solar Limited
- Canadian Solar Inc.
Recent Developments
- Enel Green Power launched a large-scale agrivoltaics project in Indonesia integrating crop cultivation with solar farms.
- BayWa r.e. partnered with agricultural cooperatives in Indonesia to expand dual-use solar farms.
- Sun’Agri introduced an adjustable solar panel system in Indonesia designed for vineyard applications.
- Next2Sun GmbH deployed vertical agrivoltaic systems in Indonesia to optimize land-use efficiency.
- JA Solar Technology Co., Ltd. expanded module supply for agrivoltaics projects in Indonesia with bifacial technology.
This Market Report Will Answer the Following Questions
- What is the projected size and CAGR of the Indonesia Agrivoltaics Market by 2031?
- How are government policies shaping adoption of agrivoltaics in Indonesia?
- Which system designs and crop types are driving the fastest adoption?
- What challenges are limiting widespread implementation in Indonesia?
- Who are the leading companies investing in Indonesia’s agrivoltaics market?
