Israel Agrivoltaic Market Research Report Forecast: (2024-2030)

Market Definition

Agrivoltaic systems seamlessly integrate the combination of energy production and food cultivation. This system involves the installation of solar panels or photovoltaic arrays along with agricultural practices, which fosters the harmonious co-existence of both productions on the same land. This system creates a synergistic relationship between crops and solar panels in which the solar system provides shade for the vegetation to reduce water loss within the plants. By utilizing the same land for both practices, farmers could lower their energy costs and be financially sustainable.

Market Insights & Analysis: Israel Agrivoltaic Market (2024-30):

Israel Agrivoltaic Market size is estimated to grow at a CAGR of around 71.23% during the forecast period, i.e., 2024–30. The market growth is attributed to the rapidly growing population in the country, which stimulates the demand for food production. The rapid climate changes, like increasing temperature levels & reduced precipitation, coupled with rising water scarcity concerns, will affect agriculture sectors globally, which would increase the demand for agrivoltaics in the coming years. Israel is one of the countries considered to be the world's hotspot for climatic changes and is expected to have extreme climate conditions involving the temperature elevating faster as compared to the average rate globally.

In addition, the shifting focus toward adopting agrivoltaics enables the effective use of sunlight for crop growth. A grave effect of climate change has been faced by the agriculture sector in terms of either heavy rains or heatwaves globally. Hence, the agrivoltaic industry offers several benefits in the agricultural sector and farmers' earnings from power generation, and it has positively influenced the overall growth & expansion of the agrivoltaic industry.

Along with this, further factors such as water scarcity in this region lead to various challenges in the agricultural and energy sectors to meet the high demand for food and power among the populations of the country. The increasing concern for food security and the need for the expansion of the agriculture sector through the adoption of strategies to meet the high demand of the population. Agrivoltaics include the efficient utilization of sunlight for power generation and the production of crops on the same land, further offering farmers and operators the opportunity to earn from the power generated from the solar panels as well.

According to ITA (International Trade Administration) 2022, Israel is one of the countries that lacks self-sufficiency in the agriculture sector and is highly dependent on the import of food products to meet the high demand for food production. This is due to the low availability of arable land and freshwater required for agriculture, and according to the World Bank in 2020, approximately 29% of the arable land present in Israel was for the agriculture method. This increases the demand for various approaches to overcome the insufficiency of the country to meet the demand for food production through agrivoltaics in the coming years.

Moreover, various big companies in Israel, such as SolarEdge, Teralight, etc., are actively working on innovation and elevation in the development of various agrivoltaic projects across different regions of the country to fulfill the demand of the population, thereby augmenting the growth & expansion of the Agrivoltaic Industry in the country during the forecast period.

Israel Agrivoltaic Market Driver:

Increasing Government Investments for the Establishment of Agrivoltaics Driving the Market – Israel is facing one serious concern related to the production of food due to the inadequate availability of arable land and water scarcity in the country for agriculture practices. To fulfill the high demand for food production, agrivoltaics is emerging as a viable solution in Israel that includes innovating the agriculture method through the involvement of solar panels on the same land. This would help in the preservation of agricultural land through combinations of agricultural activities equipped with the production of energy plans, as well as further maximize the profits of the farmers and the operators.

Furthermore, the government of Israel is working on transitioning and scaling up solar deployment as a renewable source for the generation of electricity by around 30% by the year 2030. It involves initiatives towards investment in renewable energy sources for power generation in the power sector, agriculture sector, etc. Various investments have been laid down by the government of Israel towards agrivoltaics for the production of energy, in combination with the increase in agricultural activities. For instance,

• In 2022, a tender was launched by the Minister of Agriculture and Rural Development and the Ministry of Energy of Israel for the deployment of 100MW of agrivoltaic power capacity in 100 different farmland locations in Israel.

Thus, rising investment in the agriculture sector by the government through the development and establishment of agrivoltaics in the lands of Israel uplifts the factors needed to overcome the challenges faced in the food and energy sectors of the country, and it is expected to accelerate the size of the Israel Agrivoltaics Market in the coming years.

Israel Agrivoltaic Market Opportunity:

Surging Sustainability Goals to Reduce Carbon Emissions Offers New Opportunities – In the production of energy to fulfill the high demand for power generation in various applications in Israel, there is a high risk of a large amount of carbon emissions during the production of power. Over the past few years, the country has now set up goals for transitioning toward sustainability to reduce carbon emissions in the country. In 2022, the carbon emissions of the country increased by around 3.5% as compared to 2021. This increase in carbon emissions has led the government to set goals through the adoption of renewable resources for energy production in various sectors and a reduction in carbon emissions by setting the interim target of a 27% reduction in carbon emissions by the year 2030. For instance,

• According to the Israeli Ministry of Finance, a tax of around USD 40 per ton of carbon emissions would be implemented on the consumption of fossil fuels, including natural gases, liquid fuels, etc.

These initiatives led by the government of Israel for the reduction of carbon emissions through taxes, regulations, etc. have increased the adoption of renewable alternatives in various sectors, including the power sector, agriculture sector, etc. This further increases the adoption of the innovative strategy for the production of crops and the power on the same arable land by agrivoltaics, and its innovative approach in the agricultural sector is expected to provide opportunities for market growth & expansion in Israel during the upcoming years.

Israel Agrivoltaic Market Challenge:

Lack of Skilled Labor Hinders Market Growth –  In Israel, the country faces the challenges of unskilled labor, which is required for the installation and maintenance of agrivoltaics in the agriculture sector. Due to the unavailability of skilled labor, the cost of hiring labor in this sector increases, which would ultimately impact the structural cost of the overall agrivoltaics project. This results in less adoption of agrivoltaics in the country due to higher costs, which would further lead to a negative effect on the growth of the agrivoltaics industry.

According to an organization report in 2022, it is stated that in the agricultural sector, the wage of labor has increased by 9% between 2019 to 2022. This increase in the wage or the payment of labor will increase the overall cost of the project, thereby hampering the adoption of agrivoltaics in Israel. Furthermore, agrivoltaics is one of the strategic and innovative approaches in the agriculture sector, which also involves complexity. For a successful establishment, the management of agrivoltaics is essential for its successful implementation and long-term sustainability, which could be hindered by the unskilled labor in the country and is expected to impact the market size & volume in the coming year.

Israel Agrivoltaic Market Trend:

Increasing Partnerships & Collaborations among the Companies in the Market – In Israel, due to the adoption of a more strategic and innovative approach, various companies, such as Teralight, Trisolar, etc., are moving towards collaboration for the establishment and advancement of agrivoltaics. These partnerships were led by the companies for the establishment of agrivoltaics in Israel to fulfill the high demand from both the energy and food sectors, increasing the market share of agrivoltaics in Israel. For instance,

• In 2023, Teralight, Israel's company, and Sun’ Agri, a French company, announced a cooperative partnership for the establishment of the two agrivoltaic pilot projects by the end of the year in Israel.

These establishments of agrivoltaics overcome the water scarcity impact through less water consumption and further protect the crops from excess exposure to sun radiation. Furthermore, the growing demand for clean energy sources and food contributed to market growth. The adoption of agrivoltaics is an opportunity for farmers to generate extra income by selling solar power produced on their land to the power grids. In addition, the collaboration activities being done by the agrivoltaics manufacturers would help to ensure sustainable farming practices in the forthcoming years.

Israel Agrivoltaic Market (2024-30): Segmentation Analysis

Israel Agrivoltaic Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. According to the analysis, the market has been further classified as:

Based on Cell Type:

• Monocrystalline
• Polycrystalline

Based on cell type, Monocrystalline is a leading segment and is expected to hold the majority of the market share in the Israel Agrivoltaic Market during 2024-30. Monocrystalline is manufactured with the integration of a single, pure crystal of silicon, which is considered to be more efficient than the polycrystalline cell type, which involves multi-crystalline silicon and is less efficient. Due to the different temperature variations, monocrystalline solar panels in the agrivoltaics in Israel have lower temperature coefficients and are much more effective as compared to polycrystalline. These solar panels have higher temperature coefficients and are less effective in cases of temperature variation. Therefore, market size is anticipated to be fueled as the development of monocrystalline solar panels in agrivoltaics in Israel is expected to further increase in the coming years.

Based on Placement:

• Standalone
• Shading Nets
• Greenhouse
• Others (Solar Fence, Solar Window, etc.)

Greenhouse agrivoltaic is expected to hold the majority of the market share in the Israel Agrivoltaic Market during 2024–30. Greenhouse agrivoltaics are involved in the maintenance and control of temperature and humidity. Israel is considered one of the arid regions with high-temperature conditions, so it is advantageous to provide controlled temperature conditions for crop production as compared to shading nets, which only offer shade to the crop for less exposure to sunlight. Furthermore, high water scarcity is a serious concern in Israel, which is overcome by greenhouse agrivoltaics by reducing evaporation and minimizing the need for irrigation, which requires a considerable amount of water. Therefore, demand and the new establishment of greenhouse agrivoltaics are anticipated to elevate the market size & volume in the near future owing to their controlling temperature conditions and reduced utilization of water in the country.

Israel Agrivoltaic Industry Recent Development:

• In 2023, a new agrivoltaic solution project for greenhouses named Regace was launched by the Al-Zahrawi Society of Israel, involving the installation of a crop-responsive PV tracking system by TriSolar, which would be used with a bifacial semi-transparent photovoltaic module.
• In 2023, one of the largest agrivoltaics construction projects was issued by the Emek Hama’ayanot Local Planning and Building Committee, which would be established by the Doral Energy Company and the Ma’ale Gilboa Kibbutz with an energy generation capacity of around 12 MW.

Gain a Competitive Edge with Our Israel Agrivoltaic Market Report

1. Israel Agrivoltaic Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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