Societal Impact StatementGlobally, the combustion of fossil fuels represents the vast majority of greenhouse gas emissions, and as such, a transition to renewable forms of energy provides the greatest potential for mitigating climate warming. Although solar photovoltaic energy generation is a leading climate solution, these energy facilities have a significant spatial footprint. Naturally, concerns regarding the coexistence of solar development in agriculturally productive and pristine native ecosystems remain. This study offers insight for how plants respond to novel environmental conditions within a solar array and contextualizes results to inform future array siting, design, and management to realize a sustainable solar energy future.Summary Photovoltaic (PV) solar arrays impose dynamic shading regimes and redistribute precipitation to the ecosystems beneath, leading to spatial and temporal heterogeneity in plant growth environments. Although PV are known to alter ecosystem‐level processes in managed and native landscapes, the control of PV‐induced microenvironments on plant ecophysiological responses are largely unexplored. A more robust and mechanistic understanding of how PV microenvironments control plant response will inform management of existing solar arrays and provide insight for future arrays designed to enhance ecosystem services. Here, we evaluated carbon (photosynthetic parameters) and water relations (daily patterns of leaf water potential (ψL) and stomatal conductance (gsw)) in a C3 perennial grass (Bromus inermis) across PV microsites within a 1.6 ha (1.2 MW) array in semiarid Colorado, USA. Light‐saturated photosynthetic rate was surprisingly consistent spatially, not differing between plants growing in near full sun (between PV rows) versus those growing in shadier microsites beneath panels (~28% of full sunlight). Additionally, plants located in microsites receiving only direct sunlight in the morning, when air temperature and vapor pressure deficits (VPD) were low, had greater ψL and gsw than plants receiving direct sunlight primarily in the hotter drier afternoon. Thus, while soil moisture is a primary control of plant productivity in most water‐limited grasslands, we found that VPD was a better predictor of daily patterns of leaf‐level photosynthetic and water relations responses that control aboveground biomass production in a PV array. These findings provide new mechanistic insight for evaluating vegetation management strategies in semiarid PV arrays.