The Rise of Agrivoltaics: Combining Solar Power with Farming in India

The agricultural sector in India employs 42.3% of the population, contributing approximately 18.2% towards the gross domestic product (GDP), with an average annual growth of 4.2% in the past five years. With a target of 500 gigawatts (GW) of non-fossil fuel capacity by 2030, India continues its march as the third-largest producer of renewable energy worldwide. With over 120 million farmers in India, solar power in farming can enable the country to meet its green energy commitments while providing farmers with supplementary income. Moreover, to ensure India has enough energy, agrivoltaics — a system of solar power generation integrated with agriculture — has become a truly revolutionary solution. This novel model optimises land productivity by growing crops under raised solar panels, tackling a handful of issues including shrinking arable land, climate hazards and energy demands while also boosting incomes.

What is Agrivoltaics?

Agrivoltaics, or Agro photovoltaics (AgriPV), is the dual use of land that integrates land for solar energy generation with agriculture, including growing crops, providing grazing space or supporting habitat for beneficial insects. It is an innovative solution that solves this problem by placing solar panels on top of land, resulting in a dual-use model that optimises land use by generating clean and renewable energy.

Sustainable agriculture in India and its future

India is one of the largest agricultural economies with over 150 million hectares of agricultural land. Agriculture is a key driver for the economy, but it also faces challenges from unpredictable weather, water shortages and demands from a growing population. Far more than harnessing solar energy to power agriculture and boost crop yield, the integration of solar power in Indian farmlands through AgriPV provides a strong solution to the adverse consequences of traditional farming, advancing renewable energy in agriculture.

It is no secret that India gets a lot of sunlight – about 5,000 trillion units of solar energy falls on India's land every year. Daily, four to seven units of solar energy are received per square meter of land area. Leveraging this potential, AgriPV can reduce dependency on fossil fuels and increase food and energy production at the same time. Hence, this dual approach helps to convert agricultural lands into sustainable and renewable sources of energy to combat climate change and hence, a greener future.

AgriPV around the world

The worldwide AgriPV market is anticipated to register a compound annual growth rate (CAGR) of 8.3% between 2024 and 2031, from Rs. 37,588 crore (US$ 4.34 billion) in 2024 to Rs. 65,910 crore (US$ 7.61 billion) by 2031. Major growth contributors are sustainable agricultural practices and stringent environmental regulations. Some of the major regions considered for the deployment of the biotechnology market in the report are North America, Europe, Asia Pacific, Latin America, the Middle East and Africa. Some of the top performing agrivoltaics companies such as Ombrea, Sun’Agri, and JA Solar are paving the way for both fixed and dynamic panel systems on multiple crops.

North America, led by the United States, remains the dominant market with a 34.3% share in 2024, supported by robust incentives and pioneering AgriPV projects in states such as California and New York. The Asia Pacific is the fastest-growing region, driven by China's investments in agri-technology innovation and India's rural electrification initiatives that combine solar energy with farming. Europe advances through collaborations such as the 2024 Soltec and TSE agrivoltaics projects in France. Emerging markets in Latin America and the Caribbean, such as Jamaica and Brazil, highlight growing adoption, leveraging agrivoltaics to combat climate challenges.

How AgriPV is shaping up in India

India has launched more than a dozen pilot AgriPV projects in different states to evaluate the viability of combining solar panels and several types of crops.

Recent innovations such as elevating solar panels to two to three meters high give opportunity for traditional farming under panels. These designs focus on maximising energy production and crop output.

AgriPV pilot projects

These pilot projects address key questions such as how agrivoltaics boosts crop production and how agrivoltaics can support India’s renewable energy targets.

Uttar Pradesh has seen successful AgriPV pilot projects such as the 10-kilowatts (KW) Amity University Plant in Noida (2017) supporting crops such as maize, potato and mustard, and the 200-kW Dayalbagh Project in Agra (2020), growing grams, brinjal, tomato, and more. These projects highlight the potential of combining solar energy with agriculture.

In Maharashtra, the State Electricity Distribution Company has identified 2,730 substations for solarisation, potentially adding 13.65 GW of solar capacity through AgriPV. This capacity could generate 17.93 Terawatt hours (TWh) of energy annually, significantly boosting the state's solar power output. These examples show how AgriPV can be replicated throughout the nation and will advance the government’s vision of reaching 500 GW of renewable energy by 2030.

Advantages of AgriPV and sustainable rural development in India

Women in rural areas can also benefit by engaging in small-scale industries for value addition, boosting their income from agricultural produce. In Maharashtra, where farmer groups, cooperatives and Farmer Producer Organisations (FPOs) already thrive, AgriPV can be collectively adopted, leveraging economies of scale for successful implementation.

Navigating the challenges in implementing AgriPV in India

• High initial investment: The primary barrier is the high initial investment cost, which is usually beyond the reach of local farmers. Due to increased costs associated with unique installation requirements and higher permitting, labour, and site investigation costs, AV systems are generally more expensive to construct than conventional ground-mounted solar PV systems.
• Technological constraints: Despite improvements in solar technology, there is a need for more research to develop solar panels specifically suited for agricultural environments in India.
• Land use conflicts: Large-scale AgriPV implementation requires careful planning and policy support to address conflicts between agricultural land use and solar power generation, ensuring both sectors can coexist without compromising either.

To tackle these challenges, below are some of the solutions that the government has taken up:

The Government launched PM-KUSUM scheme in March 2019, which it scaled up in January 2024 to provide energy and water security to farmers, increase their income, de-dieselise the farm sector and reduce environmental pollution.

PM-KUSUM is one of the flagship schemes contributed to the generation of solar energy in rural parts of India. Its purpose is to help farmers install solar energy systems, which include three main elements:

• Component A: Targets large grid-connected renewable power plants (up to two megawatts (MW) per plant).
• Component B & C: Focuses on deploying solar-powered water pumps to support irrigation.

The scheme aims to achieve:

• 10 GW of decentralised ground-mounted grid-connected renewable power plants.
• Renewable energy projects ranging from 500 kW to two MW, to be set up by farmers, cooperatives or farmer groups on barren or uncultivable land.

Although AgriPV is not explicitly part of the PM-KUSUM scheme, it aligns with the broader goal of harnessing solar power for agricultural areas. There is currently no clear incentive for developing AgriPV systems, as the cost of implementation is higher due to the low technological maturity.

Despite this, the scheme presents opportunities for farmers with non-agricultural land to lease for solar projects, allowing them to generate additional income. For example, in Tamil Nadu, a cost-benefit analysis showed that the scheme could save 43% per kW for the Distribution Companies (DISCOMs) and provide farmers with leasing income.

State-specific initiatives:

Several Indian states have implemented their own solar energy schemes for agricultural purposes:

• Delhi offers income to farmers through land leasing for solar projects, with a monthly earning potential of Rs. 8,333 (US$ 96.22) per acre.
• Gujarat provides a tariff of Rs. 7 (US$ 0.081) per unit for solar energy, with a long-term plan spanning 25 years.
• Maharashtra aims for 30% feeder solarisation by 2025 and offers attractive tariffs for solar power projects.
• Odisha provides Rs. 20,000 (US$ 230.95) per acre annually for participating farmers, enhancing their income from solar leasing.

The India Agrivoltaics Alliance (IAA), an initiative of the National Solar Energy Federation of India (NSEFI), focuses on integrating solar energy infrastructure with agricultural spaces across India. This alliance brings together diverse stakeholders, including government bodies, solar developers, farmers and financial institutions, with a unified aim to promote, facilitate and standardise agrivoltaics practices.

Bright future ahead

AgriPV model is an innovative, optimal land-use model in which solar power generation powers crop cultivation. From its vast agricultural expanse to over 300 days of sunshine annually, India has significant opportunity for this technology. With the country being the third-largest solar power producer in the world, AgriPV can address concerns such as water scarcity and climate-change-induced unpredictable weather all while increasing food and energy production. The model produces clean energy while also mitigating extreme weather impact on agricultural productivity.

Farmers will benefit through AgriPV as it provides higher yields, water usage efficiency and a dual income model where they generate energy in passive income with very little capital expenditure. Despite challenges stemming from large initial investments and land use conflicts, government schemes such as PM-KUSUM and state-specific initiatives play a pivotal role in assisting farmers. Having seen successful pilot projects and the increased focus on rural electrification, AgriPV is a promising solution for the agricultural and energy future of the country and aligns with the target of increasing the renewable energy share to 500 GW by 2030.