Agrivoltaics in India: Harvesting a Sustainable Future for Food and Energy
In order to make agrivoltaics the key cornerstone of India's sustainable growth, a well-defined, multi-faceted roadmap is necessary, crossing the policy, research, financial, and social spheres.
January 20, 2026. By News Bureau
India is confronted with the daunting challenge of developing renewable energy and assuring food security at the same time, both of which have to share scarce land. Agrivoltaics (APV), which integrates photovoltaic power generation and farming on the same plot of land, is a potent solution to this paradox. It is not so much a smart technology; it is a strategic necessity that converts an otherwise potential land conflict into a positive synergy.
With a potential of 3,200 GWp, APV can go a long way in helping India achieve its goal of 280 GW of solar capacity by 2030 without hurting agriculture. The benefits are many: APV boosts land productivity as a study by Fraunhofer Institute in 2019 suggest that APV increases farming productivity by 160 percent, saves significant amount of water by minimising evaporation, a critical advantage in water-scarce areas, and offers farmers with varied and stable incomes from land leases and electricity sales, generating an estimated 110,000 jobs with only 20 GW of deployment.
There is an urgent need to establish a unified vision, define precise objectives, and create an enabling ecosystem for Agrivoltaics in India. This can be achieved through uniform definitions, financial support, and a multi-ministerial government framework, ultimately aiming to empower farmers and foster a sustainable and equitable India.
Agri-PV
Agrivoltaics, also known as agricultural photovoltaics (APV) or Agrisolar, is the method of using the same piece of land for both solar power generation and agricultural activities simultaneously. This dual-use approach allows for farming, whether it's growing crops, grazing livestock, or creating pollinator habitats, to occur either beneath or between solar panels.
Several system configurations make this possible:
Overhead/Elevated Systems: Solar panels are mounted high (2 to 3.5 meters) on stilts, allowing ample space for farming and even machinery underneath.
Inter-spatial Systems (Ground-mounted): Traditional ground-mounted solar arrays are used, with crops cultivated in the sunlit rows between the panels. Cochin International Airport's 4 MW plant, which grows vegetables in these spaces, is a great example.
Vertical Bifacial System: Innovative bifacial panels, which capture sunlight from both sides, are mounted vertically like fences. This minimises land footprint, maximises farming area, and optimises morning and evening energy generation.
Hybrid Layouts: These projects combine elevated and inter-spatial designs to maximise both crop diversity and land use.
Greenhouse/Polyhouse Integration: Solar modules, either semi-transparent or standard, are built directly into greenhouse structures, providing both power and a controlled environment for high-value crops.
National Potential and Projections
India has an enormous opportunity in agrivoltaics (APV). ‘Agrivoltaics in India - January 2024' report published by GIZ estimate the country's theoretical APV potential to be as high as 3,156 GWp.
Certain states are particularly well-suited to lead this transition, thanks to their excellent solar resources, suitable agricultural practices, and available land. Punjab stands out with an estimated potential of 871 GWp, followed by Haryana (700 GWp) and Rajasthan (592 GWp). Even with a moderate deployment, India could add 19.97 GW of APV capacity by 2040.
This would require an investment of approximately INR 81,424 crore and is projected to create around 110,000 full-time jobs, predominantly in rural areas, significantly boosting the rural economy.
Multi-faceted Analysis of Synergistic Benefits
With a potential of 3,200 GWp, APV can go a long way in helping India achieve its goal of 280 GW of solar capacity by 2030 without hurting agriculture. The benefits are many: APV boosts land productivity as a study by Fraunhofer Institute in 2019 suggest that APV increases farming productivity by 160 percent, saves significant amount of water by minimising evaporation, a critical advantage in water-scarce areas, and offers farmers with varied and stable incomes from land leases and electricity sales, generating an estimated 110,000 jobs with only 20 GW of deployment.
There is an urgent need to establish a unified vision, define precise objectives, and create an enabling ecosystem for Agrivoltaics in India. This can be achieved through uniform definitions, financial support, and a multi-ministerial government framework, ultimately aiming to empower farmers and foster a sustainable and equitable India.
Agri-PV
Agrivoltaics, also known as agricultural photovoltaics (APV) or Agrisolar, is the method of using the same piece of land for both solar power generation and agricultural activities simultaneously. This dual-use approach allows for farming, whether it's growing crops, grazing livestock, or creating pollinator habitats, to occur either beneath or between solar panels.
Several system configurations make this possible:
Overhead/Elevated Systems: Solar panels are mounted high (2 to 3.5 meters) on stilts, allowing ample space for farming and even machinery underneath.
Inter-spatial Systems (Ground-mounted): Traditional ground-mounted solar arrays are used, with crops cultivated in the sunlit rows between the panels. Cochin International Airport's 4 MW plant, which grows vegetables in these spaces, is a great example.
Vertical Bifacial System: Innovative bifacial panels, which capture sunlight from both sides, are mounted vertically like fences. This minimises land footprint, maximises farming area, and optimises morning and evening energy generation.
Hybrid Layouts: These projects combine elevated and inter-spatial designs to maximise both crop diversity and land use.
Greenhouse/Polyhouse Integration: Solar modules, either semi-transparent or standard, are built directly into greenhouse structures, providing both power and a controlled environment for high-value crops.
National Potential and Projections
India has an enormous opportunity in agrivoltaics (APV). ‘Agrivoltaics in India - January 2024' report published by GIZ estimate the country's theoretical APV potential to be as high as 3,156 GWp.
Certain states are particularly well-suited to lead this transition, thanks to their excellent solar resources, suitable agricultural practices, and available land. Punjab stands out with an estimated potential of 871 GWp, followed by Haryana (700 GWp) and Rajasthan (592 GWp). Even with a moderate deployment, India could add 19.97 GW of APV capacity by 2040.
This would require an investment of approximately INR 81,424 crore and is projected to create around 110,000 full-time jobs, predominantly in rural areas, significantly boosting the rural economy.
Multi-faceted Analysis of Synergistic Benefits
- Enhancing Agricultural Outcomes
Beyond simply using land for two purposes, agrivoltaics offers a range of advantages that actively boost agricultural output and resilience. The partial shade from solar panels creates a more favourable microclimate for crops, leading to cooler daytime temperatures and warmer nights. This reduction in heat and light stress can significantly increase biomass for shade-tolerant crops, with some studies, like ‘The Potential of Agrivoltaic Systems’ by Harshavardhan Dinesh and Joshua M. Pearce, suggesting gains of up to 60-70 percent.
Even sun-loving crops can benefit from protection against scorching during peak summer, leading to stable or only slightly reduced yields. This allows farmers to diversify into high-value horticulture and cultivate year-round, as seen in a Noida-based university’s pilot project where farmers transitioned from seasonal wheat and mustard to continuous vegetable and fruit production.
In water-stressed India, water conservation is a critical benefit; the shade from panels significantly reduces soil water evaporation and plant transpiration, drastically cutting irrigation needs and easing pressure on groundwater. Some advanced agrivoltaic systems even integrate rainwater harvesting.
Furthermore, the physical structure acts as a protective shield, offering climate resilience by safeguarding crops from extreme weather events like hailstorms, torrential rain, and scorching sun, making farming a more stable and less risky venture. This positions agrivoltaics not just as an energy technology, but as a powerful climate adaptation tool for Indian agriculture, enhancing food supply chain stability.
Finally, the panel canopy also improves soil health by reducing erosion from wind and heavy rainfall, while maintaining higher soil moisture and moderating soil temperature, contributing to long-term nutrient retention.
Even sun-loving crops can benefit from protection against scorching during peak summer, leading to stable or only slightly reduced yields. This allows farmers to diversify into high-value horticulture and cultivate year-round, as seen in a Noida-based university’s pilot project where farmers transitioned from seasonal wheat and mustard to continuous vegetable and fruit production.
In water-stressed India, water conservation is a critical benefit; the shade from panels significantly reduces soil water evaporation and plant transpiration, drastically cutting irrigation needs and easing pressure on groundwater. Some advanced agrivoltaic systems even integrate rainwater harvesting.
Furthermore, the physical structure acts as a protective shield, offering climate resilience by safeguarding crops from extreme weather events like hailstorms, torrential rain, and scorching sun, making farming a more stable and less risky venture. This positions agrivoltaics not just as an energy technology, but as a powerful climate adaptation tool for Indian agriculture, enhancing food supply chain stability.
Finally, the panel canopy also improves soil health by reducing erosion from wind and heavy rainfall, while maintaining higher soil moisture and moderating soil temperature, contributing to long-term nutrient retention.
b. Optimising Solar Generation
In agrivoltaics, the relationship is mutually beneficial, with agricultural activities significantly boosting the performance of the solar energy system. Since solar panels are less efficient at high temperatures, the natural evapotranspiration (Evaporation + Transpiration) process of crops below provides a cooler microclimate, and this, in turn, cools the panels. A Malaysian study named ‘Performance of Green Roof Integrated Solar Photovoltaic System’ demonstrated this natural cooling effect, boosting electricity generating efficiency by nearly 3 percent and established a positive feedback cycle in which crops improve panel performance, and panels assist in crop production.
Land Equivalent Ratio (LER) is the best measure of the gain associated with this two-in-one land use. An LER is determined by adding the relative yields of both crops and energy when they are grown together versus when they are grown apart on the same land. An LER value of more than 1 indicates a net land productivity gain. For instance, Indian pilot schemes, such as the ICAR-CAZRI project in Jodhpur, have achieved a remarkable LER of 1.41. In effect, one hectare of agrivoltaic land produces a combined output equivalent to 1.41 hectares used independently for solar panels and farming. This tangible boost in land efficiency provides a strong economic justification for the higher initial investment in agrivoltaic (APV) systems.
Comprehensive Cost-Benefit Analysis
A primary challenge for APV is its higher initial cost compared to conventional ground-mounted solar farms, and estimates indicate that APV systems are between 25-40 percent more costly. This is largely because of the requirement for taller, heavier mounting structures, ranging from INR 5 lakh to INR 25 lakh per acre based on scale and design.
Though these involve greater capital outlays, many studies and pilot projects in India have found APV to be financially feasible. For example, research conducted by SRM Institute of Science and Technology came across a staggering Levelised Cost of Energy (LCOE) for an APV system of $0.039/kWh (INR 3.37/kWh), less than traditional rooftop solar systems. A project in Maharashtra calculated an LCOE of as little as INR 2.02/kWh. Also, APV projects have a favourable payback period; the study by SRM Institute suggested approximately 7 years, and the ICAR-CAZRI project in Jodhpur projected 8 years with a highest IRR of 20.38 percent.
Augmenting Farmer Livelihoods
For Indian farmers, agrivoltaics introduces a groundbreaking shift – from depending solely on traditional agriculture, often fraught with income instability, to embracing a diversified and more secure livelihood model. By integrating solar panels with farming activities, agrivoltaics (APV) systems unlock multiple revenue streams on the same plot of land.
In developer-owned setups, farmers benefit from steady lease payments, transformative in some cases, like the Sunmaster plant in Najafgarh, Delhi, where income jumped fourfold to INR 1.2 lakh per acre annually. Similarly, Parbhani’s model offers INR 50,000 per acre. Farmer-owned models empower cultivators as ‘prosumers’, generating and selling electricity to DISCOMs, turning solar into a lucrative ‘third crop’.
On the agricultural side, APV enhances profits through better yields, crop diversification into high-value produce, and lower input costs, especially for water. Beyond income, these systems also create new jobs in installation, operations, and farm upkeep, offering vital support during off-seasons for rural labourers.
The Role of Key Institutions
Agrivoltaics in India is threatened by the huge problem of its decentered governance, with jurisdiction dispersed between several ministries and agencies. The siloed system, where power, agriculture, and water resources are working independently, keeps the integrated and comprehensive policy framework necessary for this convergent technology from being established.
The Ministry of New and Renewable Energy (MNRE), being the main organisation for solar energy, lays down national renewable energy targets and enforces policies such as PM-KUSUM. Yet, the guidelines it has in place right now do not define or address agrivoltaics explicitly, classifying it only as a subset of ground-mounted solar. The Ministry of Agriculture and Farmers' Welfare (MoA&FW) is responsible for coordinating the deployment of agrivoltaics with agriculture needs, policies of research through institutions such as ICAR, and national food security.
Hence, an authoritative and efficient coordination between MNRE and MoA&FW is extremely necessary for the proper integration of agrivoltaics. The India Agrivoltaics Alliance (IAA), started by the National Solar Energy Federation of India (NSEFI), brings together different groups to work on agrivoltaics. It brings together industry stakeholders, developers, research organisations, and government, driving policy, knowledge sharing, and influencing technical standards for the industry.
Challenges
Agrivoltaics has the potential to transform India's agrarian and energy sectors, but its mass adoption is confronted with several systemic barriers that require strategic policy action. Leading the list of challenges is the steep upfront investment, which falls hardest on small and marginal farmers, even though they stand to gain the most from it.
Then there are ambiguous regulatory frameworks, such as the absence of uniform definitions, land-use safeguards, and tariffs, injecting unpredictability in farmer and investor choices. Technical limitations also remain, with scant region-specific R&D and a lack of local expertise hindering system design and upkeep.
On the grassroots level, farmers' scepticism about land productivity, technological sophistication, and lease equity, coupled with poor awareness and confidence, contributes to hindrances. Community-led models could provide a route to overcome these shortcomings and foster trust.
A Strategic Roadmap
In order to make agrivoltaics the key cornerstone of India's sustainable growth, a well-defined, multi-faceted roadmap is necessary, crossing the policy, research, financial, and social spheres.
In terms of policy, an exclusive National Agrivoltaics Mission, along with standardised definitions, well-built governance structures, and land-use reforms, will underscore institutional support and de-risk investment. Focused R&D by national programs and Centres of Excellence will drive innovation and offer region-specific implementation plans.
Financial instruments like feed-in tariffs, viability gap funding, and green finance channels need to be accessed to enhance the project's viability and generate additional income streams.
Enabling farmers through capacity building, fair ownership structures, and legal protection will enable agrivoltaics not only to scale but to scale inclusively and sustainably, accruing maximum benefits at the grassroots level.
- Gautam Bose, Manager (Research), State Bank Academy Land Equivalent Ratio (LER) is the best measure of the gain associated with this two-in-one land use. An LER is determined by adding the relative yields of both crops and energy when they are grown together versus when they are grown apart on the same land. An LER value of more than 1 indicates a net land productivity gain. For instance, Indian pilot schemes, such as the ICAR-CAZRI project in Jodhpur, have achieved a remarkable LER of 1.41. In effect, one hectare of agrivoltaic land produces a combined output equivalent to 1.41 hectares used independently for solar panels and farming. This tangible boost in land efficiency provides a strong economic justification for the higher initial investment in agrivoltaic (APV) systems.
Comprehensive Cost-Benefit Analysis
A primary challenge for APV is its higher initial cost compared to conventional ground-mounted solar farms, and estimates indicate that APV systems are between 25-40 percent more costly. This is largely because of the requirement for taller, heavier mounting structures, ranging from INR 5 lakh to INR 25 lakh per acre based on scale and design.
Though these involve greater capital outlays, many studies and pilot projects in India have found APV to be financially feasible. For example, research conducted by SRM Institute of Science and Technology came across a staggering Levelised Cost of Energy (LCOE) for an APV system of $0.039/kWh (INR 3.37/kWh), less than traditional rooftop solar systems. A project in Maharashtra calculated an LCOE of as little as INR 2.02/kWh. Also, APV projects have a favourable payback period; the study by SRM Institute suggested approximately 7 years, and the ICAR-CAZRI project in Jodhpur projected 8 years with a highest IRR of 20.38 percent.
Augmenting Farmer Livelihoods
For Indian farmers, agrivoltaics introduces a groundbreaking shift – from depending solely on traditional agriculture, often fraught with income instability, to embracing a diversified and more secure livelihood model. By integrating solar panels with farming activities, agrivoltaics (APV) systems unlock multiple revenue streams on the same plot of land.
In developer-owned setups, farmers benefit from steady lease payments, transformative in some cases, like the Sunmaster plant in Najafgarh, Delhi, where income jumped fourfold to INR 1.2 lakh per acre annually. Similarly, Parbhani’s model offers INR 50,000 per acre. Farmer-owned models empower cultivators as ‘prosumers’, generating and selling electricity to DISCOMs, turning solar into a lucrative ‘third crop’.
On the agricultural side, APV enhances profits through better yields, crop diversification into high-value produce, and lower input costs, especially for water. Beyond income, these systems also create new jobs in installation, operations, and farm upkeep, offering vital support during off-seasons for rural labourers.
The Role of Key Institutions
Agrivoltaics in India is threatened by the huge problem of its decentered governance, with jurisdiction dispersed between several ministries and agencies. The siloed system, where power, agriculture, and water resources are working independently, keeps the integrated and comprehensive policy framework necessary for this convergent technology from being established.
The Ministry of New and Renewable Energy (MNRE), being the main organisation for solar energy, lays down national renewable energy targets and enforces policies such as PM-KUSUM. Yet, the guidelines it has in place right now do not define or address agrivoltaics explicitly, classifying it only as a subset of ground-mounted solar. The Ministry of Agriculture and Farmers' Welfare (MoA&FW) is responsible for coordinating the deployment of agrivoltaics with agriculture needs, policies of research through institutions such as ICAR, and national food security.
Hence, an authoritative and efficient coordination between MNRE and MoA&FW is extremely necessary for the proper integration of agrivoltaics. The India Agrivoltaics Alliance (IAA), started by the National Solar Energy Federation of India (NSEFI), brings together different groups to work on agrivoltaics. It brings together industry stakeholders, developers, research organisations, and government, driving policy, knowledge sharing, and influencing technical standards for the industry.
Challenges
Agrivoltaics has the potential to transform India's agrarian and energy sectors, but its mass adoption is confronted with several systemic barriers that require strategic policy action. Leading the list of challenges is the steep upfront investment, which falls hardest on small and marginal farmers, even though they stand to gain the most from it.
Then there are ambiguous regulatory frameworks, such as the absence of uniform definitions, land-use safeguards, and tariffs, injecting unpredictability in farmer and investor choices. Technical limitations also remain, with scant region-specific R&D and a lack of local expertise hindering system design and upkeep.
On the grassroots level, farmers' scepticism about land productivity, technological sophistication, and lease equity, coupled with poor awareness and confidence, contributes to hindrances. Community-led models could provide a route to overcome these shortcomings and foster trust.
A Strategic Roadmap
In order to make agrivoltaics the key cornerstone of India's sustainable growth, a well-defined, multi-faceted roadmap is necessary, crossing the policy, research, financial, and social spheres.
In terms of policy, an exclusive National Agrivoltaics Mission, along with standardised definitions, well-built governance structures, and land-use reforms, will underscore institutional support and de-risk investment. Focused R&D by national programs and Centres of Excellence will drive innovation and offer region-specific implementation plans.
Financial instruments like feed-in tariffs, viability gap funding, and green finance channels need to be accessed to enhance the project's viability and generate additional income streams.
Enabling farmers through capacity building, fair ownership structures, and legal protection will enable agrivoltaics not only to scale but to scale inclusively and sustainably, accruing maximum benefits at the grassroots level.
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