The Union Budget 2026–27 increased the PM-KUSUM allocation to ₹5,000 crore, signalling renewed focus on solarising agriculture along with plans to include AgriPV under PM-KUSUM 2.0.
- Global: 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.
- 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.
- India: There are around 50 pilot agriPV installations nationwide, with various panel-crop combinations and economic feasibility under evaluation.
About Agri-Photovoltaics (AgriPV)
- AgriPV (agrivoltaics) is a system where solar panels and agriculture coexist on the same land.
- It allows simultaneous electricity generation and crop cultivation by installing panels at suitable height or spacing.
- Aim: To maximize land-use efficiency, support farmer incomes, and enable sustainable energy transition without compromising food production.
AgriPV Pilot Projects
- Uttar Pradesh: 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.
- Maharashtra: In Maharashtra, the State Electricity Distribution Company has identified 2,730 substations for solarisation, potentially adding 13.65 GW of solar capacity through AgriPV.
Crop Selection in AgriPV
- Crop selection is crucial in AgriPV systems due to varying sunlight availability under solar panels.
- Shade-tolerant crops such as turmeric, ginger, and leafy vegetables perform well under panels.
- Sunlight-demanding crops are best cultivated in spaces between panel rows.
- Crop suitability varies across regions; for instance, tomato, onion, garlic, and tulsi are suitable in Madhya Pradesh.
- In Karnataka and Maharashtra, crops like ragi, jowar, grapes, and brinjal are well-suited for AgriPV systems.
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Types of AgriPV Systems
- Elevated Systems: Solar panels are mounted above crops, allowing cultivation underneath.
- Row-based Systems: Panels are placed between crop rows to minimise shading impact.
- Vertical Systems: Upright, often bifacial panels capture sunlight from both sides.
- Greenhouse-Integrated Systems: Panels are installed on greenhouse roofs or walls for controlled-environment farming.
Challlanges
- Policy Gaps and Need for Empirical Validation: Recent policy discussions have increasingly referenced agriPV but large-scale replication has yet to commence.
- Both policymakers and experts need more empirical evidence across agro-climatic zones to say which configurations, crop matrices, and financial frameworks are most suitable.
- Lack of Standardisation: Land classification, grid connectivity, and tariffs hinge on regulatory clarity and the lack of design benchmarks adds to investor uncertainty.
- High Capital Cost: AgriPV systems are 25–40% more expensive than conventional solar due to elevated structures.
- Cost can range between ₹5 lakh to ₹25 lakh per acre depending on design.
- Limited Technical Awareness: Farmers often lack awareness and technical know-how to adopt AgriPV systems as seen in early-stage pilots across Rajasthan and Gujarat.
Benefits
- Ancillary Services: AgriPV can power ancillary services as well, including cold storage, food processing units, and chaff cutters, strengthening rural value chains with enhanced energy efficiency.
- Environmental co-benefits: AgriPV also delivers environmental co-benefits.
- For Example: In certain agro-climatic conditions, partial shading can reduce evapotranspiration – the combined loss of water to the atmosphere through evaporation and plant transpiration – and soils retain more moisture, thus enhancing the overall water-use efficiency.
- Climate Protection and Rural Economic Growth: Solar panels can also protect crops against extreme heat, rainfall, and hail.
- By lowering the farm’s need for diesel, such systems can also support rural entrepreneurship and local economic growth.
- AgriPV for Land Use Optimization: India’s solar expansion intensifies land-use conflicts with agriculture due to large land requirements.
- AgriPV (agrivoltaics) resolves this by enabling simultaneous farming and solar power generation on the same land, improving efficiency and sustainability.
- Economic Benefits: In an agriculture-dependent economy, AgriPV (agrivoltaics) enables farmers to diversify incomes while producing clean energy.
- They can earn by selling electricity, leasing land, or sharing revenues without disrupting crop cultivation.
Way Forward
- Policy Support for Scaling: Strong policy backing can help AgriPV move beyond pilot projects.
- Institutional & Financial Measures: Inclusion under PM-KUSUM 2.0 and a proposed National AgriPV Mission with viability gap funding can improve viability and reduce risks.
- Administrative & Capacity Building Measures: Recognising dual-use, streamlining approvals, cluster identification, and farmer training can accelerate adoption.
23 Mar 2026
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