India to Launch Scheme Supporting 5 GW of Agriphotovoltaic Solar Capacity

The Indian government is preparing to introduce a central sector scheme aimed at fostering solar power generation through agriphotovoltaic (AgriPV) technology, which combines agriculture and solar energy production on the same land. Santosh Kumar Sarangi, secretary of the Ministry of New and Renewable Energy (MNRE), announced on Monday that this initiative will address the 25 to 30 percent higher costs associated with setting up AgriPV installations compared to conventional solar plants.

Speaking ahead of the AgriVoltaics World Conference 2026, Sarangi outlined the government's ambition to develop approximately 5 gigawatts of AgriPV solar capacity within the next three to four years. However, the success of this target depends heavily on state governments' willingness to establish feed-in tariffs that support these projects.

"To encourage all states and provide initial incentives, we are considering including AgriPV support within one of our existing schemes, potentially as part of a revision," Sarangi said. He highlighted ongoing consultations with the Ministry of Finance to finalize the details of this backing and to devise mechanisms that would motivate states to adopt various models of AgriPV.

The ministry has yet to decide whether the new scheme will be an extension of the current PM-KUSUM program, which promotes solar installations at the farm level, or if it will stand as a separate initiative. A key challenge lies in the additional civil infrastructure required by AgriPV due to the elevated and tilted solar panel structures, which raises project costs by 25 to 30 percent over traditional ground-mounted solar arrays.

"Our goal is to cover this cost difference to scale up AgriPV deployment so it becomes commercially viable with competitive tariffs," Sarangi explained.

MNRE has already conducted multiple pilot projects across India in collaboration with the Indian Agricultural Research Institute (IARI). These pilots have explored how AgriPV can support both food and energy security without compromising agricultural productivity.

"The research with IARI involved extensive mapping of crop types suited to different agro-climatic zones. We found that fruits and leafy vegetables generally perform well under AgriPV systems," Sarangi noted.

Regions with moderate solar irradiance, such as Madhya Pradesh, Odisha, Chhattisgarh, West Bengal, and Uttar Pradesh, are expected to be particularly favorable for AgriPV deployment. These areas can generate solar energy effectively without negatively impacting crop yields.

The AgriPV technology involves mounting solar panels on structures about four meters high, allowing farmers to continue regular agricultural activities beneath the panels. India’s potential for AgriPV capacity is estimated between 1 to 2 terawatts, although it requires approximately 16 percent more land compared to traditional solar farms.

Regarding costs, power generated from AgriPV plants is projected to be priced between ₹3.20 and ₹3.30 per unit. This is slightly higher than the ₹2.80 to ₹3.00 per unit cost associated with decentralized solar installations under the KUSUM scheme.

Looking ahead, MNRE plans to engage with electricity distribution companies to discuss policy options that would facilitate power purchase agreements with farmers operating AgriPV plants. The ministry is also preparing a dedicated policy document to guide the implementation and scaling of this technology.

As India aims to expand its renewable energy capacity, integrating solar power with agriculture presents a promising pathway to maximize land use efficiency. The forthcoming AgriPV support scheme represents a strategic effort to overcome financial barriers and encourage broader adoption of this dual-use solar technology.