Introduction and Context

India’s dual pressures of rising food and energy demand, coupled with climate change, have necessitated innovative land use and clean energy solutions. Agrivoltaics (AgriPV) – the integration of solar photovoltaic (PV) energy production with agriculture on the same land – is identified as a promising approach to optimize land, enhance energy security, promote sustainable rural livelihoods, and minimize ecological impacts. The report assesses AgriPV’s technological, economic, regulatory, and social co-benefits, focusing on its potential for India’s vast agricultural sector, which occupies nearly 60% of the country’s land and employs about 43% of the workforce.

AgriPV Potential in India

India features around 170 million hectares of cultivated land, with GIS-based analysis indicating a theoretical 167 million hectares suitable for AgriPV. The report applies three layers of constraints—(1) theoretical, (2) technical (e.g., slope, solar irradiance, ecological buffers), and (3) commercial (distance to roads and substations)—to refine this assessment.

• Theoretical Potential:7 million hectares.
• Technical Potential:6 million hectares (after removing unsuitable slopes/ecologically sensitive areas).
• Commercial Potential:6 million hectares (practical deployment based on infrastructure access).

The top ten states, including Uttar Pradesh, Maharashtra, Karnataka, and Gujarat, account for the majority of commercial potential. AgriPV systems are viable for a range of crops, with optimal configurations varying by crop shade tolerance and local conditions. Scenarios focused on feasible crops and high-potential states estimate a technically and commercially viable AgriPV capacity of 3.89 terawatt-peak (TWp), around 6% of agricultural land, potentially generating over 5,600 terawatt-hours (TWh) annually—well in excess of India’s projected 2030 electricity demand.

Emission Reduction Potential

India remains a major greenhouse gas (GHG) emitter, with the energy sector responsible for 76% of total emissions. AgriPV installations contribute to climate mitigation by displacing fossil-based electricity with renewable sources. By 2030, ambitious deployment of AgriPV could avoid up to 4.64 billion tons (Gt) of CO₂ equivalent, surpassing the nation’s total GHG emissions in 2020. AgriPV-generated electricity would replace grid supply at an emissions factor of 0.757 kgCO₂/kWh.

AgriPV also aids the agricultural sector’s decarbonization indirectly, especially as energy-intensive irrigation and fertilizer use expands. Initiatives like the PM-KUSUM scheme – a program for solarizing agricultural pumps – demonstrate this pathway. The dual benefits include lowering emissions and improving rural energy access.

Upstream Energy and Infrastructure Benefits

A key advantage of decentralized AgriPV is the improvement in grid stability and reduction of transmission/distribution (T&D) losses. Distributed generation close to the point of consumption:

• Reduces the need for long-distance power transmission (lowering T&D losses).
• Defers or eliminates capital expenditure on expanding generation, transmission, and distribution infrastructure.
• Improves local grid reliability and supports renewable purchase obligations (RPOs) for electricity distribution companies (DISCOMS)

A case study on a HT feeder in Erode, Tamil Nadu, shows that integrating a 2 MW AgriPV system can reduce distribution losses, delay costly network upgrades, and add quantifiable monetary and pollution avoidance benefits—delivering approximately INR 1.2 crore/year in energy savings and INR 2.57 crore/year in avoided emissions, in addition to grid reliability and resilience gains.

Co-Benefits for Rural Society

• Employment Generation: AgriPV fosters significant job creation across installation, operation, maintenance, and related sectors, with higher employment intensity (5.5 full-time equivalent (FTE) jobs/MW) than many other clean and conventional energy technologies. Under the prioritized deployment scenario, AgriPV could create about 21.40 million FTE jobs by 2030—meeting ~27% of new annual workforce entrants – especially benefiting rural, semi-urban, and agricultural communities. Solar manufacturing, installation, and maintenance roles, if paired with targeted training and inclusion policies, can drive equitable rural growth.
• Economic and Health Benefits: With AgriPV replacing coal-based power (a leading source of SO₂, NO₂, and PM2.5 emissions), the transition would cut air pollution, reduce disease burden, and save thousands of lives annually. Improved public health and lower pollution also reduce economic losses related to healthcare and productivity.
• Water Conservation and Environmental Protection: AgriPV systems consume less water than coal-based plants—0.02–0.1 m³/MWh versus 2–3.5 m³/MWh—while reducing water loss from crops due to shading. They minimize land-use conflict by allowing simultaneous farming, thus maintaining food security and soil quality.
• Energy Access and Independence: Decentralized, farmer-owned AgriPV enhances energy access, reliability, and independence for rural populations. When coupled with energy storage, it enables power stability even in areas with unreliable grids, aligns with rural electrification goals, and provides new income streams to farmers—helping shift from diesel-based irrigation.

Policy and Regulatory Gaps

Despite high potential, adoption is constrained by:

• Lack of dedicated AgriPV policy definitions and frameworks.
• Land-use regulations restricting dual purposes or requiring land reclassification (risking loss of agricultural subsidies).
• Financial barriers like high upfront costs, limited credit, and inadequate feed-in tariffs especially for smallholders.
• Absence of mandatory environmental impact assessments (ESIAs) tailored to AgriPV.
• Grid interconnection hurdles (minimum size, distance from substations, complex approvals)

These gaps mostly disadvantage marginal and small farmers—who represent 86% of Indian farms—and hinder the technology’s equitable scale-up.

Recommendations

• Policy Support: Urgently introduce a clear, unified AgriPV policy with legal recognition, streamlined land-use rules, and subsidies/tax incentives.
• Financial Instruments: Provide capital subsidies, improve credit access, set region/size-specific feed-in tariffs, and enable group business models via cooperatives/FPOs.
• Environmental Safeguards: Mandate ESIA for large projects, site-specific biodiversity protections, and tailored waste management.
• Grid Flexibility: Lower the minimum capacity for grid interconnections and subsidize upgrades for smallholder participation.
• Capacity Building: Prioritize farmer training, demonstration projects, and inclusivity (women, marginalized groups) for job access.
• Social Acceptance: Run education and awareness campaigns to build trust, engage communities, and showcase pilot AgriPV successes.