Feasibility of Agri-Photovoltaics in Indian Agriculture

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2025

Feasibility of Agri-Photovoltaics in Indian Agriculture

Insights from Maharashtra and Himachal Pradesh for Potato and Apple Farming

The feasibility analysis for implementing Agriphotovoltaics (AgriPV) in apple farming (Shimla and Kullu, Himachal Pradesh) and potato farming (Pune, Maharashtra) assesses its technological, environmental, and economic benefits, as well as the associated challenges. This summary highlights key insights, results, and strategic recommendations.

AgriPV in India

AgriPV integrates solar photovoltaic (PV) systems with agriculture, allowing dual land use for energy and food production. Considering India’s agricultural foundation and renewable energy goals, AgriPV could enhance land-use efficiency while supporting food and energy security. However, challenges include biodiversity impact, environmental concerns, high initial investment, and limited farmer awareness.

Environmental and Biodiversity Considerations

A major finding is the absence of mandatory Environmental and Social Impact Assessments (ESIA) for AgriPV systems. Solar projects in India fall under the “white category,” exempting them from environmental clearance, posing risks to ecosystems in biodiversity-sensitive areas. AgriPV could impact soil, water, and surrounding habitats. Additionally, shading from PV panels may reduce crop yields, necessitating careful crop selection. In Maharashtra, potential potato yield reductions highlight the need for shade-tolerant crops and farmer guidance. Introducing ESIA and land-use regulations is recommended to minimize environmental impact.

Business Model Analysis

The study evaluates AgriPV business models: Farmer-Owned, Developer-Owned, Joint-Venture, and Behind-the-Meter (BtM). The BtM model is currently the most viable, particularly benefiting farmer producer organizations (FPOs) with high power demand for pre- and post-processing activities. Small and marginal farmers struggle with AgriPV adoption due to fragmented landholdings and grid interconnection challenges. Many states require a minimum solar capacity of 500 kW for grid connections, excluding small-scale farmers. Policies promoting small-scale AgriPV and targeted incentives for Farmer Producer Organizations (FPOs) are necessary.

Economic viability is hindered by low solar feed-in tariffs and high capital costs. Public utility feed-in rates are insufficient for an attractive return on investment (ROI). To improve AgriPV’s financial appeal, additional revenue mechanisms like Distributed Renewable Energy Credits (D-REC), carbon credits, and locational feed-in tariffs should be explored. Low-interest loans and project-based financing could help alleviate high initial costs for farmers.

Multidimensional Feasibility Assessment

A feasibility poll among AgriPV experts identified opportunities and obstacles across technological, policy, socio-cultural, ecological, economic, and financial dimensions. Key findings include:

Technological and Policy Challenges: Land access, power infrastructure, and regulatory gaps hinder feasibility. Clear regulations are needed to protect farmers and enable small-scale AgriPV.
Socio-Cultural Barriers: Low farmer awareness limits acceptance. Educational initiatives could enhance understanding and adoption.
Ecological Concerns: AgriPV can support biodiversity but requires meticulous planning to avoid unintended consequences.

Strategic Recommendations

To enhance AgriPVג€™s prospects in India, the study suggests:

Policy and Regulatory Reforms: Introduce mandatory ESIA for AgriPV projects and zoning regulations to mitigate ecological impact. Revise grid interconnection standards to support smallholder farmer participation.
Financial Incentives and Support: Increase solar feed-in tariffs, introduce D-RECs, and offer subsidized financing or loans to ease capital investment burdens.
Educational Outreach and Farmer Support: Conduct awareness programs, particularly in FPO-rich regions. Promote BtM models and potential income diversification from energy sales.
Research on Crop Compatibility and AgriPV Design: Study shade-tolerant crops and optimize AgriPV designs to minimize yield impacts, ensuring compatibility with regional agriculture.

AgriPV has the potential to address Indiaג€™s food and energy security challenges. However, its feasibility depends on supportive policies, financial incentives, and farmer education. Current technological and economic constraints limit widespread adoption, particularly for smallholder farmers. With targeted investments, regulatory adjustments, and strategic outreach, AgriPV could become a transformative solution for sustainable agriculture and renewable energy in India.

Feasibility of Agri-Photovoltaics in Indian Agriculture

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Feasibility of Agri-Photovoltaics in Indian Agriculture

Related Projects

Energy Planning ג€“ Smart City Challenge

Briefing Note Community Solar: How to Meet Tamil Naduג€™s Solar Energy Target & Reduce the Stateג€™s Subsidy Burden?

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Categories

Contact

Auroville Consulting a unit of the Auroville Foundation

Subscribe To Our Newsletter

Auroville Consulting
a unit of the Auroville Foundation