New Agrivoltaics Policy in the Works: Farmers to Grow Crops and Solar Power on the Same Land
The Ministry of New and Renewable Energy (MNRE) is preparing a Centre-supported policy to promote agrivoltaics, that is, growing crops and producing solar electricity on the same piece of farmland.
Two options are being considered: adding agrivoltaics to an existing scheme such as PM-KUSUM when it is revised (PM-KUSUM 2.0), or creating a separate scheme only for agrivoltaics. Financial support is being discussed with the Ministry of Finance. The final design and money have not been announced.
Agrivoltaic plants cost about 25–30% more than normal ground-mounted solar plants, because the panels must be raised on tall structures so farming can continue below. The policy aims to close this gap so that projects make financial sense.
Early assessments by the Indian Agricultural Research Institute (IARI) suggest that vegetables, horticulture crops and flowers may grow better under panels than rice, wheat or sugarcane. The ministry is preparing crop-specific advice with farm research institutes.
Projects could be run by individual farmers, farmer-producer organisations (FPOs), cooperatives, farmer groups, or private developers who lease farmland for a long time. Odisha, Madhya Pradesh and Maharashtra have shown interest. States are expected to play a key role through the price (tariff) they pay for this power.
MNRE is working with Germany on agrivoltaics. The news comes as New Delhi hosts the 7th Agrivoltaics World Conference (21 to 23 October 2026).
Agrivoltaics (Agri-Photovoltaics): Growing Crops and Solar Power on the Same Land
Agrivoltaics means using the same piece of land for two jobs at once: growing crops and producing electricity from sunlight. Solar panels are fixed high above the field, or in rows with wide gaps, so that crops can still grow under or between them. The farmer gets two incomes from one field, one from the harvest and one from selling electricity. The word joins "agri" (farming) and "voltaics" (from photovoltaics, the technology that turns sunlight into electricity).
MNRE's planned policy aims to make agrivoltaics affordable by covering the extra cost of raised panels, either through PM-KUSUM 2.0 or a separate scheme. If it works, farmers could earn steady income from selling power while still growing vegetables, fruits or flowers. It would also help India add solar capacity without taking land away from farming.
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan)
PM-KUSUM is a central government scheme that helps farmers use solar power for irrigation and earn money by producing solar electricity. It is run by the Ministry of New and Renewable Energy (MNRE). The name roughly means "Prime Minister's campaign for farmers' energy security and upliftment". It has three parts: small solar power plants on farmland, standalone solar pumps, and solar power for pumps that are already connected to the grid.
One option for the new agrivoltaics policy is to make it part of PM-KUSUM 2.0. Component A already allows stilt-mounted panels over crops, but very few farmers have used it. A dedicated agrivoltaics component with extra financial support could fix this gap and help farmers earn from both crops and power.
- Agrivoltaics: crops and solar power on the same land; plants cost about 25–30% more than normal ground-mounted solar
- Options under study: agrivoltaics inside PM-KUSUM 2.0, or a separate scheme; financial support being discussed with the Ministry of Finance
- PM-KUSUM 2.0: planned dedicated 10 GW agri-PV component
- IARI: vegetables, horticulture crops and flowers may suit shade better than rice, wheat or sugarcane
- States showing interest: Odisha, Madhya Pradesh, Maharashtra
- International partner: Germany (Indo-German Cooperation on Agrivoltaics)
- 7th Agrivoltaics World Conference: New Delhi, 21 to 23 October 2026
- PM-KUSUM: launched 2019; ₹34,422 crore; target about 34,800 MW; about 27% achieved as of October 2025
- India's target: 500 GW non-fossil fuel power capacity by 2030