Sowing the seeds of a solar power intervention
India's emerging agrivoltaics model allows farmers to grow crops beneath elevated solar panels on the same plot, generating electricity while continuing cultivation
Farmers and agricultural researchers report that the approach offers a dual income stream: revenue from power generation alongside regular crop yields
High upfront capital costs, difficulty accessing formal credit, and uneven state-level policy support are cited as the main constraints preventing wider adoption beyond pilot and demonstration projects
Existing central solar schemes for farmers are being expanded to give agrivoltaics a dedicated push, though implementation on the ground remains uneven
Agrivoltaics — Concept and Design
Agrivoltaics (agri-photovoltaics) is the co-location of solar power generation and agriculture on the same land parcel, achieved by mounting solar panels on elevated structures so that machinery and crops can continue to operate and grow underneath. It is distinct from utility-scale ground-mounted solar, which typically takes farmland out of cultivation entirely.
Key Details
- Panels in agrivoltaic setups are typically raised on structures roughly 10–16 feet above ground level to allow tractors, harvesters, and other farm equipment to pass beneath
- The approach optimises land-use efficiency — the same hectare produces both electricity and crop output, addressing the land-competition trade-off between renewable energy expansion and food security
- Suited to shade-tolerant crops; panel spacing and height are calibrated to balance sunlight for crops against solar generation efficiency
- Complements India's broader decentralised renewable energy push, as opposed to only large centralised solar parks
The article's core subject — farmers cultivating crops beneath solar panels while selling surplus power — is a direct real-world instance of this agrivoltaics model, illustrating both its promise and its financing bottlenecks.
PM-KUSUM Scheme — Solarising Indian Agriculture
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is the Ministry of New and Renewable Energy's flagship scheme to expand solar capacity in the agriculture sector, reduce farmers' dependence on diesel and grid power, and give them an additional income source by allowing sale of surplus solar power to the grid.
Key Details
- Launched in 2019 by the Ministry of New and Renewable Energy (MNRE); target is 34,800 MW of solar capacity by March 2026 with central financial support of about ₹34,422 crore
- Three components: Component A — 10,000 MW of decentralised ground/stilt-mounted grid-connected solar plants (500 kW–2 MW) on barren or fallow farmland; Component B — installation of 14 lakh standalone solar agriculture pumps (0.5–7.5 HP), replacing diesel pumps; Component C — solarisation of 35 lakh existing grid-connected agriculture pumps, including feeder-level solarisation, with surplus power sold to DISCOMs at a feed-in tariff
- Subsidy structure: central financial assistance of up to 30% (up to 50% for some categories/states), with state subsidy and bank finance covering most of the remainder so farmer contribution is typically kept low
- A newer iteration (PM-KUSUM 2.0) adds a dedicated agrivoltaics component targeting roughly 10 GW of stilt-mounted solar capacity on farmland, formally recognising crop-solar co-location within the scheme framework
The pilots and demonstration projects described are largely enabled through PM-KUSUM's Component A framework, and the financing gap the article highlights maps directly onto the scheme's reported implementation bottleneck — a large share of sanctioned Component A projects remain stalled over delayed bank loans, despite formal priority-sector-lending status.
Renewable Energy Financing for Farmers — Priority Sector Lending and Collateral Constraints
Loans for decentralised solar projects under schemes like PM-KUSUM are classified under priority sector lending (PSL) norms set by the Reserve Bank of India, meant to direct bank credit toward renewable energy and agriculture-linked infrastructure. In practice, banks remain cautious in disbursing these loans.
Key Details
- PSL guidelines mandate that banks direct a defined share of adjusted net bank credit toward specified priority categories, including renewable energy, to improve credit flow to underserved but policy-priority sectors
- Despite PSL status, small and marginal farmers face high collateral requirements, limited bank familiarity with decentralised solar-asset appraisal, and slow loan processing, which stalls a large share of sanctioned projects
- This financing gap is a recurring feature across India's decentralised renewable energy schemes (rooftop solar, solar pumps, agrivoltaics), not unique to any one state
- The bottleneck sits at the intersection of financial inclusion policy and renewable energy policy, both areas UPSC tests independently and jointly
The article's core policy problem — high upfront cost and financing constraints slowing agrivoltaic adoption beyond pilots — is precisely this PSL-implementation gap, where formal credit-priority status has not translated into actual disbursement speed for farmers.
- PM-KUSUM launch year: 2019; nodal ministry: Ministry of New and Renewable Energy
- PM-KUSUM overall target: 34,800 MW of added solar capacity by March 2026; central support of ~₹34,422 crore
- Component A (relevant to agrivoltaics): 10,000 MW of decentralised solar plants (500 kW–2 MW) on farmland
- Component B target: 14 lakh standalone solar agriculture pumps; Component C target: solarisation of 35 lakh grid-connected agriculture pumps
- PM-KUSUM 2.0 dedicated agrivoltaics component: approximately 10 GW target
- Typical agrivoltaic panel mounting height: 10–16 feet above ground, to permit farm machinery beneath