Agrivoltaics in India 2026: Solar + Agriculture Dual-Use Guide

TL;DR — Agrivoltaics in India

• The bottom line: Agrivoltaics — solar panels installed above agricultural crops with dual land use — is gaining traction in India under the PM-KUSUM scheme + MNRE pilot programs. The model delivers dual revenue (solar generation + crop sale) per unit of land.
• The answer for landowners is to consider agrivoltaics for crops that benefit from partial shading (most leafy vegetables, herbs, fodder, mushrooms, pulses, seasonal vegetables, some flowers). The most important distinction: agrivoltaics is NOT solar on barren land — it's solar above productive farmland with crops continuing below.
• The key economic point: agrivoltaics delivers ₹0.85-1.50 lakh additional annual revenue per acre above standalone agriculture, plus solar revenue of ₹15-25 lakh per acre per year — roughly 15-25x increase in per-acre revenue vs standalone agriculture.
• In short, the most cost-efficient structure for Indian agrivoltaics is the PM-KUSUM Component A (decentralized) or Component C (feeder solarisation) model with farmer-developer joint venture.
• Sun Wave Technologies, a leading solar EPC company in India, structures agrivoltaics projects under PM-KUSUM Component A and KUSUM-C with farmer participation.

What Is Agrivoltaics?

Agrivoltaics (sometimes "agri-PV" or "APV") is the co-location of solar PV systems and agricultural production on the same land. Modules are typically mounted at higher height (3-5 m vs ground-mount's 1-2 m) and spaced wider apart to allow crop cultivation underneath. The model delivers:

1. Solar generation sold to grid via PPA or open access
2. Crop revenue from below-array cultivation
3. Microclimate benefit — partial shading reduces evapotranspiration, water requirement, and heat stress for crops
4. Land productivity multiplier — 15-25x increase in per-acre revenue vs standalone agriculture

Why Agrivoltaics Matters in India

Three structural drivers:

1. Land-use conflict — India has limited surplus barren land for utility-scale solar. Agrivoltaics resolves the land-use conflict by maintaining agricultural productivity.
2. PM-KUSUM scheme — central government's farm-solar scheme allocates 10,000 MW for decentralized agrivoltaic generation under Component A.
3. Farmer income enhancement — providing farmers a stable secondary income from solar PPA payments + traditional crop revenue. PM-KUSUM Component C feeder solarisation specifically targets this dual-income model.

Crops Compatible with Agrivoltaics

Crops that benefit from or tolerate partial shading (typically 30-50% reduction in direct sunlight):

PM-KUSUM Scheme: The Indian Agrivoltaics Vehicle

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was launched in 2019 with three components:

Component A: Decentralised Solar (10,000 MW Target)

Farmer-owned 0.5-2 MW solar projects on agricultural land, with energy sold to DISCOM via 25-year PPA. Agrivoltaic structure permitted with elevated mounts allowing crop cultivation underneath.

Component B: Standalone Solar Pumps (20 lakh)

Solar irrigation pumps to replace diesel and grid-pump irrigation.

Component C: Feeder Solarisation (15 lakh pumps + feeder)

Solarisation of agricultural feeders. Allows farmers to net-meter excess solar to grid.

For Component A and C, agrivoltaic structures are increasingly common to maintain farmland productivity. For broader scheme context see our PM Surya Ghar Yojana solar subsidy guide (residential equivalent).

Solar EPC Cost for Agrivoltaics (1 MW)

The 7-10% premium over standard ground-mount covers (a) elevated structural height (3-5 m vs 1-2 m), (b) wider row spacing for crop cultivation, (c) crop-area access provisions, (d) reinforced foundations to handle height-induced wind loads.

ROI for Agrivoltaics in India

Sample case: 1 MW agrivoltaic plant in Rajasthan, 3 acres of land:

Agrivoltaics IRR is typically lower than utility-scale solar because of the lower PM-KUSUM PPA tariff (₹3.10/kWh) vs commercial open access (₹3.40-3.85/kWh) and the elevated capex. However, the land-use case and farmer income are the strategic value-adds beyond pure IRR.

Geography of Indian Agrivoltaics

Rajasthan (Tier-1)

Highest solar resource + abundant agricultural land. Cumin, jowar, lucerne, fodder crops compatible. State has been most active in PM-KUSUM Component A deployment.

Gujarat (Tier-1)

Strong solar resource + organised farmer cooperatives. Banaskantha, Sabarkantha, Mehsana districts have agrivoltaic pilots.

Karnataka, Tamil Nadu, Andhra Pradesh (Tier-2)

Good solar resource + emerging agrivoltaic pilots. Coffee + tea estates particularly well-suited (shade-grown crops align with agrivoltaic shading).

MP, UP, Haryana, Punjab (Tier-2)

Strong agricultural base + growing solar interest. Wheat-paddy belt has limited agrivoltaic suitability (paddy needs full sun); but vegetable + pulse rotations work.

Telangana, Maharashtra (Tier-2)

Growing pilot programs. Agrivoltaic-compatible crops in semi-arid zones.

For state-specific guides see our Rajasthan industrial guide, Gujarat industrial guide, Karnataka industrial guide, AP industrial guide, MP industrial guide.

Frequently Asked Questions

What is agrivoltaics?

Agrivoltaics is the co-location of solar PV systems and agricultural production on the same land. Solar modules are mounted at elevated height (3-5 m) with wider row spacing, allowing crop cultivation underneath. The model delivers dual revenue (solar generation + crop sale) per unit of land plus microclimate benefits (reduced evapotranspiration, water savings, heat stress reduction).

What crops work well under solar panels?

Crops that benefit from or tolerate 30-50% partial shading work well. Best fit: leafy vegetables (spinach, methi, palak), herbs (mint, basil, coriander, tulsi), fodder (lucerne, jowar, berseem), mushrooms (require darkness), pulses (moong, urad — reduced water stress), tomatoes, capsicum, tea, coffee. Poor fit: paddy, sugarcane, banana, cotton, wheat (these need full sun for high yields).

How does agrivoltaics economics compare to standalone agriculture?

Agrivoltaics delivers ~15-25x increase in per-acre revenue vs standalone agriculture. A typical 3-acre 1 MW agrivoltaic project generates ₹46.5 lakh/year solar revenue + ₹3-5 lakh/year crop revenue = ₹49-51 lakh/year total. Standalone agriculture on the same 3 acres in semi-arid India typically generates ₹2-4 lakh/year. The dual-use multiplier is meaningful for farmer income.

Is agrivoltaics covered under PM-KUSUM?

Yes. PM-KUSUM Component A (10,000 MW target) supports decentralized solar of 0.5-2 MW on agricultural land with farmer participation. Agrivoltaic structures (elevated mounts allowing crop cultivation underneath) are increasingly preferred under Component A deployments because they maintain farmland productivity and farmer crop income alongside solar revenue.

What's the right structure for an agrivoltaic project?

The dominant structure is farmer-developer joint venture: farmer contributes land (under leasehold or cooperative ownership), developer (SunWave or partner) contributes capex + EPC + O&M. Revenue split: typically 80-85% to developer (covering capex + IRR), 15-20% to farmer (in addition to crop revenue from below-array). 25-year PPA with DISCOM at PM-KUSUM tariff (₹3.10/kWh).

Are there special engineering considerations for agrivoltaic structures?

Yes. Agrivoltaic structures must be (a) elevated 3-5 m above ground for crop access, (b) row-spaced wider than standard ground-mount to allow agricultural equipment passage, (c) reinforced foundations to handle height-induced wind loads (IS-875 Part 3 wind load), (d) bird-strike protection in agricultural zones, (e) coordinated with crop calendar for installation/maintenance. Sun Wave Technologies engineers agrivoltaic structures for specific crop-cycle compatibility.

How does solar shading affect crop yields?

For shade-tolerant crops (leafy vegetables, herbs, mushrooms, pulses, fodder, tea, coffee), 30-50% shading reduces yield by 5-15% vs full-sun cultivation but reduces water requirement by 25-40% and heat stress significantly. Net economic effect is often positive because water + temperature stress reductions outweigh yield reduction. For full-sun crops (paddy, sugarcane, cotton), shading is detrimental and agrivoltaics is not the right structure.

Does the ALMM Mandate apply to agrivoltaic projects?

Yes. The June 2026 ALMM Mandate requires all grid-connected solar projects (including agrivoltaic under PM-KUSUM) to use modules with ALMM List-II domestic cells. See our ALMM Mandate 2026 post.

Sources

• PM-KUSUM Scheme Implementation Guidelines (MNRE)
• ICAR-IARI Agrivoltaic Research Reports 2025-26
• India installs record 45 GW solar capacity in FY2026 — pv magazine India