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Environment & Climate20 Oct 2026 · about 6 min

Govt working on central scheme on agrivoltaics

The brief

Agrivoltaics combines farming and solar generation on the same land. Solar panels are installed above existing fields rather than replacing them with a conventional solar farm. This matters because farmers can continue cultivation while the country adds renewable-energy capacity. The panels are raised at a height directly over farmland. This leaves space below for crops and farming activities. Pilot feedback reported in the article suggests leafy vegetables, fruits and floriculture can work well under such arrangements, although crop metrics are still being studied. More than 40 agrivoltaics pilots are ongoing across India. The government is preparing support to encourage states to adopt the model. It estimates that India could eventually install 1-2 terawatts of agrivoltaic capacity, but the systems currently cost about 25% more than ordinary ground-mounted solar panels.

01

What is agrivoltaics, and how can solar panels be installed above farmland without stopping farming?

Agrivoltaics combines farming and solar generation on the same land. Solar panels are installed above existing fields rather than replacing them with a conventional solar farm. This matters because farmers can continue cultivation while the country adds renewable-energy capacity.

The panels are raised at a height directly over farmland. This leaves space below for crops and farming activities. Pilot feedback reported in the article suggests leafy vegetables, fruits and floriculture can work well under such arrangements, although crop metrics are still being studied.

More than 40 agrivoltaics pilots are ongoing across India. The government is preparing support to encourage states to adopt the model. It estimates that India could eventually install 1-2 terawatts of agrivoltaic capacity, but the systems currently cost about 25% more than ordinary ground-mounted solar panels.

02

What central government scheme is being planned, and how might it connect with PM-KUSUM 2.0?

The proposed central scheme would give states an initial incentive to adopt agrivoltaics. Its purpose is to encourage solar panels above working farms and help expand India’s installed solar capacity. The government has not yet finalised the scheme’s structure.

The scheme could be included in PM-KUSUM 2.0, which is expected soon, or launched independently. Ministry secretary Santosh Kumar Sarangi said officials are still working out the mechanism for providing support. Existing PM-KUSUM support covers ground-mounted solar panels and solar pumps for farmers.

The planned incentive is intended to help states begin projects despite agrivoltaics’ higher cost. The government wants the model to become commercially viable and competitive over time. A policy document and regulatory compendium are also expected at the Agrivoltaics World Conference in New Delhi.

03

How much agrivoltaic solar capacity could India potentially install, and how much more expensive are these systems than conventional ground-mounted panels?

Initial assessments cited by the government suggest India has potential for 1-2 terawatts of agrivoltaic solar capacity. That is a very large possible expansion of solar generation because panels could be added above land that remains available for farming.

The key difference is the panel structure. Agrivoltaic panels must be installed at a height above existing crops, rather than placed directly on the ground. This elevated design allows cultivation to continue, but it requires a more costly installation than a conventional ground-mounted solar project.

The government says agrivoltaic systems are around 25% more expensive than ordinary ground-mounted panels. Its proposed scheme would help cover that gap initially. The stated goal is for agrivoltaics to become commercially viable and competitive as projects, crop information and policy support develop.

04

What happens to farmers’ land use, farm income, and electricity generation when solar panels are installed above existing crops?

Agrivoltaics allows farmland to serve two purposes at once. Crops remain under elevated solar panels, while the panels produce electricity. This can protect agricultural land from being fully converted to conventional ground-mounted solar use and adds a renewable-energy function.

The article describes farmers as continuing farming while reaping benefits from solar generation. In practice, the land-use mechanism is simple: panels are installed high above existing fields, leaving cultivation space below. The model therefore combines crop production with electricity generation instead of choosing only one use.

The article does not give a specific figure for farmers’ income or say how much it would rise. It does say the government wants agrivoltaics to become commercially viable and competitive. More than 40 pilots are underway, and crop metrics are still being examined before wider adoption.

05

Which crops appear most suitable for agrivoltaics, and why do leafy vegetables, fruits, and flowers differ from crops such as wheat, rice, and sugarcane?

Agrivoltaics does not suit every crop equally. Initial feedback from pilots supported by the Indian Agricultural Research Institute identifies leafy vegetables, fruits and floriculture as more suitable. Wheat, rice and sugarcane appear less feasible for panels installed above fields.

The article does not provide a detailed reason for each crop’s result. It says officials are still examining crop metrics. In general, crop suitability depends on how a crop responds to the changed light and growing conditions created by overhead panels, but the reported pilots have not yet produced a complete national rule.

This distinction matters for policy. A successful scheme may need to guide farmers toward suitable crops rather than treat every field alike. India is hosting the Agrivoltaics World Conference, where experts, researchers and farmers are expected to discuss the evidence and future regulation.

06

Why might a government subsidy be needed to make agrivoltaics commercially competitive with ordinary solar farms?

Agrivoltaics needs public support because its dual-use design is more expensive. Panels must be raised above crops rather than installed in a conventional ground-mounted layout. The government estimates that this makes agrivoltaic systems around 25% costlier.

A subsidy can help narrow the difference between the higher project cost and the price of ordinary solar generation. The proposed central scheme would provide states with an initial incentive. That support could make it easier to test projects, gather crop data and encourage farmers to participate.

The government’s stated aim is not permanent dependence on subsidies. It wants agrivoltaics eventually to become commercially viable and competitive. More than 40 pilots are already running, while officials assess suitable crops and work on whether support should come through PM-KUSUM 2.0 or a standalone scheme.

07

How do solar panels convert sunlight into electricity, and what does India’s installed solar capacity measure?

Solar panels convert sunlight into electricity through photovoltaic cells. When sunlight reaches these cells, it produces an electric current. The current can then be collected and used as electrical power. This is the basic process behind both ground-mounted solar farms and agrivoltaic systems.

In agrivoltaics, the panels perform this conversion while positioned above crops. Their elevated placement changes how the land is used, not the basic photovoltaic process. Farmers can continue cultivating below while the panels generate solar electricity above them.

Installed solar capacity is the combined rated power of solar systems already deployed. It indicates the maximum generating capability those installations are designed to provide under stated conditions, rather than the amount of electricity produced every moment. The article discusses agrivoltaics as a way to push India’s overall installed solar capacity further.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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