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Environment & Climate21 Oct 2026 · about 6 min

Centre to back agrivoltaics under PM KUSUM 2.0: MNRE secretary

The brief

Agrivoltaics, also called agrisolar, means using one piece of land for both agriculture and solar power generation. Solar panels are installed above or alongside cultivated areas, while farming continues underneath or between them. The idea matters because land is needed for both food production and renewable energy. For example, a farmer could grow crops on land that also hosts a solar installation. The panels produce electricity, while the land remains available for cultivation. The article says about four acres are needed for 1 MW of solar capacity, making dual use especially valuable where farmers cannot give up productive land. The government plans to support agrivoltaics through PM KUSUM 2.0. It aims to add about 5 GW in roughly three years and offset the additional cost, estimated at 25%, so tariffs match ground-mounted solar. India is also drafting policy measures for the sector.

01

What is agrivoltaics, and how can the same land be used for both farming and solar power generation?

Agrivoltaics, also called agrisolar, means using one piece of land for both agriculture and solar power generation. Solar panels are installed above or alongside cultivated areas, while farming continues underneath or between them. The idea matters because land is needed for both food production and renewable energy.

For example, a farmer could grow crops on land that also hosts a solar installation. The panels produce electricity, while the land remains available for cultivation. The article says about four acres are needed for 1 MW of solar capacity, making dual use especially valuable where farmers cannot give up productive land.

The government plans to support agrivoltaics through PM KUSUM 2.0. It aims to add about 5 GW in roughly three years and offset the additional cost, estimated at 25%, so tariffs match ground-mounted solar. India is also drafting policy measures for the sector.

02

What exactly is the government planning to support under PM KUSUM 2.0?

Under PM KUSUM 2.0, the government plans to support installing agrivoltaic capacity in India. These projects would use the same land for agricultural production and solar electricity generation. The policy is intended to increase farmers’ income while addressing the land needed for renewable-energy projects.

The planned support includes neutralizing agrivoltaics’ additional setup cost. The secretary said agrivoltaic projects cost around 25% more than comparable ground-mounted solar. The government’s stated aim is to make their tariff equal to that of ground-mounted solar, improving their financial viability.

The proposal would add about 5 GW in approximately three years. The current Component A may be replaced by agrivoltaics under the second phase. The article also reports draft policy measures and a wider PM KUSUM extension proposal involving feeder-level solarisation and battery storage, though those details remain part of the expected proposal.

03

How much agrivoltaic capacity does the government aim to add, and over what period?

India’s government plans to add about 5 GW of agrivoltaic capacity under the second phase of PM KUSUM. The target covers projects that combine farming with solar power generation on the same land. It signals a move toward renewable-energy expansion that does not necessarily require stopping agricultural activity.

The planned time frame is about three years. The secretary, Santosh Kumar Sarangi, said agrivoltaics would be part of PM KUSUM 2.0, with the current Component A potentially replaced by this approach. The government also wants to address the technology’s higher costs.

Agrivoltaic projects cost around 25% more to establish, according to the secretary. The effort would therefore aim to neutralize that extra cost and keep tariffs equal to ground-mounted solar. The 5 GW plan comes as India estimates that around 30% of its cropland could suit agrivoltaic projects.

04

How would replacing or changing Component A of PM KUSUM affect the scheme’s existing goal of building small solar power plants?

Component A currently supports small solar power plants with capacity of up to 2 MW. Its stated target is 10 GW of cumulative capacity from these plants. The proposed change would make agrivoltaics the focus of this part of PM KUSUM 2.0 rather than continuing with the existing approach unchanged.

The key difference is land use. Instead of treating land mainly as a site for a small solar plant, the revised approach would seek projects where cultivation and electricity generation happen together. The government would also try to offset agrivoltaics’ roughly 25% extra cost so its tariff matches ground-mounted solar.

The article does not state that the existing 10 GW target would be canceled or transferred. It says Component A may be replaced. Therefore, the clearest effect is a policy shift toward dual-use projects, while the future status of the original target remains unspecified.

05

How could agrivoltaics affect farmers’ incomes, agricultural land use, and India’s need for conventional grid electricity?

Agrivoltaics can affect farmers’ incomes by allowing them to keep cultivating land while also participating in solar generation. The renewable-energy activity may create an additional income opportunity, which is why the minister described the policy as aimed at increasing farmers’ income. The article does not quantify the income increase.

It can also change how land is used. Crops and solar panels share the same area, reducing the need to choose between food production and a separate solar site. This matters because the article estimates that around 30% of India’s 160 million hectares of cropland may suit agrivoltaic projects.

For electricity, agrivoltaics forms part of a wider PM KUSUM push to solarize irrigation. The expected extension also proposes feeder-level solarisation and battery storage to reduce agriculture’s dependence on conventional grid power. The article presents these as policy goals, not completed outcomes.

06

Why is combining farming with solar generation especially important for India’s small and marginal farmers?

Combining farming and solar is especially important in India because most farmers have limited land. The minister said 85% of India’s farmers are small and marginal. Many cannot spare land by stopping agricultural activity, even though solar projects need substantial space.

The article gives a practical scale example: about four acres of land are required to install 1 MW of solar capacity. Agrivoltaics could place panels on land that remains in agricultural use, allowing cultivation and electricity generation to share one area. This addresses the land constraint without requiring farmers to abandon farming.

The approach may also open another income stream and support irrigation solarisation. The government plans about 5 GW of agrivoltaic capacity in three years. However, the article does not provide a specific payment model or income estimate for small and marginal farmers, so those details remain open.

07

How do solar panels generate electricity, and why do solar projects require large amounts of land and connections to the power grid?

Solar panels generate electricity through photovoltaic cells. When sunlight reaches these cells, it releases and moves electrons, creating direct-current electricity. An inverter then converts it into alternating current for use by homes, farms, or the wider electricity system. The article does not explain this mechanism, so this paragraph uses established solar-energy knowledge.

Solar projects require land because many panels must be arranged with space between them for installation, maintenance, and sunlight access. The article states that about four acres are needed for 1 MW of solar capacity. Agrivoltaics tries to make that land serve two purposes by keeping agricultural production alongside the panels.

A grid connection carries generated electricity to users and balances supply with demand. Projects therefore need suitable electrical infrastructure, not just panels. The article discusses solarising irrigation and feeder-level solarisation, but it does not provide technical details about grid connections or transmission requirements.

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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