Agrivoltaics in India: How Solar Panels and Farming Can Work Together

Agrivoltaics, or Agri-PV, is the practice of growing crops and generating solar power on the same piece of land at the same time. You need to install solar panels on a farm above and between the crops. This helps to produce food and clean energy at the same time.

For years, farmers and solar developers were debating over the same thing, which is land. Either you grow crops on it, or you put solar panels on it. Nobody thought you could do both on the very same acre until agrivoltaics came along and changed that equation.

With farmland getting scarcer and electricity costs rising, agrivoltaics in India is being considered as one of the smartest ways to maximise land use, protect crops, and generate new income sources for farmers.

This blog walks you through what agrivoltaics actually means, how it works on the ground, what schemes exist to support it in India, and where this whole space is headed next.

What is Agrivoltaics?

Agrivoltaics, also known as Agri-PV or Agrivoltaics farming, refers to installing solar panels above or around farmland while crops continue growing underneath or between the rows. Instead of choosing between food and power, you get both from the same plot.

The agricultural solar panels are usually mounted on raised structures, tall enough for tractors, workers, and irrigation equipment to move freely underneath. The idea was invented by German physicists Adolf Geotzberger and Armin Zastrow in 1981, and later found a natural fit for India, where sunlight is abundant almost year-round. Also, farmland in India is under constant pressure from urban expansion and industrial use.

What makes agrivoltaics different from a regular rooftop solar system is the intention behind it. A typical photovoltaic solar power plant is built to generate electricity only, with the land underneath left bare or unused. On the other hand, Agrivoltaics utilizes the land while also generating clean power.

Types of Agrivoltaics

Not every agrivoltaics farming setup looks the same. There are five types of agrivoltaics based on the crops, the region, and the farmer’s needs. You need to select the right type to ensure maximum electricity generation and crop production.

Elevated agricultural solar panels

In elevated solar panels, the panels are installed on a mounting structure of ~7 to 15 feet above the ground. The high-raised structure helps tractors and machines drive easily underneath. Also, it protects the crops from heavy rain and falling hail. This is the most common type of solar panels on farmland growing wheat, cotton, or vegetables.

Inter-row Spacing Plant

Inter-row spacing plants involve ground-level solar panels with wide gaps between each row of farmland. Farmers cultivate crops in these gaps between panel rows. The solar panels on farmland are installed at a fixed tilt angle that allows maximum sun intensity to reach the crops and the panels.

For farmers with a limited budget or who farm by hand, inter-row spacing planting is a good alternative. This type of agrivoltaics is comparatively affordable to other types due to ground-level mounting.

Interspace Vertical Solar Plant

In an interspace vertical solar plant, solar panels are installed vertically in rows between crop strips. The panels in this type take very little space, leaving more open ground for sunlight to reach the crops, which works well for row crops that need direct light. During midday, it provides shading on the crops, making it suitable for grain crops and vegetables.

The interspace vertical solar plants work particularly well in areas with strong sun intensity throughout the day.

Photovoltaic Greenhouse Solar

In this type of agrivoltaics, some parts of the roof or side wall of agricultural greenhouses are replaced with solar panels. The panels let sunlight reach the crops below and keep them safe while generating power for the farm. The solar greenhouse reduces heat stress and excess radiation during summers, making it ideal for vegetables and flower cultivation.

Solar grazing agrivoltaics

In solar grazing agrivoltaics, the solar system is installed high enough so that grazing livestock, most commonly sheep, can move freely. These animals help to manage and control vegetation growth around and underneath solar panels. Using livestock eliminates the need for lawn mowers and weed whackers and can generate income for farmers.

Why Agrivoltaics Matters Specifically for India 

India needs more clean energy. It also needs more food. Both depend on land, which is limited. For many families, every acre counts. Giving up good farmland for a solar plant is a hard choice.

Agrivoltaics removes that choice. Solar panels are raised above the field, and crops grow underneath. One piece of land gives you food and power.

The benefits go further:

• Less heat stress: Panels give crops light shade during harsh summer afternoons.
• Water savings: Shade slows evaporation, so soil stays moist longer. This matters in dry regions.
• Extra income: Farmers earn from their harvest and from the power they generate, even when rain is poor or crop prices drop.
• Land stays productive: No need to pick between farming and solar.

India has set ambitious solar targets. Reaching them should not come at the cost of farms. Agrivoltaics shows that growing food and making clean power can happen on the same land.

How Does Agrivoltaics Work?

Agrivoltaics is all about utilising the same land for farming and generating solar power. Here, the solar panels on farmland not only generate electricity, but also protect crops from different weather conditions and raise livestock. The whole process on which agrivoltaics rely is given below:

• Installing solar panels on farmland: Solar panels are mounted on elevated frames, spaced out in rows so enough sunlight filters through to the crops growing beneath. The spacing, height, and tilt angle of the panels are calculated based on the specific crop’s sunlight requirements. This helps shade-sensitive crops get panels that let more light through, while shade-tolerant crops can handle denser panel coverage.
• Electricity generation: The electricity generated flows through inverters and is either used directly on the farm to power irrigation pumps, cold storage units, and processing equipment, or fed into the grid. The surplus units let the farmer earn extra income.
• Dual use of land: The solar panels on the farm help to generate electricity for different purposes, protecting crops and raising livestock, enabling dual use of land.
• Two-way benefit: The shade reduces water evaporation from the soil, which means the crops need less irrigation. In return, the crops and irrigation keep the ground cooler, and that cooler air actually helps the solar panels perform more efficiently, since panels lose efficiency in extreme heat. It’s a small but genuinely useful feedback loop between the two systems.

What Are the Advantages of Agrivoltaics?

The demand for solar energy in agriculture has risen over the years. Agrivoltaics offer a solution by enabling solar panels on farmland, along with various environmental, economic, and social advantages. Some of the key advantages of agrivoltaics are given below:

• Better land usage: Farmers can improve their land usage through agrivoltaics to generate electricity without interrupting their agricultural operations. This better usage of farmland helps in achieving solar capacity targets.
• Less need for irrigation: In some regions, particularly hot or arid areas, installing solar panels on farmland enables better shading for the crops. This helps to maintain moisture levels, reduces water evaporation, and controls temperature extremes of the soil, resulting in an increase in yields and less need for irrigation.
• Two incomes from one piece of land: This is the single biggest draw. A farmer earns from the harvest and from electricity generation, without having to give up either. Also, farmers can lower electricity costs by providing clean energy to agricultural operations and occasionally selling the excess power to the grid.
• Reduced dependence on diesel and grid power: Farmers running solar-powered irrigation pumps directly cut their dependence on unreliable grid electricity or expensive diesel. The low usage of fossil fuels also helps reduce greenhouse gas emissions and promote a cleaner environment.

Applications of Agrivoltaics

Installing solar panels on farmland can help with both farming and clean energy generation. Some of the applications of agrivoltaics are discussed below:

• Vegetable and horticulture farm: Some crops, including turmeric, ginger, and leafy greens, don’t need full-day sunlight. Installing solar panels on the farm can provide partial shade that slows soil drying, which farmers growing these crops genuinely appreciate.
• Livestock grazing land: Sheep and goats can graze right underneath elevated solar arrays without any trouble. The animals get shade during hot afternoons, and their grazing keeps the grass around the panels trimmed, so nobody has to spend extra time or money on maintenance.
• Irrigation-heavy farms: With the rise in fuel prices every year, running a pump on diesel is quite expensive. Farms that need constant irrigation can power their pumps straight off the solar setup, cutting out fuel costs almost entirely and making watering the fields far more predictable.
• Cold storage and post-harvest facilities: The harvested crops can spoil in a few weeks without proper cooling, and running a cold storage can cost you a lot every month. With solar power generated on-site, farmers can keep fruits and vegetables fresh for longer without watching their electricity bill climb.
• Barren or fallow land: Land that isn’t being farmed doesn’t have to sit idle. A solar power plant can be set up on that unused patch while the rest of the farm keeps growing crops as usual. This can turn barren land into an actual income source.
• Greenhouse integration: Some greenhouses now use semi-transparent solar panels as the roof itself. The panels let enough light through for the plants inside while generating power at the same time, so the structure isn’t just protecting crops; it’s earning money too.

Current Schemes and Initiatives of Agrivoltaics in India

The Indian government has been actively building policy support around solar farming in India, largely through the PM-KUSUM scheme (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan), launched in 2019 by the Ministry of New and Renewable Energy. It helps farmers in three ways:

1. Setting up small solar power plants on agricultural or barren land
2. Installing standalone solar pumps in areas without reliable grid electricity
3. Solarising existing grid-connected agricultural pumps and feeders

Under the PM-KUSUM scheme, over ₹10 lakh standalone solar agricultural pumps have been installed, and more than ₹13 lakh grid-connected agricultural pumps have been solarised across India.

Source: Pib.gov (Press release)

Maharashtra has taken this further than most states. Under the Magel Tyala Saur Krushi Pump Yojana, announced by Finance Minister Ajit Pawar in the Maharashtra Budget 2024-25, ₹ 15,000 crore is allocated to supply solar pumps to roughly 8.5 lakh farmers, with beneficiaries paying just 10% of the pump cost (5% for SC/ST farmers).

Source: govtschemes (Maharashtra magel tyala saur krushi pump yojana)

More recently, the government has been working on PM-KUSUM 2.0, announced at the 4th National Agro-RE Summit in March 2026. This upgraded version is expected to formally bring agrivoltaic farming into the scheme’s scope, with estimates suggesting India’s agrivoltaic potential could range anywhere between 3,000 GW and nearly 14,000 GW. The main objective is to provide affordable solar pumps, promote solar power generation on farmland, improve farmer income by selling extra units of electricity, and reduce dependency on traditional energy sources.

The original PM-KUSUM scheme ran through March 2026 with an outlay of ₹34,422 crore, aiming to add close to 34,800 MW of solar capacity nationally, and the newer phase is reportedly being planned with an outlay closer to ₹50,000 crore.

Challenges to Agrivoltaics Farming

Agrivoltaics farming comes with a few real hurdles that need to be worked through:

• High upfront cost: Setting up elevated agricultural solar panels costs more than a standard ground-mounted photovoltaic solar power plant because of the extra structural work needed to keep the panels high enough for farm equipment.
• Crop-specific limitations: Not every crop tolerates shade well. Choosing the wrong crop for a given panel density can hurt yields instead of protecting them.
• Lack of awareness among farmers: Many small and mid-size farmers simply haven’t heard of agrivoltaics or agri-PV as a concept, and adoption is slower in regions with limited outreach.
• Financing and land ownership issues: Banks and financial institutions are still catching up on how to evaluate loans for combined agricultural-and-solar projects, which makes financing harder to access than for a standalone solar or standalone farming loan.
• Grid connectivity gaps: In several rural pockets, weak or unreliable grid infrastructure makes it difficult to sell surplus power generated from solar panels on farmland back to the grid.

Conclusion

Agrivoltaics isn’t a trade-off between farming and solar power; it’s a way of utilising one acre for two purposes. India has the sunlight, the land, and now, increasingly, the policy support to make agrivoltaics in India a genuinely large-scale solution rather than an idea. For farmers dealing with rising diesel costs, unreliable power, and shrinking landholdings, pairing crops with a well-designed photovoltaic solar power plant could turn out to be one of the more practical decisions available today.

While large-scale agrivoltaic projects are still finding their potential in India, rooftop solar is already helping thousands of homes and businesses cut their electricity bills right now. If you’re looking to make your own roof work harder, SolarSquare can help you design a system suited to your space, sunlight, and power needs, from consultation to installation. Get a free solar consultation now.

Frequently Asked Questions

Which states in India have the most active agrivoltaic programmes?

Maharashtra, Gujarat and Rajasthan have the most active agrivoltaic programmes. Maharashtra’s power utility has picked 2,730 substations for solarisation, which could add 13.65 GW through AgriPV. Gujarat and Rajasthan are strong on pilots. They have dry regions where shade from panels helps soil hold water.

Is agrivoltaics suitable for all crops?

No. Some crops love shade. Turmeric, ginger, and leafy vegetables grow well under panels. Sun-loving crops need more space between panels, or vertical designs, so they don’t lose yield.

Does agrivoltaics reduce crop yield?

Not always. Yields often stay the same. Sometimes they even improve. Less heat stress and less water loss from the soil can balance out the reduced sunlight.

What government support exists for agrivoltaics in India?

The PM-KUSUM scheme backs solar pumps and small solar plants on farmland. A newer version, PM-KUSUM 2.0, is expected to add dedicated support and subsidies for agrivoltaics.

How much does an agrivoltaics setup cost?

It costs more than regular rooftop solar. That’s because the panels need tall structures so machinery can move underneath. Final pricing depends on panel height, land size, and crop type. Talk to a solar installer for an exact quote.

Can agrivoltaics help farmers earn extra income?

Yes. Farmers earn from their crops as usual. They can also sell extra electricity to the grid, or use it to run irrigation pumps and cold storage. That’s two income streams from one piece of land.

What is PM-KUSUM’s role in agrivoltaics in India?

PM-KUSUM is the main government scheme for solar on farms. It started in 2019 to help farmers run solar pumps and earn from solar power. For agrivoltaics, its role is growing. The next phase, PM-KUSUM 2.0, will include a 10 GW agrivoltaics component, so farmers can generate power and keep growing crops on the same land.