By Lavkesh Balchandani
India, with its abundant sunlight and vast agricultural lands, stands at the forefront of a transformative opportunity – harnessing the power of agrivoltaics (APV) to revolutionise its energy and agricultural sectors. It is the innovative integration of solar photovoltaic (PV) power generation with crop cultivation on the same plot of land, and has emerged as a promising solution to address the growing energy demand while ensuring food security and sustainable land use across the world. As the country navigates the challenges posed by climate change, population growth and limited resources, APV presents a pathway to a greener, more prosperous future.
Market landscape
The APV market in India is still at its nascent stages, but it holds immense potential for growth and development. The country’s diverse agroclimatic zones, ranging from arid deserts to lush tropical regions, offer ample opportunities for the deployment of APV systems tailored to local conditions. Moreover, with the increasing pressure on land resources due to urbanisation and the need for clean energy, APV provides a viable solution to optimise land use and meet multiple objectives simultaneously.
In recent years, India has witnessed a growing interest in APV, with several pilot projects and research initiatives under way. The Ministry of New and Renewable Energy recognises its potential and has included provisions for its promotion under the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM-KUSUM) scheme, which aims to support the installation of solar power plants on agricultural lands. This policy support, coupled with the falling costs of solar PV technology and the increasing awareness among farmers, has set the stage for the rapid expansion of the APV market in the country.
Potential and scope
According to a 2024 report by the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH, the country’s total APV potential ranges from 3.1 to 13.8 TW, depending on crop suitability and technology configuration. States such as Madhya Pradesh, Maharashtra, Rajasthan, Punjab and Uttar Pradesh have been identified as having the highest potential for APV deployment.
The report further highlights APV’s potential to contribute significantly to India’s renewable energy targets while supporting the growth of the agricultural sector. Under a moderate scenario, the report projects a cumulative installed capacity of 20 GW of APV by 2040, requiring an investment of Rs 814 billion. In an optimistic scenario, the potential capacity could reach 60 GW by 2040, with an estimated investment of Rs 2,138 billion. These projections underscore the immense scope for APV to drive clean energy transition and create new economic opportunities in rural India.
Key benefits and challenges
APV plants have several benefits. One, they allow for the dual use of land. They feature common civil infrastructure such as fencing, lighting, land grading and storage. Two, there is a high yield of organic horticulture and floriculture due to controlled shading. Three, higher PV generation from bifacial panels is possible due to the elevated installation and higher albedo of the shade net/soil/crop system. In addition, there is the advantage of possibly lowering panel temperatures due to crop evapotranspiration. Four, there is a 40 per cent reduction in water use owing to reduced evapotranspiration. Five, there are savings in operations and maintenance (O&M) costs as there is no requirement for day-time security, along with the dual use of farm personnel for panel cleaning. Despite these benefits, several challenges have hindered the uptake of APV in India.
One of the primary barriers to the widespread adoption of APV is the lack of a clear policy and regulatory framework. Further, there are several issues that hinder the potential growth in this segment, such as the absence of a standard definition for APV in existing policies, lack of guidelines on land use and ownership, and the tedious approval processes required for APV projects.
Another challenge is the financial viability of APV projects, particularly for small and marginal farmers. The high upfront costs of APV systems, coupled with limited access to credit and financing options, can deter farmers from adopting this technology. Innovative financing mechanisms such as capital subsidies, interest subvention and viability gap funding can help overcome these financial barriers and make APVs more accessible to farmers.
Going forward, technical challenges, such as the optimal design and configuration of APV systems for different crops and agroclimatic zones, also need to be addressed. While several pilot projects have demonstrated the feasibility of APV in India, more research and development (R&D) efforts are required to optimise system performance, minimise shading effects on crops and ensure the long-term durability of APV components under diverse climatic conditions.
Furthermore, the successful implementation of APVs requires effective stakeholder collaboration and capacity building. Farmers, project developers, policymakers and researchers need to work together to develop localised solutions, share knowledge and build a supportive APV ecosystem.
The way forward
To unlock the full potential of APV in India, a multi-pronged approach is needed, involving policy support, financial incentives, R&D and stakeholder engagement. The key points that should be considered going forward are:
Comprehensive policy framework for APV: The government should formulate a clear and cohesive policy framework that defines APV, sets targets for its deployment and provides guidelines for land use, ownership and project approvals. This framework should be aligned with existing renewable energy and agricultural policies to ensure synergy and avoid conflicts.
Financial incentives and support mechanisms: To make APVs more accessible and attractive to farmers, the government should offer financial incentives such as capital subsidies, interest subvention and VGF. These incentives can be targeted at small and marginal farmers, who may face greater financial constraints in adopting APV technology. Additionally, innovative financing models, such as community-owned APV projects or joint ventures between farmers and developers, can be explored to reduce risks and enhance project viability.
R&D: Investing in R&D is crucial to optimise APV system design, crop selection and operational practices for different agroclimatic zones. Collaborative research efforts between academic institutions, industry partners and agricultural extension services can help generate localised knowledge and solutions. Pilot projects and demonstration sites should be established to showcase the benefits of APV and provide learning opportunities for farmers and other stakeholders.
Capacity building and awareness: Training programmes and workshops can be conducted to educate farmers about the benefits and technical aspects of APV systems. Skill development programmes can be designed to foster a skilled workforce that can support the installation and O&M of APVs.
Stakeholder collaboration and ecosystem development: The success of APV in India relies on strong collaboration and coordination among various stakeholders, including farmers, project developers, policymakers, researchers and financial institutions. Platforms and networks should be established to facilitate knowledge sharing, best practices’ exchange and partnership building. The development of a robust ecosystem, with supportive policies, financing mechanisms and market linkages, can help accelerate the growth of the APV sector in the country.
In sum, APVs represent a paradigm shift in how India can approach its energy and agricultural challenges. By synergising solar power generation with crop cultivation, these projects offer a sustainable and inclusive solution that can contribute to the country’s clean energy transition, food security and rural development goals.
