Summary
The Ministry of New and Renewable Energy is considering financial incentives for agri-photovoltaics, where solar panels are mounted on raised structures over farmland so that cultivation continues beneath them. MNRE Secretary Santosh Kumar Sarangi put India's agrivoltaic potential at 1 to 2 terawatts, against current installed solar capacity of about 171 GW.
MNRE is discussing with the Finance Ministry whether to offer incentives through the existing PM-KUSUM scheme or a separate central sector scheme. The announcement came ahead of the 7th Agrivoltaics World Conference, held in New Delhi from 21 to 23 October 2026.
WHY IT MATTERS FOR UPSC & STATE PCS
At a media briefing on 19 October 2026, ahead of the first Agrivoltaics World Conference held in India, the MNRE Secretary said the Centre is considering incentives for agrivoltaics. The aim is to expand solar capacity without taking land out of farming and to help close the gap to India's 2030 target of 500 GW of non-fossil capacity.
Standard News
The Gap Between 2,000 GW of Potential and 5 GW of Plans
The target is 500 GW of non-fossil capacity by 2030. Installed solar stood at 171.05 GW at the end of September 2026. MNRE puts agrivoltaic potential at 1,000 to 2,000 GW, yet the Secretary's own estimate is about 5 GW over the next three to four years and only if states adopt the incentives.
Five gigawatts is between 0.25% and 0.5% of the stated potential. The gap is not about technology. It sits in three specific links of the implementation chain.
Why Land Makes This Urgent
Ground-mounted solar needs roughly 4 to 5 acres per MW. Each additional gigawatt therefore takes about 4,000 to 5,000 acres, often of farmland, out of food production. With fragmented holdings, every large solar park becomes a dispute between energy and food.
Agrivoltaics actually needs slightly more space, about 5 to 6 acres per MW, because panels must be spaced to let light reach the crops. But the land stays in farming. That is the bargain: India gets the energy without losing the field.
The Three Links That Decide Whether It Works
1. Capital cost. Raised structures strong enough to let tractors pass underneath cost more than ground mounts. For a smallholder or a farmer producer organisation, this extra capital cost is the first barrier. Without support, ordinary solar parks will always be cheaper and the land conflict will continue. **2.
Crop yields.** Not every crop does well in partial shade. At ICAR-CAZRI in Jodhpur, a double-row design spaced panels to let sunlight through and shade-tolerant moong grew well beneath them, with isabgol grown in the rabi season.
The shade also reduced evaporation from the soil, which matters in arid areas. The lesson is that agrivoltaics needs advice on crop choice, not just panels. 3. Farmers' share of revenue. A farmer who leases land to a developer may receive rent while the developer keeps the power income.
A farmer who owns the plant through Component A of PM-KUSUM earns from both electricity and crops. Who owns the asset decides whether agrivoltaics adds to farm income or simply turns farmers into landlords.
The Scheme Decision MNRE is
weighing PM-KUSUM against a standalone scheme. The stronger choice is to build agrivoltaics into PM-KUSUM 2.0 Component A, with a dedicated capital-cost subsidy. Component A already allows raised structures and plants of 500 kW to 2 MW owned by farmers or FPOs.
Starting from that design keeps ownership and land titles, with farmers instead of creating a new model where developers lease land and farmers lose control of it. What is working is clear: the technology is proven at CAZRI, the policy intent is stated and India hosted the world conference this week.
What is missing is the finance and ownership design that would turn the potential into plans.
Quick Facts
Key numbers & takeaways — revise these first
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Agrivoltaics combines solar power generation and crop cultivation on the same land, using panels on raised structures.
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MNRE estimates India's agrivoltaic potential at 1 to 2 terawatts (1,000 to 2,000 GW).
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India's installed solar capacity was 171.05 GW as of 30 September 2026.
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India's target is 500 GW of installed non-fossil electricity capacity by 2030.
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Ground-mounted solar typically needs 4 to 5 acres per MW; raised agrivoltaic systems need about 5 to 6 acres per MW but keep the land in farming.
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PM-KUSUM Component A supports farmer or FPO-owned grid-connected solar plants of 500 kW to 2 MW and permits stilt-mounted agrivoltaic structures.
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The first phase of PM-KUSUM ended at the close of 2025, with PM-KUSUM 2.0 awaited.
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MNRE's Secretary said India could add about 5 GW of agrivoltaic capacity in three to four years if states adopt the incentive structures.
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The 7th Agrivoltaics World Conference was held at Bharat Mandapam, New Delhi, from 21 to 23 October 2026.
Connect the dots for your UPSC preparation.
Standard news covers the event. Log in to read our comprehensive analysis and uncover the hidden constitutional, structural, and ethical dimensions of this topic:
The arithmetic of the gap: why a 5 GW plan against 1,000 to 2,000 GW of potential points to a finance problem, not a technology problem
How CAZRI's double-row design kept moong yields steady under panels and which crops cannot be grown this way
Why farmer ownership through PM-KUSUM Component A protects land titles better than lease models
A two-stage plan: capital subsidies in PM-KUSUM 2.0 now and crop-specific design standards and state adoption later
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