Solar Power Meets Farming: MNRE Plans Big Push for Agrivoltaics
The MNRE is planning a central scheme to fund agrivoltaics, allowing farmers to grow crops and generate solar power on the same land.

In a move that could redefine the intersection of energy and agriculture, the Ministry of New and Renewable Energy (MNRE) is working to bring agrivoltaics centre supported scheme initiatives to the forefront. The goal is to encourage state governments to adopt a model where farmers can generate solar power without sacrificing their agricultural land.
Speaking to reporters ahead of a dedicated conference on the subject, MNRE Secretary Santosh Kumar Sarangi revealed that the ministry is currently collaborating with the Ministry of Finance to establish a financial support mechanism. This could manifest as a standalone scheme or be integrated into an existing framework, such as the PM-KUSUM scheme, during its next revision.
Bridging the Cost Gap
One of the primary hurdles for the widespread adoption of agrivoltaics—also known as agri-photovoltaics—is the initial investment. Unlike standard ground-mounted solar arrays, agrivoltaic systems require elevated structures to ensure there is enough space for farming activities underneath the panels.
According to Secretary Sarangi, these specialized structures make agrivoltaic projects approximately 25% to 30% more expensive than conventional solar installations. The proposed central sector scheme aims to "neutralise" this financial gap, providing the necessary nudge for states to embrace the technology.
Which Crops Work Best Under Solar Panels?
A critical part of this transition is determining which crops can thrive in the partial shade created by solar panels. Preliminary assessments conducted by the Indian Agricultural Research Institute (IARI) have provided some early leads.
- High Suitability: Vegetables, horticultural crops, and floriculture appear to be more compatible with the agrivoltaic model.
- Lower Suitability: Traditional staples like rice, wheat, and sugarcane may not be as ideal for this specific setup.
However, Sarangi emphasized that these findings are preliminary. Given India's vast and diverse agro-climatic zones, the ministry is continuing to work with IARI to develop crop-specific recommendations based on deeper research.
Implementation and State Participation
The government envisions a flexible implementation strategy. The model could be rolled out through several channels, including:
- Individual farmers
- Farmer-Producer Organisations (FPOs)
- Cooperatives or groups of farmers
- Private developers leasing agricultural land on a long-term basis
The success of this initiative heavily relies on the proactiveness of state governments. States such as Maharashtra, Madhya Pradesh, and Odisha have already expressed interest. A key requirement for scaling up will be the notification of suitable feed-in tariffs by the states, which would provide financial certainty to those investing in the infrastructure.
"If the states act quickly, then five years-plus over the next five years should not be difficult," Sarangi noted, referring to the potential for capacity addition.
Global Collaborations
India is not walking this path alone. The MNRE is currently collaborating with Germany, a country recognized as one of the early adopters of agrivoltaic technology. While there has been speculation regarding a partnership with Japan, Sarangi mentioned it is currently too early to comment on any joint projects with the Japanese government.