Tapping the Potential of Agriphotovoltaics in India

The report examines agriphotovoltaics (AgriPV) as a solution to land-use conflicts between solar energy and agriculture in India. It identifies significant technical potential, ranging from 3,156 GW to 13,803 GW, but notes that adoption is hindered by high capital costs, rigid land-use laws, and a lack of a formal regulatory definition. The study models feed-in tariffs between INR 3.67/kWh and INR 5.49/kWh, concluding that AgriPV is economically viable and offers lower levelized tariffs than non-DRE grid-connected projects. Key recommendations include mandating AgriPV under Renewable Purchase Obligations (RPO), defining it as a distinct renewable energy source, and adopting cost-plus tariff frameworks that account for elevated structures and farmer lease payments.

• India possesses a vast technical potential for agriphotovoltaics, estimated by GIZ (2024) to be between 3,156 GW and 13,803 GW, with approximately 43% of the country's land area currently under agriculture.
• Agriphotovoltaics projects are economically viable as Distributed Renewable Energy (DRE) systems, with modelled tariffs ranging from INR 3.67/kWh to INR 5.49/kWh based on Capacity Utilisation Factors (CUFs) between 25% and 17%.
• Agriphotovoltaics offers lower levelized tariffs than non-DRE grid-connected projects because it avoids transmission losses and infrastructure costs, which are estimated at approximately INR 1.42/kWh in non-DRE systems.
• The capital cost for overhead agriphotovoltaics is significantly higher than conventional ground-mounted solar, costing approximately INR 4.30 crore per MW compared to INR 3.50 crore per MW, primarily due to elevated mounting structures.
• A case study of SunMaster's 2.5 MWp plant in Delhi demonstrated that agriphotovoltaics can nearly double farmer income, increasing it from approximately INR 60,000 per acre per year to INR 1.05 lakh per acre per year.
• The adoption of agriphotovoltaics in India is obstructed by the absence of a formal definition and a dedicated land-use category, leading to regulatory uncertainty and the need for complex land-use conversion in states like Uttar Pradesh, Punjab, and Haryana.
• The report recommends that the Ministry of Power mandate the purchase of agriphotovoltaics power under the Renewable Purchase Obligation (RPO) framework, specifically suggesting that 20% of the DRE target be met from small-scale AgriPV (<10 MW) for FY 2026-27.
• To ensure project bankability and protect farmers, the report proposes a tripartite agreement between the farmer, developer, and DISCOM, including a 25-year lock-in PPA period.

APA

Chawla, H., Gupta, N., Habib, T., & Samal, A. (2025). Tapping the Potential of Agriphotovoltaics in India. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Agrivoltaics_CPI-1.pdf

Chicago

Chawla, Himanshu, Nikita Gupta, Tariq Habib, and Anup Samal. Tapping the Potential of Agriphotovoltaics in India. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Agrivoltaics_CPI-1.pdf.

Wikipedia

{{cite report |last1=Chawla |first1=Himanshu |last2=Gupta |first2=Nikita |last3=Habib |first3=Tariq |last4=Samal |first4=Anup |title=Tapping the Potential of Agriphotovoltaics in India |publisher=Climate Policy Initiative |date=October 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Agrivoltaics_CPI-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chawla2025tapping, author = {Chawla, Himanshu and Gupta, Nikita and Habib, Tariq and Samal, Anup}, title = {{Tapping the Potential of Agriphotovoltaics in India}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Agrivoltaics_CPI-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }