Agrivoltaics: Power Above the Farm, Crop Below - the Proposed Central Scheme

The next big question of India's solar expansion is land: if panels are installed, where will farming happen? Agrivoltaics answers this very tension - electricity above, crops below, on the same land. The Centre is now working on a central scheme to encourage States to adopt it.

Why in the News

According to a Hindustan Times report of 20 October 2026, the Secretary of the Ministry of New and Renewable Energy (MNRE), Santosh Kumar Sarangi, said at the 19 October press conference that the Centre is considering a central sector scheme to give States an initial incentive to adopt agrivoltaics; whether it will be a standalone scheme or part of the proposed PM Kusum 2.0 has not yet been decided. This signal of an announcement came just before the 7th Agrivoltaics World Conference to be held at Bharat Mandapam in New Delhi on 21-23 October 2026 under India's hosting; the official conference website confirms the date and venue. According to the report, more than 1,500 participants from India and 24 other countries are expected at the conference, and the launch of an agri-photovoltaics policy document is likely.

The Existing Framework: PM-KUSUM

The Centre's main farm-solar scheme has been the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) - its original period ended on 31 March 2026. According to MNRE, its original target was to add 34,800 MW of additional solar capacity by March 2026, with total central financial assistance of Rs 34,422 crore (including implementation charges). According to an Economic Times report of 29 March 2026, projects whose PPAs/letters of intent (LoI) were done by 31 December 2025 got a limited relaxation to commission by 31 March 2027 - this is not a renewal of the whole scheme or the fulfilment of the target. The three components:

• Component A: 10,000 MW of decentralised, land/stilt-based grid-connected solar or other renewable plants (500 kW to 2 MW) - farmers, groups, cooperative societies, panchayats, FPOs etc. can install them; purchase-based incentive to the DISCOM for five years (Rs 0.40/unit or Rs 6.6 lakh/MW, whichever is less).
• Component B: 1.4 million standalone solar agriculture pumps (up to 7.5 HP in off-grid areas) - central share of 30 per cent of the benchmark cost, State share of at least 30 per cent (central share of 50 per cent in North-Eastern/hilly/island States).
• Component C: solarisation of 3.5 million grid-connected agriculture pumps, including feeder-level solarisation.

The proposed new agrivoltaics scheme will stand on the experience of these very components - especially the stilt-based Component A; according to the Secretary's statement, the mechanism is still being decided. PM-KUSUM's original period has ended, so the decision on a new scheme/PM Kusum 2.0 is even more important.

Context: Capacity Has Grown, Land Is Limited

According to MNRE's physical progress report (up to September 2026), India's cumulative solar capacity is 171.05 GW - ground-mounted plants 125.65 GW, grid-connected rooftop 33.41 GW, hybrid 5.36 GW and off-grid 6.63 GW. Further expansion demands large parcels of land; instead of converting farmland into energy land, the dual-use model reduces this very pressure. Agrivoltaics brings this reasoning to the policy level.

Challenges and the Way Forward

Cost and structure: stilt-based panels are costlier than ordinary ground plants; the evidence from pilots on the incentive amount, panel height/shade management and crop yield will be the basis of the new scheme.

Adoption at the State level: the very aim of the proposed scheme is to nudge the States - since agriculture policy is a State subject, the real expansion will depend on the States' participation.

The need for data: the more than 40 pilots (Hindustan Times, 3 August) are still early evidence; how much yield is saved and how much income comes in which crop area - this standardised figure is expected from the policy document.

Conclusion

Agrivoltaics is an attempt to join the questions of energy security and farm income without turning them into a land conflict. According to the Secretary-level statement, the form of the scheme (standalone or PM Kusum 2.0) is yet to be decided; the policy document coming at the 21-23 October conference will make the direction clear. From the exam's point of view, the subject connects to GS-III (energy, agricultural technology, land use).

Answer Outline

Introduction: Agrivoltaics and dual land use.

Main Body: Solar-capacity expansion and land pressure (171.05 GW, September 2026); PM-KUSUM components and limits; the central scheme proposal (the Secretary's statement); challenges of cost, State participation and yield evidence.

Conclusion: Dual land use is a useful opportunity, but keep the distinction between a proposal and an implemented scheme clear in view of costs, State participation and evidence on yields.

Prelims Practice

Question 1. Consider the following statements about PM-KUSUM:

Statement 1: Its original target was to add 34,800 MW of additional solar capacity by March 2026.
Statement 2: Component B involves solarising grid-connected agriculture pumps.
Statement 3: Under Component A, decentralised plants of 500 kW to 2 MW capacity can be installed.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Question 2. Consider the following statements about agrivoltaics:

Statement 1: In it, solar panels are installed at a height above the crop so that farming can continue.
Statement 2: The 2026 Agrivoltaics World Conference is scheduled to be held at Bharat Mandapam in New Delhi on 21-23 October.
Statement 3: The central government has formally announced a standalone scheme for agrivoltaics.

Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Sources

• Hindustan Times: MNRE Secretary's 19 October press conference - 20 October 2026
• MNRE: PM-KUSUM - target, components and financial framework
• MNRE: physical progress - cumulative solar capacity 171.05 GW (September 2026)
• 7th Agrivoltaics World Conference - 21-23 October 2026, Bharat Mandapam, New Delhi (official website)
• Economic Times: limited extension of some PM-KUSUM projects to March 2027 - 29 March 2026

Internal reading: PM-Surya Sarovar Scheme: 5,000 MW of floating solar and storage, Solar Energy Over Canals: The Operational Challenge Along with Land Saving

Update (21 October 2026): Inauguration of the Agrivoltaics World Conference 2026

On 21 October 2026, Agriculture Minister Shivraj Singh Chouhan and New and Renewable Energy Minister Pralhad Joshi jointly inaugurated the AgriVoltaics World Conference 2026 in New Delhi. This three-day conference is being held in India - and in the Global South - for the first time.

According to a TERI study quoted by the minister, about 47.5 million hectares of India's agricultural land (about 30%) is technically suitable for agrivoltaics; in the 16 million hectare scenario, annual generation of 12,775 TWh was said to be possible, which is comparable to the estimated electricity demand of 2050 (5,250-10,020 TWh). The study emphasises the concept of "one land, two crops"; small and marginal farmers are more than 85% and the average holding is 0.96 hectare. An elevated structure was said to be 25-30% costlier than the ordinary one. An ambitious agrivoltaics programme was announced in the next phase of PM-KUSUM.

Source: Press Information Bureau (PIB), 21 October 2026