India to unveil central scheme supporting costly agrivoltaic solar projects, targeting 5 GW
The government will soon launch a central program to subsidize agrivoltaic solar farms, aiming to add up to 5 GW of capacity in the coming years.
During a briefing for the AgriVoltaics World Conference 2026, MNRE Secretary Santosh Kumar Sarangi said the government will introduce a central sector scheme to bridge the 25-30 % cost premium of agrivoltaic solar projects. The initiative targets roughly 5 GW of AgriPV capacity over the next three to four years, contingent on state governments announcing feed-in tariffs. The scheme may be incorporated into the PM-KUSUM programme or launched as a standalone measure, with the Ministry of Finance helping shape the incentive framework.
Pilot projects with the Indian Agricultural Research Institute have mapped suitable crops and regions—such as Madhya Pradesh, Odisha, Chhattisgarh, West Bengal and Uttar Pradesh—where four-metre-high solar arrays can coexist with farming. Estimated power costs are ₹3.20-₹3.30 per unit, slightly higher than the ₹2.80-₹3.00 range for conventional KUSUM installations. The ministry plans to discuss procurement policies with distribution companies and is drafting a policy document for the new technology.
Why it matters
It could expand renewable energy while protecting farmland, affecting India's climate targets and rural livelihoods.
In this story
