India’s transition to clean energy is gaining momentum, but the agricultural sector-despite being a major land user and energy consumer has yet to fully participate. Agri-PV, the co-location of solar panels and agriculture on the same land, offers a powerful opportunity to bridge this gap. It enables dual income streams for farmers through crop cultivation and energy sales while optimizing land use and supporting India’s renewable energy goals. This report from ICRIER examines the evolution, business models, and future scalability of Agri-PV in the Indian context. We define Agri-PV as the simultaneous use of farmland for grid-connected energy generation and agriculture, with both income streams being central to its design and implementation. The study explores the commercial applicability of Agri-PV by studying different business models that are currently operational on farmers’ field or are going to be implemented in the near future. Two in-depth case studies illustrate the potential and challenges of the farmer-owned model under PM-KUSUM. One highlights a 4.5 MW Agri-PV plant in MP set up by an individual farmer. The second case study explores an Agri-PV project in Rajasthan. Both use the PM KUSUM-A policy platform and demonstrate economic feasibility, while revealing hurdles such as payment delays and regulatory fragmentation. The report highlights that scaling Agri-PV requires flexible business models, clear policies, viable financing, and strong inter-agency coordination. When grounded in farmer realities and backed by effective implementation, Agri-PV can make India’s energy transition more inclusive, equitable, and sustainable.
