India’s electricity distribution system continues to face a structural imbalance. Publicly owned Distribution Companies (DISCOMs) bear the dual burden of universal service obligations and sometimes politically determined tariffs. This results in persistent financial losses, particularly in rural supply. While renewable energy expansion has accelerated nationally, it remains heavily centralised, doing little to alleviate the high cost of rural power delivery. Agriphotovoltaics (APV), the dual use of land for solar power generation while continuing agriculture, offers a structural innovation that can bridge this gap. By generating electricity directly within rural feeders, APV systems reduce transmission losses, defer infrastructure investments, and transform farmers from subsidised consumers into energy partners. Drawing on ICRIER’s pilot projects in Rajasthan and Odisha, the brief demonstrates how farmer-led APV models can align renewable energy deployment with livelihood enhancement. A sensitivity analysis of the Rajasthan pilot reveals that while capital subsidies can ease entry barriers, a remunerative Feed-in Tariff (FiT) of around INR 4.40/kWh is critical for ensuring long-term financial viability and scalability. The findings highlight the need for policy recalibration that recognises APV as both a decentralised energy solution and a rural development instrument that would be capable of improving DISCOM viability, enhancing farmer incomes, and advancing India’s just energy transition.
