Agrivoltaics, the integration of solar power generation with agriculture, is emerging as a game-changer for India’s energy and farming sectors. Agrivoltaics enables dual land use, helping farmers generate their own energy while continuing to grow crops.

Indore-based renewable energy company Khare Energy offers customized agrivoltaic solutions tailored to the specific needs of farmers and the local environment.

In an exclusive interview with Mercom India, Manish Khare, Managing Director of Khare Energy, spoke about agrivoltaics, the innovations driving it, and its potential impact on Indian farmers.

What is agrivoltaics, and how does it work?

Agrivoltaics is a method in which solar panels are installed at an elevated height, allowing crops to grow beneath them while generating electricity. The strategic placement of panels ensures that crops receive adequate sunlight while benefiting from partial shading, reducing temperature and water loss due to evaporation. This dual-use model maximizes land productivity and creates a synergy between farming and renewable energy.

The concept is simple yet highly effective. By placing solar panels at an elevated position, sunlight is efficiently divided between electricity generation and plant growth. The shade provided by the panels helps prevent excessive heat stress, which is particularly beneficial for regions prone to high temperatures.

What are the key innovations driving this sector?

Several technological advancements are enhancing agrivoltaics’ efficiency. One of the most critical innovations is the development of elevated and adjustable solar structures that cater to different crops. Smart shading algorithms are another breakthrough, as they optimize sunlight distribution to maximize both crop growth and energy production. Additionally, the Internet of Things-based monitoring systems track soil moisture, climate conditions, and solar performance, providing real-time data to farmers and energy managers.

A major leap is AI-powered agrivoltaic management software. This software enables real-time decision-making by analyzing various parameters, including soil conditions, crop type, and energy needs. It allows farmers to plan crop cycles more effectively while ensuring that solar panels operate at maximum efficiency.

How does agrivoltaics balance energy generation and crop production?

Agrivoltaic systems are designed to ensure that both solar panels and crops receive optimal benefits. The panels provide necessary shade to reduce evaporation and protect crops from excessive heat. This results in better water retention in the soil and a more stable microclimate, which can boost crop resilience.

The energy output of agrivoltaics systems remains high, typically maintaining a capacity utilization factor of 18–20%.

In many cases, crops grown under this system have shown increased resilience to extreme weather conditions, demonstrating that this approach can provide long-term benefits to farmers.

How does this technology benefit farmers in India? What kind of investments are required?

Agrivoltaics provides farmers with multiple advantages, including financial stability, resource efficiency, and climate resilience. Farmers can earn a dual income by cultivating crops while selling or using solar energy.

Additionally, this model acts as a guard against climate fluctuations, particularly in regions that experience droughts or extreme temperatures.

The financial aspect of agrivoltaics is also promising. Setting up a 1 MW agrivoltaic project requires approximately ₹50 million (~$583,710) and covers about five acres of land. However, government initiatives such as the Component-A of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan provide viability gap funding of up to 30% and bank financing of up to 70%, which can significantly reduce the financial burden on farmers and developers.

What challenges do farmers face in adopting agrivoltaics?

Despite its numerous advantages, the adoption of agrivoltaics faces several challenges in India. One of the biggest challenges is the farmers’ lack of awareness and technical knowledge. Many farmers are unaware of how agrivoltaics works and are hesitant to implement it due to concerns about crop yield and land utilization.

Additionally, the initial investment, even with subsidies, can be a deterrent for small-scale farmers. Regulatory and policy challenges also pose significant obstacles. Land-use permissions, grid connectivity approvals, and other bureaucratic hurdles can slow the implementation of agrivoltaic projects.

Farmers need clear guidelines and simplified processes to make the transition smoother. Addressing these issues through awareness programs, financial support, and policy improvements is crucial to accelerating agrivoltaics adoption.

Are certain crops better suited for agrivoltaics?

Yes, certain crops thrive under agrivoltaics conditions, particularly those that benefit from partial shading. Shade-tolerant and semi-shade crops such as spinach, coriander, brinjal, tomatoes, and drumsticks perform well. Spices and herbs, including turmeric, aloe vera, and lemongrass, also adapt well to this environment.

Fruit crops such as strawberries and melons have shown promising results when cultivated under solar panels. Additionally, pulses and oilseeds such as moong, urad, and mustard can be successfully grown in agrivoltaics setups, particularly when used in rotational farming. Selecting the right crops is key to ensuring an agrivoltaics system’s success.

What are the major hurdles in scaling agrivoltaics in India?

Several factors hinder the large-scale adoption of agrivoltaics in India. One of the biggest challenges is the inconsistency in land-use policies across different states. Regulations regarding land conversion and solar farm development vary, making it difficult to implement a uniform strategy.

Limited rural grid infrastructure poses another challenge, as seamless integration of electricity is necessary for effective energy distribution. Financing and insurance issues are also concerns. Many financial institutions are still hesitant to provide loans for agrivoltaics projects due to a lack of familiarity with the model.

The absence of standardized designs and performance benchmarks makes it difficult to evaluate and scale projects efficiently. However, Khare Energy is working to establish pilot sites and create standardized models to address these challenges and drive wider adoption.

Where do you see the future of agrivoltaics in the next decade?

Agrivoltaics is set to play a transformative role in India’s renewable energy and agricultural sectors. With over 15 million hectares of cultivable wasteland and the government’s target of 500 GW of renewable capacity, the potential for agrivoltaics is enormous.

In the coming decade, we expect agrivoltaics to shift from pilot projects to mainstream adoption, driven by increased government support and private-sector investment. Several states, including Telangana, Madhya Pradesh, and Uttar Pradesh, will likely develop state-specific agrivoltaics policies to encourage large-scale implementation.

Private investments, CSR initiatives, and climate funds will further accelerate deployment. Agrivoltaics can potentially empower rural communities by providing sustainable income opportunities, particularly for women and young farmers.