India’s agrivoltaic sector could expand significantly over the next three to four years, with installed capacity potentially exceeding 5 gigawatts (GW), according to Santosh Kumar Sarangi, Secretary of the Union Ministry of New and Renewable Energy (MNRE).
As reported by The Hindu on October 19, 2026, Sarangi said the outlook would depend largely on state governments’ willingness to support such projects and how quickly they introduce feed-in tariffs. His remarks came ahead of the seventh Agrivoltaics World Conference, scheduled to take place in New Delhi from October 21 to 23.
The projection signals potential growth for a model that combines agricultural land use with solar power generation. However, the capacity estimate remains conditional rather than a confirmed target, with policy decisions at the state level expected to influence the pace of expansion.
What Is Agrivoltaics?
Agrivoltaics involves using the same land for agriculture and solar electricity generation. Solar panels are installed in a configuration designed to allow farming activities to continue beneath or between them, depending on the crops, panel arrangement and local conditions.
The approach aims to create opportunities for farmers and renewable energy developers to share land resources. Depending on the project design, it may also offer benefits such as partial shade for selected crops and additional income from electricity generation.
Results can vary significantly. Crop selection, rainfall, temperature, soil conditions, panel height and spacing all influence whether agricultural productivity can be maintained alongside power generation.
State Policies and Feed-in Tariffs Will Be Crucial
Sarangi indicated that reaching more than 5 GW of agrivoltaic capacity within three to four years would depend on how actively states support the model and how quickly they notify feed-in tariffs.
A feed-in tariff establishes a price at which electricity generated by eligible producers can be purchased under a specified arrangement. Clear and timely tariff policies can help developers assess potential revenues and make investment decisions.
For agrivoltaic projects, policy certainty may be particularly important because developers must account for both energy generation and the practical requirements of farming. Delays in tariff notifications or uncertainty over electricity purchase arrangements could affect project planning and financing.
State-level implementation will therefore be an important factor in determining whether the sector approaches the capacity projection outlined by the MNRE Secretary.
Opportunities for Farmers and Renewable Energy Developers
Agrivoltaics could create opportunities for farmers, renewable energy companies, project developers and investors. Depending on the contractual arrangement, landowners may be able to earn income from solar installations while continuing agricultural activities.
The model may also support more efficient land use in locations where agricultural production and solar power generation can be integrated successfully. However, projects need to be designed around local farming conditions rather than treating agricultural land as suitable for solar development by default.
Key considerations include:
Crop compatibility: Panels and their spacing must suit the crops being cultivated.
Project economics: Developers need to assess installation costs, electricity revenue and ongoing maintenance.
Farmer participation: Land-use agreements should clearly establish responsibilities, payments and the continuation of farming activities.
Regulatory clarity: State policies, electricity tariffs and project approvals can influence investment decisions.
Performance monitoring: Agricultural yields and electricity generation should both be evaluated to determine whether the project is delivering its intended benefits.
Businesses assessing opportunities in this emerging sector may also need to review project feasibility, financial assumptions and commercial risks before committing capital. Appropriate strategic advisory services can help businesses evaluate investment decisions and plan their commercial approach.
Agrivoltaics Conference to Focus Attention on the Sector
The seventh Agrivoltaics World Conference, scheduled in New Delhi from October 21 to 23, 2026, provides a timely setting for discussion about the sector’s development. The event comes as India considers how combined agricultural and solar energy systems could contribute to its renewable energy ambitions.
The MNRE Secretary’s remarks place state-level policy implementation at the centre of the near-term outlook. Whether the projected capacity is achieved will depend on the measures adopted by state governments, the financial viability of projects and the willingness of farmers and developers to participate.
Outlook: Growth Depends on Implementation
India’s agrivoltaic capacity could exceed 5 GW over the next three to four years, but the projection is conditional on supportive state policies and timely feed-in tariff notifications.
The approach offers a potential way to combine farming with renewable electricity production, although results will depend on local conditions and project design. As the sector develops, policy clarity, sound financial planning and evidence of agricultural performance will be important in determining whether agrivoltaics can expand at the pace anticipated by the MNRE Secretary.