As India progresses on its target to create 500 GW of renewable energy (RE) generation capacity by 2030, solar power is expected to make a significant contribution. However, with a land requirement of 3.5 acres/MW, solar is expected to compete with agriculture for land resources.

However, various initiatives are underway to turn this potential competition into a symbiotic partnership that would not only help India achieve its RE targets but also help increase farm incomes.

Energy and farming have a complex relationship in India. Agriculture has been villainised for its high consumption ( Energy Statistics India 2024) of total consumption) while paying negligible or even zero cost.

This has also led to inefficiencies in consumption with little incentive for energy efficiency. On the other hand, poor farm incomes have seen agricultural land being diverted to other uses, including RE generation.

Agrivoltaics

Integration of farming with solar energy is being implemented through the PM-KUSUM scheme in India. This scheme provides incentives for:

● Setting up of solar projects within the vicinity of existing sub-stations on barren land or on cultivable land on stilts (Agrivoltaics). In the latter model, crops can be grown below the solar panels)

● Installation of stand-alone solar agricultural pumps

● Solarisation of grid-connected pumps

Agricultural pumps can considerably alleviate the problem of energy consumption and their widespread adoption is already leading to reduction in dependence of agriculture on grid power.

Agrivoltaics is a novel area which can transform agriculture while adding to the RE power of India. Pilot applications of this technology have shown increased crop yield while also demonstrating higher solar power generation (since the solar system is mounted on higher stilts than conventional projects).

It may be noted that Agrivoltaics have transitioned from being an experimental technology to now having a meaningful installed base across the world – 2.8 GW in 2020. China, Japan and Germany have been at the forefront of this revolution.

Additional income

This technology is likely to find immediate applications in arid and semi-arid zones. However, given the positive impact on crop yield, there is also a strong case to using these applications beyond such zones. Farm income has been a subject to considerable political debate.

Lease rental per acre for solar farms in India currently range from ₹20,000-40,000 per acre in India (For projects without any incentives : Market sources). Farm incomes in India on a per acre basis vary widely across states (₹25,000-4,00,000). Additional income from solar power can accelerate the achievement of the target of doubling of farm incomes in India.

India has 139 million hectares of land under cultivation (Annual Report 22-23, Ministry of Agriculture). Even a small part of this land used for agrivoltaics, could result in significant growth in India’s RE capacity.

We need to evolve a suitable model to access this upside. PM-KUSUM has so far been focussed on the role of farmers/ cooperatives in installation of such projects. However, the role of private capital in developing these models may perhaps mitigate the initial hesitation of farmers in adopting such solutions.

Sustainability has been a theme of the Indian way of living for times immemorial. We worship both sun and farm produce as part of our religious practices. It is now time to follow this ancient belief system to help improve economics of agriculture and conserve our environment at the same time.

The author is CEO of Impact Infracap

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