By Sadananda Mohapatra, Senior Business Journalist
India Sees 5 GW of Solar Power Potential on Farmland
India’s renewable energy establishment has put a number against agrivoltaics for the first time. On October 19, the Ministry of New and Renewable Energy Secretary Santosh Kumar Sarangi said the country could add more than 5 gigawatts of dual-use solar capacity over the next three to four years. The caveat was direct: only if states move quickly to notify feed-in tariffs and create workable power purchase arrangements.
Agrivoltaics places elevated solar panels above farmland, allowing crops to grow underneath while generating electricity from the same land. The structures cost 25 to 30% more than conventional ground-mounted solar plants. The Centre is preparing to fold agrivoltaic support into the next phase of its flagship PM-KUSUM scheme for farmers, with central funding designed to neutralise that cost premium so the effective price of power approaches standard solar rates. A dedicated 10 gigawatt agri-solar component is also under discussion.
One state has moved ahead of the pack. On October 22, Odisha’s Deputy Chief Minister announced that the state is finalising India’s first dedicated Agri-PV Policy 2026. The framework targets 1 gigawatt by 2030, mandates that at least 90% of project land remain under active cultivation, and offers 25-year power purchase agreements backed by guaranteed offtake, grid connectivity and open-access rights through the state’s grid company. Farmers can either own the systems themselves or lease land to developers. A 1 megawatt pilot is already operational.
Maharashtra and Madhya Pradesh have shown interest and are running or planning pilots. Several other states have been identified by the ministry as suitable for early deployment given moderate solar irradiance and available agricultural land.
The commercial bottleneck remains largely unresolved beyond Odisha. Agrivoltaic power still has to be bought by someone. Distribution companies in many states remain financially stressed and prefer the lowest possible tariff. Without clear, bankable offtake terms, developers and farmer groups cannot secure project financing regardless of how attractive the central support package is. Sarangi has been explicit: the 5 gigawatt ambition materialises only if states notify suitable tariffs with speed.
The appeal of agrivoltaics is genuine. It offers farmers additional income without taking land out of cultivation, produces clean power from land that serves a dual purpose, and fits naturally into India’s push to decentralise energy generation. The policy signals from New Delhi and Bhubaneswar are the clearest yet. Whether they translate into actual megawatts will depend on how many other states follow Odisha’s lead in locking in long-term purchase commitments before the financing window closes.
Joules Capsule: Weekly Round-Up
Gujarat withdraws industrial power cuts
Gujarat’s peak demand hit a record 29,822 MW on 16 October, prompting discoms to impose staggered eight-hour evening power cuts on industrial feeders. Textile and engineering units in Surat and other clusters reported heavy production losses, estimated at up to ₹300 crore a week in textiles alone. After strong industry representations, Dakshin Gujarat Vij Company withdrew the curtailment order on 23 October, restoring normal supply ahead of Diwali.
CERC clears firm renewable tariffs
The Central Electricity Regulatory Commission on 26 October approved tariffs of ₹4.82–4.91 per unit for 448 MW of Firm and Dispatchable Renewable Energy (FDRE) projects procured by SJVN. The rates cover round-the-clock renewable power with storage support and are lower than several earlier peak-power tenders. The approval strengthens the market for storage-backed renewable supply that can meet evening peak requirements when conventional solar is unavailable.
Power demand eases as winter approaches
India’s peak power demand has fallen to around 234 GW after remaining above 250 GW for most of early October, with a record 260 GW on 5 October. Cooling and irrigation loads are declining with cooler weather and rainfall in several regions. However, evening and night-time deficits continue in parts of the country because solar generation drops after sunset while industrial and residual demand stay high. States such as Gujarat and Tamil Nadu are still recording elevated peaks.
About the Author:
Sadananda Mohapatra is a veteran business journalist with decades of experience covering India’s energy industry, and economic landscape. With stints at reputed financial news publications like The Business Standard, & NewsWire18, he reported extensively on India’s power sector, minerals policy, coal and energy regulation, and industrial developments — building a deep, ground-level understanding of the global energy economy. His work spans corporate affairs, infrastructure, and policy analysis, with a particular focus on eastern India’s resource-rich industrial corridor. He currently writes on the global energy landscape through his newsletter, The Joule’s Stack.
