Agrivoltaics in India: Can Solar Panels Over Crops Help Farms Through Drought?

Agrivoltaics means growing crops and generating solar power on the same piece of land, usually with panels raised high enough on posts for people, animals and machines to work underneath. In a drought year the idea is attractive: the panels shade the soil so less water evaporates, they produce electricity for a pump or for sale, and the farmer keeps farming. The government has also announced that PM-KUSUM 2.0 will include a dedicated 10 GW agrivoltaics component. This guide sets out what the trials actually show, including the crops that lost yield, and what to check before you commit land to it. Status checked on 3 November 2026.

The short answer

• Water: a real but variable saving. Shade cuts evaporation from the soil, and panels can collect rainwater.
• Crops: it depends on the crop and the shade. Some crops held up or did better; others lost yield. Heavy shade hurts sun-loving crops.
• Money: no scheme is open yet. The 10 GW agrivoltaics plan in PM-KUSUM 2.0 has been announced but not notified, so there are no subsidy rules to apply under today.

What the research says about water

• In one field experiment published in 2022, cumulative evaporation from the soil fell by 21% to 33% under panels, depending on how the panels were laid out.
• A 2025 review of 33 agrivoltaic studies reported water-use efficiency improvements of 20% to 47%, along with lower evaporation from soil and crops.
• At ICAR-CAZRI in Jodhpur, India’s longest-running agrivoltaic trial (a one-acre, 105 kWp system installed in 2017), the panels also double as a rain catchment. Scientists there reported collection efficiency reaching 69.2% and said the harvested water could provide about 40 mm of drip irrigation on an acre.

These are results from specific sites and designs. How much water you save depends on your rainfall, soil, crop, and how high and how densely the panels are placed. Treat any single “saves 30% water” figure as a best case, not a promise.

What it does to crop yields

This is where agrivoltaics is oversold most often. The results go both ways:

• At CAZRI Jodhpur, the 2021-22 rabi season showed yield falls of 6.6% for chickpea, 10.3% for cumin and 7.8% for isabgol under the panels compared with open-field plots. Brinjal suffered significant losses in growth and yield. Green gram came close to the open-field yield.
• In a Fraunhofer ISE pilot in Maharashtra, the researchers reported yields up to 40% higher for tomatoes and cotton, which they put down to shading and reduced evaporation.
• A 2025 meta-analysis of 234 experiments worldwide found that better or more stable yields came mainly under moderate shading and in water- or heat-stressed conditions. With more shade, or where water and heat are not limiting, yields usually fall.

The pattern is consistent: agrivoltaics helps most where heat and water stress are the main limits on the crop, and with moderate rather than heavy shade. That fits drought-hit districts, but only with the right crop and design. A trial on a small part of your land, next to an open-field control plot, is the only way to know for your crop.

Design choices that decide the outcome

• Height. Panels must be high enough for the work the field needs: people, animals, and tractors or harvesters if you use them. Reports on MNRE’s plans mention heights of about 3.5 to 4 metres, but no official rule has been published.
• Density and spacing. Fewer panels with wider gaps let more light through for the crop but produce less power. This is the main trade-off between crop and electricity.
• Layout. Spaced rows give a moving, more even shade across the field during the day; solid blocks of panels leave patches in near-permanent shade.
• Structure strength. Tall structures catch more wind and cost more than standard ground-mounted ones. Ask for a structural design for your site’s wind zone; our wind-loading guide explains what the ratings mean.
• Rainwater collection. Gutters under the panel edges can feed a tank or farm pond, as at CAZRI.
• Cleaning water. Panels still need cleaning. In a drought, plan low-water methods from the start; see our guide to cleaning panels with little or no water.

Money, schemes and land: where things stand

• PM-KUSUM 2.0 (announced, not notified). On 11 March 2026 the Union Minister for New and Renewable Energy announced a dedicated 10 GW agri-PV component in PM-KUSUM 2.0. As of late October 2026 the scheme had not yet gone to the Union Cabinet, so eligibility, subsidy and application rules are unknown. Our PM-KUSUM status guide tracks it.
• PM-KUSUM Phase 1 is closed. It already allowed small solar plants on farmland, including on stilts above crops, but it is no longer taking new applications.
• Land rules vary by state. Whether a solar structure on farmland needs a change of land use, and whether the land keeps its agricultural status, is decided by state revenue rules. Ask your tehsil or revenue office before you sign anything.
• Leasing land to a developer. If a company offers to build agrivoltaics on your land, read the lease carefully: how long it runs, how the rent rises, who decides what you can grow, who is responsible for damage to the crop, and who removes the structures at the end.

Who should consider it now

• Research farms, FPOs and cooperatives that can run a proper trial with a control plot and share the results.
• Developers and EPCs working with farmers on a clear lease and crop plan.
• Individual small farmers: for most, the sensible step today is to wait for the PM-KUSUM 2.0 rules, and meanwhile use the guidance above to judge any offer you receive. Be wary of anyone selling “agrivoltaic investment plans” with guaranteed returns before the scheme exists.

For EPCs and developers

• Budget for taller, stronger structures and for crop-friendly construction: less soil compaction, cable routes that do not block ploughing, and access lanes for machinery.
• Agree a crop plan and a measured control plot with the farmer before construction, so yield claims can be checked afterwards.
• Expect PM-KUSUM 2.0 to require DCR modules from the ALMM list, as Phase 1 did; see DCR vs non-DCR panels.

Frequently asked questions

Is there a subsidy for agrivoltaics in India?

Not one you can apply for today. PM-KUSUM 2.0 is expected to include 10 GW of agrivoltaics, but as of 3 November 2026 it had not been approved or notified, so there are no subsidy rules yet.

Will solar panels over my field reduce my crop yield?

They can. At CAZRI Jodhpur, chickpea, cumin and isabgol yielded 6% to 10% less under panels, and brinjal did much worse. Other trials found higher yields for tomato and cotton. Results depend on the crop, the amount of shade and how stressed the crop is by heat and lack of water.

How much water can agrivoltaics save?

Studies report soil evaporation falling by roughly a fifth to a third, and better water-use efficiency, but the saving depends heavily on design and site. Panels can also collect rainwater for irrigation.

Can I still use a tractor under the panels?

Only if the structure is designed for it. Height and row spacing must be planned around the machines you use before construction.

We last checked this guide on 3 November 2026. Agrivoltaics policy is expected to change when PM-KUSUM 2.0 is notified; confirm the current position with MNRE or your state agency before committing land or money.