India to roll out AgriPV scheme targeting 5 GW solar capacity

India's Ministry of New and Renewable Energy is preparing to introduce a dedicated support scheme for agrivoltaic projects, according to the ministry's top official. The programme is designed to address the significant cost premium associated with AgriPV installations, which typically run 25-30% higher than conventional solar projects.

The support mechanism will help bridge this cost differential and make such projects financially attractive for farmers and investors alike. AgriPV systems, which combine agriculture with solar power generation on the same land, have emerged as a promising avenue to increase renewable energy capacity while allowing continued farming operations.

The actual scale of capacity deployment under the scheme will depend on regulatory action by individual states. The MNRE secretary indicated that achieving the targeted 5 GW addition hinges on states notifying competitive feed-in tariffs, creating a conducive policy environment for project developers.

The move reflects the central government's broader push to accelerate renewable energy adoption across India. By tying capacity additions to state-level tariff mechanisms, the scheme aims to foster collaborative federalism while maintaining fiscal efficiency in the deployment of solar infrastructure.