Agrivoltaics

in India
January 2024

Building a better
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Innovative New Solar PV Areas in India entirely up to date, correct or complete. All liability
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AGRIVOLTAICS IN INDIA

January 2024
 This publication has been prepared under the Indo-German Technical Cooperation
Acknowledgement 
on Innovative Solar (IN Solar) in India. The project has been initiated under the
guidance of the Ministry of New and Renewable Energy, Government of India
and is funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit
GmbH (GIZ). Ernst and Young LLP (EY LLP) has led this project along with
Center for Study of Science, Technology and Policy (CSTEP) and Fraunhofer ISE
(Germany) as partners. The project aims to explore potential of the new innovative
applications of solar with reduced land utilization having the potential to foster
the targeted expansion of solar photovoltaic (PV) applications in India. The NISA
areas are agrivoltaics (APV), floating PV (FPV), canal top PV (CTPV), rail/road
integrated PV (RIPV) and building integrated PV (BIPV)/ urban PV (UPV).

The project team is grateful for the guidance and support received from the
Ministry of New and Renewable Energy (MNRE), especially from Dr Arun K.
Tripathi (Scientist G), Dr Anil Kumar (Scientist E), Ms Priya Yadav (Scientist C),
Mr Arun Kumar Choudhary (Scientist B). Special thanks to Dr D. K. Singh from
the ICAR- Indian Agricultural Research Institute for his guidance through this
study.

Suggested Citation: GIZ, Agrivoltaics in India, January 2024

Disclaimer The potential derived for the different integrated PV applications and the
methodologies used have been derived with the sole purpose of estimating a
national level potential of these technologies for India. It is subject to certain
assumptions to extrapolate the potential on a national scale. Statistical potential
estimation methodology was utilised wherever there was a lack of precise geographic
information system (GIS) data. Realised potential on the ground might differ
owing to a more precise system level design at this scale.
FOREWORD

Henrik Personn

Dear Readers,
The G20 declaration under India’s presidency this year emphasizes the importance of “accelerating clean, sustainable, just, affordable
and inclusive energy transitions,” with a strong emphasis on rapidly expanding renewable energy deployment (G20, 2023). Bilateral
efforts related to sustainable energy technologies are recognised as crucial in bringing this commitment to fruition.  
In this regard, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is pleased to present this study on New
and Innovative Solar Applications (NISAs). The identified NISAs are Agrivoltaics (AgriPV), Floating Photovoltaics (FPV), Canal
Top Photovoltaics (CTPV), Rail/Road Integrated Photovoltaics (RIPV), Building Integrated Photovoltaics (BIPV) and Urban
Photovoltaics (UPV). This study is a testament to the Indo-German Technical Cooperation under the Innovative New Solar Areas
(IN Solar) project, a bilateral project initiated under the esteemed guidance of the Ministry of New and Renewable Energy (MNRE),
Government of India, and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). The IN
Solar project has been at the forefront of exploring NISAs with the potential to revolutionise India’s renewable energy landscape.
This report on “Agrivoltaics in India” is the flagship report building upon all previous work on AgriPV that has been conducted by
GIZ in India (https://www.agrivoltaics.in/). It provides comprehensive information for the uptake of the sector, analyses potentials,
highlights possible business models, elaborates on policy and regulations, and gives an outlook to the skilling requirements. The
reader is also encouraged to explore the GIS-based NISA atlas (https://staai.cstep.in) to get a glimpse of potentials as well as
information on expected levelized cost of energy (LCOE) for AgriPV applications in every state and district. The analysis of
different business models addresses not only power subsidies, losses, and delayed subsidy payments but also the possible higher
farmer income due to AgriPV interventions. The recommendations on policy and regulatory frameworks may help to mainstream
AgriPV projects and can be further developed, if necessary.
Herewith I express my sincere appreciation to all individuals and organisations who have played a crucial role in the formulation
of this report, especially the scientific team led by Ernst & Young (EY) LLP and their distinguished partners, the Center for Study
of Science, Technology and Policy (CSTEP) (India) and Fraunhofer ISE (Germany) but also the project teams, stakeholders, diligent
researchers, and of course the invaluable guidance of MNRE.
I hope that this document serves as a valuable resource and inspires continued innovation and collaboration in the realm of
renewable energy.  

Yours sincerely,

Henrik Personn
(Head of Solar Projects in GIZ India)
PREFACE
On behalf of the entire project team, it is with great pleasure that we present this comprehensive report on Agrivoltaics in India,
which is a part of a series of six distinct reports showcasing the New and Innovative Solar Applications (NISAs) in India. The reports
include:
• Potential Assessment of New and Innovative Solar Applications in India
• Agrivoltaics in India
• Floating PV in India
• Canal Top PV in India
• Building Integrated and Urban PV in India

• Rail and Road Integrated PV in India

The study encompasses potential assessments, various business models, implementation strategies, technical aspects, policy enablers,
market dynamics, financial considerations, and the skill sets needed to catalyze the growth NISAs in India.
Another key element of this study includes creation and implementation of an online tool called the Solar Technology and
Application Atlas for India (STAAI). This innovative tool is crucial for visualizing and analyzing the solar potential in India,
providing stakeholders with a user-friendly experience. The STAAI goes beyond simple potential assessment by including decision
tools like the Levelized Cost of Electricity (LCOE) calculator. Additionally, it allows the generation of district-wise or state-wise
potential assessment reports for each NISA.
For further details on each of our report and to access the Solar Technology and Application Atlas for India (STAAI), please visit
https://staai.cstep.in/
We extend our gratitude to all those who have contributed to the success of this project and express our anticipation for the positive
impact that these reports and the STAAI will have on the solar energy landscape in India.

Thanks and Regards

Project Team
 

TABLE OF CONTENTS
List of figures iii

List of tables iv

Executive summary v

1. Introduction to agrivoltaics technology 2

1.1. APV in Indian context 6

2. Potential assessment of APV 7

2.1. Sample potential calculation 11
2.2. Energy generation estimation 13
2.3. LCOE calculation 14
2.4. State-wise technical potential assessment 14

3. Business models for APV 16

3.1. DISCOM avoided loss 18
3.2. Business-as-usual scenario for farmer 19
3.3. Financial model for 1 MW APV system 20
3.3.1. APV business model - small farmer 21
3.3.2. APV business model- medium/large farmer 22
3.4. Learnings from the APV business models 27

4. Capacity projection of APV in India (2024-40) 29

4.1. Capacity projection of NISAs 30
4.2. Penetration of APV amongst other NISAs (2024-40) 31

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POTENTIAL ASSESSMENT OF NEW AND INNOVATIVE SOLAR APPLICATIONS IN INDIA

5. Financing APV projects in India 33

5.1. Interventions to support financing of APV 34
5.2. Lender’s perspective on APV 38
5.3. Investment and VGF required for APV 40
5.3.1. Moderate scenario (20 GW by 2040) 40
5.3.2. Optimistic scenario (60 GW by 2040) 43
5.4. Financing interventions required for APV 45

6. Policy and regulatory analysis of APV 47

6.1. International policy and regulations for APV 48
6.2. India’s policy framework on PM-KUSUM 49
6.3. Methodology for understanding barriers and challenges 51
6.4. Identification of Barriers and challenges in APV 53
6.5. Key recommendations based on the barriers identified 55

7. Skill gap assessment and jobs required in APV sector 57

7.1. Skilling required in APV 59
7.2. Workforce required for APV 61
7.3. State-wise deployment of APV by 2040 62

8. Conclusion and way forward 63

List of abbreviations 66
Annexure A: Project and financial assumption 68
Annexure B: List of stakeholders consulted 70
Annexure C: List of crops referenced from MoAFW 70
Annexure D: DISCOMs overview of power in India (2022-23) 71
Annexure E: State wise capacity projection and FTEs (optimistic case) 73
Annexure F: State wise capacity projection and FTEs (moderate case) 75

ii
 

LIST OF FIGURES
Figure 1: Overhead stilted APV plant configuration 3
Figure 2: Overhead south APV configuration 4
Figure 3: Overhead east west APV configuration 4
Figure 4: Inter-row spacing APV plant configuration 5
Figure 5: Interspace vertical APV plant configuration 5
Figure 6: Calculating potential APV area on the basis of restriction criteria 8
Figure 7: Energy generation estimate 13
Figure 8: LCOE calculation 14
Figure 9: APV business model objective, boundary conditions 17
Figure 10: Farmer categorization and distribution 17
Figure 11: Business model based on farmer categorization 18
Figure 12: Business-as-usual farming activities 19
Figure 13: Overall model schematic for small farmers 21
Figure 14: Overall model schematic for medium and large farmers 23
Figure 15: Avoided loss surplus scenario for DISCOMs 25
Figure 16: Avoided loss deficit scenario for DISCOMs 26
Figure 17: Electricity demand of India in 2030 and 2040 29
Figure 18: Annual demand of NISAs (moderate and optimistic case) 31
Figure 19: Capacity projections of APV from 2024-40 32
Figure 20: Financing interventions 34
Figure 21: Viability gap funding under Ph-II of JNNSM 36
Figure 22: Steps of interest subvention 37
Figure 23: Annual capacity vs tariff reduction of APV (moderate scenario) 41
Figure 24: Annual capacity vs tariff reduction of APV (optimistic scenario) 43
Figure 25: International policies on APV 48
Figure 26: Methodology for understanding barriers and challenges 51

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POTENTIAL ASSESSMENT OF NEW AND INNOVATIVE SOLAR APPLICATIONS IN INDIA

Figure 27: Lifecycle of an APV plant 52

Figure 28: Stakeholder consulted 52
Figure 29: Crucial requirements for skilling 58
Figure 30: Number of jobs as per skills and designations 58
Figure 31: FTEs required in the APV sector 61
Figure 32: State wise FTEs required in the APV sector by 2040 62

LIST OF TABLES
Table 1: Formula deriving range of crop suitability matrix for overhead south orientation 10
Table 2: Crop suitability matrix for an overhead south system 10
Table 3: Example of potential calculation for district 1 in state ABC 12
Table 4: Example of potential calculation for district 2 in state ABC 13
Table 5: APV India potential assessment simulation results 14
Table 6: Business-as-usual scenario for farming in India 20
Table 7: Cost breakup of a 1 MW APV Plant 20
Table 8: Operational framework for small farmer business model 22
Table 9: Operational framework for medium and large farmer business model 24
Table 10: Capacity projection scenarios of NISAs 30
Table 11: Penetration matrix of NISAs 31
Table 12: Comparative analysis of financing interventions 35
Table 13: Information required by lenders from borrowers 39
Table 14: Investment and capacity projection for APV (moderate scenario) 42
Table 15: Investment and capacity projection for APV (optimistic scenario) 44
Table 16: Key states and their programs 50
Table 17: Summary of barriers and challenges 53
Table 18: Skill gap assessment and interventions 59
Table 19: FTE required under moderate and optimistic case 62

iv
 Executive Summary

EXECUTIVE
SUMMARY

v
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AGRIVOLTAICS IN INDIA

In the quest for sustainable and clean energy solutions, solar power has emerged as a frontrunner in the
renewable energy sector. While traditional land-based solar photovoltaic (PV) plants have proven to be
effective in generating electricity, there is a growing need to explore new and innovative solar applications
(NISA) that offer distinct advantages. In particular, the concept of land-neutral or dual-use applications has
gained significant traction. This approach seeks to maximize the utilization of available land by integrating
solar installations with existing infrastructure or employing non-traditional spaces. By tapping into these
alternative applications, we can overcome the limitation of land availability, remove conflict over land use
and enhance overall efficiency and sustainability within the solar energy sector.

In this context, the Government of Germany and the Government of India signed a new project titled
IN-Solar (Innovative-Solar). Under the project, Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ) GmbH and the Ministry of New and Renewable Energy (MNRE) initiated a program titled India
- Solar Usage in New Applications (I-SUN) which aims to explore New and Innovative Solar Applications
(NISA) with reduced land utilization having the potential to foster the targeted expansion of solar PV
applications in India. The NISA areas are Agrivoltaics (APV), Floating PV (FPV), Canal Top PV (CTPV),
Rail/Road Integrated PV (RIPV) and Building Integrated PV (BIPV)/Urban PV (UPV).

Agrivoltaics (APV) is also known as Agrophotovoltaics, solar sharing, farming photovoltaics, or solar farming.
APV not only reduces land-use impact and potential risks of land conflicts but also bears the potential to
deliver improved conditions for crop growth by providing protection against strong solar irradiation and
winds, hot temperatures, and improved water availability. Yet, there is no internationally unified definition
of agrivoltaics. This report covers APV in detail including the potential assessment, business models, modes
of implementation, key technical, policy and market enablers, finance portfolio and skills required to
facilitate the acceleration of APV in India.

In Chapter 1, the concept of agrivoltaics is introduced, which involves the integration of solar photovoltaic
panels with agricultural practices to maximize land use efficiency and sustainability. Various configurations
are discussed as ways to implement agrivoltaics, including the overhead stilted configurations such as the
south configuration and east-west configuration. Additionally, interspace south and interspace vertical
configurations are also mentioned as options for combining solar energy generation with agricultural
activities.

Overhead South Overhead East-West Inter-row South Interspace Vertical

Configuration

The overarching potential estimation methodology in Chapter 2 has been developed for 17 crop which
covers 129 million hectares of land area under cultivation till district level was sourced from the Ministry of
Agriculture and Farmer Welfare (MoFW). Solar resource availability specific to each district is considered
and the overlapped with GIS based technical restriction criteria for identifying the suitability of land parcel,

vi
 Executive Summary

estimating energy generation and financial feasibility. The project team has also developed a solar technology
application atlas for India (STAAI), which provides a user-friendly experience of viewing technology
potential through its workflow along with providing key insights through decision tools such as levelised
cost of energy (LCOE) calculator and state wise potential assessment report. The overall methodology for
estimating the potential of APV in India has been illustrated below.

Step 1- Resource (X) Agricultural area under

Identification cultivation in district – MoAFW
GHI >4.5 kWh/m2/day
Step 2- GIS (Y) Suitable area that fulfils the Distance from Road/Rail < 10 km
Restriction Criteria criteria
Distance from substation (132kV)
Step 3- Overlaying < 25 km
R -Value = Y/X
Resource on GIS Slope < 8 degrees

Step 4- Crop specific Area under cultivation of

area cultivation crop(i) considered = Ci

Suitable area for AgriPV with

Step 5-Overlaying on
crop(i) = R-Value * Ci * Value
crop specific area
from crop suitability matrix (Cs) Power Density

Step 6- Calculating Calculating AgriPV potential Overhead South : 650 kWp/ha

Power Density with power density
Overhead EW : 750 kWp/ha

Inter Space : 400 kWp/ha

Agrivoltaics (APV) potential considers three technology configurations – overhead (south facing and east-
west facing), inter-row south and interspace vertical orientation. For each of the 17 selected crops, different
suitability for the three technology configurations, which has been considered while calculating overall
potential. India’s total potential for APV is estimated across minimum and maximum scenarios for respective
crops with various APV technologies in each district and it varies from 3,156 GW to 13,803 GW.

The business models are discussed in Chapter 3 of this report, the APV business models have been developed
keeping in view of our model objective, fixed boundary conditions and limited stakeholder interactions. The
model is created from only energy generation perspective and does not focus on demand side restriction i.e.,
the technical constraint for offtake of power and who will be the end consumer for the generated power. The
business model has been developed for two broad categories of farmer types based on land holding, i.e., medium
farmer with more than two hectare land and small farmer with less than 2 hectare. APV technology can provide
a huge financial benefit to the electricity distribution companies (DISCOMs) in their supply operations, while
simultaneously ensuring continuance of farming activities. The I-SUN program has modelled this scenario for
APV and calculated the avoided loss benefit to the DISCOMs with the installation of a 1MW APV project.

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AGRIVOLTAICS IN INDIA

Small
Farmer availing subsidised free power
farmers
DISCOM
avoided
loss
Medium Farmers contribution (marginal) to
farmers electricity charge

In Chapters 4 and 5 of this report, the capacity projection of APV has been done from 2024 to 2040. It
is estimated that the cumulative capacity addition of 20 GW and 60 GW of APV under the moderate and
optimistic scenario, respectively. The total investment required to realise the 20 GW capacity (moderate case)
will be around INR 81,424 crores and INR 2,13,858 crores for 60 GW of APV installation in the country.
Based on the national average power procurement price in the day ahead market (DAM) during the 08:00 to
18:00 hours for DISCOMs in India and the LCOE of APV systems, the project team have also highlighted the
viability gap funding (VGF) support required to make the business model viable for a 1 MWp APV systems.
VGF is only considered in cases where LCOE is greater than the average DAM prices.

In Chapter 6, the project team explored and researched the policy and regulatory landscape for APV
prevailing in India by referencing published literature, consulting various stakeholders, and understanding
the various stages in the lifecycle of the project. This was accompanied by undertaking rigorous engagements
with key stakeholders like project developers, regulators, nodal agencies, market developers, etc. along each
of the stages.

Barriers and Challenges Identified

Project Execution & Operation &

Application Stage Project Approval
commissioning Maintenance

Land usage Unavailability of Use of ground Agricultural yield

categorization standards water for APV loss mechanism

Grid connection Additional evacuation Tax on income through

APV on barren ands
availability Infrastructure Cost electricity generation

No tariff determination Technical standards

mechanism for connectivity

viii
 Executive Summary

Furthermore, based on the above identified barriers and challenges, some key recommendations related to
addressing bottlenecks in the effective implementation of APV projects have been made.
Definition of APV is required in policies. The percentage of land that can be
Definition of APV used for solar and farming, without affecting the crop yield by some
percentage, needs to be clearly mentioned.
Policy Methodology for calculating anticipated yield loss for APV. It will help
Pradhan Mantri in identifying the potential risks and benefits of APV for agricultural
FasalBima Yojana productivity and making informed decisions about the adoption of
technology.

Includes information on compulsory permits and registration of consumers

Model Ground
Water Bill 2016 for using ground water. The priority on groundwater may include APV in the
model bill.

Classifying APV as an agricultural activity may help address issues related

Change in
Regulatory to land conversion and use of groundwater, as it recognises the land is
Land Act
being used for both agricultural and energy production purposes.

Evacuation infrastructure and network augmentation developed by

Evacuation DISCOMs for APV may be included in the ARR instead of charging the
vendor/farmer.

DICSOMs to provide evacuation capacity and guidelines for plants below

Technical Technical Standards
of Connectivity 33/11 kV on the website, giving information to farmers and interested
parties.

In the last chapter of this report, the project team has identified several skill gaps where training is necessary
to boost the APV sector in India. Creating a skilled workforce is vital for increasing the penetration of
APV, and this will ensure better utilization of renewable energy resources with high-quality workmanship
on the deployed technologies. Under the moderate case, it is estimated that to meet a demand of 20
GW of APV by 2040, 1.1 lakh full-time equivalent (FTE) jobs will be required and for the optimistic
case, 3.38 lakh FTE jobs to support distinct roles and responsibilities starting from application, project
approval, detailed engineering, project execution-commissioning and operations and maintenance.

1
AGRIVOLTAICS IN INDIA

INTRODUCTION
TO AGRIVOLTAICS
TECHNOLOGY

01 2
 Introduction to agrivoltaics technology

There are many definitions of APV technology used throughout the world. The I-SUN program has
researched and delved deep into various APV technologies being practised in major countries as part of the
literature review for this project. A key finding from the review is that the standardised definition of APV is
still divergent across the world. However, the closest and most technically sound definition is proposed by
Deutsches Institut für Normung e.V. (DIN), which is being followed in Germany.

DIN Specification (DIN SPEC) portrays a fundamental requirement of APV systems to achieve at least
66% of agricultural reference yield and keep land losses due to mounting structure below 10% for Category
I and 15% for Category II (DIN 2021).

In particular, the pre-norm DIN SPEC 91434:2021-05 defines APV as: Agricultural photovoltaics
(agrivoltaics) is the combined use of the same area of land for agricultural production as the primary use
and for electricity production utilizing a PV system as a secondary use.”

AN APV PLANT SUPPORTS FARMERS BY OFFERING THE FOLLOWING

BENEFITS:
• Revenue: It creates an additional source of revenue for the farmers by the sale of power.
• Reduced energy costs: A portion of the energy produced by the plant can be used to power pumps,
irrigation systems etc., thus reducing the energy cost.
• Reduced water usage: It has been observed that the shading of the panel can reduce water evaporation
on the ground.
• Increased land use efficiency: Land may be utilised more efficiently by placing panels above the crops.

Figure 1: Overhead stilted APV plant configuration

3
AGRIVOLTAICS IN INDIA

APV CAN BE INSTALLED IN THE FOLLOWING THREE WAYS1:

Overhead Stilted: The modules are installed on a raised structure. The land below is used for agricultural
activity. The height of solar modules plays an important role in defining the crop that can be grown under
it. An optimal elevation mounted at a minimum height of 2.1 m from the ground allows the movement of
equipment and promotes more even distribution of sunlight under the solar PV panel.2

The following configurations can be used based on the orientation of solar modules for overhead stilted
plants:
a. Overhead south configuration
(height >2.1m): Overhead south
facing agrivoltaics place the solar
panels facing south to maximize
the amount of sunlight they
receive throughout the day. This
orientation allows for greater
electricity generation while also
minimizing the shading of the
crops.

Figure 2: Overhead south APV configuration

b. Overhead east-west configuration
(height >2.1m): In overhead east-
west racking, the solar panels are
mounted on structures that run
parallel to the ground in an east-west
direction. This orientation allows for
more solar panels to be installed per
unit of land and this particular shape
is especially suitable for orchards
where the plantations also get
protection from the panels providing
an alternative to shade nets normally
used for this purpose.
Figure 3: Overhead east west APV configuration

1 Legend of configurations: AL - Cultivatable agricultural areas; AN - Uncultivatable agricultural area; H1 - Clearance height below 2.10 m; H2 - Clearance height above 2.10 m; 1 - Examples of solar modules;
2 - Mounting structure; 3 - Examples of crops
2 Trommsdorff M.; Gruber S.; Keinath, T et al. Agrivoltaics: Opportunities for Agriculture and the Energy Transition. A Guideline For Germany, 2nd edition; Fraunhofer Institute for Solar Energy Systems ISE:
Freiburg, Germany, 2022.

4
 Introduction to agrivoltaics technology

Figure 4: Inter-row spacing APV plant configuration

Interspace: The row spacing between adjacent rows is large enough to accommodate agricultural activities.

• Inter-row south configuration (height < 2.1m): Inter-row PV systems are ones where agricultural output
often takes place in the area between the panel rows. In this form of installation, the spacing between
two consecutive rows of panels can be quite substantial to allow for the passage of huge agricultural gear.
Interspace vertical configuration: The modules are installed on the periphery of the crops. In this type of
installation, the solar panels are mounted vertically on poles acting as a wall in rows with space left between
the panels for farming activity.

Figure 5: Interspace vertical APV plant configuration

5
AGRIVOLTAICS IN INDIA

1.1 APV IN INDIAN CONTEXT

India is blessed with more than 300 days of sunshine hours with a solar insolation ranging between 4 to 7
kWh per sq m per day. This makes the use case of exploring all plausible applications of solar PV compelling.
Solar energy finds inherent applicability in the agricultural sector, given its high gross domestic product (GDP)
contribution from the sector, and large area coverage. However, like any new technology, its applicability in rural
India will be governed by regulatory structures and business frameworks suitable for the local communities.
Some other factors identified that will most likely govern APV’s adoption in India include:

• Policy and regulatory structures

• Change in land use patterns, which are inherently linked with farmer benefits
• Farmers macro-economic consideration
• Socio-cultural frameworks
Consequently, the key enablers for APV technology in India include existing policy schemes such as Kisan
Urja Suraksha evam Utthaan Mahabhiyan (KUSUM), which focuses on solar PV systems in agriculture.
Solarisation of agriculture feeder program can benefit from APV. Also, being an agrarian economy, dual-use
land utilisation with crop production and power generation is highly sought after by farmers and could be
a key enabler in adoption of APV systems.

APV TECHNOLOGY SUITABILITY FOR INDIA

Preliminary studies of APV technology in India have shown that there are several pilot APV projects already in
operation. A closer look at these projects reveals basic assumptions of technology parameters, equipment, costs,
supplier readiness and off-taker buy-in already existing in the market. Given this understanding, and after
undertaking several consultations with key program stakeholders, three APV technology types were finalized
as the most suitable, keeping the focus on swift technology uptake. These included:

• Overhead E-W facing, >2.1 m height

• Overhead N-S facing, >2.1 m height
• Inter-row spacing, vertical solar.

Agrivoltaics being a new concept in India will require certain support mechanisms that will appeal to and
encourage relevant stakeholders to consider and adopt it. This is highly relevant given India’s ambitious
commitment towards net zero and decarbonization. From a national program perspective, the visualisation
of the technical potential of the areas in India being considered for APV will serve to attract attention. To
maximize interest from potential stakeholders, information must be usable, adaptable, and presented in a
convenient and comprehensive format, for swift onboarding of market participants. Just like an online solar
rooftop calculator, technical potential aims to bridge market risks, resolve uncertainties related to technology
stereotypes and help quicken the onboarding decision-making process among developers, government, and
policy makers to adopt innovative solar applications like APV.

I-SUN program has been instrumental in developing the methodology for potential assessment of APV,
basis consultations with Indian Agricultural Research Institute (IARI), Indian Space Research Organisation
(ISRO) and Central Arid Zone Research Institute (CAZRI), key stakeholders under the project. The key
recommendation proposed by the participating entities was to consider district-level statistical data for
cropping/farming in potential estimation exercises as GIS data for agricultural land is unavailable. As a
result, the methodology for APV catered to this restriction and devised a scientific approach to calculate the
APV potential assessment in India.
6
 Potential assessment of APV

POTENTIAL
ASSESSMENT OF APV

7
02
AGRIVOLTAICS IN INDIA

The potential farming area considered for APV is adapted using farming statistical data sourced from the
Ministry of Agriculture Farmer and Welfare (MoAFW). The data source encompasses statistical information
on crop growing patterns for 17 crops across all districts in the country. The technology restriction criteria
have been overlaid on suitable farming areas extracted from the database. An illustration of the approach
has been depicted in Figure 6.

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

Resource GIS Overlaying Crop specific Overlaying on Calculating

Identification Restriction Resource area crop specific Power
Criteria on GIS cultivation area Density

(X) Agricultural (Y) Suitable R-Value = Y/X Area under Suitable area 650 kWp/ha -
area under area that fulfils cultivation of for AgriPV with overhead South
cultivation the criteria crop(i) crop(i) =
district DANCET considered = Ci R-Value * Ci * 750 kWp/ha -
(2019-20) Value from crop overhead EW
MoAFW suitability
Slope <8 degree matrix (Cs)
450 kWp/ha -
Inter Space
GHI >4.5
kW/m2/day

Distance from APV Potential=

Road/Rail <10km Suitable Area
(Step 5) X Power
Distance from Density (Step 6)
substation
(132kV) < 25 km

Figure 6: Calculating potential APV area on the basis of restriction criteria

Step 1: The potential assessment begins with referencing the total agricultural area under cultivation in all
district for 17 crops (Annexure C). This area represents the total area in hectare (ha) under cultivation in a
particular district.

Step 2: We had used LULC data from Sentinel2 with 10-meter resolution to identify the land parcels being
cultivated in India. To begin with 129.46 million hectares was considered as the total cultivable land across
all districts in India. This area is then exposed to the below mentioned restriction criteria for checking
suitability for solar installations

• Global horizontal irradiance (GHI) greater than 4.5 kWh/m2/day, which identifies areas suitable for
high solar generation yield. This criterion ensures that the resultant capacity utilization factor (CUF)
from overhead south, overhead East-West and interspace APV plants does not drop below 15%, 13%
and10% respectively, based on simulations run on Center for Study of Science, Technology and Policy
(CSTEP)’s solar techno-economic model (CSTEM) tool.
• Distance from road/rail of less than 10 km (as per the open street maps definition of pakka roads),
which ensures access to potential sites with convenient approach and connectivity

8
 Potential assessment of APV

• Distance from the substation (132 kV) of less than 25 km, which ensures feasible power off-take to
grid. Here, the assumption considers an area under 25 km for a 132 kV substation to have a high
likelihood of a low voltage substation (33/66 kV) network within its vicinity. This was considered due
to insufficient data availability of comprehensive low voltage distribution network area in the country.
• A slope of less than 8 degrees is considered to ensure maximum power generation from modules,
considering minimum shading losses due to topology variations.
The above list of restriction criteria is fundamental to PV project implementation. The criteria related to
vicinity from road/rail, evacuation infrastructure and slope have been considered after discussions with
various developers of ground-mounted PV plants. Going beyond the threshold values leads to exponential
increases in capital costs and renders projects unviable in terms of LCOE and resultant power purchase
agreement (PPA) rate requirements. Additional criteria specific to agriculture, e.g. ground water data
availability and precipitation pattern, can be integrated into the methodology in the future, on the basis of
the availability of relevant datasets.

Step 3: The next step involves calculating the subset of statistical information extracted from the total
cropping area (X) in the district (Step 1), and land area calculated after putting the technology restriction
criteria (Y) for a district (Step 2). The resulting overlapped ratio (Y/X) of land area identified in Step 2 and
Step 1 will provide an R-value for each district.

Step 4: Now with the area available under cultivation of each crop (considering crop(i)) available for every
district, we can calculate the suitability of the cropping area (of crop(i)), for installing solar PV project. This
is done by multiplying the available crop area (Ci) with the R-value for each district (Step 3).

Step 5: Next, the suitability of the crop is mapped with each APV system configuration, using a crop matrix.
The suitability of particular crops is classified based on extensive literature reviews and field experiments
conducted around the world in similar climatic zones. These are scientific estimations based on available data
and experience. The recommendations of the crop matrix and suitability of crops to a particular system and
its shade response can change subject to the availability of more relevant data points in relevant conditions.

The crops are divided according to suitability class (1 to 5) for the overhead south system as an example
shown below. Each crop suitability class is assigned to a probability of this crop being cultivated in that
specific agrivoltaic system based on its suitability to that system. Suitability of existing crop to agrivoltaics
was decided to be an important point of consideration to estimate the existing potential for agrivoltaics
in India. There is a lack of spatial data available on the exact crop growing at farm level in every district.
Statistical data denotes the overall crops growing in a particular district. Hence such a crop matrix was
developed. The unique percentage value then determines the approximate acreage that can be considered
for a particular crop in that district to calculate the potential in the next step.

Every crop has a yield response score to shading effect. Yield response is the correlation between shading
rate and is based on literature review, i.e. the change in yield compared to the reference due to shading.
These values for all 17 crops in the Indian context have been dealt with in detail by the programme. This
yield response score translates to a unique percentage value using the formulas shown in Table 1. The crops
will be located in the matrix and mapped for their suitability to agrivoltaics systems.

9
AGRIVOLTAICS IN INDIA

Table 1: Formula deriving range of crop suitability matrix for overhead south orientation

Suitability Range of APV Yield Range of Formula, valid in range of percentage

Class Score percentage
1 1 – 1.49 (0-33%) = 0.06803 * [APV Yield Score] - 0.6803

2 1.5 – 2.49 (33-42%) = 0.0404 * [APV Yield Score] + 0.3194

3 2.5 – 3.49 (42-54%) = 0.0808 * [APV Yield Score] + 0.258

4 3.5 – 4.49 (54-67%) = 0.0909 * [APV Yield Score] + 0.2618

5 4.5 – 5 (67-100%) = 0.58 * [APV Yield Score] - 1.9

Example for calculation:

Crop: Tomato, APV-yield score: 3.79 (suitability class 4)
Formula: 0.0909 * (APV yield score = 3.79) + 0.2618 = 60.6%
Result: The probability for implementation of an APV system on a tomato field or its suitability is at 60.6.%

Table 2: Crop suitability matrix for an overhead south system

1 2 3 4 5
(0-33%) (33-42%) (42-54%) (54-67%) (67-100%)

Eggplants Chickpeas Wheat Lemons and limes Spinach

Cashew Nuts Maize Barley Oranges Coriander

Coconuts Beans, dry Potatoes Lettuce and chicory

Rubber, natural Rice, paddy Bananas Soybeans

Rapeseed Tomatoes

Garlic Spices

Apples Seed cotton

Broccoli and Okra

cauliflower

Sesame seed Pumpkins, squash and

gourds

Cabbages and other Chilli

brassicas

Onions, dry Black pepper

Sorghum Bell peppers

Millet Coffee

Source: Fraunhofer ISE

10
 Potential assessment of APV

With the area for each crop and its suitability for each technology mapped, the potential is calculated
directly using power density formulas for each APV technology type.

Step 6: The power density for the three types of APV considered under potential assessment, i.e. Overhead
South facing, Overhead East-West facing and Interspaced Vertical, has been referenced from international
best practices and on-ground projects. Next2Sun declares that the installed capacity of their APV systems
on grasslands is 0.4 MW/ha. Hence, the power density for interspace systems is deemed to be 400 kWp/ha.
Based on the measurements from different agrivoltaic systems realised by Fraunhofer ISE and its partners
around the world, the range for the power density for overhead systems is between 0.6 and 0.9 MW/ha,
depending on the system design. In our calculation, we assume two unique conservative values of 650 kWp/
ha and 750 kWp/ha, respectively. The values correspond to the capacity of APV applicable to suitable areas
calculated per crop (in Step 4).

Note: The above criteria do not consider crop rotation to be part of the potential assessment methodology. However,
the literature review has shown that most of the major crops are either rabi or kharif crops. This means that the
other crops are grown in rotation to the main crop in most parts of India. This rotation is either on an annual or
biennial basis taking soil fertility conditions into account along with local microclimates. The methodology followed in
this project so far has the potential to double/triple count the capacity of APV that can be installed because of crop
rotation. To estimate a more realistic number, the research methodology followed in this project divides the crops in
each district into either rabi, kharif, winter and summer.

The potential for each crop in a district is calculated for each of the three APV technologies based on the
crop suitability matrix. This is done for each cropping season (rabi, kharif, summer and winter) based on
the area cultivated for the specific crop in the particular season. The maximum number is taken out of the
potential for the three APV technologies as the potential for the crop in each season. Then the maximum
and minimum numbers are taken for the four seasons as the range of potential for each crop. The state-wise
and country-wise potential numbers are calculated by taking the cumulative numbers of minimum and
maximum potential for each crop in each district and then presented as a range. This approach leads to a
revised estimation of a range of ~3.1 – 13.8 TW as the APV potential for India.

2.1 SAMPLE OF POTENTIAL CALCULATION

To serve as an example, state ABC has been hypothetically chosen as an example. There are two districts. In
District 1, there are 2 crops grown in the Rabi season (Xr & Yr) and 2 crops grown in the Kharif season (Ak
& Bk). In District 2, there are 2 crops grown in the Rabi season (Ur & Wr) and 2 crops grown in the Kharif
season (Hk & Lk). From the literature survey, it can be deduced that multiple or single PV technologies are
applicable for each crop. It is assumed that each crop can be grown along with all 3 APV technologies, viz.
overhead south (OHS), overhead east-west (OHEW) and interspace (IS). The potential varies for each of
these technologies for each crop. For example, Xr in District 1 has OHS potential of 200 MW, OHEW –
250 MW and IS – 150 MW. The technology with the highest potential is chosen as the suitable technology
for the crop in order to maximize utilization. Hence, the potential of Xr is calculated as 250 MW. Similarly,
Yr has a potential of 125 MW. The total potential of Rabi crops in district 1 is the sum of potentials of Xr

11
AGRIVOLTAICS IN INDIA

and Yr, which is 375 MW. In the case of Kharif crops, Ak & Bk have potentials of 300 MW and 400 MW
respectively. The total Kharif potential is estimated to be the sum of these 2 crops – 700 MW. For District 1,
the minimum potential is calculated to be the Rabi potential which is the lower of the two seasons assuming
that the entire Rabi cropping area overlaps in rotation with the Kharif area. Since PV panels can only be
placed at the lower threshold without affecting yield further, the minimum potential is fixed at 375 MW.
The maximum potential on the other hand is the Kharif potential of 700 MW and this scenario corresponds
to no overlap or rotation between lands with Rabi and Kharif crops.

Table 3: Example of potential calculation for district 1 in state ABC

Rabi Crops: Xr, Yr

District 1: Kharif Crops: Ak, Bk
RABI OHS Potential (MW) OHEW Potential (MW) IS Potential (MW) Potential (MW) = MAX (OHS/
OHEW/IS)

Xr 200 250 150 250

Yr 125 100 80 125

Xr + Yr 375

KHARIF OHS Potential (MW) OHEW Potential (MW) IS Potential (MW) Potential (MW) = MAX (OHS/
OHEW/IS)

Ak 300 225 20 300

Bk 400 300 200 400

Ak + Bk 700

Maximum Potential of District 1 = 700 MW (Kharif number)

Minimum Potential of District 1 = 375 MW (Rabi number)

In District 2, it is the inverse with the maximum potential corresponding to the Rabi potential of 830 MW
and minimum potential corresponding to the Kharif potential of 450 MW. The maximum and minimum
potentials of the state are calculated by adding the maximum and minimum potentials of the respective
districts.

In this case, District 1 Rabi maximum potential + District 2 Kharif maximum potential = 1530 MW;
District 1 Kharif minimum potential + District 2 Rabi minimum potential = 825 MW. This is a simplistic
method followed to avoid double counting of potential caused due to rotation of crops. More data regarding
field level cropping patters in various seasons will help in refining these results for the Indian context at a
taluk level.

12
 Potential assessment of APV

Table 4: Example of potential calculation for district 2 in state ABC

Rabi Crops: Ur, Wr

District 2: Kharif Crops: Hk, Lk

RABI OHS Potential (MW) OHEW Potential (MW) IS Potential (MW) Potential (MW) = MAX (OHS/OHEW/IS)

Ur 430 420 200 430

Wr 220 400 80 400

Xr + Yr 830

KHARIF OHS Potential (MW) OHEW Potential (MW) IS Potential (MW) Potential (MW) = MAX (OHS/OHEW/IS)

Hk 255 200 90 255

Lk 40 - 195 195

Hk + Lk 450

Maximum Potential of District 2 = 830 MW (Rabi number)

Minimum Potential of District 2 = 450 MW (Kharif number)

Therefore, Potential of State ABC (MAX) = 1530 MW; Potential of State ABC (MIN) = 825 MW

2.2 ENERGY GENERATION ESTIMATION

Energy generation estimations are done using average GHI values considered in districts using Meteosat
(European Organisation for the Exploitation of Meteorological Satellites, Darmstadt, Germany) for each
district. This GHI data is converted into solar irradiance falling on panels based on APV technology type
tilt considered.

Obtain the average

district level satel- Energy generation from
lite-based data of each technology of APV
GHI (Meteosat) = Tilted solar radiation*
number of modules*
total area *ηmodule* η
components
Determine optimal tilt Convert GHI into the
angle for solar panels solar radiation falling
based on district on the tilted plane
location and type of
APV technology

Figure 7: Energy generation estimate

13
AGRIVOLTAICS IN INDIA

2.3 LCOE CALCULATION

Levelised cost of electricity (LCOE) generation is calculated for different system types using the standard
financial parameters like capital expenditure (CAPEX), operational expenditure (OPEX), cost of finance,
return on equity, module degradation rate and other.

Determination of financial parameters such as capital

cost, O&M Cost, O&M escalation rate, degradation rate,
plant life, discount rate, insurance cost, debt, equity,
loan term, loan interest rate and other relevant parameters

1 2 3

Determine APV project cost

for total capacity of each Calculate LCOE
technology for each crop in
each district

Figure 8: LCOE calculation

2.4 STATE-WISE TECHNICAL POTENTIAL ASSESSMENT

Based on the above methodology for potential assessment of APV in India, the following are the simulation
results. Table below highlights state wise minimum and maximum potential of APV.

Table 5: APV India potential assessment results

APV’s technical potential
State Minimum (MWp) Maximum (MWp)
Andaman and Nicobar - -

Andhra Pradesh 1,75,169 5,25,375

Arunachal Pradesh - -

Assam 51 943

Bihar 4,429 6,72,555

Chandigarh 23 169

Chhattisgarh 21,642 4,84,438

Daman and Diu and Dadra and Nagar Haveli 365 365

14
 Potential assessment of APV

APV’s technical potential

State Minimum (MWp) Maximum (MWp)
Delhi - -

Goa 2,591 6,179

Gujarat 23,918 10,97,079

Haryana 7,00,221 9,34,128

Himachal Pradesh 47,477 57,766

Jammu and Kashmir 21,479 25,892

Jharkhand 63,933 1,28,454

Karnataka 41,527 7,54,441

Kerala 14,162 14,843

Ladakh - -

Lakshadweep - -

Madhya Pradesh 2,95,620 17,42,404

Maharashtra 21,095 21,36,513

Manipur - -

Meghalaya - -

Mizoram 239 3,175

Nagaland - -

Odisha 1,641 49,713

Puducherry 66 1,124

Punjab 8,70,799 10,36,001

Rajasthan 5,91,829 13,16,174

Sikkim - -

Tamil Nadu 16,031 2,29,203

Telangana 1,08,362 3,55,486

Tripura 2,274 15,172

Uttar Pradesh 26,247 18,91,679

Uttarakhand 10,265 59,491

West Bengal 94,772 2,64,788

Total in MWp 31,56,227 1,38,03,549

Total in GWp 3,156 13,803

15
AGRIVOLTAICS IN INDIA

BUSINESS MODELS FOR

APV

03 16
 Business models for APV

The APV business models have been developed keeping in view of our model objective, fixed boundary
conditions and limited stakeholder interactions. The model limits itself to an energy generation perspective
and does not focus on distribution/load side analysis. This is because consumption data for farmer categories
vary across the different regions in the country. In addition, cost recovery from each region for energy
supplied by the utility varies significantly due to the complex subsidy structure provided by state and central
government schemes.

Model Objective Stakeholders

Focus on supply side

scenario analysis considering
arrangements and business
case for various stakehold-
ers.

Undertaking scenario analysis focused on

The model considers
reducing high cost of supply to farmers
participation amongst
(effectively INR 7 per unit including
primary stakeholders–
losses) by DISCOM and replacing with
Farmer (Landowner),
solar PV on farming land using technolo-
Farmer (caretaker),
gy like APV.
Utility/DISCOM,
The model also explores extent of RESCO/EPC contractor,
benefit to state governments in reducing State Government.
electricity subsidy to target consumers
Boundary Condition
over the duration of 25 years

Figure 9: APV business model objective, boundary conditions

As a result, the program defined model objectives, boundary conditions and stakeholders involved
before designing the model contours. While considering farmer categories, the program referenced the
categorization of farmers defined by Reserve Bank of India (RBI), as depicted in Figure 10.
RBI defines farmers based on land holding – also used for census calculation

Marginal Farmer Small Farmer Medium Farmer Big Farmer

Farmers cultivating up to 1 A farmer farming A farmer farming A farmer farming
hectare of agricultural land agricultural land of more agricultural land of between agricultural land of more
(as an owner, renter or than 1 hectare and up to 2 4 and 10 hectares (as owner, than 10 hectares (as owner,
sharecropper) is know as hectares (as owner, renter, renter, or sharecropper) is renter, or sharecropper) is
“marginal farmer” or sharecropper) is referred to as a “medium referred to as a “big
referred to as a “small farmer” farmer”
farmer”

82% - Small & Marginal Farmers 18% - Medium & Big Farmers

Farmers distribution type as per latest census report in India

Figure 10: Farmer categorization and distribution

17
AGRIVOLTAICS IN INDIA

The farmer distribution in Figure 10 indicates that more than three-fourth of the farmers in India belong
to the small and marginal category having land holding up to 2 hectares. The remaining quarter consists of
medium and big farmers with average holdings greater than 2 hectares. Keeping this finding in perspective,
the business model has been developed for two broad categories of farmer types based on land holding
anchored around 2 hectares (Figure 11). As a result, the program defines farmers with land holdings lesser
than 2 hectares as small farmers and greater than 2 hectares as medium/large farmers.

Medium famers - Small farmers -

land holding >2 ha land holding < 2ha

Farmers contribution (marginal)

Farmer availing subsidised free power
to electricity charge

Figure 11: Business model based on farmer categorization

A key insight as part of the farmer categorization, essential for developing a business model, is the cost of
electricity being supplied to them by the utility. While the average cost of supply for agricultural consumers
in India is INR 7-8 per kWh, the cost retrieved by the DISCOM is marginal and accounted for through
cross-subsidizing other high-paying tariff consumers in the states. Some states like Punjab have free electricity
for agricultural consumers, making cost recovery extremely challenging.

In line with these findings, the model considers the small farmer category to receive subsidised free power
while medium/large farmers contribute marginally to the cost of electricity, which is partially supplemented
by state subsidy components.

3.1 DISCOM AVOIDED LOSS

Free or heavily subsidised power supplied to agricultural communities is mostly governed by political
narratives in many states. This subsidised power supply is often cross-subsidised by other high-paying tariff
consumers such as industrial and commercial sectors. In addition, every state demarcates budgetary provisions
in the yearly financial budget towards compensating DISCOM for providing this subsidised power. This
implies the average cost of supply calculated by DISCOM to the agricultural consumer is extremely high
and is marginally recovered from target segments in the presence of these support mechanisms.

Distributed energy technologies like solar PV, etc. is a boon in this scenario. Not only they shelve off the
expensive cost of supply accounted by DISCOMs but also avoid the substantial losses in the distribution
network (as high as 25% in states like Bihar 3) on account of supplying power to peripheral areas (agricultural
feeds mostly located in peripheral areas of distribution network). As a result, APV technology can provide
a huge financial benefit to the DISCOMs in their supply operations, while simultaneously ensuring
continuance of farming activities.

3 Niti Aayog, India Climate and Energy Dashboard, https://iced.niti.gov.in/energy/electricity/distribution/operational-performance

18
 Business models for APV

The project team has modelled this scenario for APV and calculated the avoided loss benefit to the DISCOM,
with the installation of a 1 MW APV project. The avoided loss has been calculated using the formula given
in below. Additionally, the state government will also get the advantage of the Goods & Services Tax (GST)
benefit on APV equipment to the extent of 5% of the total cost.

{(APPC of DISCOMor spot market price)

(1-AT&C of agri. consumer)

- Bill payed by Agri.Consumers)} *Units generated
by 1 MW project

3.2 BUSINESS-AS-USUAL SCENARIO FOR FARMER

The business-as-usual scenario for farming consists of two broad approaches (Figure12).

• Case 1. Farmer undertakes farming by himself. Here, the original farmer is the only farmer involved
in the parcel of land, who undertakes farming by himself and generated revenue from the sale of crop
produce to the market.
• Case 2. Farmer leasing farming activities to caretaker. Here, the original farmer does not engage directly
in farming activities and is limited to receiving rent paid by the caretaker for land use. The caretaker
undertakes farming on the leased farmland, by paying monthly rent and gets revenue from the sale of
crop produce to the market. Table 6 gives the salient points for each case.

STATE GOVT. STATE GOVT. Flow of Power

Flow of Revenue

Concessional Concessional
Subsidised Subsidised
Power Power
Power Power
CARE TAKER

Rent
DISCOM FARMER DISCOM FARMER
Revenue
from yield Revenue
from yield

AGRI MARKET AGRI MARKET

CASE 1: Small Farmer undertakes for farming CASE 2: Large Farmer hires caretaker
himself

Figure 12: Business-as-usual farming activities

19
AGRIVOLTAICS IN INDIA

Table 6: Business-as-usual scenario for farming in India

S. No Case 1 Case 2
1 Farmers are landowners and undertake farming Farmers do not undertake farming activities on their
themselves. own and lease out their farmlands to caretakers for
undertaking farming in lieu of rent.

2 This includes small and marginal farmers with a Average rent varies from region to region; however, a
lack of resources to outsource farming and are good estimate for a farm lease is INR 40,000 per acre
heavily reliant on farm produce for earnings. per annum.

3 On average, a rice farmer generates a per-acre yield For a 7.5 acre land holding, with a rent of INR 40,000 per
of 30 QTL, with an average market price of INR 2,500 acre per annum, the total revenue from rent will be INR
per QTL. 3,00,000 in a year.
For a 7.5-acre land holding, a rice farmer can
earn a gross profit of INR 4,22,875 in a season,
after accounting for 25% OPEX costs towards crop
maintenance.

In both cases, the DISCOM procures power from its purchase pool at various rates and supplies to farm
feeders that are located at the DISCOM periphery, bearing transmission losses. This inflates the average cost
of supply for agricultural consumers to INR 7 per kWh (compared to the national average APPC rate of
INR 4.5 per kWh). In addition, this cost is unrecovered from end consumers due to subsidy schemes and
political devices and lay a heavy burden on the DISCOMs. Distributed renewable technologies like APV
are ideally positioned to tackle this by augmenting local demand.

3.3 FINANCIAL MODEL FOR 1 MW APV SYSTEM

The program devised a financial model for a typical 1 MW APV system consisting of overhead layout
configuration. A detailed breakup of the total project cost has been illustrated in Table 7.

Table 7: Cost breakup of a 1 MW APV Plant

EPC Cost for APV Characteristics INR Crores/MW Percentage of Total

CAPEX
Solar Panels (1:1.2) Considering 2,200 modules 3.388 57%
of 550 Wp with system
DC:AC = 1:1.2

Inverter Considering string inverters 0.225 4%

Structure (Range) Overhead structure 1.6 – 2.0 27% - 31%

Site Preparation Preliminary expenses 0.2 3%

Civil Foundation Considering hammering 0.055 1%

techniques

Fencing Standard rates 0.08 1%

DC/AC Cables Standard rates 0.16 3%

Miscellaneous Expenses 0.1 2%

Other Cost 0.15 3%

TOTAL 5.96 – 6.36

20
 Business models for APV

The LCOE was calculated using the financial assumption defined in Annexure A and is INR 5.63-5.99 per unit.

Like any feasible project having predictable returns over time, APV technology despite its nascent stage too
needs to adhere to financial metrics. These parameters are mostly from a project financing perspective and
focused towards evaluating project finance ability. Some of these evaluation criteria include:

• Risk assessment
• Meeting mini debt service credit ratio (DSCR) of 1.3
• Returns and cash flows

3.3.1 APV BUSINESS MODEL - SMALL FARMER

The first business model caters to small farmers with land holding lesser than 2 hectares. Some key
assumptions considered in SFBM include:

• Small farmers under SFBM grow only staple crops (as they are risk-averse, and are supported through
government Minimum Support Price (MSP) programs)
• The APV project in SFBM are essentially grid-connected projects that do not augment any captive
consumption of the farmers connected meters. The energy generated is fed into the grid and sold
on a gross basis by the developer. Additionally, the reason for not augmenting the local load is that
farm feeders (located at the utility periphery) are generally unreliable with only 4-5 hours of daily
power supply. This would not result in any significant benefit for captive consumption for farmers.
Correspondingly, the involvement of third-party developers (Renewable Energy Service Company
(RESCO)), will ensure generation and business feasibility crucial for project implementation.
• Small farmers in SFBM avail subsidised power and pay marginal electricity charges (almost free) to the utility.
• SFBM scenario analysis (Figure 13) is considered for five states, as part of the scenario analysis, SFBM
has been calculated considering the sample state of Punjab, Maharashtra, Madhya Pradesh, Haryana,
and Uttar Pradesh to gain insights on project viability.
The overall model schematic for SFBM has been illustrated in Figure 13.

STATE GOVT. Flow of Power

Flow of Revenue

Reduced
Subsidy
Tariff deficit APV PROJECT
CARE TAKER

+
compensation
RESCO
Land lease rent Reduced Rent due
DISCOM to compensation
LAND OWNER
for crop loss Revenue
from yield

AGRI MARKET

Figure 13: Overall model schematic for small farmers

21
AGRIVOLTAICS IN INDIA

Table 8: Operational framework for small farmer business model

Operation State Govt. DISCOM RESCO Landowner Caretaker

Business as State Government Uses subsidy - Enjoys free -
Usual demarcates provided by state subsidised power
electricity subsidy govt. to augment
to DISCOM for ACOS for the
Receives rental
the augmenting agriculture sector
income from a
expensive cost
caretaker, for
of supply (INR 7
Procures expensive undertaking
per unit) to the
electricity from farming activities
agricultural sector
purchase pool and
bears transmission
losses while
supplying to the
agriculture sector

Under recovery
from farmers due
to subsidised
power and
collection
efficiency

DISCOM Saves on DISCOM procures RESCO installs Enjoys free power -

avoided loss electricity distributed energy projects under Engages with
by business subsidy otherwise generated from BOOT model for RESCO under
model demarcated APV through 25 years. lease agreement
for agricultural RESCO (@PPA), for doubling
consumers rental income,
Ensures
provided to and allowing land
Shelfs off minimum
DISCOM to be used for
corresponding generation and
units from plant upkeep for setting up APV for
Channels part purchase pool 25 years 25 years
of the budgeted (@ APPC or Spot
subsidy for pricing)
ensuring viability
of APV project

3.3.2 APV BUSINESS MODEL- MEDIUM/LARGE FARMER

Like the SFBM, the second business model caters specifically to medium and large farmers with land
holding greater than 2 hectares. Some key assumptions considered include:

• Large farmers have capital available to spend on new crop types (i.e., crop varieties that have not been
traditionally grown in a particular region or have recently been developed through breeding or genetic
modification) and related farm machinery. This model considers larger farmers growing cash crops, e.g.,
tomato, spinach.

22
 Business models for APV

• The APV project in MLFBM is also grid-connected, which does not augment any captive consumption
of the farmers-connected meters. The energy generated is fed into the grid and sold on a gross basis
by the developer. Additionally, the reason for not augmenting local load is that farm feeders (located
at DISCOM periphery) are generally unreliable with only 4-5 hours of daily power supply. This
would not result in any significant benefit for captive consumption for farmers. Correspondingly, the
involvement of third-party RESCO players will ensure generation and business feasibility crucial for
project implementation.
• Medium to large farmers in MLFBM do not require subsidized power and are more likely to pay
electricity charges levied by DISCOM.
• Similar to SFBM, MLFBM too has been assessed for five states.
• Due to large farm holdings, farmers in MLFBM, prefer to engage caretakers to farm on their lands.
The overall model schematic has been illustrated in Figure 14.
STATE GOVT. Flow of Power
Flow of Revenue

Reduced
Subsidy
Tariff deficit APV PROJECT CARE TAKER

+
compensation
RESCO
Land lease rent Reduced Rent due
DISCOM LAND OWNER to compensationb
Paysfor electricity for crop loss Revenue
from yield

AGRI MARKET

Figure 14: Overall model schematic for medium and large farmers

23
AGRIVOLTAICS IN INDIA

Table 9: Operational framework for medium and large farmer business model

Operation State Govt. DISCOM RESCO Landowner Caretaker

Business as State Government Uses subsidy - Pays marginal Provides rent
Usual demarcates provided by energy charges to landowner
electricity subsidy state govt. to for undertaking
to DISCOM for augment ACOS for farming on
Receives rental
augmenting agriculture sector leased land.
income from
expensive cost of
caretaker, for
supply (INR 7 per
Procures expensive undertaking Earns by selling
unit) to agricultural
electricity from farming activities in market
sector
purchase pool and
bears transmission
losses while
supplying to
agriculture sector

Under recovery
from farmers due
to subsidised
power and
collection efficiency

Partial cost
recovery from
farmers

DISCOM Saves on electricity DISCOM procures RESCO installs Continues to pay Engages with
avoided loss subsidy otherwise distributed energy projects under energy charges Landowner to
by business demarcated generated from APV BOOT model for utilise available
model for agricultural through RESCO (@ 25 years land parcel for
Engages with
consumers. PPA), farming and
RESCO under lease
provided to DISCOM providing land
Ensures agreement for
lease.
Shelfs off minimum doubling rental
Channels part corresponding units generation and income, and
of the budgeted from purchase pool plant upkeep for allowing land to Earnings by
subsidy for (@ APPC or Spot 25 years be used for setting selling crop
ensuring viability of pricing) up APV for 25 produce in
APV project Partial cost years market
recovery from
farmers Caretaker can
be engaged
by RESCO for
undertaking O&M
of plant
Scenario 1 – Avoided Loss Surplus – No VGF Required:

Under Scenario 1, we consider the state’s average power purchase cost (APPC) range of INR 4.8- 5.5 per
unit. For calculating total avoided loss for units replaced as a result of APV generation, amounts to a total
savings of INR 890 to 1020 lakh calculated over 25 years. We have considered 25 years as the project life of
solar PV modules. The avoided loss is calculated using the following formula:

24
 Business models for APV

Avoided Loss p.a for DISCOM with purchase cost between Rs.4.8 to 4.8 to 5.5
)} *1.5 MU
5.5 per unit={( 1-17%

This corpus is adjusted against the following costs to ensure business model viability.

• Cost of procuring power from APV, i.e., LCOE calculated by developer, is INR 5.63- 5.99, with a
capital expenditure (project cost of INR 596 to 636 lakh).
• Adding GST components to avoid loss corpus. The GST component is calculated at 5% of varying
project costs.
• Adding cost recovered from farmers in lieu of energy charges paid to the utility. This has been calculated
as INR 0.1- 0.33 after accounting for state subsidies.
• Crop loss due to shading as a result of APV installation has been calculated at shading factor of 20-30%
• Cost to be paid to the farmer as a result of doubling land lease. The total land lease cost has been
calculated for leases of INR 40,000-60,000 per acre per annum.
Adjusting all above costs with the total avoided loss corpus calculated for the DISCOM results in a no loss
no gain procurement scenario while ensuring benefit to farmers and RESCO developers. For the scenario
described above, the cumulative avoided loss for 25 years amounts to a surplus of INR 19 to 134 lakh for
the APV Project. This has been depicted in Figure 15.
1,200 GST for APV
cont INR
596-632 Lakh

1,000 States - Punjab, Haryana, Madhya Pradesh

800 DISCOM APV Project

cost of cost
INR Lakhs

procure-
600 ment INR
596-632
INR 4.8-5.5 Lakh INR 0-0.33 INR 0-0.33 INR Lakh
per Unit per Unit per Unit 0.4-0.6 per acre
400
Recorvery Crop Doubling Cash Surplus
form Losses due land lease due to avoided
Loss @17%
to shading loss
200 1.5 MUs

INR
Lakh
0 19-134

Cumulative Cumulative Cost of Power Cost of Agricultural Doubling Surplus

avoided Loss GST benefit from APV electricity Loss over 25 lease to Remaining
for DISCOM (@RESCO recovered from years farmer from avoided
for 25 years tariff) for farmer over loss
25 years 25 years

Figure 15: Avoided loss surplus scenario for DISCOMs

25
AGRIVOLTAICS IN INDIA

Scenario 2 – Avoided Loss Deficit – VGF Required:

Scenario 2 pertains to states with average power purchase costs ranging between INR 3–4 per unit.
Calculating total avoided loss for units replaced as a result of APV generation amount to total savings of
INR 556 to 742 lakh calculated over 25 years. As mentioned earlier, we have considered 25 years as that is
the estimated project life of solar PV modules.

This avoided loss corpus is adjusted against the following costs to ensure business model viability.

• Cost of procuring power from APV, i.e., LCOE cost calculated by the developer, is INR 5.63-5.99, with
a capital expenditure (project cost of INR 596 to 636 lakh).
• Adding GST components to avoid loss corpus. The GST component is calculated at 5% of varying
project costs.
• Adding cost recovered from medium to large farmers in lieu of energy charges paid to the utility. This
has been calculated as INR 0.5-1 per unit after accounting for state subsidies (higher than scenario 1).
• Crop loss due to shading as a result of APV installation has been calculated at a shading factor of 20-
30%
• Cost to be paid to the farmer as a result of doubling land lease. The total land lease cost has been
calculated for leases of INR 40,000-60,000 per acre per annum.
Adjusting all the above costs with the total avoided loss corpus calculated for the DISCOM results in a net
loss for DISCOM under the business model. For the scenario described above, the cumulative loss for 25
years amounts to a surplus of INR 30 to 230 lakh for the APV project. This has been depicted in Figure 16.
This loss can be accounted for under VGF for ensuring business viability in the given states, Maharashtra
and Madhya Pradesh.
1,200

1,200 GST for APV

cont INR
596-632 Lakh
States - Madhya Pradesh MP
1,000
DISCOM
800 cost of APV Project
procure- cost
ment
INR Lakhs

600 INR
596-632
INR 0.5-1 INR Lakh 0.4-0.6
400 INR 3-4 per Lakh 20%-30%
per Unit per acre
Unit
Recorvery Crop Doubling Cash
200 Loss @17% form-large Losses due land lease Deficit-VGF
1.5 MUs farmers to shading Required
0

-200 VGF

-400

Cumulative Cumulative Cost of Power Cost of electricity Agricultural Doubling Surplus

avoided Loss GST benefit from APV recovered from Loss over 25 lease to Remaining
for DISCOM for (@RESCO tariff) farmer over 25 years farmer from avoided
25 years for 25 years years loss

Figure 16: Avoided loss deficit scenario for DISCOMs

26
 Business models for APV

3.4 LEARNINGS FROM THE APV BUSINESS MODELS

Some key takeaways for both APV business models are

• Both small farmer business model and medium /large business model covers more than 95% of the
farmer categories in India.
• The business model is viable in some states with APPC cost greater than INR 4.5 per unit, with no
additional support structure required. Here the avoided loss corpus is adjusted against lease compensation
and crop reduction and power purchase from APV without any viability gap funding.
• However, states with an average power purchase cost lesser than INR 4.5 per unit will require VGF in
order to make the model viable.
• The LCOE cost of an APV project as part of the financial model has been derived using conservative
assumptions. As has been demonstrated with solar PV in the past, the market tends to leverage costs
with economies of scale and bring down the tariff to a competent level. This will further improve the
viability and use case for APV technology adoptability.
• The business models described above is governed by the underlying theme of DISCOM revenue
neutrality while procuring expensive APV power. In addition, another important aspect for DISCOM
to consider APV is to reduce the expensive cost of supply to agricultural consumers.
• The DISCOM may choose to provide leeway in procuring marginally expensive power from APV
projects (in initial phases), and compensative with growing commercial and industrial consumer costs,
in order to lay the foundation for technology uptake. Once the market is matured with technology,
DISCOMs can bring the focus towards revenue neutrality.
• Some other benefits of APV technology pertaining to monitory benefits have not been considered. This
includes associated opportunities such as a boost in crop production of certain crops due to shading,
thereby increasing farmer income. Inclusion of APV under land forestry and renewable energy offsets,
which have a significantly higher carbon price ($100 in emissions trading system (ETS)).

27
AGRIVOLTAICS IN INDIA

CAPACITY PROJECTION
OF APV IN INDIA
(2024-40)

04 28
 Capacity projection of APV in India(2024-40)

In 2021-22, the power demand of India was 1,374 billion units (BU) and is expected to reach 1,500
BU during 2022-234. As per the Central Electricity Authority (CEA)’s optimal generation capacity mix
report for 2029-30, the demand is further expected to reach 2,280 BU by 20305. At present, the renewable
installed capacity is around 125.7 GW (excluding large hydro and pumped storage power projects) (as on
April 2023), which is 30% of the total installed capacity6. It is estimated that the share of renewable energy
in installed capacity will increase to 53% by 2030 (excluding large hydro and PSP). The solar PV installed
capacity is expected to increase at a compound annual growth rate (CAGR) of 20% from 67 GW in 2023
to 293 GW in 2030 (CEA Optimal energy mix 2029-30). This will be the largest among all other sources
of power generation.

The International Energy Agency (IEA) has also done some similar demand projections for electricity in
India under the following scenarios:

• The Stated Policies Scenario (STEPS) makes the assumption that the current policy settings and
objectives are expected to apply to India’s energy sector, taking into account a number of practical
factors that would prevent their execution.
• The India Vision Case (IVC) takes a more optimistic stance on the speed of economic recovery and
long-term growth, and on the prospects for a fuller implementation of India’s stated energy policy
ambitions.
• The Delayed Recovery Scenario (DRS), by contrast, examines the implications of a more prolonged
pandemic with deeper and longer-lasting impacts on a range of economic, social and energy indicators
than is the case in the STEPS.
• The Sustainable Development Scenario (SDS) takes a different approach, working backwards from
specific international climate, clean air and energy access goals, including the Paris Agreement, and
examining what combination of actions would be necessary to achieve them.
Electricity Demand (TWh)

3,433
CEA Estimates
Total Installed
2,280 IEA, India Vision Case
(2040)
Capacity Solar PV
1,374

1747 GW 783 GW

2022 2030 (E) 2040 (E)

Figure 17: Electricity demand of India in 2030 and 2040

4 Outlook India, Power Consumption Grows 9.5% To 1,503 Billion Units In 2022-23: Govt Data, Aug 2023
5 CEA, Report on Optimal Generation Mix 2030- version 2.0, Apr 2023
6 MNRE and CEA installed Capacity Reports

29
AGRIVOLTAICS IN INDIA

The IVC scenario, considers the achievement of 450 GW of non-hydro renewable energy capacity by 2030,
with a higher level of financial de-risking supported by an enabling regulatory environment. Further, it
encompasses higher penetration of natural gas for power generation and batteries for widespread uptake of
electric vehicles in the transport sector along with bioethanol/biodiesel as a fuel. It has a longer-term focus on
the industrial sector’s deep decarbonization, which entails a boost in carbon capture and storage technology,
along with early efforts to investigate hydrogen production pathways that result in some initial output from
low-carbon sources. The estimated installed capacity for 2030 and 2040 is illustrated in Figure 17.

4.1 CAPACITY PROJECTION OF NISAs

For calculating the capacity for NISAs based on the IVC scenario, three different cases were considered.

• Business as usual (BAU): The total solar PV installed capacity remains the same as stated under IEA’s
IVC scenario, i.e. 783 GW by 2040, with no additional NISA getting installed by 2040. The solar PV
mentioned here only covers ground mount and rooftop solar.
• Moderate: The total solar PV installed capacity remains the same as stated under IEA’s IVC scenario,
i.e. 783 GW by 2040. It is assumed that under this scenario, the percentage share of NISA grows to
10%, which will be 78 GW and the rest is ground mount and rooftop solar PV.
• Optimistic: the total solar PV installed capacity remains the same as stated under IEA’s IVC scenario,
i.e., 783 GW by 2040. It is assumed that under this scenario, the percentage share of NISA will be 30%,
which will be 235 GW, followed by ground mount solar at 50% and rooftop at 20%.
Table 10: Capacity projection scenarios of NISAs

BAU Moderate Optimistic

% Share Cumulative % Share Cumulative % Share Cumulative
capacity (GW) capacity (GW) capacity (GW)
Total Solar PV Installed 783 783 783
Capacity (2040)

Ground Mount 90% 705 60% 470 50% 392

Rooftop solar PV 10% 78 30% 235 20% 157

NISA 0% - 10% 78 30% 235

Based on the above scenarios, the annual demand of NISAs for both moderate and optimistic scenarios
is illustrated in Figure 18. The capacity projections for each NISAs are done using the optimistic scenario
trajectory.

30
 Capacity projection of APV in India(2024-40)

Annual Demand of NISAs (GW)

52.2
40.8
31.9
24.9
19.4

15.4
15.2

12.4
11.9

10.0
9.3

8.1
7.2

6.5
5.6

5.3
4.4

4.3
3.4
3.4

2.8
2.7

2.2
2.1
1.6

1.5

1.8
0.5
1.0
0.6
1.3
0.8

1.0

1.2

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Moderate Scenario Optimistic Scenario

Figure 18: Annual demand of NISAs (moderate and optimistic case)

4.2 PENETRATION OF APV AMONGST OTHER NISA (2024-40)

Amongst all NISAs, it is challenging to predict with certainty which specific solar integration technology
will penetrate more in India by 2040. However, based on current trends, considerations, stakeholder inputs
and future demand, some key observations are highlighted below.

Table 11: Penetration matrix of NISAs

2024 2030 2040
Annual % Annual Annual % Annual Annual % Annual Annual Demand
penetration Share Demand Demand Share Demand Demand Share Demand (Optimistic)
matrix of NISAs (Moderate) (Optimistic) (Moderate) (Optimistic) (Moderate) MWp
MWp MWp MWp MWp MWp
APV 20.0% 100 200 22.5% 407 992 27.5% 4,241 14,368

Other (FPV, 80.0% 400 800 77.5% 1,402 3,416 72.5% 11,180 37,880
CTPV, BIPV,
RIPV)

• FPV: Due to their potential for using water bodies like reservoirs, lakes and ponds, floating solar power
projects have gained popularity both internationally and in India. The use of floating solar projects is
projected to rise in the upcoming years due to India’s abundant water bodies. The capacities that are
being installed in India are usually in Megawatts, with LCOE of INR 3-4 per unit, therefore making
it one of the most feasible technologies amongst all NISA in the initial years. The current penetration
level is considered to be 50% in the initial years and reducing to 35% by 2040.
• APV: Land utilisation plays a significant role in the implementation of APV in India, which allows dual
use of land where power generation as well as an agricultural activity can simultaneously take place on
a single piece of land. Given the enormous potential of APV found under this project, it is expected to
penetrate from 18% in 2024 to 27.5% by 2040.

31
AGRIVOLTAICS IN INDIA

• CTPV: India has already witnessed the implementation of canal top solar projects in certain regions
under the MNRE’s pilot scheme for CTPV and canal bank solar PV projects. Presently, the penetration
of canal top projects is assumed at 15% and is expected to decrease to 10% by 2040 as other NISAs
also grow.
• RIPV: The Indian Railways has invited bids for 3 GW solar projects on vacant land parcels and land
parcels along the railway track through Railway Energy Management Company Ltd. (REMCL). Given
this ongoing procurement, the current penetration level is 10% amongst all NISAs and will be 12.5%
by 2040. For roadways, there has been no target or long-term vision, hence for estimating capacity for
RIPV, it is assumed that new projects might take off a bit late (after 2028) as compared to other NISAs.
Based on the above trends and assumptions, the annual capacity projection for APV is illustrated in Figure
19 for both moderate and optimistic cases.
Annual Demand of NISAs (GW)

14.11
11.02
8.60
6.72
4.76

4.24
3.72

3.42
2.90

2.76
2.27

2.23
1.59

1.64
1.24

1.32
0.97

1.07
0.86
0.76

0.62
0.59

0.50
0.38
0.30

0.26

0.33
0.09
0.18
0.11
0.23
0.14

0.17

0.21

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Moderate Scenario Optimistic Scenario

Figure 19: Capacity projections of APV from 2024-40

32
 Financing APV projects in IndiA

FINANCING APV
PROJECTS IN INDIA

33
05
AGRIVOLTAICS IN INDIA

5.1 INTERVENTIONS TO SUPPORT FINANCING OF APV

Governments, financial institutions and development organizations throughout the world are supporting
clean energy projects through various means such as budgetary support, easy finance and running various
programs for building the right ecosystem, respectively. These are primarily done to

• overcome barriers to developing renewable energy and

• promote the adoption and growth of renewable energy
The section will primarily cover government interventions. These interventions can be classified into two
types:

• Capital support
• Revenue support
Capital support reduces the capital required for the project and therefore reduces the requirement of debt to
be raised and equity infusion. Cashflow support comes every year once the project gets commissioned and,
therefore, it does not reduce the capital requirement.

Below are some of the interventions classified under both heads:

Grant/ Capex subsidy

Reduces capex Capital Support Viability gap funding (VGF)

GST waiver/
Financing Support

reimbursement

Feed-in-Tariff (FIT)

Generation based
incentive (GBI)
Improves cash flows Revenue Support

Interest subvention

Tax Holiday

Figure 20: Financing interventions

34
 Financing APV projects in IndiA

A comparative analysis of the above interventions is shown in the table below:

Table 12: Comparative analysis of financing interventions

Support mechanism Type Impact on developer Impact on Exchequer/

Authority
Grant Capital Support Grants reduce the funding Upfront burden on budgetary
obligation upfront. support

VGF Capital Support

For VGF the funding may be
done on milestone achievement
(such as linked to commissioning
milestones). While this also
reduces the funding requirement,
usually the VGF realised goes
towards retirement of debt.

GST reimbursement Capital Support It does not reduce funding

obligations upfront but boosts
cash inflow once reimbursement
is met.

FIT Cashflow Support Improves the cash flows Benefits need to pass over a
period based on an indicator.
Budgetary support spread
over a longer period. Improves
ability to finance more
capacity.

GBI Cashflow Support

Interest subvention Cashflow Support Reduces the financing cost Benefits need to pass over
a period. Monitoring and
verification to be done through
the existing tax compliances
network. No separate
monitoring mechanism needed.

Tax holiday Cashflow Support Reduces tax burden but

developers generally use financing
instruments such as quasi-equity
instruments to reduce the tax
burden

GRANTS:

Grants in the renewable sectors refer to financial assistance provided by governments, multilateral financing
institutions, philanthropic, non-profit organizations and other entities to support the development,
installation or research of new technologies. The funds can be used to offset the upfront expenses and
make solar installations more affordable for individuals, businesses or communities. The implementation
of pilot demonstration projects may be supported through grants. These initiatives demonstrate the viability
and advantages of any project in practical contexts like residential communities, business structures or
public infrastructure. Equipment, installation and monitoring costs might all be partially covered by the
financing.

35
AGRIVOLTAICS IN INDIA

VIABILITY GAP FUNDING (VGF):

VGF is a financial assistance to close the financial gap between project costs and expected developer revenues.
It tries to make projects profitable and appealing to private investors. The VGF mechanism was established
by the Indian government under the Jawaharlal Nehru National Solar Mission (JNNSM) in 2013 to support
grid-connected solar power plants. Through a process of open competition, the government supplies VGF.
For instance, solar projects were chosen through a reverse auction procedure in Phase-II Batch-I of JNNSM
where developers stated their tariffs. The government awarded the projects with the lowest tariffs, and VGF
was granted to close the viability gap and support the projects’ financial sustainability. This is shown in
Figure 21.

1 2 3 4
Tariff for PPA VGF Support Developers’ VGF
equity contribution
@ INR 5.45/kWh Up to 30% of project At least @ INR VGF under PH-II
fixed for 25 years cost or INR 2.5 Cr/MW 1.5 Cr/MW of JNNSM
(whichever is less)

Figure 21: Viability gap funding under Ph-II of JNNSM

FEED-IN TARIFFS (FITS):

FiTs is a policy tool to promote the use of renewable energy technology, particularly in the production of
electricity. It is a type of monetary reward given to producers of renewable energy, who are often individuals
or companies, for the electricity they produce and feed into the grid. The government or regulatory authority
establishes a predetermined payment rate per kWh of electricity produced by renewable energy sources under
a FiT programme. This rate is often guaranteed for a specific period, frequently between 10 and 20 years. A
reasonable return on investment for the renewable energy project is ensured by the payment rate level.

To give producers of renewable energy a financial incentive, FiTs are often higher than the going rates for
power on the market. This helps to make renewable energy technologies more economically viable and
appealing to investors by offsetting their greater upfront costs.

FiT’s primary goals are to encourage the growth of renewable energy projects, raise their proportion in
the total energy mix, and lower greenhouse gas emissions. They minimise the financial risks involved with
such investments by ensuring a fixed payment rate and offering renewable energy providers a steady and
predictable revenue stream. Many nations around the world, including Germany, Spain and numerous
other European countries, have effectively implemented FiTs. India too, had witnessed FiT support by
many states for the wind energy sector – later moving to the auction model. To assist the development of
renewable energy, several nations have switched to alternate mechanisms such as auctions or quota systems.
It is important to note that the acceptance and efficacy of feed-in tariff schemes have fluctuated over time.

36
 Financing APV projects in IndiA

INTEREST SUBVENTION:

Interest subvention in solar projects refers to a financial support mechanism where the government or
another entity provides a subsidy or reduces the interest rate on loans taken for financing solar energy
projects. It aims to make the cost of borrowing for solar projects more affordable, thereby incentivizing
investment in the sector. In certain situations, the government might offer a subsidy or reimburse a portion
of the interest paid by the borrower rather than lowering the interest rate directly. Direct payments or
interest amounts offset against taxes or other debts may be used to accomplish this. The process of how
interest subvention typically works for a renewable energy plant is shown in Figure 22.

Loan Application
To finance the renewable energy project, the project developer
or owner seeks for a loan from a financial institution or a
government body. In order to apply for a loan, you must
provide information about your project, financial projections,
and other required paperwork.

Eligibility Criteria
The financial institution or governmental body providing the
interest subsidy has certain qualifying requirements that the
loan applicant must satisfy. Project size, technology kind,
project location, and adherence to social and environmental
standards are a few examples of these factors.

Approval & Loan Disbursement

The loan is granted after completing the requirements, and
money is given to the project developer. The borrower and the
lender come to an agreement on the loan's terms and
conditions, which covers the interest rate, repayment duration,
and timetable.

Interest Subvention
When the loan is disbursed, the interest subvention kicks in.
For a set amount of time, the government or financial
institution offers a subsidy or lowers the loan's interest rate.
This time frame can change depending on the particular plan
or policy, but it is normally for a set amount of time, like a
few years.

Reduced Interest Payment

The borrower gains from a lower interest payment as a result
of the interest subvention. The project becomes more
financially feasible and appealing as a result of the subsidy
or lower interest rate, which also decreases the overall cost
of borrowing. The project's feasibility and financial
sustainability are enhanced as a result.

Figure 22: Steps of interest subvention

37
AGRIVOLTAICS IN INDIA

GENERATION-BASED INCENTIVE (GBI):

The governments are often concerned about providing tax incentives for setup of renewable capacity. This
may often lead to excess capacity being setup without the actual energy yield. GBI is a policy tool that
converts the capacity incentives into energy yield and is disbursed to renewable developers based on output
from the renewable capacity setup. It is thus a financial incentive offered by the government to encourage
the production of energy from solar power facilities. The GBI scheme provides solar power developers with a
subsidy based on the actual electricity generated to encourage them to produce clean and renewable energy.

Developers of solar power gain an extra incentive under the GBI programme for each unit of electricity
their solar power plants generate. Usually, this incentive is given in addition to the money made by selling
electricity to the grid. The GBI aids in closing the cost gap between the production of conventional power
and the production of solar power, increasing the viability of solar projects.

• In 2008, India implemented the first GBI for renewable energy, including solar capacity.
• The GBI policy was initially developed for four RE technologies including Solar PV power projects to
encourage the construction of grid-connected solar power plants. In addition to the applicable FiT or
PPA prices, the GBI was offered to the power producers.
• The GBI programme was created to last from 2010 to 2020, a period of 10 years. However, because
each state in India had the freedom to choose whether to adopt the GBI plan and set its unique terms
and conditions, the GBI’s implementation and depth varied from states and regions.
• Presently, new mechanisms like competitive bidding, tariff-based auctions, and subsidies under various
state and central government schemes are being adopted to support renewable energy development
in India. However, GBI provided a much-needed IPP ecosystem for renewable energy in early 2010s
focusing on production linked incentives and a push to achieve a larger participation and portfolio
development in the initial years.

TAX HOLIDAY:

A tax holiday is a governmental incentive that temporarily reduces or eliminates taxes for businesses. By
providing a tax holiday for a specified number of years, the effective tax rate in those years shall be zero.
The business losses and/or unabsorbed depreciation guidelines may remain as such. Such a scheme reduces
the tax outgo and hence boosts the cash flows and returns. This will enable developers in lowering the
LCOE. This is however focused on encouraging investments from large developers/ corporations with large
balance sheets and reserves. The government realising this has now provided tax incentives / holidays for
new organisations. Section 115BAB provides a concessional tax rate of 15 percent for new manufacturing/
power generating companies. To avail this benefit, the company should be set up after 1 October 2019 and
power generation should commence on or before 31 March 2024.

5.2 LENDER’S PERSPECTIVE ON APV

Lenders evaluate borrowers from a financial and risk perspective to determine whether they are creditworthy
and whether it is prudent to lend money to them. Lenders will decide the SOP basis on the borrower,
whether it is an individual or a company. The perspective on borrowers is typically decided by considering
various factors as highlighted in the table below.

38
 Financing APV projects in IndiA

Table 13: Information required by lenders from borrowers

Category Individual (Farmer) Company (RESCO)

Information Annual income • About promoters
required by Credit Information Bureau (India) Limited • Experience of promoters
lender from (CIBIL) score • History of default of promoters or any of the
borrower affiliates of promoters
Collateral which will be offered – agricultural
land is generally not preferred • Director’s profile
• Reputation
The end use of the funds – for the project
• Financial health – the ability to bring
• Details of CAPEX and technology corresponding equity, group leverage
• Vendors from whom procurement will be • Nature of promoter contribution instruments
done • Corporate governance
• Queries may be asked about the protection • Credit rating
of PV systems against theft, vandalism and
• About project company
natural disaster, maintenance mechanism etc.
• Experience with the project company
• For the said purpose, hypothecation/
mortgage/assignment of pertinent movable • Details of concession/contract
and immovable assets may be opted in • Details of technology and suppliers
addition to collateral • Management profile
• Credit rating
• Leverage – debt to equity, debt to earnings
before interest, taxes, depreciation, and
amortisation (EBITDA)

• Projected finances around the following profile

– Debt service coverage ratio (average and
minimum)
– Debt to EBITDA
– Project internal rate of return (IRR)
– Loan life coverage ratio
Security Primary security Primary security
required • By Mortgage of borrower’s all immovable assets,
• By Mortgage of borrower’s all immovable
assets, present and future including the present and future including the project land
project land • By Hypothecation of all the borrower’s movable
• By Hypothecation of all the borrower’s properties, including plant and machinery,
movable properties, including plant and machinery spares, equipment, tools and accessories,
machinery, machinery spares, equipment, furniture, fixtures, vehicles, stocks and all other
tools and accessories, furniture, fixtures, movable assets, present and future, and of all
vehicles, stocks and all other movable assets, Borrower’s present and future book debts, bills,
present and future, and of all Borrower’s receivables, monies including bank accounts, claims
present and future book debts, bills, of all kinds and stocks including consumables and
receivables, monies including bank accounts, other general stores.
claims of all kinds and stocks including • By Assignment. A first charge by way of assignment
consumables and other general stores. or creation of security interest including all rights,
title, interest, benefits, claims and demands
• By Assignment. A first charge by way of
whatsoever of the borrower.
assignment or creation of security interest
including all rights, title, interest, benefits, • By Pledge of shares
claims and demands whatsoever of the
Secondary security
borrower.
• Corporate guarantee
• By Pledge of shares
• Personal guarantee
Secondary security
• Corporate guarantee
• Personal guarantee

39
AGRIVOLTAICS IN INDIA

5.3 INVESTMENT AND VGF REQUIRED FOR APV

5.3.1 MODERATE SCENARIO (20 GW BY 2040)

Under the moderate scenario, the cumulative demand for agrivoltaics in India is projected to be 20 GW
from 2024 to 2040 (as discussed in Chapter 4). We have assumed 1 MW of APV plant having CAPEX of
INR 5.96 crore, which is equivalent to an LCOE of INR 5.63/kWh.

Over the past four years, the costs associated with traditional solar power plants have exhibited a fluctuation
ranging from INR 3.4 to 4.8 Crore per MW7. In contrast, when considering APV plants, a greater portion
of capital expenditure is incurred towards elevated structural expenses. However, it is important to note that
as demand grows and a more predictable project pipeline emerges, economies of scale may kick-in. This,
in turn, is expected to drive down both the costs of the supporting structures and the solar PV modules.
Consequently, we have assumed an annual reduction of 3% in the capital expenditures (CAPEX), resulting
in a gradual decline of the LCOE from APV plants, starting from 2024 and extending through 2040. The
CAPEX and LCOE for each year are illustrated in table 14 below.

VGF support for APV:

It is likely that the electricity generated from APV systems are fed to the electricity distribution grid and this
generation is likely to replace the marginal energy procurement by DISCOMs. There are two approaches
to assess the potential savings for DISCOMs.

• Approach 1: In general, it is expected that this will replace the energy supplied from the coal-fired
capacity tied up by DISCOMs.
The national average variable cost of coal-fired power capacity is INR 2.71/kWh for FY 2022-23. This
energy is provided from the long-term/medium-term capacities tied up by the DISCOMs under a power
purchase agreement. The energy is scheduled and dispatched on day-ahead basis based on the merit order of
stations (from cheapest to highest variable cost).

It is anticipated that generation from these APV sources may help DISCOMs avoid this marginal cost of
procurement. Assuming the above as marginal costs for DISCOMs, there is a potential saving of INR 2.71/
kWh for DISCOMs in the form of avoided energy procurement.

• Approach 2: Another approach to assessing the potential savings of DISCOMs is to consider the
energy procurement from spot markets for solar hours (i.e., 08:00 – 18:00 hrs). It is observed that
the national average power procurement price in the DAM (0800 hrs - 1800 hrs) for FY 2022-23
was INR 5.12/kWh .
It is anticipated that generation from these APV sources may help DISCOMs avoid this marginal cost of
procurement from the spot market during solar hours. Assuming the above as marginal costs for DISCOMs
for solar hours, there is a potential saving of INR 5.12/kWh for DISCOMs in the form of avoided energy
procurement.

7 Based on the cost analysis of utility scale solar PV projects conducted by the ISUN team from 2017 to 2023

40
 Financing APV projects in IndiA

It is apparent from the above two approaches that the DISCOMs can avoid purchasing power from both the
sources at INR 2.71/kWh and INR 5.12/kWh (from Approach 1 and 2 above). When compared with the
expected APV system energy cost of INR 5.63/kWh (at CAPEX of INR 5.9 Crore per MW), it is observed
that there is a realization gap of INR 0.51 to 2.92/kWh for the developer who will invest and set up the
Agri PV system. This is equivalent to INR 0.54 to 3.09 Cr/MW of capital support on Agri PV system cost.

For purpose of our analysis we have used marginal cost of procurement under Approach 2 (i.e.
INR 5.12 per kWh) as tariff threshold for viability gap eligibility. This means that a tariff rate of
INR 5.12/kWh is kept as the benchmark or threshold to determine whether an APV project is
financially viable or not for the DISCOMs. When the LCOE of APV plant is higher than INR 5.12
per kWh, the difference between the LCOE and the INR 5.12/kWh tariff rate is used as Viability
Gap Funding (VGF). It is to be noted that VGF will only be required for initial years, when LCOE
is greater than tariff viability benchmark.

In our model, the LCOE of APV plant and CAPEX is expected to decline in coming years due to
capex decline, therefore the VGF amount per MW will vary for each year. It is calculated by using
the following formula:

• Per MW VGF required in 20XX year = (LCOE in 20XX – Tariff threshold) X (Cost per MW
(CAPEX)/LCOE in 20XX)

Further, the per MW VGF required amount is multiplied with the associated annual capacity to
get the Annual VGF required (INR Crore). Note that for purpose of VGF, escalation / decline in
marginal cost of procurement under approach 2 is not considered. However, this threshold tariff
can be computed periodically based on historic data (say a quarter) and be VGF may be updated
on a periodic basis.

Moderate Scenario (20 GW)- Annual Capacity VS Tariff Reduction of APV in India
6.00 4.50
4.00
5.00
3.50
Annual Capacity (GW)
LCDE ( INR/kWh )

4.00 VGF INR 125 Cr. 3.00

2.50
3.00
2.00
2.00 1.50
1.00
1.00
0.50
. 0.00
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Annual Capacity (GW) LCDE (INR/kWh) Traiff Viability (INR/kWh)

Figure 23: Annual capacity vs tariff reduction of APV (moderate scenario)

41
AGRIVOLTAICS IN INDIA

The total VGF required will be around INR 125 Cr for a total capacity of 510 MW till 2027-28 (Figure
23). Year wise VGF amount for the associated annual capacity is mentioned in the VGF calculations column
of Table 14.

The total investment that will be required to realise the above-mentioned capacity (i.e., 20 GW) is INR
81,424 crores. Table 14 highlights the year-on-year capacity and investment potential.

Table 14: Investment and capacity projection for APV (moderate scenario)

Year Investment and Capacity Projection for APV (Moderate VGF Calculations
Scenario)
Annual Cost per LCOE (INR/ Investment Per MW VGF Annual VGF
capacity (GW) MW (INR kWh) required (INR required for required (INR
Crore) Crore) project viability Crore)
(INR Crore)
2024 0.09 5.96 5.63 536 0.54 48.59

2025 0.11 5.78 5.47 645 0.37 41.32

2026 0.14 5.61 5.31 775 0.20 27.79

2027 0.17 5.44 5.16 931 0.04 7.25

2028 0.21 5.28 5.01 1,119 - -

2029 0.26 5.12 4.87 1,345 - -

2030 0.33 4.96 4.73 1,616 - -

2031 0.50 4.82 4.59 2,428 - -

2032 0.62 4.67 4.46 2,918 - -

2033 0.86 4.53 4.34 3,897 - -

2034 1.07 4.40 4.21 4,684 - -

2035 1.32 4.26 4.09 5,629 - -

2036 1.64 4.14 3.98 6,765 - -

2037 2.23 4.01 3.87 8,944 - -

2038 2.76 3.89 3.76 10,749 - -

2039 3.42 3.77 3.65 12,918 - -

2040 4.24 3.66 3.55 15,525 - -

Total 19.98 81,424 125

Note: The VGF calculations that we have explained above have been derived at CAPEX of INR 5.96 Cr/MW with LCOE of INR 5.63/kWh. However,
this is an indicative number based on our discussion and consultations with developers and concerned stakeholder. The per MW cost APV system may vary
from INR 5.9 to 6.4 Cr, with LCOE ranging from 5.63 to 6/kWh. The cumulative VGF upto year 2027 may vary from INR 125 to 363 Crores.

42
 Financing APV projects in IndiA

5.3.2 OPTIMISTIC SCENARIO (60 GW BY 2040)

Under the optimistic scenario, the cumulative demand for agrivoltaics in India is projected to be 60 GW
from 2024 to 2040. Similar to the moderate scenario, we have assumed an annual reduction of 4% instead
3 % in the capital expenditures (CAPEX), resulting in a gradual decline in the LCOE from APV plants,
starting from 2024 and extending through 2040. The CAPEX and LCOE for each year is illustrated in table
15 below.

Similar to the moderate scenario, we have used marginal cost of procurement under Approach 2
(i.e. INR 5.12 per kWh) as tariff threshold for viability gap eligibility. This means that a tariff rate
of INR 5.12/kWh is kept as the benchmark or threshold to determine whether an APV project is
financially viable or not for the DISCOMs. When the LCOE of APV plant is higher than INR 5.12
per kWh, the difference between the LCOE and the INR 5.12/kWh tariff rate is used as Viability
Gap Funding (VGF). It is to be noted that VGF will only be required for initial years, when LCOE
is greater than tariff viability benchmark.

In our model, the LCOE of APV plant and CAPEX is expected to decline in coming years due to
capex decline, therefore the VGF amount per MW will vary for each year. It is calculated by using
the following formula:

• Per MW VGF required in 20XX year = (LCOE in 20XX – Tariff threshold) X (Cost per MW
(CAPEX)/LCOE in 20XX)

Further, the per MW VGF required amount is multiplied with the associated annual capacity to
get the Annual VGF required (INR Crore). Note that for purpose of VGF, escalation / decline in
marginal cost of procurement under approach 2 is not considered. However, this threshold tariff
can be computed periodically based on historic data (say a quarter) and be VGF may be updated
on a periodic basis.

Optimistic Scenario (60 GW)- Annual Capacity VS Tariff Reduction of APV in India
6 16.00
14.00
5
12.00
Annual Capacity (GW)
LCDE ( INR/kWh )

4 VGF-INR 199 Cr. 10.00

8.00
3
6.00
2 5.00
4.00
1
2.00

0 0.00
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Annual Capacity (GW) LCDE (INR/kWh) Traiff Viability (INR/kWh)

Figure 24: Annual capacity vs tariff reduction of APV (optimistic scenario)

43
AGRIVOLTAICS IN INDIA

The total VGF required will be around INR 199 Cr for a total capacity of 710 MW till 2026-27 (Figure
24). Year wise VGF amount for the associated annual capacity is mentioned in the VGF calculations column
of table 15.

The total investment that will be required to realise the above-mentioned capacity (i.e., 60 GW) is INR
2,13,858 crores. Table 15 highlights the year-on-year capacity and investment potential.

Table 15: Investment and capacity projection for APV (optimistic scenario)

Year Investment and Capacity Projection for APV (Optimistic VGF Calculations
Scenario)
Annual Cost per LCOE Investment Per MW VGF Annual VGF
Capacity (GW) MW (INR (INR/kWh) required (INR required required (INR
Crore) Crore) for project Crore)
viability (INR
Crore)
2024 0.18 5.96 5.63 1,073 0.54 97.18

2025 0.23 5.72 5.42 1,319 0.32 73.20

2026 0.30 5.49 5.21 1,621 0.10 28.12

2027 0.38 5.27 5.01 1,993 - -

2028 0.59 5.06 4.82 2,994 - -

2029 0.76 4.86 4.63 3,681 - -

2030 0.97 4.67 4.46 4,525 - -

2031 1.24 4.48 4.29 5,562 - -

2032 1.59 4.30 4.13 6,837 - -

2033 2.27 4.13 3.97 9,360 - -

2034 2.90 3.96 3.82 11,506 - -

2035 3.72 3.80 3.68 14,144 - -

2036 4.76 3.65 3.54 17,387 - -

2037 6.72 3.51 3.41 23,554 - -

2038 8.60 3.37 3.28 28,955 - -

2039 11.02 3.23 3.16 35,594 - -

2040 14.11 3.10 3.04 43,755 - -

Total 60.33 2,13,858 199

Note: The VGF calculations that we have explained above have been derived at CAPEX of INR 5.96 Cr/MW with LCOE of INR 5.63/kWh. However,
this is an indicative number based on our discussion and consultations with developers and concerned stakeholder. The per MW cost APV system may vary
from INR 5.9 to 6.4 Cr, with LCOE ranging from 5.63 to 6/kWh. The cumulative VGF upto year 2026 may vary from INR 199 to 561 Crores.

44
 Financing APV projects in IndiA

5.4 FINANCING INTERVENTIONS REQUIRED FOR APV

The MNRE has been administrating the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyaan
(PM-KUSUM) scheme. The scheme aims add solar capacity of 30,800 MW by 2022 with total central
financial support of INR 34,422 Crore.

The Scheme consists of three components:

• Component A: 10,000 MW of solar capacity through installation of small Solar Power Plants of
individual plants of capacity upto 2 MW.
• Component B: Installation of 20 lakh standalone Solar Powered Agriculture Pumps.
• Component C: Solarisation of 15 Lakh Grid-connected Agriculture Pumps.
A detailed review of the scheme reveals multiple categories of support embedded in the scheme.

Under Component A there is a mix of FiT and generation-based incentive policy at play. Details include:

• The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by
respective State Electricity Regulatory Commission (SERC).
• DISCOM would be eligible to get PBI @ INR 0.40 per unit purchased or INR 6.6 lakh per MW of
capacity installed, whichever is less, for a period of five years from the Commercial Operation Date
(COD).
For component B, we see an upfront capital support in the form of grant. Concessional finance is not
mentioned explicitly, however, it is more than likely that the agencies involved in providing the loan
component for such schemes may be providing interest subvention under different government schemes:

• CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar
Agriculture pump will be provided. The State Government will give at-least a subsidy of 30%; and the
remaining at-most 40% will be provided by the farmer.
• Bank finance can be availed by farmer, so that farmer must initially pay only 10% of the cost and
remaining up to 30% of the cost as loan.
For component C, there are two categories viz., Individual pump solarisation (IPS) and Feeder level solarisation
(FLS). However, both are supported by upfront capital support from central and state government.

Specifically, for IPS:

• CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component
will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most
40% will be provided by the farmer.
• Bank finance can be availed by farmer, so that farmer must initially pay only 10% of the cost and
remaining up to 30% of the cost as loan
While for FLS, CFA of 30% on the cost of installation of solar power plant (up to INR 1.05 Cr/MW) will
be provided.

45
AGRIVOLTAICS IN INDIA

As evident, the existing policy support to PV systems for agriculture have a blended approach to proliferate
sustainable energy use in agriculture.

APV naturally fits into the existing PM KUSUM scheme. Under component A, the APV systems of capacity
500 KW to 2 MW can be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer
Producer Organisations (FPO)/Water User associations (WUA). In case the above entities are not able to
arrange the equity required for setting up the APV system, they can opt for third party developers or even
the local discom which can be considered as the Solar Power Generator (SPG). APV systems.

APV systems also fit into the component B, where individual farmers install standalone solar agriculture
pumps of capacity upto 7.5 hp in off-grid areas. The business case for farmers deploying standalone solar
agriculture pumps is improved if they consider APV systems. With APV system they can continue to
produce the crop alongwith the energy generation which was otherwise a trade-off at first place. APV
systems will also help marginal farmers with lower farming acreage improve the chances of deployment of
agriculture pump sets under component B which was otherwise constrained due to small area available for
farming. Needless to mention, the crop suitability must be evaluated by farmers before considering APV
systems in either case.

For component C, APV systems also seem to complement IPS and FLS. IPS just like standalone systems
under component B, improve the business case for farmers who intend to benefit from net metering and
farming. However, for FLS system the APV system deployment depends on whether the land being used for
FLS is an agriculture land or not. In case the agriculture land is being used by Discoms/ Developers to setup
such systems from existing farmers/ landowners, then APV is a natural fit as it will help reduce the concerns
of ‘’land loss’’. It is likely that Discoms/ Developers will have to aggregate land for deployment of FLS under
Component C. This aggregation task will be far easier if APV systems are used.

In summary, we propose the following interventions to promote APV systems that may be considered by
MNRE under the ambit of PM KUSUM:

• APV systems are likely to accelerate the deployment of solar PV systems in the country. While the PM
KUSUM scheme is sufficiently covering for the incentives, we propose, that a clarification/ notification
by MNRE to include APV system in the definition of solar PV systems for all components will bring
more clarity to investors/ financing institutions and discoms.
• Further, a differential incentive for APV systems (in the form of CFA over and above existing 30%
for Component B and C and additional PBI over and above existing INR 0.40 /kWh for discoms)
will develop interest from stakeholders to evaluate APV systems. This additional incentive should be
sufficient to compensate for increased LCOE (INR 5.63/kWh – as explained in 5.3.1 above) due to
higher capital costs when compared with conventional solar systems envisaged in the PM KUSUM
scheme. The proposed additional incentive will thus be:
a. For CFA: the difference of APV system cost of INR 5.96 Crore and the system cost assumed for
computed the CFA of 30% under the PM KUSUM scheme for Component B and C.
b. For PBI: the difference of APV LCOE of INR 5.63 INR/kWh and the LCOE/tariff assumed for
computing the PBI of INR 0.40/kWh.
• R&D budget may be provided to SNAs or designated agencies for setting up more APV pilots to study
the crop impact and identify suitable crops in the local climate. The grant support for pilots may be to
cover up the additional capex required by APV systems over and above conventional solar PV systems
under PM KUSUM.

46
 Policy and regulatory analysis of APV

POLICY AND
REGULATORY ANALYSIS
OF APV

47
06
AGRIVOLTAICS IN INDIA

6.1 INTERNATIONAL POLICY AND REGULATIONS FOR APV

Agrivoltaics, at the intersection of agriculture and renewable energy, represents a promising approach to
address both global food security and sustainable energy production. As the world grapples with the urgent
need to combat climate change and its associated challenges, international policies and regulations have
begun to play a pivotal role in shaping the development and deployment of agrivoltaic systems. These
policies aim to strike a delicate balance between promoting renewable energy generation and ensuring food
production remains resilient and abundant. The concept of agrivoltaics is rapidly evolving, with several
countries like Germany, France, Japan and Italy leading research and development on agrivoltaics having
successfully implemented pilot projects in their region.

Figure 25: International policies on APV

Germany’s DIN SPEC, provides a comprehensive framework for the integration of agrivoltaics, emphasizing
the importance of maintaining agricultural productivity as the primary objective. According to these
standards, agricultural land is primarily dedicated to farming activities, with electricity production through
photovoltaic (PV) systems considered a secondary use. To strike a balance between these dual purposes, the
DIN SPEC allows for a maximum allowable reduction in agricultural yield of up to 34%. Furthermore, the
DIN SPEC establishes specific land loss thresholds for different types of APV systems. For overhead stilt-
mounted APV plants with a width of less than 10 meters and a height exceeding 2 meters, the permitted
land loss is set at less than 10%. Similarly, for inter-row APV systems, where solar panels are integrated
between crop rows, the allowable land loss is even lower, capped at less than 15%. These guidelines not only
ensure that agricultural production remains a priority but also encourage efficient land use and minimal
interference with traditional farming practices, thus contributing to sustainable energy generation and food
production in Germany8.

8 German DIN SPEC 91434:2021, Agri-Photovoltaic Systems - Requirements For Primary Agricultural Use, 2021

48
 Policy and regulatory analysis of APV

In 2021, Japan’s New Energy and Industrial Development Organization (NEDO) and the Ministry of
Economy, Trade and Industry (METI) took significant steps to promote the adoption of agrivoltaic systems
by releasing updated guidelines for agrivoltaic Photovoltaic (APV) installations. These guidelines mark a
pivotal shift in Japan’s approach to solar PV installations, as they now allow for solar panels to be installed
not only on degraded farmland but also on class 1, 2, and 3 agricultural land. This expansion of permissible
land types underscores Japan’s commitment to harnessing renewable energy while minimizing the impact on
its agricultural sector9. Under these new guidelines, the maximum acceptable reduction in agricultural yield
due to APV installations is set at less than 20%. This limit demonstrates Japan’s dedication to preserving
the productivity of its agricultural land, even as it integrates renewable energy infrastructure. Additionally,
the guidelines emphasize the importance of maintaining a flexible and non-intrusive approach to APV
installation. Foundation support columns are required to have a simple structure and be easily removable,
further ensuring that the land can be returned to its original agricultural use if necessary.

In Italy, regulations governing the implementation of solar photovoltaic (PV) systems on overhead stilts,
commonly referred to as agrivoltaics, are tailored to accommodate various agricultural activities while
preserving land productivity. Depending on the nature of the agricultural use, specific minimum height
requirements for the solar panels are enforced. In cases involving livestock activities, such as grazing or
animal husbandry, a minimum approved height of 3 meters is mandated. This elevated height allows
ample space for unhindered livestock movement beneath the solar panels. Conversely, when the land serves
primarily for cultivation purposes, such as crop farming, the minimum height is reduced to 1 meter. This
lower height ensures that the solar panels cast minimal shadows, enabling crops to receive sufficient sunlight
for photosynthesis and growth. Furthermore, Italy upholds a crucial maximum permitted land loss of 30%
to safeguard agricultural productivity. This means that the installation of agrivoltaic systems should not
result in an agricultural yield reduction exceeding 30%, thereby upholding the coexistence of renewable
energy generation and agriculture while prioritizing the integrity of the land’s primary function10.

China has implemented a forward-thinking approach to agrivoltaics, permitting the installation of APV
systems on general agricultural land, which excludes highly productive and arable land categories. In line
with this policy, PV companies seeking authorization to establish APV plants must adhere to specific
conditions. First and foremost, they are required to engage in crop cultivation beneath the PV panels. This
requirement is essential to ensure that the shade cast by the solar panels does not significantly impede crop
growth, thereby maintaining the land’s agricultural productivity. Additionally, to obtain permission for APV
plant construction, PV companies are obligated to guarantee a minimum level of agricultural output.

6.2 INDIA’S POLICY FRAMEWORK ON PM-KUSUM

in 2019 , the Government of India launched the KUSUM scheme where component A of the scheme
encourages farmers to install solar PV on their land for the sale of power to DISCOMs as a pre-determined
tariff. The scheme also provides for feeder-level solarisation under component C, which involves the
installation of solar power plants on agricultural feeders.

9 PV Magazine, Japan releases new guidelines for agrivoltaics as installations hit 200 MW, Dec 2021, Link https://www.pv-magazine.com/2021/12/13/japan-releases-new-guidelines-for-agrivoltaics-as-
installations-hit-200-mw/
10 PV Magazine, Italy publishes new national guidelines for agrovoltaic plants, Jul 2022, Link https://www.pv-magazine.com/2022/07/05/italy-publishes-new-national-guidelines-for-agrovoltaic-plants/

49
AGRIVOLTAICS IN INDIA

Most states in India have formulated their programs under the Pradhan Mantri (PM)-KUSUM scheme
to ensure effective implementation of the scheme. The state-level programs vary in terms of the specific
incentives and benefits offered to farmers, the process for availing of the scheme, and the extent of support
provided by the state government in terms of installation, operation, and maintenance of the solar power
plants.

Table 16: Key states and their programs

Sate/UT Policy/Scheme Key Points

Delhi Delhi Solar Policy, The policy encourages deployment of solar on agricultural land via
2022 (Draft) different models including, but not limited to, group net metering and
community solar.

Uttar Pradesh Draft Uttar Pradesh Land Bank not suitable for agriculture and wastelands will be created by
Solar Energy Policy, UPNEDA across the State and specifically in the Bundelkhand region. The
2022 State shall provide a facility of deemed land conversion from agriculture
uses to non-agriculture use on approval by the State Nodal Agency.

Maharashtra Mukhyamantri Saur Tariff ceiling has been approved for INR 3.05/unit to supply electricity
Krushi Vahini Yojana to the farmers during the daytime by installing ground mounted
and PM KUSUM decentralized solar power projects. (Previously it was 3.11/unit as
signed by Maharashtra State Electricity Distribution Co. Ltd and Energy
Efficiency Services Limited.)
Odisha PM KUSUM Odisha State Electricity Regulatory Commission has determined the tariff
of INR 3.08/- per unit of electricity generated through decentralized
solar PV plants under KUSUM Scheme

Haryana PM KUSUM Haryana Electricity Regulatory Commission has approved a tariff of INR
3.11/unit for plants under KUSUM (A)

Punjab PM KUSUM Punjab State Electricity Regulatory Commission has approved a tariff
of INR 2.7/unit for SPV plants under KUSUM component A for 217 MW
capacity

Rajasthan PM KUSUM Saur Krishi Ajivika Yojna was launched under PM KUSUM component C
for feeder level solarization. In 2020, Rajasthan Electricity Regulatory
Commission also determined a tariff of INR 3.14/unit under Component-A,
without central financial assistance (CFA).

The PM-KUSUM scheme is primarily focused on promoting decentralized solar power generation by
providing financial incentives to farmers for the installation of solar power plants on their land. On the
other hand, agrivoltaics is the practice of integrating solar panels into agricultural land, allowing crops to be
grown in the same space where solar panels are installed.

• One issue that arises is that the PM-KUSUM scheme incentivises the installation of solar power plants
on uncultivable lands, such as barren or fallow land, while agrivoltaics requires cultivable land to be
used. This could lead to a conflict between the two approaches as farmers may have to choose between
using their land for crop cultivation or for installing solar power plants.

50
 Policy and regulatory analysis of APV

• Another issue is that agrivoltaics require careful planning and design to ensure that the crops and solar
panels do not interfere with each other’s growth and productivity. This requires specialised expertise and
could add to the overall cost of the installation.

Despite these issues, there is also potential for synergy between the PM-KUSUM scheme and
agrivoltaics. By combining the two approaches, farmers can generate both electricity and crops
from the same piece of land, leading to increased productivity and income. This would require
careful planning and design to ensure that the two approaches are compatible and complementary.

The following section tries to unearth the barriers and challenges in the adoption of agrivoltaics in India.

6.3 METHODOLOGY FOR UNDERSTANDING BARRIERS AND

CHALLENGES
The I-SUN program has explored and researched the policy and regulatory landscape for APV, prevailing
in India, referencing published literature, consulting various stakeholders, and understanding the various
stages in the life cycle of the project. This was accompanied by undertaking rigorous engagements with key
stakeholders like project developers, regulators, nodal agencies, market developers etc. along each of the
stages. In addition, a questionnaire was prepared and floated to large audiences to understand the policy
and regulatory barriers to large-scale adoption of APV in India. The framework included the steps shown
in Figure 26.

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

Mapping Agri Identification of Consultation/ Identification
of Challenges Recommendations
PV lifecycle stakeholders Interviews
& Barriers

Figure 26: Methodology for understanding barriers and challenges

In step 1, the project team has analysed and mapped out the various stages involved in building an
agrivoltaics plant. Analysing the full lifecycle allows stakeholders to make informed decisions and establish
strategies for successful implementation by identifying the barriers and challenges connected with each step
of the lifecycle.

The lifecycle of APV has the following phases (Figure 27):

• Application Stage: The first stage is the application stage where the consumer applies to set up the solar
plant. The stage is important for understanding the prerequisites of setting up the APV plant.
• Project Approval: The next stage in setting up an APV plant is getting project approval from concerned
government departments. At this stage, the concerned DISCOM will do a feasibility study. The plants
are evacuated at 11 kV/ 33kV.

51
AGRIVOLTAICS IN INDIA

• Detailed Engineering: Once the feasibility is approved, the EPC does a detailed engineering of the
plant. This includes designing the plant, evacuation infrastructure etc.
• Project Execution: The EPC installs the plant on agricultural land.
• Commissioning: EPC obtains all the necessary approvals for the project from the concerned stakeholder.
• Maintenance: The EPC provides maintenance for the agreed period as per the contract. The owner can
then decide to take the O&M services of the same EPC or find another company.

Project Approval Project Execution Maintenance

Technical Feasiblity EPC installs project EPC engages
for installation given on farm land workforce for
by DISCOM, evaluating operation and
evacuation of line maintenance on
farm land

1 2 3 4 5 6

Application Stage Detailed Engineering Commissioning

Solar PV Application Contractor undertakes EPC obtains
submitted to DISCOM detailed engineering approvals for
grid connection
from DISCOM

Figure 27: Lifecycle of an APV plant

During step 2, the project team engaged in extensive conversations with key stakeholders in the agrivoltaic
domain, ranging from those responsible for project implementation to the authority’s overseeing regulations,
agencies coordinating efforts, and individuals shaping the market.

Simultaneously, a structured questionnaire was created in step 3 and shared widely among a diverse set of
respondents. The primary goal was to gather comprehensive information about the hindrances caused at each
stage of project lifecycle. The questionnaire allowed for a more inclusive and holistic understanding of the
challenges in this domain by collecting insights from a broad cross-section of stakeholders, ultimately aiding
in the formulation of strategies and policies for overcoming these impediments. In order to understand the
barriers and challenges in implementing APV in India, the project team consulted a variety of different
stakeholders (Figure 28). Detailed list can be referred from Annexure B.

Research Think Tank University Farmers DISCOMs

State Nodal Agencies Developers Water Department

Figure 28: Stakeholder consulted

52
 Policy and regulatory analysis of APV

6.4 IDENTIFICATION OF BARRIERS AND CHALLENGES IN APV

Based on the in-depth literature review and stakeholder consultations, the project team was able to identify
the following barriers and challenges in different stages of the plant life cycle. This is a part of step 4 of
the methodology as discussed in the section above (figure 26). A summary of barriers and challenges is
illustrated in Table 17.

Table 17: Summary of barriers and challenges

Barriers and Challenge Category Criticality Factor

Land Usage Categorization Regulatory High

Unavailability of Standards Technical High

Grid Connection Availability for APV Technical Low

Tariff Determination for APV Regulatory Low

Ground Water Bill Regulatory Medium

Technical Standards for Connectivity Technical Medium

Agricultural Yield Loss Mechanism Regulatory Low

Tax on Income Through Electricity Generation Economical Low

APPLICATION STAGE
Regulatory • Land Usage: Land is largely classified as agricultural, residential
Land usage laws limit
or commercial based on the type of usage. The land can only be
the use of agricultural
used for the purpose it is registered. Therefore, many state policies
land for non-agricultural
state/union territories where agricultural land can not be used for purposes like installing
any other purpose. solar PV systems. This
Since APV allows the farmers to sell the power to DISCOMs, the makes it more difficult for
overall transaction may be categorised as a commercial activity. farmers or landowners to
States like Rajasthan (Rajasthan Land Revenue Act 1956) and install solar panels on
Uttar Pradesh (Uttar Pradesh Revenue Code) require additional their land.
approval from authorities for the use of land for purposes other
than agriculture.
Regulatory • Barren Lands: While the state of Rajasthan is implementing
KUSUM component A, it has its state policy which promotes
APV on the barren lands only (Rajasthan Solar Policy 2019),
which means that farmers in the state cannot install solar panels
on recently cultivated land or the land that is unused.

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AGRIVOLTAICS IN INDIA

PROJECT APPROVAL STAGE

Technical • Standardisation: Although the MNRE KUSUM scheme Unavailability of standards
states that “DISCOMs shall assess and notify renewable energy and evacuation capacity of
generation capacity that can be injected into all the 33/11 kV or sub station in rural areas
66/11 kV or 110/11 kV sub-station of rural areas and place such posesses a challenge for
information on its website for information of all stakeholders”11, APV users
the information related to the capacity is either not readily
provided by the state DISCOM on its website or is obsolete.
Technical • MIS: There is no existing practice in DISCOMs to provide a
database (which may be periodically updated) or MIS on spare
capacity availability at each 33/11 kV station for APV.
Technical • Methodology: The methodology for estimating the evacuation
capacity is not developed/standardised in many states. There
is limited focus by DISCOMs on providing guidelines for the
procedure for applying for APV.
Regulatory • Tariff determination for APV: Presently there is no mechanism to
determine tariffs for APV plants; however, several state regulatory
commissions have derived tariffs based on the petitions filed by
their respective DISCOMs under KUSUM scheme component A
(decentralized solar power plant) and component C (feeder level
solarization).
– The state regulatory commissions derive tariffs based on the
financial modelling of PV plants under certain assumptions,
which are further shared with DISCOMs and stakeholders
for comments. The DISCOMs in return can file petitions to
update the assumptions used to derive tariffs.

PROJECT EXECUTION
Operational • Water Usage: The construction of APV requires the use of The Model groundwater
water for civil structures. Further water is also used during the bill does not support
operation of the power plant to clean the modules. The national use of ground water for
green tribunal has laid down stringent use for ground water usage Agri-PV, and consumers
that includes approval from concerned officials. have to bear the cost of
evacuation infrastructure.
Regulatory • The Model Groundwater Bill: The bill prioritises the right of
Right of way is an issue
water for life, followed by allocation for achieving food security,
for distribution lines.
supporting sustenance agriculture, sustainable livelihoods and
eco-system needs. The bill for the Conservation, protection,
regulation and Management of Ground Water, 2016, does not
support the use of groundwater for normal solar PV projects
along with APV and additional permits and clearances are
required.
Regulatory • Evacuation Infrastructure: In some states (eg, Rajasthan), the
consumers have to bear the cost of the evacuation infrastructure
(Rajasthan Solar Policy, 2019). The additional cost of infrastructure
is large for a small farmer. Right of way for building evacuation
infrastructure is an issue for distribution lines.

11 KUSUM guidelines – Clause 3 (Implementation mechanism), sub clause A (Selection and implementation of decentralised renewable energy power plants)

54
 Policy and regulatory analysis of APV

COMMISSIONING
Technical • Technical standards: The CEA’s Technical Standards for
Connectivity of the Distributed Generation Resources, 2013
(amended 2019) clearly define regulations related to the
interconnection of renewable energy plants below and above the
33kV level.
– However, for plants below 33kV, the enforcement is not
carried out as per the stated regulations. The states and
DISCOMs are more inclined towards larger projects.

MAINTENANCE
Technical • Agriculture Insurance: The farmers have the option to avail of There is no mechanism
insurance coverage and financial support in case of failure of the for Agri-PV plants to
crop as a result of natural calamities, pests and diseases under accurately estimate crop
the Pradhan Mantri FasalBina Yojana (PMFBY). The yield loss yield loss.
is estimated after crop-cutting experiments conducted by the
government and the actual yield of the land. This methodology
will not be able to estimate the real yield loss to an APV plant.
Hence, it needs to be modified appropriately.
Economic • Taxation: Agriculture income is free from taxation under
Section 10 (1) of the Income Tax Act of 1961. Thus, a farmer’s
income from farming pursuits, such as cultivating land or selling
agricultural products, is not subject to taxation.
– However, the income is not tax-free, and if the farmer makes
money by selling the electricity an APV system produces,
electricity sales revenue would be regarded as business income
and subject to income taxation under the Income Tax Act.

6.5 KEY RECOMMENDATIONS BASED ON THE BARRIERS

IDENTIFIED
In this section, the project team have formulated recommendations based on the insights and findings
gathered during the previous steps. This constitutes the step 5 of the methodology as illustrated in Figure
26 above. These recommendations are essential for guiding the project’s direction, addressing identified
challenges, and optimizing its overall success. I-SUN Program proposes the following recommendations.

• Change in Land Act: Most states prohibit commercial activity other than farming on farmland unless
it is reclassified as commercial land. A key obstacle to the development of agrivoltaics is this division
between agriculture and other uses.
a. By classifying APV as an agricultural activity, it may help address some of the issues related to land
conversion and use of groundwater, as it recognises the land as being used for both agricultural
and energy production purposes. However, there should be some criteria defined for usage of
agricultural land along with power generation and it should not hamper the ongoing crop yield.

55
AGRIVOLTAICS IN INDIA

b. This would allow farm communities to build revenue-generating APV projects while maintaining
land ownership by establishing a unique category of APV land. The agricultural activity along with
electricity generation through APV should happen in silos, without discontinuing farming.
• Definition of APV is required for India: Percentage of the land that shall be available after installation
of solar for farming needs to be defined as well as the percentage of crop yield that shall be there after
the installation of the solar system in comparison to the original field.
a. An example of this could be derived from Japan’s APV policy, which states that the agricultural
yield loss should be less than 20%. Similarly, countries like Italy have included a restriction on the
maximum permitted land that can be used for solar PV power generation.
• State Solar Policy: The state policy of Rajasthan supports the development of APV on uncultivable lands.
The Rajasthan Solar Policy clause 8.2.1 that states, “Farmers on their own or through a developer, can
set up decentralised power project on their un-cultivable agriculture land” may be changed to “Farmers
on their own or through a developer can set up decentralised power projects on their agriculture land”.
However, farming and power production should happen simultaneously, on the same piece of land
without affecting any one of them.
• Model Bill for the Conservation, Protection, Regulation, and Management of Groundwater,
2016: Obtaining permits is compulsory and users are required to be registered for using groundwater.
The priority on groundwater may include APV in the model bill. This may also help incentivize the
adoption of water-efficient technologies and practices that minimise water uses and improve water
productivity. For instance, APV systems that use drip irrigation, rainwater harvesting or other water-
saving techniques may be prioritized over those that rely solely on groundwater extraction. Further, the
water used for cleaning the solar modules can be reused for agricultural activity. However, this would
restrict the use of chemical agents for cleaning the modules.
• PM FBY: To propose methodology for calculating unprecedented yield loss against anticipated loss for
APV. It will help in identifying the potential risks and benefits of APV for agricultural productivity and
make informed decisions about the adoption of this technology.
• State Solar Policy/Electricity Tariff Guidelines and Regulations: The development of evacuation
infrastructure and network augmentation for APV evacuation is a critical component for ensuring the
effective integration of solar power into the grid. However, the costs associated with these activities can be
significant and may deter farmers or vendors from investing in APV systems. Evacuation infrastructure
and network augmentation developed by DISCOMs for APV evacuation may be passed in the ARR
instead of charging the vendor or the farmer.
• Technical Standards for Connectivity of Distributed Generation Resources, 2013 (amended 2019):
It already provides comprehensive guidelines for interconnection of renewable energy plants below
33kV. However, most of the states are more inclined towards renewable energy projects above 33kV
-Inter State Transmission System (ISTS). It is required that the DISCOMs should also prioritise the
smaller APV projects. DISCOMs should also consider including the voltage and frequency ride-through
requirement in addition to existing CEA requirements. As the number of small projects becomes large,
their disconnection from the grid due to voltage and frequency events could cause significant problems.

56
 Skill gap assessment and jobs required in APV sector

SKILL GAP
ASSESSMENT AND
JOBS REQUIRED IN APV
SECTOR

57
07
AGRIVOLTAICS IN INDIA

Skilling is vital for increasing the penetration of NISA. By creating a skilled workforce, we can ensure better
utilization of renewable energy resources with high-quality workmanship on the deployed technologies.
The skilling interventions must ensure better sustainability of the technology, quality of the deployment
and increased rate of deployment, which will create new jobs and livelihood opportunities for many.
Skill development initiatives will be majorly required in project engineering, project execution, project
commissioning, operation and maintenance and creating awareness, and the four given in Figure 29 are
crucial for increasing adaptation of NISA:

Technical Expertise
As solar technology advances, there is a growing need for skilled workers who can design,
install, operate and maintain these systems. Skilled workers are required to ensure that the
solar systems are installed and maintained correctly, which in turn ensures maximum energy
output and efficiency.

Quality Assurance
Solar energy systems must meet strict quality standards to ensure their safety, reliability, and
performance. Skilled workers are essential to ensure that these standards are met, which is
especially important for ensuring the safety of people and the environment.

Innovation and Research

Skilled workers are required to innovate and research new solar solutions, which are vital for the
industry's growth. With skilled workers, there is a greater chance of identifying and developing
new solar technologies, which can help in improving the efficiency and reducing the cost of solar
systems.

Education and Awareness

Skilling can help to educate and raise awareness about the benefits of solar energy, which can
lead to increased demand and adoption of solar solutions. By creating a skilled workforce, people
will be better informed about solar technology and its benefits.

Figure 29: Crucial requirements for skilling

Number of Jobs

Sector Experts, Project Managers / Installation / operation

Policy/Regulator/ Site Managers/ and Maintenance
Financial/ Designers Supervisors Technician and their
assistants/ Helpers

Figure 30: Number of jobs as per skills and designations

58
 Skill gap assessment and jobs required in APV sector

The targeted skilling measures not only increases the penetration of new innovative solar application but
also creates numerous direct and indirect jobs across the sector, most jobs will be at the operational level of
manufacturing, installation and maintenance.

The majority of the jobs will be created at the technician level or below, whereas the high-paid jobs with
value addition in the sector will be comparatively less.

Though all the skilling initiatives will not result in new job creation, they may provide better/alternate
livelihood opportunities for existing manpower migrating from other sectors to these new sectors.

7.1 SKILLING REQUIRED IN APV

The project team has identified several gaps where skilling becomes necessary to boost the APV sector in India.

Table 18: Skill gap assessment and interventions

Stakeholder Gaps Skilling Required Skilling Intervention

DISCOM Grid connectivity of the APV Capacity development of the A handbook for DISCOM
Officials poses an implementation DISCOM engineers to perform officials needs to be
challenge (less than 33 kV) the grid interconnection may be developed and circulated on
carried out for APV plants. NISAs

Krishi Vikas KVK officials are not aware of Capacity development of the KVK Interactive content should be
Kendra (KVK) APV technology, and not able officials needs to be done to developed for KVK officials.
officers to provide consultation about provide technical guidance to the Short-term capacity building
APV compatible fertilizers, farmers programs need to be crried
insecticides and pesticides out for KVK officials

Technicians Non-availability of trained/skilled Skilling programs are needed for A short-term course needs
manpower in rural areas to technicians on the operation and to be developed. This course
operate and maintain agricultural maintenance of APV systems in may be carried out in
equipment as well as APV rural areas to provide technical industrial training institutes,
systems knowledge of solar PV to existing engineering colleges,
electronics/pumps repair and agricultural institutes, and
maintenance workforce skill development institutes.

Farmers Farmers lack awareness of APV Capacity building of farmers/ A capacity-building program
systems farmer associations/FPOs needs can be integrated within
to be carried out at block/ existing schemes like PM
panchayat level KUSUM, highlighting the
benefits of APV to farmers.

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AGRIVOLTAICS IN INDIA

CAPACITY BUILDING FOR DISCOM OFFICIALS

The objective of the skilling interventions is to upgrade the knowledge and skills of the DISCOM engineers.
This will ensure the grids are safer for the operators as well as users. Also, the reliability of the grids will
increase. Following are the three major benefits of the capacity building of the DISCOM officials:

Upgrading Improving
Ensuring Safety
Knowledge Reliability

The energy sector is constantly The grid connection infrastructure The reliability of the grid connection
evolving, with modern technologies can be dangerous if not designed infrastructure is critical for the
and methods emerging all the and built correctly. Capacity functioning of modern society.
time. Grid connection engineers building of grid connection Capacity building of grid connection
need to be trained in these modern engineers can help ensure that engineers can help improve the
technologies and methods to safety measures are implemented reliability of the grid, reducing the
ensure that they can design, build and followed, reducing the risk of risk of power outages and other
and maintain grids that are safe, accidents or other incidents. disruptions
reliable and efficient.

CAPACITY BUILDING FOR TECHNICIANS

The capacity building of technicians needs to integrate into the existing skilling programs in India. This
skilling program will ensure that the technicians are equipped with the right technical and regulatory
knowledge and have the skills to implement the projects. APV solar is different from ground mount. APV
project designs are dependent upon the crops and the customer’s PV requirement. A technician must take
care of all the agricultural related factors while implementing the project.

Capacity building of technicians will ensure the following:

• Identify and use the tools and tackles used for solar PV system installation
• Install the civil/mechanical and electrical components of a solar PV system
• Test and commission solar PV system
• Maintain solar PV system
• Maintain personal health and safety at the project site

CAPACITY BUILDING FOR FARMERS

Capacity building of farmers on agrivoltaics can be done through various approaches and initiatives.

Awareness Programmes: Arrange seminars and training sessions aimed at educating farmers about
agrivoltaics. These programmes can cover subjects including the advantages of combining agricultural and
solar energy, how to install and maintain solar panels, how to choose and manage crops in shady areas, and
system integration in general.

60
 Skill gap assessment and jobs required in APV sector

Training Programmes: Visit demonstration farms where farmers can see effective agrivoltaic systems in action
and learn more about them. These farms can work as learning centres and offer possibilities for practical
training, enabling farmers to comprehend the practical aspects of fusing agriculture with solar energy.

7.2 WORKFORCE REQUIRED FOR APV

To analyse the number of jobs created and workforce required in the APV sector based on the potential
derived under this assignment, the project team referred to previously developed reports on skilling and
workforce by Council on Energy Environment and Water, Natural Resources Defence Council and Skill
Council of Green Jobs, along with stakeholder consultations.

The analysis was done under different job roles during the application stage, project approval, detailed
engineering, project execution and commissioning, and maintenance, i.e. the workforce required to perform
these job roles per MW of installation. The full-time equivalent is simply a ratio of the time spent by an
employee on a particular task/project each year to the standard total working hours in that particular year.
Application Project Approval Engineering Proj Exec. &
Stage Stage O&M
Stage Comm.

Business Proposal evaluation Solar PV designer, Solar site incharge, Solar PV maintenance
Developer, expert, solar PV energy modeller, Solar PV project technician
Site Surveyor, engineer (grid Electrical design manager, Solar PV (Elect./Civil), Solar
Designer, interconnection, eng., CAD/Draughts installer (civil), Solar project helper, Solar
Job Roles

Liasoning HSE, Site) man (Mech/Elect) PV installer PV operations and FTE

Officer (electrical), Solar maintenance engineer,
Project helper Solar PV operations
Per
and maintenance MW:
manager 5.5
New Job Roles

Agricultural Advisor, APV Structural APV Site HSE APV compatible

APV system designer designer engineer equipment operator

Figure 31: FTEs required in the APV sector

Source: Author’s analysis, stakeholder discussions and literature review12

12 India’s expanding clean energy workforce- opportunities in solar and wind energy sector (2022), CEEW, NRDC, SCGJ; Greening India’s workforce- gearing up for expansion of solar and wind power in India
(2017), CEEW, NRDC; Skill gap report for solar, wind and small hydro sector (2016), SCGJ

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AGRIVOLTAICS IN INDIA

7.3 STATE-WISE DEPLOYMENT OF APV BY 2040

Based on the annual demand trajectory of agrivoltaics in India, and the potential derived under this project,
the state-wise annual demand was mapped. This was further used to find the full-time equivalent jobs that
would be required in each of the states.

Under the moderate case, it is estimated that to meet a demand of 20 GW of APV by 2040, 1,09,879 FTE
jobs will be required and for optimistic case, 3,31,825 FTE jobs to support distinct roles and responsibilities
starting from application, project approval, detailed engineering, project execution-commissioning and
operations and maintenance.

Table 19: FTE required under moderate and optimistic case

Moderate Case Optimistic Case

It is estimated that the total capacity that may be installed It is estimated that the total capacity that may be installed
during 2024-40 in India will be 20 GW during 2024-40 in India will be 60 GW
To realise 20 GW of capacity, a total of 1,09,879 FTE To realise 60 GW of capacity, a total of 3,31,825 FTE
manpower will be required in 2024-40 manpower will be required in 2024-40

Figure 32: State wise FTEs required in the APV sector by 2040

62
 Conclusion and way forward

CONCLUSION AND WAY

FORWARD

63
08
AGRIVOLTAICS IN INDIA

In this report, we have undertaken an exhaustive examination of agrivoltaics (APV) in the context of India.
The purpose of the report is to map the potential and assess gaps in achieving the potential for APV
systems. While this report doesn’t substitute the need for detailed feasibility and crop suitability, our study
encompassed potential assessments, various business models, implementation strategies, technical aspects,
policy enablers, market dynamics, financial considerations, and the skill sets needed to catalyze the growth
of APV technology within India.

This report on APV in India will benefit various stakeholders. Government agencies and policymakers can
utilize the insights to shape renewable energy and agricultural policies, including defining APV, specifying
land usage, and creating incentives for APV adoption. Farmers and the agriculture industry can explore
APV as a supplementary income source while safeguarding crops and conserving water. The solar energy
sector can identify new market opportunities and business models through APV, focusing on scalability
and cost-efficiency. Investors and financial institutions can assess the financial viability of APV projects,
exploring funding options and monitoring market dynamics. Energy regulators and distribution companies
(DISCOMs) can consider APV to reduce the cost of supplying power to agricultural consumers and
improve energy distribution. Lastly, environmental and agricultural researchers can use the report’s findings
to advance knowledge about APV’s impact on crop yields and environmental sustainability, conducting
local and regional studies.

Our research involved an intricate potential assessment, incorporating district-level statistical data sourced
from the Ministry of Agriculture Farmer and Welfare (MoAFW). Given the unavailability of GIS data for
agricultural land, we devised a scientific approach that leveraged statistical information on crop cultivation
patterns for 17 crops across all districts in the country. This innovative methodology provided a range for
APV potential in India, estimated to be approximately 3.1 – 13.8 TW. Further data refinement at the field
level for different seasons could enhance the accuracy of these estimates at a taluk level.

In addition to this, our report has provided crucial insights into business models and the Levelized Cost
of Energy (LCOE). We’ve identified two primary APV business models, catering to both small-scale and
medium/large-scale farmers, encompassing over 95% of farmer categories in India, thus fostering inclusive
growth opportunities.

• Our analysis revealed that in states with an Average Power Purchase Cost (APPC) exceeding INR 4.5
per unit, the APV business model can operate without additional support structures. Here, the avoided
loss corpus offsets lease compensation and crop reduction, ensuring the financial viability of power
purchase from APV.
• However, states with an APPC cost lower than INR 4.5 per unit may require Viability Gap Funding
(VGF) to make the model economically feasible, thus requiring a strategic approach to deployment.
• The LCOE for APV projects, based on conservative assumptions, offers significant room for cost
reduction through economies of scale. As demonstrated in the solar PV industry, scalability can lead to
more competitive tariffs, rendering APV technology more financially attractive.
This report has illuminated the critical aspects of skills required and the potential for new job creation
within the agrivoltaics (APV) sector, in line with the data shared earlier. As APV gains momentum in India,
a skilled workforce becomes paramount for successful implementation. To meet the demand associated
with a 20 GW capacity addition by 2040, as estimated in the moderate scenario, approximately 1.1 lakh
full-time equivalent (FTE) jobs will be required. In the optimistic scenario projecting 62 GW by 2040,
this escalates to around 3.38 lakh FTE jobs, encompassing distinct roles and responsibilities spanning from
application and project approval to detailed engineering, project execution-commissioning, and operations
and maintenance.

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 Conclusion and way forward

These new employment opportunities present a significant avenue for job creation and economic development.
Skilled workers will be essential to ensure the effective deployment, maintenance, and optimization of
APV systems, thereby enhancing the country’s renewable energy capabilities while concurrently generating
employment across various skill levels. This emphasis on job creation underscores the multifaceted
advantages of APV, extending beyond its direct impacts on energy and agriculture to contribute to India’s
socioeconomic growth and sustainability goals.

As next steps, collaboration is key as stakeholders from diverse sectors must work together to facilitate
APV adoption. Continued research and development efforts are essential to refine APV methodologies and
understand its long-term impacts. The policy recommendations emerging from this report emphasize the
importance of clarity in defining agrivoltaics (APV) and specifying the allowable land usage for both solar and
farming activities to ensure minimal impact on crop yields. Additionally, there is a call for the development
of a methodology to assess yield loss in APV systems, facilitating informed decisions about technology
adoption. Policies should also consider mandatory permits and registration for groundwater usage, with a
specific focus on integrating APV into bills addressing groundwater priority. Furthermore, classifying APV as
an agricultural activity can help navigate issues related to land conversion and groundwater usage. Capacity
building is also crucial, ensuring a skilled workforce is available for APV projects. Monitoring and evaluation
of APV project performance are necessary for ongoing improvements. Lastly, market development efforts,
including awareness campaigns, can promote APV as a viable and sustainable solution. By addressing these
next steps, stakeholders can collectively unlock the potential of agrivoltaics in India, leading to sustainable
energy generation, enhanced agricultural practices, and economic benefits for all involved parties.

In conclusion, to promote the adoption of Agri-Photovoltaic (APV) systems within the framework of the
PM KUSUM initiative, several key recommendations are proposed. Firstly, it is advised that the Ministry of
New and Renewable Energy (MNRE) issue a notification that explicitly includes APV systems within the
definition of solar PV systems for all components, thus providing clarity to investors, financing institutions,
and DISCOMs. Secondly, to generate interest in APV systems, it is suggested to offer additional incentives,
such as a differential capital subsidy (CFA) and a supplementary performance-based incentive (PBI) to
compensate for the higher Levelized Cost of Electricity (LCOE) of APV systems compared to traditional
solar systems. These incentives would be based on the disparities in costs and LCOE between APV and
conventional solar systems. Additionally, allocating research and development funding to State Nodal
Agencies (SNAs) or designated bodies would enable the establishment of more APV pilot projects to
evaluate the impact of APV systems on crops and determine the most suitable crops based on local climate
conditions. Grants for these pilot projects should cover the extra capital expenditure needed for APV
systems, surpassing that of traditional solar PV systems under the PM KUSUM scheme.

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AGRIVOLTAICS IN INDIA

LIST OF ABBREVIATIONS
APV Agrivoltaics/ Agrophotovoltaics
ARR Aggregate revenue requirements
AT&C Aggregate technical and commercial loss
BAU Business as usual
BIPV Building integrated photovoltaic
BU Billion units
CAGR Compound annual growth rate
CAPEX Capital expenditure
CAZRI Central Arid Zone Research Institute
CEA Central Electricity Authority
CTPV Canal top photovoltaic
DIN Deutsches Institut für Normung e.V.
DISCOM Electricity distribution companies
DSCR Debt service coverage ratio
EPC Engineering procurement and construction
ETS Emissions trading system
FIT Feed-in tariffs
FPV Floating photovoltaic
FTE Full-time equivalent
GBI Generation-based incentive
GDP Gross domestic product
GHI Global horizontal irradiance
GIS Geographic information systems
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
GW Gigawatt

66
 ABBREVIATIONS

Ha Hectare
IARI Indian Agricultural Research Institute
ISRO Indian Space Research Organization
I-SUN India - solar usage in new applications
JNNSM Jawaharlal Nehru National Solar Mission
KUSUM Kisan Urja Suraksha evam Utthaan Mahabhiyan
kV Kilovolt
KVK Krishi Vikas Kendra
kWh Kilowatt hour
kWp Kilowatt peak
LCOE Levelised cost of electricity
MIS Management information system
MLFBM Medium-large farmer business model
MNRE Ministry of New and Renewable Energy
MoAFW Ministry of Agriculture and Farmers Welfare
MU Million unit
MW Megawatt
NISA New and innovative solar applications
O&M Operations and maintenance
OPEX Operating expenditure
PPA Power purchase agreement
PV Photovoltaic
QTL Quintals
RESCO Renewable energy service company
RIPV Rail/Road integrated photovoltaic
SFBM Small farmer business model
SOP Standard operating procedure
TW Terrawatt
VGF Viability gap funding

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AGRIVOLTAICS IN INDIA

ANNEXURE A: PROJECT AND FINANCIAL ASSUMPTION

Assumption
Sl. No. Head Sub-Head 1 Sub-Head 2 Unit Value
Installed Power Generation Capacity MW 1.0
Power
1 Capacity Capacity Utilization Factor (CUF) % 15.00%
Generation
Useful Life Years 25.00
Power Plant Cost INR Lakh 596.00
Land Required acres/MW 7.50
Land Lease to Farmer INR Lakh/acres 0.40
2 Project Cost Capital Cost/MW Land lease escalation % 2%
Capital Subsidy allowed % 0.00%
Power Plant Cost post Subsidy INR Lakh/MW 596.00
Tariff Period Years 25.00
Debt % 70.00%
Equity % 30.00%
Debt Equity
Total Debt Amount INR Lakh 417.20
Total Equity Amount INR Lakh 178.80
Loan Amount INR Lakh 417.20
Moratorium Period Years -
Debt Component
Financial Repayment Period(Including Moratorium) Years 12.00
3
Assumptions Interest Rate % 9.00%
Equity Amount INR Lakh 178.80
Nominal ROE % 14%
Return on Equity for First 20 Years % p.a 16.96%
Equity Component
Return on Equity remaining years % p.a 21.52%
Weighted Average of ROE % p.a 20.55%
Discount Rate (Post Tax WACC) % 9.19%
Income Tax % 34.94%
Fiscal Assumptions
MAT Rate % 17.47%

Financial Book Depreciation Rate for First 12 Years % 4.67%

4
Assumptions Book Depreciation Rate 13th Year Onwards % 2.00%
Depreciation
Depreciation tax purpose SLM % 5.28%
Depreciation tax purpose AD % 40.00%
O&M Charges Months 1.00

Working For Fixed Charges Mantainance Spare(% age of O&M Expenses) % 15.00%
5
Capital Receivables from Debtors Months 2.00
For Variable Charges Interest on Working Capital % 10.00%
Power Plant O&M Charges INR Lakh 8.94
Operation &
6 O&M Expense
Maintenance
Escalation % 3.71%

68
 LEVELIZED COST OF GENERATION
Unit 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M Expenses INR Lakh 8.94 9.27 9.62 9.97 10.34 10.73 11.12 11.54 11.96 12.41 12.87 13.35 13.84 14.36 14.89 15.44 16.01 16.61 17.22 17.86 18.52 19.21 19.92 20.66 21.43
Depreciation INR Lakh 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 27.83 11.92 11.92 11.92 11.92 11.92 11.92 11.92 11.92 11.92 11.92
Interest on Term Loan INR Lakh 35.98 32.85 29.73 26.60 23.47 20.34 17.21 14.08 10.95 7.82 4.69 1.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest on WC INR Lakh 1.70 1.71 1.72 1.73 1.73 1.74 1.75 1.76 1.77 1.78 1.79 1.80 1.82 1.83 1.84 1.85 1.87 1.88 1.89 1.91 1.92 1.94 1.96 1.97 1.99
Return on Equity INR Lakh 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 30.33 38.48 38.48 38.48 38.48 38.48
Land Lease
Requirement INR Lakh 3.00 3.06 3.12 3.18 3.25 3.31 3.38 3.45 3.51 3.59 3.66 3.73 3.80 3.88 3.96 4.04 4.12 4.20 4.28 4.37 4.46 4.55 4.64 4.73 4.83

Total COG INR Lakh 107.79 105.06 102.34 99.64 96.96 94.28 91.63 88.99 86.37 83.76 81.18 78.61 77.63 78.23 78.85 63.58 64.25 64.94 65.65 66.39 75.30 76.10 76.92 77.76 78.64
Discount Rate % 9.19%
Discount Factor 1.00 0.92 0.84 0.77 0.70 0.64 0.59 0.54 0.50 0.45 0.42 0.38 0.35 0.32 0.29 0.27 0.25 0.22 0.21 0.19 0.17 0.16 0.14 0.13 0.12
Present Value of COG INR Lakh 107.79 96.22 85.84 76.55 68.21 60.75 54.07 48.10 42.75 37.97 33.70 29.89 27.03 24.95 23.03 17.01 15.74 14.57 13.49 12.50 12.98 12.01 11.12 10.30 9.54

Per Unit COG Levellized

Per Unit of O&M INR/kWh 0.56 0.53 0.51 0.48 0.46 0.43 0.41 0.39 0.37 0.35 0.34 0.32 0.30 0.29 0.27 0.26 0.25 0.23 0.22 0.21 0.20 0.19 0.18 0.17 0.16

69
Per Unit value of
Depreciated Amount INR/kWh 1.75 1.60 1.47 1.34 1.23 1.13 1.03 0.95 0.87 0.79 0.73 0.67 0.61 0.56 0.51 0.20 0.18 0.17 0.15 0.14 0.13 0.12 0.11 0.10 0.09
Per Unit Interest of
Term Loan Interest INR/kWh 2.26 1.89 1.57 1.29 1.04 0.82 0.64 0.48 0.34 0.22 0.12 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Per Unit value of WC
Interest INR/kWh 0.11 0.10 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02
Per Unit Value of ROE INR/kWh 1.91 1.75 1.60 1.47 1.34 1.23 1.13 1.03 0.94 0.86 0.79 0.73 0.66 0.61 0.56 0.51 0.47 0.43 0.39 0.36 0.42 0.38 0.35 0.32 0.29
Per Unit Land Lease
Requirement INR/kWh 0.19 0.18 0.16 0.15 0.14 0.13 0.13 0.12 0.11 0.10 0.10 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04
Per Unit Value of Cost
of Generation INR/kWh 6.78 6.05 5.40 4.81 4.29 3.82 3.40 3.03 2.69 2.39 2.12 1.88 1.70 1.57 1.45 1.07 0.99 0.92 0.85 0.79 0.82 0.76 0.70 0.65 0.60

Levellised Tariff INR/kWh 5.63

ANNEXURE
AGRIVOLTAICS IN INDIA

ANNEXURE B: LIST OF STAKEHOLDERS CONSULTED

Organisation Name of Person

Dayalbagh Educational Institute, Agra Prof. Ajay Sharma and Prof G.S. Sailesh Babu

Centre for Science and Environment Mr Binit Das

Amity University Dr Abhishek Verma

Amity University Dr V.K. Jain

Central Ground Water Committee Dr Ranjan Rai

APV Farmer Mr R K Nagar

Developer Mr Kunal Shah

Rajasthan Renewable Energy Corporation Limited (RRECL) Mr Rajiv

Jaipur Vidyut Vitran Nigam Limited (JVVNL) Ms Deepti Mathur

BSES Rajdhani Power Limited (BRPL) Mr Pankaj Khargeti

A leading Renewable Design and Development Company Kept Anonymous as per request

Agency for New and Renewable Energy Research and Mr Narendra Nath Veluri
Technology (ANERT)

ANNEXURE C: LIST OF CROPS REFERENCED FROM MOAFW

List of Crops Considered for Potential Assessment
Wheat, Rice, Cotton, Soyabean, Rapeseed and Mustard, Maize, Jowar, Potato, Sesame, Coriander, Onion, Barley, Garlic,
Small Millets, Peas and beans, Banana, Dry chillies

70
 ANNEXURE

ANNEXURE D: DISCOMS OVERVIEW OF POWER IN INDIA

(2022-23)
Source: NITI Aayog, India Climate and Energy Dashboard

State DISCOM AT&C Average power Average Average

Losses (%) purchase cost Cost of Billing
(Rs./kWh) Supply Rate
(Rs./ (Rs./
kWh) kWh)
Andhra Pradesh Andhra Pradesh Eastern Power 10.92 4.24 6.72 5.71
Distribution Company Limited

Andhra Pradesh Andhra Pradesh Southern Power 12.84 4.40 7.18 5.07
Distribution Company Limited

Andhra Pradesh Andhra Pradesh Central Power 12.38 4.24 7.09 5.63
Distribution Company Limited

Arunachal Department of Power Arunachal Pradesh 37.31 3.08 12.11 3.70

Pradesh

Assam Assam Power Distribution Company N.A. 4.14 8.14 7.68

Limited

Bihar North Bihar Power Distribution Company 15.00 4.29 7.69 7.19
Limited

Bihar South Bihar Power Distribution Company 15.00 4.33 6.96 7.36
Limited

Chandigarh Chandigarh Electricity Department N.A. 3.75 5.71 5.13

Chhattisgarh Chhattisgarh State Power Distribution N.A. 3.35 5.56 6.08

Company Limited

Delhi New Delhi Municipal Council 8.96 5.22 10.18 9.41

Delhi BSES Rajdhani Power Limited 8.36 4.09 8.99 6.70

Delhi BSES Yamuna Power Limited 8.98 3.99 9.04 6.56

Delhi Tata Power Delhi Distribution Limited 8.16 4.71 9.26 7.03

Goa Electricity Department, Government of Goa N.A. 3.96 5.68 4.70

Gujarat Uttar Gujarat Vij Company Limited N.A. 3.45 5.54 3.47

Gujarat Madhya Gujarat Vij Company Limited N.A. 3.45 6.47 4.52

Gujarat Paschim Gujarat Vij Company Limited N.A. 3.45 6.01 4.03

Gujarat Dakshin Gujarat Vij Company Limited N.A. 3.45 6.96 5.01

Haryana Uttar Haryana Bijli Vitran Nigam 14.43 4.43 7.53 5.10

Haryana Dakshin Haryana Bijli Vitran Nigam 14.43 4.43 7.35 5.69

Himachal Himachal Pradesh State Electricity Board N.A. 2.76 5.99 6.90
Pradesh Limited

Jharkhand Jharkhand Bijli Vitran Nigam Limited N.A. 3.89 N.A. N.A.

Jharkhand Damodar Valley Corporation, Jharkhand N.A. 6.35 N.A. N.A.

71
AGRIVOLTAICS IN INDIA

Karnataka Hubli Electricity Supply Company Limited N.A. 3.85 8.31 8.31

Karnataka Mangalore Electricity Supply Company N.A. 3.28 8.13 8.13

Limited

Karnataka Bangalore Electricity Supply Company N.A. 4.56 8.70 8.70

Limited

Karnataka Chamundeshwari Electricity Supply N.A. 3.68 8.11 8.11

Corporation Limited

Karnataka Gulbarga Electricity Supply Company N.A. 4.09 8.11 8.11

Limited

Kerala Kerala State Electricity Board 12.11 3.91 7.22 6.17

Madhya Pradesh Madhya Pradesh Madhya Kshetra Vidyut N.A. 3.16 6.89 6.78
Vitaran Company Ltd

Madhya Pradesh Madhya Pradesh Pashchim Kshetra Vidyut N.A. 3.15 6.67 6.61
Vitaran Company Ltd

Madhya Pradesh Madhya Pradesh Poorv Kshetra Vidyut N.A. 3.16 6.77 6.66
Vitaran Company Ltd

Maharashtra Maharashtra State Electricity Distribution N.A. 4.73 7.41 7.96

Company Limited

Manipur Manipur State Power Distribution N.A. 4.33 11.33 7.26

Company Limited

Meghalaya Meghalaya Energy Corporation Limited 14.64 3.45 5.80 6.33

Mizoram Power & Electricity Department, Mizoram N.A. 5.02 9.46 6.99

Nagaland Department of Power Nagaland N.A. 4.72 8.85 5.88

Odisha Tata Power Northern Odisha Distribution 19.17 2.54 5.49 5.50
Limited (erstwhile NESCO)

Odisha Tata Power Southern Odisha Distribution 25.75 2.54 5.13 5.14
Limited (erstwhile SouthCO)

Odisha Tata Power Central Odisha Distribution 23.70 2.54 5.49 5.87
Limited (erstwhile CESCO)

Odisha Tata Power Western Odisha Distribution 24.16 2.54 5.46 5.51
Limited (erstwhile WESCO)

Punjab Punjab State Power Corporation Limited N.A. 4.50 6.76 6.47

Rajasthan Jaipur Vidyut Vitran Nigam Limited 16.81 4.00 8.61 8.00

Rajasthan Jodhpur Vidyut Vitran Nigam Limited 18.20 4.00 8.77 7.32

Rajasthan Ajmer Vidyut Vitran Nigam Limited 12.73 3.99 7.82 7.88

Telangana Telangana State Northern Power N.A. 4.69 7.57 3.95

Distribution Company Limited

Telangana Telangana State Southern Power N.A. 4.71 6.80 4.58

Distribution Company Limited

West Bengal Damodar Valley Corporation, West Bengal N.A. 6.35 N.A. N.A.

Average 3.98

72
 ANNEXURE E: STATE WISE CAPACITY PROJECTION AND FTES (OPTIMISTIC CASE)
Total State- wise
Year-wise Demand FTE required
demand (MW) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (MW) from 2024-40

Andaman and 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -
Nicobar Islands

Andhra Pradesh 8 10 13 16 25 32 41 53 68 96 123 158 202 285 365 468 599 2,562 14,093

Arunachal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -
Pradesh

Assam 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 4 19

Bihar 7 9 12 15 23 30 39 49 63 90 115 148 189 267 342 438 560 2,396 13,179

Chandigarh 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 4

Chhattisgarh 6 7 9 12 18 23 30 38 49 70 90 115 147 207 265 340 435 1,861 10,238

73
Daman and Diu 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 3 14

Delhi 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Goa 0 0 0 0 0 0 0 1 1 1 1 2 2 3 4 6 7 31 171

Gujarat 12 15 19 25 39 50 64 82 105 149 191 245 313 442 566 725 928 3,968 21,822

Haryana 17 22 28 36 57 73 93 119 152 217 278 357 457 644 825 1056 1353 5,785 31,816

Himachal 1 1 2 2 4 5 6 8 10 14 18 23 29 42 53 68 87 373 2,051

Pradesh

Jammu and 1 1 1 1 2 2 3 3 4 6 8 10 13 19 24 31 39 168 923

Kashmir

Jharkhand 2 3 3 4 7 9 11 14 18 26 33 42 54 76 97 124 159 681 3,745

Karnataka 9 11 14 18 28 36 46 59 75 107 138 176 225 318 407 522 668 2,857 15,713

Kerala 0 0 1 1 1 1 2 2 3 4 5 6 8 11 15 19 24 103 565

Ladakh 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -
ANNEXURE
 Total State- wise
Year-wise Demand FTE required
demand (MW) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (MW) from 2024-40

Lakshadweep 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Madhya 22 28 35 45 71 91 116 148 190 271 347 445 569 803 1029 1317 1687 7,213 39,674
Pradesh
AGRIVOLTAICS IN INDIA

Maharashtra 23 29 38 48 76 97 124 159 203 290 371 476 609 859 1100 1409 1804 7,716 42,437

Manipur 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Meghalaya 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Mizoram 0 0 0 0 0 0 0 0 0 0 1 1 1 1 2 2 3 12 66

Nagaland 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Odisha 1 1 1 1 2 2 3 4 5 7 9 12 16 22 28 36 46 197 1,081

Puducherry 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 4 23

Punjab 20 26 33 42 66 85 108 139 178 254 325 416 533 752 962 1232 1578 6,749 37,120

74
Rajasthan 20 26 33 42 66 85 109 139 178 254 325 416 533 752 963 1233 1579 6,753 37,143

Sikkim 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Tamil Nadu 3 3 4 5 9 11 14 18 23 33 42 53 69 97 124 158 203 868 4,774

Telangana 5 6 8 10 16 21 27 34 44 62 80 102 131 185 236 303 388 1,658 9,121

Tripura 0 0 0 0 1 1 1 1 2 2 3 4 5 7 9 11 14 62 340

Uttar Pradesh 20 26 33 43 67 85 109 140 179 255 327 418 536 756 968 1240 1587 6,788 37,336

Uttarakhand 1 1 1 2 2 3 4 5 7 9 12 15 19 27 35 45 58 247 1,358

West Bengal 4 5 6 8 12 16 20 26 34 48 61 78 100 142 181 232 298 1,273 7,000

Installation Per 180 230 295 378 591 757 970 1242 1590 2268 2904 3718 4761 6719 8604 11017 14107 60,332 3,31,825
year (MW)
 ANNEXURE F: STATE WISE CAPACITY PROJECTION AND FTES (MODERATE CASE)
Total State- wise FTE
Year wise Demand required from
demand (MW) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (MW) 2024-40

Andaman and 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -
Nicobar Islands

Andhra Pradesh 4 5 6 7 9 11 14 21 27 37 45 56 69 95 117 145 180 848 4,667

Arunachal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -
Pradesh

Assam 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 6

Bihar 4 4 5 7 8 10 13 20 25 34 42 52 65 89 110 136 168 793 4,364

Chandigarh 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

Chhattisgarh 3 3 4 5 7 8 10 16 19 27 33 41 50 69 85 106 131 616 3,390

Daman and Diu 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 5

75
Delhi 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Goa 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 2 2 10 57

Gujarat 6 7 9 11 14 17 21 33 41 57 70 87 108 147 182 225 279 1,314 7,226

Haryana 9 11 13 16 20 25 31 48 60 82 102 127 157 214 265 328 407 1,916 10,535

Himachal 1 1 1 1 1 2 2 3 4 5 7 8 10 14 17 21 26 123 679

Pradesh

Jammu and 0 0 0 0 1 1 1 1 2 2 3 4 5 6 8 10 12 56 306

Kashmir

Jharkhand 1 1 2 2 2 3 4 6 7 10 12 15 18 25 31 39 48 225 1,240

Karnataka 4 5 7 8 10 12 15 24 30 41 50 63 77 106 131 162 201 946 5,203

Kerala 0 0 0 0 0 0 1 1 1 1 2 2 3 4 5 6 7 34 187

Ladakh 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Lakshadweep 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -
ANNEXURE
 Total State- wise FTE
Year wise Demand required from
demand (MW) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (MW) 2024-40

Madhya Pradesh 11 13 17 20 25 31 39 60 75 103 127 158 196 267 330 409 507 2,389 13,138

Maharashtra 12 14 18 22 27 34 42 64 80 110 136 169 209 285 353 438 542 2,555 14,052
AGRIVOLTAICS IN INDIA

Manipur 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Meghalaya 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Mizoram 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 4 22

Nagaland 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Odisha 0 0 0 1 1 1 1 2 2 3 3 4 5 7 9 11 14 65 358

Puducherry 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 8

Punjab 10 12 15 19 24 29 36 56 70 96 119 148 183 249 309 383 474 2,235 12,292

Rajasthan 10 12 15 19 24 29 36 56 70 96 119 148 183 250 309 383 475 2,236 12,299

76
Sikkim 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Tamil Nadu 1 2 2 2 3 4 5 7 9 12 15 19 24 32 40 49 61 287 1,581

Telangana 2 3 4 5 6 7 9 14 17 24 29 36 45 61 76 94 117 549 3,020

Tripura 0 0 0 0 0 0 0 1 1 1 1 1 2 2 3 4 4 20 112

Uttar Pradesh 10 13 16 19 24 30 37 57 70 97 120 149 184 251 311 385 477 2,248 12,363

Uttarakhand 0 0 1 1 1 1 1 2 3 4 4 5 7 9 11 14 17 82 450

West Bengal 2 2 3 4 4 6 7 11 13 18 22 28 35 47 58 72 89 421 2,318

Installation Per 90 112 138 171 212 263 326 504 625 860 1066 1320 1636 2230 2762 3423 4241 19,978 1,09,879
year (MW)
POTENTIAL ASSESSMENT OF NEW AND INNOVATIVE SOLAR APPLICATIONS IN INDIA

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