Report Overview

To achieve renewable energy goals, increasing crop yield and panel efficiency, and the government’s supportive initiatives are the main factors driving the India Agrivoltaics market during the forecast period between 2023 and 2029.

India Agrivoltaics Market – Industry Trends & Forecast Report, 2029

India Agrivoltaics market size was estimated at USD 102.01 Million in 2022. During the forecast period between 2023 and 2029, the India Agrivoltaics market size is projected to grow at a CAGR of 12.30% reaching a value of USD 204.58 Million by 2029. The Indian Agrivoltaics Market is being driven by the need to utilize vast land areas for solar installations to achieve ambitious renewable energy goals and at the same time, as the nation is primarily an agrarian economy with 60% of its land area farmed. Furthermore, increasing crop yield and panel efficiency is driving the market's growth, as agrivoltaics offers shading which can improve the yields of some crops and the cooler microenvironment created by crops may improve the panel efficiency. In addition, government initiatives such as the formation of ‘India Agrivoltaics Alliance’ are also contributing to the expansion of the Agrivoltaics market, fostering a favorable environment for its growth.

Agrivoltaics – Overview

Agrivoltaics is a simultaneous use of land for agriculture and solar PV power generation. This is also known as agrophotovoltaics, or dual use solar, as the land is used to grow crops and for solar panel installations. Depending on factors such as geographical aspects, types of crops, and climatic factors of a location, the solar panels can be deployed by placing them in between crops, putting them on stilts above crops and installing them as greenhouse solar buildings. Benefits of agrivoltaics include greater yield, lower consumption of water, additional source of income for farmers, and a shared sense of value for land usage. Agrivoltaics are in the technology demonstration phase in India.

India Agrivoltaics Market

Growth Drivers

Increasing Focus on Utilizing Vast Land Areas for Solar Installations To Achieve Ambitious Renewable Energy Goals

India would need to devote large tracts of land to solar installations to meet its ambitious renewable energy goals. At the same time, the nation is primarily an agrarian economy with 60% of its land area farmed. According to the India Energy Outlook Report 2021, energy demand is set to increase 50% by 2030. India has also set a target of 450 GW of renewable energy for 2030. Considering that India has almost 60.4% of land under agricultural use, it makes sense to think of dual use of the same. Both solar power and crops can address energy concerns & food security. Combining agriculture with photovoltaic plants or agriPV is full of potential in India. According to Dr Priyabrata Santra, Principal Scientist at Indian Council of Agriculture Research (ICAR)-Central Arid Zone Research Institute, Jodhpur, “India needs to combine two important missions of the country – the Food Security and Solar Mission by applying agrivoltaics to multiply land productivity.”

Restraints

High Capital Cost

The main barrier to the wide-scale adoption of agrivoltaics is its capital cost. The mounting structure of an agrivoltaics system is costlier for several reasons such as the elevated design and lower panel density increase the materials that go into the mounting structure, the increase in height also raises the risk of higher wind velocity, requiring better quality materials and the cost of land preparation and installation is correspondingly high. The final cost of the agrivoltaics system will depend on the system design. The higher cost impacts the competitiveness of agrivoltaics compared to conventional solar plants and raises financial sustainability concerns.

Impact of COVID-19 on India Agrivoltaics Market

The India agrivoltaics market was minimally affected by the COVID-19 pandemic because it has not yet reached a broad commercialization stage. This emerging concept is still not widely embraced by farmers and faces a shortage of supporting data. According to NCBI “In the renewable sector, the short-term effect of the pandemic was reasonably mild. India’s renewable power sector is expected to see a substantial fall in 2020–21, due to the expected continued disruptions triggered by the COVID-19 pandemic. The recovery of the sector would be contingent on the recommencement of economic activity. Renewables came in as a bright spot with an increase in the relative share in the total generation mix. In 2020, we expect a drop in rooftop and open access installations by approximately 18–20 percent. These markets would also be at risk from growing policy uncertainty in 2021 and 2022. Demand has started to rebound with the easing of lockdown and opening of facilities.”

India Agrivoltaics Market

Segmental Coverage

India Agrivoltaics Market – By System Design

Based on the System Design, India Agrivoltaics Market is divided into Fixed Solar Panels and Dynamic. The dynamic segment dominates the India Agrivoltaics market. Dynamic agrivoltaics systems incorporate solar panels that can track the movement of the sun throughout the day. This feature allows for more efficient land utilization as the panels can adjust their angles to maximize energy production. 

India Agrivoltaics Market – By Cell Type

Based on Cell Type, India Agrivoltaics Market is divided into Monocrystalline and Polycrystalline. The monocrystalline cell type dominates the India Agrivoltaics market. Large monocrystalline cells require less space for the same energy output, which is crucial in agrivoltaics, where land is often dual-used for both agriculture and solar energy production. The space-efficient nature of monocrystalline cells allows for more agricultural activities to take place beneath the solar panels. Monocrystalline solar cells are known for their higher energy conversion efficiency compared to polycrystalline cells. This means that they can generate more electricity from the same amount of sunlight, making them a preferred choice in environments where maximizing energy production is essential.

India Agrivoltaics Market – By Region

Based on the Region, India Agrivoltaics Market is divided into North India, South India, East India, and West India. North India dominate the India Agrivoltaics market due increasing pilot project in the region. The original pilot project by CAZRI was rolled out in two locations. There is a one-acre, 105 kWp system with a rainwater harvesting tank at CAZRI in Jodhpur and a 25 kWp system at the organization’s regional research station at Bhuj. A 41% increase in land productivity in arid regions has proven the pilot successful. Currently, the program is being replicated in the northern states of Gujarat, Delhi, Madhya Pradesh, and Bihar.

Competitive Landscape

Major players operating in India Agrivoltaics market include Gujarat Industries Power Company Ltd, Abellon CleanEnergy Limited, Mahindra Susten Private Limited, Jain Irrigation Systems Ltd, and WTWH Media, LLC. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 - The India Agrivoltaics Alliance (IAA) was launched, during the first India Agrivoltaics Summit held on October 30, by the Joint Secretary of Ministry of New and Renewable Energy (MNRE) Lalit Bohra. Supported by the India Climate Collaborative (ICC) and Bloomberg Philanthropies, IAA brings together organisations across the entire agriculture and solar value chains.

Scope of the Report

By System Design

• Fixed Solar Panels

• Dynamic

By Cell Type

• Monocrystalline

• Polycrystalline

By Crop

• Vegetables

• Fruits

• Crops

• Others

By Region

• North India

• South India

• East India

• West India