With agriculture consuming over 30% of Andhra Pradesh’s electricity, the state is exploring agrivoltaics as a solution to ease the mounting subsidy burden on power utilities while boosting farmer incomes.

A new blueprint, “Potential of Agrivoltaics in Andhra Pradesh: Conducive Regulatory Framework and Off-Taker Analysis”, highlights how the state could become India’s demonstration hub for dual land use through an Agrivoltaics Mission 2030, targeting 500 MW of installed capacity.

Policy and Energy Context

Andhra Pradesh’s agriculture sector currently accounts for nearly 18,000 million units of power annually, creating a ₹10,500 crore subsidy liability for distribution companies. By combining crop cultivation with solar power generation, agrivoltaics offers a pathway to reduce costs while ensuring reliable daytime supply.

The state’s Integrated Clean Energy Policy 2024 and Natural Farming Mission, which involves six million farmers, provide a strong foundation to launch such a mission.

Land and Farmer Benefits

With 14.7% of land classified as wasteland and nearly 49.55 lakh hectares under cultivation, Andhra Pradesh has significant potential for dual-use development. According to the study, farmers stand to earn ₹40,000–₹50,000 per acre annually through leasing their land for projects. Under developer or farmer-producer organization models, revenues could reach ₹15–18 lakh per MW each year.

Industry and Developer Concerns

Developers note that agrivoltaic structures involve a 20% higher capital expenditure than conventional ground-mounted solar plants. Experts stress the need for tariff clarity and CAPEX benchmarks to ensure bankability and attract investment.

The SAMPADA Framework

The report proposes the SAMPADA framework—Statutory recognition, Agricultural land flexibility, Mobilising finance, Pathways for alternate off-take, Assigning responsibilities, Development strategy, and Alignment at institutional level—to guide regulatory and financial reforms.

National Implications

If implemented, Andhra Pradesh could emerge as a national leader in energy-agriculture convergence, balancing food and energy security while advancing India’s clean energy transition.