Renewable Energy Transforming Rural Economy: Pralhad Joshi at 4th National Agro-RE Summit

The Minister said renewable energy technologies are rapidly reaching farms and rural households, helping farmers reduce energy costs and improve agricultural productivity.

Union Minister for New and Renewable Energy Pralhad Joshi highlighted the growing role of renewable energy in strengthening India’s rural economy and boosting farmers’ incomes while addressing the 4th National Agro-RE Summit in New Delhi.

The Minister said renewable energy technologies are rapidly reaching farms and rural households, helping farmers reduce energy costs and improve agricultural productivity.

“A farmer irrigating his field today may be doing so using solar power, and a household that once worried about electricity bills may now be producing its own electricity through rooftop solar. This is not just an energy transition; it is also a transformation of the rural economy,” he said.

Solar Pumps Lower Irrigation Costs

Joshi noted that solar irrigation pumps are emerging as a key driver of agricultural energy transformation by reducing farmers’ dependence on diesel and ensuring reliable daytime irrigation.

According to estimates:

• Diesel irrigation costs around ₹6,790 per acre for wheat

• It can exceed ₹8,000 per acre for crops like cotton

By switching to solar pumps, farmers can save between ₹5,000 and ₹6,500 per acre annually, while also reducing emissions.

Under the PM-KUSUM scheme:

• More than 10 lakh standalone solar agricultural pumps have been installed

• Over 13 lakh grid-connected pumps have been solarised across the country

The Minister said these initiatives are enabling farmers to become “Urjadaata” (energy providers) alongside their traditional role as “Annadata” (food providers).

PM-KUSUM 2.0 to Introduce Agri-PV

Joshi announced that the government is preparing PM-KUSUM 2.0, which will include a dedicated 10 GW Agrivoltaic (Agri-PV) component.

The initiative will promote co-location of solar panels with crops, allowing farmers to generate electricity while continuing agricultural activities on the same land.

This model is expected to support decentralised renewable energy generation in rural India.

Agrivoltaics Offer New Income Opportunities

Highlighting the potential of agrivoltaic systems, Joshi said integrating solar power with crop cultivation can significantly increase land productivity and farmers’ earnings.

Estimates suggest that India’s agrivoltaic potential could range from 3,000 GW to nearly 14,000 GW.

Studies indicate that agrivoltaics could increase farmers’ annual income from around ₹60,000 per acre to over ₹1 lakh per acre, combining agricultural output with electricity generation revenue.

Rooftop Solar Expanding Energy Access

The Minister also highlighted the progress of the PM Surya Ghar: Muft Bijli Yojana, under which more than 31 lakh households have already installed rooftop solar systems to generate their own electricity and reduce power bills.

India’s Renewable Energy Capacity Surges

Joshi said India’s renewable energy expansion has been rapid over the past decade.

• Non-fossil fuel capacity increased from about 81 GW in 2014 to nearly 275 GW today

• Solar capacity grew from 2.8 GW to about 143 GW

• Wind capacity increased from 21 GW to around 55 GW

• Biopower capacity rose from 8.1 GW to about 12 GW

More than half of India’s installed electricity capacity now comes from non-fossil sources, he said.

Path to 500 GW Clean Energy Target

Joshi emphasised that India’s target of 500 GW non-fossil fuel capacity will be achieved through millions of decentralised renewable installations across farms, rooftops and rural enterprises.

Collaboration Key to Agrivoltaic Expansion

Speaking at the summit, Union Minister of State for Power and New & Renewable Energy Shripad Yesso Naik highlighted agrivoltaics as a transformative solution for India’s clean energy transition.

He said agrivoltaic systems enable simultaneous crop cultivation and electricity generation, improving land-use efficiency while addressing competing demands for land.

Naik called for stronger collaboration between government, industry, research institutions and financial organisations to scale up agrivoltaic technologies and make them accessible to farmers across the country.