India's electricity distribution system, particularly in rural areas, is plagued by financial losses due to the dual burden of universal service obligations and politically determined tariffs. The introduction of Agriphotovoltaics (APV), which allows for the dual use of land for solar power generation alongside agriculture, presents a promising structural innovation. By generating electricity directly within rural feeders, APV systems can significantly reduce transmission losses and defer costly infrastructure investments. Additionally, these systems can transform farmers from mere subsidized consumers into active energy partners. Pilot projects conducted by the Indian Council for Research on International Economic Relations (ICRIER) in Rajasthan and Odisha showcase how farmer-led APV models can align renewable energy deployment with livelihood enhancement. A sensitivity analysis from the Rajasthan pilot indicates that while capital subsidies are beneficial, a Feed-in Tariff (FiT) of approximately ₹4.40/kWh is crucial for ensuring long-term financial viability and scalability. The findings underscore the necessity for policy recalibration to recognize APV as both a decentralized energy solution and a tool for rural development, which could improve DISCOM viability, boost farmer incomes, and support India's energy transition.