The agri-voltaic system (AVS) integrates solar PV power generation with crop production, providing a dual-use solution for the Thar Desert’sThar desert high solar irradiance (5.6–6.0 kWh m−2 day−1) and arid climateArid climate. A 105 kWp AVS installed at ICAR-CAZRI, Jodhpur, was evaluated across five designs with varying PV densities and inter-row spacing to optimize energy and crop yields. Crops such as mung bean, moth bean, cluster bean, isabgol, cumin, chickpea, aloe vera, brinjal, spinach, snap melon, and aromatic grasses were cultivated beneath and between PV rows. In 2019, mung bean yields under double—and triple-row configurations reached 659 ± 26 kg ha−1, higher than control plots (612 ± 24 kg ha−1). Brinjal and snap melon yields were 80.4 t ha−1 and 13.3 t ha−1, respectively. The system generated 4.3 kWh day−1 kW−1, producing annual revenue of INR 8.26 lakh. Rainwater harvestingRainwater harvesting captured 71.1 m3 from 212.6 mm rainfall for PV cleaning and irrigation. Economic analysis showed the AVS-1 (irrigated) design had the highest IRR (20.38%) and lowest LCOE (INR 3.17 kWh−1). Compared with conventional PV systems, AVS offered superior techno-economic performance. It enhanced microclimate conditions and reduced soil erosionSoil erosion. Carbon footprint reduction was estimated at 498 t ha−1 year−1. High initial costs and limited farmer awareness remain adoption barriers. Capacity-building and integration with PM-KUSUM are essential for scalability. AVS strengthens both food and energy security. It promotes sustainable land use in arid regionsArid regions.