PM-KUSUM and the rise of solar-powered farming: Opportunities for India’s agricultural sector
Commentary on India's farm-solar programme highlights that PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) has seen its fastest uptake under Component C, which solarises grid-connected agricultural pumps.
Maharashtra has emerged as the national frontrunner, having installed tens of thousands of solar agricultural pumps and secured regulatory approval for several gigawatts of solar procurement under Component C.
The analysis argues that scaling the scheme nationally now depends on steady, disciplined execution rather than further design changes — extending practices that already work in frontrunner states until they become the norm across India.
The scheme is positioned as central to reducing the agricultural sector's dependence on subsidised grid power and diesel while improving irrigation reliability.
PM-KUSUM Scheme (2019)
PM-KUSUM is the Ministry of New and Renewable Energy's (MNRE) flagship scheme to expand solar power use in the farm sector, covering both electricity generation and pump solarisation. It has three components addressing different points in the farm-power value chain — decentralised generation, standalone irrigation, and solarisation of existing grid-linked pumps.
Key Details
- Launched in 2019 by MNRE
- Component A: setting up decentralised, ground/stilt-mounted solar power plants of individual capacity up to 2 MW each, aggregating to a target of 10,000 MW, on barren/agricultural land, with power sold to DISCOMs under long-term (25-year) Power Purchase Agreements
- Component B: installation of 17.5 lakh standalone off-grid solar-powered agricultural pumps
- Component C: solarisation of 10 lakh existing grid-connected agricultural pumps (individual pump-level and feeder-level solarisation), with surplus power sellable back to the grid
- Cumulative target across all components: about 34,800 MW of solar capacity for the farm sector
- Central Financial Assistance (CFA): for Components A and B, the Centre provides 30% subsidy, with state governments typically adding another 30%, leaving the balance to be borne by the beneficiary/developer (higher CFA for northeastern and hill states)
Maharashtra's lead in Component C — deploying tens of thousands of pumps and securing regulatory clearance for multi-gigawatt procurement — is the case study the commentary cites as proof that the scheme's design works when implementation is consistent, making it the benchmark for other states.
Renewable Energy Targets and the National Solar Mission
India's push to solarise agriculture sits within its broader renewable energy strategy, anchored by the Jawaharlal Nehru National Solar Mission (2010) and the national target of 500 GW of non-fossil-fuel-based installed electricity capacity by 2030 under India's updated Nationally Determined Contributions (NDCs, 2022).
Key Details
- National Solar Mission launched 2010 under the National Action Plan on Climate Change (NAPCC)
- India's updated NDC (August 2022) targets 50% cumulative electric power installed capacity from non-fossil sources by 2030
- Agriculture consumes roughly a fifth of India's total electricity, much of it at subsidised or free tariffs — making farm-sector solarisation a significant lever for both renewable capacity addition and DISCOM financial health
- India is a founding member of the International Solar Alliance (ISA), headquartered in Gurugram
PM-KUSUM operationalises the national solar target at the farm level, converting subsidised (loss-making) agricultural power connections into either self-generating or grid-feeding solar assets.
Groundwater Sustainability and the Solar Pump Trade-off
A recognised environmental concern with solar-powered irrigation pumps is that once the upfront capital cost is subsidised, the marginal cost of pumping water approaches zero, which can incentivise over-extraction of groundwater — an issue distinct from, but linked to, the energy-transition benefits of the scheme.
Key Details
- India is the world's largest extractor of groundwater, used for the majority of irrigation
- Central Ground Water Authority (CGWA), functioning under the Environment (Protection) Act, 1986, regulates groundwater extraction and notifies over-exploited/critical assessment units
- PM-KUSUM Component C's feeder-level solarisation model (as opposed to individual pump solarisation) is seen as one way to retain some grid-based metering and moderate unchecked pumping compared to fully standalone Component B pumps
The commentary's call for "disciplined execution" implicitly includes managing this trade-off — solar irrigation gains must be paired with groundwater governance so that cheaper power does not translate into unsustainable extraction.
- PM-KUSUM launched: 2019; nodal ministry: MNRE
- Three components: A (10,000 MW decentralised solar plants), B (17.5 lakh standalone solar pumps), C (10 lakh solarised grid-connected pumps)
- Cumulative target: ~34,800 MW of farm-sector solar capacity
- Central Financial Assistance: 30% (Centre) + 30% (State) under Components A/B, varying by component and region
- Maharashtra: over 45,000 solar agricultural pumps installed; state electricity regulator approved multi-gigawatt-scale Component C procurement
- India's NDC target: 50% non-fossil electric capacity by 2030; 500 GW non-fossil capacity target