Next phase of PM-KUSUM may be OKed soon: Pralhad Joshi
The Union Ministry of New and Renewable Energy (MNRE) indicated that approval of the next phase of the PM-KUSUM scheme — referred to as PM-KUSUM 2.0 — could come soon.
The new phase is expected to carry a dedicated agrivoltaics component, letting farmers earn income from electricity generated on their own land.
The proposed design targets small and marginal farmers, farmer cooperatives, and panchayats rather than large developers.
Officials noted that further research is needed to optimise which crop varieties pair best with which solar panel configurations before wide rollout.
The current PM-KUSUM scheme, in its existing form, runs up to March 2026, and the new phase would extend and expand it.
PM-KUSUM Scheme (2019) — Architecture and Components
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was approved by the Cabinet Committee on Economic Affairs (CCEA) on 19 February 2019. Its stated goal is to convert the "Annadata" (food provider) into an "Urjadata" (energy provider) by de-dieselising agricultural pumps and adding decentralised solar capacity in rural areas. The scheme has three components: Component-A (decentralised, ground-mounted, grid-connected renewable power plants up to 2 MW, set up on farmers'/cooperatives' land with power sold to DISCOMs); Component-B (installation of standalone off-grid solar-powered agriculture pumps, replacing diesel pumps); and Component-C (solarisation of existing grid-connected agriculture pumps, with two sub-parts — C1 for individual pump solarisation and C2 for feeder-level solarisation).
PM-KUSUM 2.0 is the scheme's second generation, layering a new agrivoltaics component on top of the existing three-component structure as the current phase approaches its March 2026 deadline.
India's Renewable Energy Targets and the "Panchamrit" Framework
At COP26 in Glasgow (1 November 2021), India announced a five-part climate pledge known as "Panchamrit," which included raising non-fossil energy capacity to 500 GW by 2030 and meeting 50% of energy requirements from renewable sources by 2030. The Union Cabinet formally updated India's Nationally Determined Contribution (NDC) on 3 August 2022, committing to a 45% reduction in GDP emissions intensity (from 2005 levels) and the 50% non-fossil cumulative electric power capacity target by 2030, alongside the long-term goal of net-zero emissions by 2070.
Key Details
- Five Panchamrit elements: 500 GW non-fossil capacity by 2030; 50% energy from renewables by 2030; cutting projected carbon emissions by 1 billion tonnes by 2030; 45% reduction in emissions intensity of GDP by 2030 (from 2005 levels); net-zero by 2070.
- India had already met its earlier 2015 NDC target of 33–35% emissions-intensity reduction ahead of schedule (33% reduction achieved 2005–2019).
- Decentralised agricultural solar under PM-KUSUM contributes toward the non-fossil capacity and renewable-energy-share targets.
Expanding PM-KUSUM into a second phase is one of the concrete instruments through which India works toward its Panchamrit and updated NDC commitments, since agricultural solar adds both non-fossil capacity and displaces diesel-based irrigation.
Decentralised Renewable Energy (DRE) and Farmer Income
Decentralised Renewable Energy refers to small, distributed generation located close to the point of use — as opposed to centralised utility-scale power plants feeding a national grid. PM-KUSUM's Component-A and the proposed agrivoltaics component are both DRE models: the generating asset sits on farm land, is typically farmer- or cooperative-owned, and the power (or surplus power) is sold to the local DISCOM under a power purchase agreement, creating a direct new income stream for the landholder in addition to the value of any crop grown.
Key Details
- DRE models reduce agricultural feeder load, lower AT&C (aggregate technical and commercial) losses for DISCOMs, and cut the fiscal burden of farm power subsidies.
- Component-C2 (feeder-level solarisation) is a DRE approach that solarises an entire agricultural feeder rather than individual pumps, benefiting many farmers from one installation.
- The proposed PM-KUSUM 2.0 focus on cooperatives and panchayats (rather than only individual farmers or private developers) extends the DRE, community-ownership model already piloted under Component-A.
The next phase is explicitly designed to widen farmer/cooperative ownership of decentralised solar assets, reinforcing the DRE model as a route to both energy security and additional farm income.
- PM-KUSUM approved by CCEA: 19 February 2019.
- Current scheme target: 34,800 MW of solar capacity by March 2026; Central Financial Assistance ≈ ₹34,422 crore.
- Component-C funding split: 30% Centre + 30% State + 40% farmer (bank finance allowed on farmer's share).
- Panchamrit (COP26, 1 November 2021): 500 GW non-fossil capacity and 50% renewable energy share by 2030; net-zero by 2070.
- India's updated NDC approved by Cabinet: 3 August 2022 — 45% emissions-intensity reduction and 50% non-fossil power capacity by 2030.
- PM-KUSUM 2.0 (as reported) proposes a dedicated agrivoltaics component with an indicative capacity ambition in the 10 GW range, alongside the existing three components.