PM-KUSUM 2.0: Experts Seek Focus on Farmer Benefits, Timely DISCOM Payments and Agrivoltaics
The first phase of PM-KUSUM (the central scheme for solar power in farming, launched in 2019) ended in March 2026. The government is now preparing the next phase, PM-KUSUM 2.0.
At a webinar held by the Centre for Science and Environment (CSE) on 27 October 2026, energy experts reviewed phase one. Progress was uneven: under Component A (small solar plants on farm land), only about 2,400 MW was installed against a target of 10,000 MW, roughly a quarter. Component B (standalone solar pumps) did best, reaching close to 90% of the sanctioned number of pumps.
Experts said late payments by DISCOMs (state power distribution companies) raise the borrowing cost of solar developers and make projects risky. They asked for clear billing timelines and payment security in phase two.
They recommended checking land, grid capacity, clearances and finance before giving out capacity, setting tariffs that cover full project costs, and linking solar pumps to water-saving rules, because cheap solar pumping could lead to more groundwater use.
The government has indicated a dedicated agrivoltaics component (solar panels and crops on the same land) in PM-KUSUM 2.0, reported at about 10 GW. Public reports cite a proposed requirement of up to ₹51,000 crore, but the final outlay and guidelines still need formal approval.
Experts stressed that success should be measured by real benefits to farmers, including small and tenant farmers, and not by solar capacity alone.
Power Distribution Companies (DISCOMs): India's Weakest Link in the Power Chain
A DISCOM (distribution company) is the company that brings electricity to your home, farm or shop. It buys power in bulk from power plants, carries it through local wires, sends you a bill and collects the money. In India, most DISCOMs are owned by state governments. Because every rupee in the power sector finally comes from the bills that DISCOMs collect, their financial health decides the health of the whole power sector.
Under PM-KUSUM Component A and feeder solarisation, DISCOMs buy power from farmers' and developers' solar plants. Experts at the webinar said late DISCOM payments raised costs and slowed phase one. That is why they want clear billing timelines and payment security built into PM-KUSUM 2.0.
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan)
PM-KUSUM is a central government scheme that helps farmers use solar power for irrigation and earn money by producing solar electricity. It is run by the Ministry of New and Renewable Energy (MNRE) and was launched in 2019. It replaces diesel pumps and costly grid power with sunlight, which saves fuel, cuts pollution and can give farmers a second income.
Phase one has ended with mixed results, so the design of PM-KUSUM 2.0 matters. Experts want capacity to be allocated only where land, grid and finance are ready, and want success measured by farmers' income and water use, not only megawatts.
Agrivoltaics (Agri-Photovoltaics): Growing Crops and Solar Power on the Same Land
Agrivoltaics means using the same piece of land for two jobs at once: growing crops and producing electricity from sunlight. Solar panels are fixed high above the ground or in widely spaced rows, so that crops can still grow below or between them. The farmer can earn from both the harvest and the power. Partial shade from the panels can also reduce water loss from the soil.
Experts said agrivoltaic projects under PM-KUSUM 2.0 must suit local crops, climate and farm sizes. They also want eligibility and finance designed so that small and tenant farmers, not only big landowners, can take part.
- PM-KUSUM launched: 2019; nodal ministry: MNRE
- Total target: 34,800 MW of solar capacity by March 2026
- Component A: about 2,400 MW installed against 10,000 MW (about a quarter), as per a recent assessment
- Component B: close to 90% of sanctioned standalone pumps installed
- Component C targets: 35 lakh grid-connected pumps (individual and feeder-level)
- PM-KUSUM 2.0: proposed agrivoltaics component of about 10 GW; reported requirement of up to ₹51,000 crore (not yet approved)
- Webinar "Redesigning PM-KUSUM 2.0" held by CSE on 27 October 2026