What Happened
- PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Uttham Mahabhiyan) scheme has enabled over 10 lakh solar pumps to be installed or solarized across India, helping farmers shift from expensive diesel-powered to clean solar-powered irrigation
- In FY 2024–25 alone, Component B installed 4.4 lakh pumps (a 4.2-fold increase over the previous year) and Component C solarized 2.6 lakh existing pumps (25 times more than FY24)
- Union Budget 2025–26 allocated ₹2,600 crore to PM-KUSUM — a 26% increase over previous year's actual expenditure of ₹2,525 crore
- Farmers who lease land under Component A solar plants earn an average of ₹30,000/acre annually; those who invest directly earn 11–16% returns
- The current phase of PM-KUSUM concludes in March 2026, after which Phase II is planned
- Solar irrigation replaces diesel pumps, reducing agricultural carbon emissions and diesel subsidy dependence, while improving farmer income predictability
Static Topic Bridges
PM-KUSUM Scheme: Structure and Components
PM-KUSUM, launched in 2019 under the Ministry of New and Renewable Energy (MNRE), aims to add ~34,800 MW of solar capacity in the agriculture sector by 2026, with a total outlay of ₹34,422 crore. It has three components addressing different dimensions of farm power needs:
- Component A: Installation of 10,000 MW of decentralized, grid-connected solar power plants (2 MW each) on barren/uncultivable land; farmers act as energy producers, selling power to DISCOMs
- Component B: Installation of 14 lakh standalone off-grid solar water pumps (2 HP to 7.5 HP) replacing diesel pumps for irrigation
- Component C: Solarization of 35 lakh existing grid-connected agriculture pumps using solar panels; surplus solar power sold to grid
- Central subsidy: 30% of benchmark cost for most components; state subsidy: additional 30% (farmers bear remaining 40% or less)
- Progress: 10+ lakh pumps installed/solarized cumulatively; FY25 saw the fastest-ever annual increase
Connection to this news: PM-KUSUM's accelerating implementation shows the transition from diesel to solar irrigation is becoming economically viable and scalable — and now needs to be further institutionalized under Phase II with better grid integration.
Renewable Energy in Agriculture: Agri-Solar Nexus
The intersection of agriculture and solar energy — sometimes called "agrivoltaics" or agri-solar — represents a dual-use solution where the same land or infrastructure delivers both food and energy. India's farming sector consumes enormous energy for irrigation: ~19% of India's total electricity consumption, and diesel pump sets number over 2 crore units, costing farmers ₹1.2–1.8 lakh crore annually in fuel costs. Solar pumps eliminate recurring diesel costs and insulate farmers from fuel price volatility.
- India's installed solar capacity: 100+ GW (2025); target 500 GW non-fossil energy by 2030
- Agricultural electricity consumption: ~19% of national total — heavily subsidized by state governments
- State electricity subsidy for farmers: estimated ₹75,000–1,00,000 crore annually (aggregate across states)
- Diesel pump sets in India: ~2 crore units; each costs ₹25,000–75,000/year in fuel
- Carbon footprint: replacing a diesel pump with solar eliminates ~3–5 tonnes of CO2 per year per pump
- Agrivoltaics: dual land use for crops + solar panels shown to increase water use efficiency by 30–40% in some studies
Connection to this news: PM-KUSUM solves multiple problems simultaneously — it reduces the state electricity subsidy burden (DISCOMs buy surplus solar power at agreed rates), reduces carbon emissions, and increases farmer income predictability.
India's Climate Commitments and NDC Targets
India's Nationally Determined Contribution (NDC) under the Paris Agreement (updated in 2022) commits to: (1) reducing emissions intensity of GDP by 45% from 2005 levels by 2030; (2) achieving 50% cumulative electric power from non-fossil fuels by 2030; and (3) creating a carbon sink of 2.5–3 billion tonnes CO2 equivalent through forests by 2030. Agricultural decarbonization — including solar irrigation, crop residue management, and natural farming — is a critical enabler of these targets.
- India's updated NDC (2022): 45% emissions intensity reduction by 2030; 50% non-fossil power capacity
- India's Panchamrit commitments (COP26, Glasgow, 2021): 500 GW non-fossil energy; net zero by 2070
- Agriculture sector share of India's GHG emissions: ~14% (primarily methane from livestock and paddy, N2O from fertilizers)
- Replacing diesel pumps nationwide: could prevent ~60 lakh tonnes CO2/year
- PM-KUSUM's Phase I target of 34,800 MW solar in agriculture alone = ~10% of India's 2030 solar ambition
Connection to this news: Solar irrigation is one of the most impactful near-term decarbonization levers in Indian agriculture, directly contributing to India's NDC and Panchamrit commitments without requiring behavioral change from farmers — just a switch in power source.
Agricultural Subsidies and Fiscal Sustainability
India's agricultural subsidy architecture is large and complex: food subsidy, fertilizer subsidy, power subsidy, and price support mechanisms together cost over ₹3–4 lakh crore annually. State power subsidies to farmers are fiscally unsustainable for many state DISCOMs (electricity distribution companies), which run chronic losses. PM-KUSUM offers a fiscally smarter alternative: a one-time capital subsidy (30% central + 30% state) replaces recurring annual power subsidies, and the state DISCOM actually receives solar power from farmers rather than supplying subsidized power.
- DISCOM losses: cumulative losses of Indian DISCOMs exceeded ₹6 lakh crore by 2024; power subsidy to agriculture is a major contributor
- UDAY (Ujwal DISCOM Assurance Yojana) and RDSS (Revamped Distribution Sector Scheme) are reform frameworks to improve DISCOM financial health
- PM-KUSUM Component C: farmer's pump solarized → excess solar fed into grid → DISCOM pays farmer → state subsidy bill falls
- Each solarized pump (Component C) reduces state electricity subsidy by ₹15,000–30,000/year per pump
- 10 lakh pumps solarized = potential annual subsidy relief of ₹1,500–3,000 crore for states
Connection to this news: PM-KUSUM is not just an energy or environment scheme — it is a fiscal reform instrument that, at scale, can structurally reduce state DISCOM losses while improving farmer income, creating a rare win-win in agricultural policy.
Key Facts & Data
- PM-KUSUM launched: 2019; total outlay: ₹34,422 crore; target: 34,800 MW solar in agriculture by 2026
- Component A: 10,000 MW decentralized solar plants; Component B: 14 lakh standalone solar pumps; Component C: 35 lakh existing pump solarizations
- Cumulative progress: 10+ lakh pumps installed/solarized
- FY25 acceleration: Component B — 4.4 lakh pumps (4.2x increase); Component C — 2.6 lakh pumps (25x increase)
- Budget FY26: ₹2,600 crore (26% increase over FY25 actuals)
- Farmer income from land lease (Component A): avg ₹30,000/acre/year
- Diesel pump sets in India: ~2 crore units; fuel cost ₹25,000–75,000/year each
- CO2 saving per solar pump replacement: ~3–5 tonnes/year
- India's NDC (2022): 45% emissions intensity reduction; 50% non-fossil power capacity by 2030
- DISCOM cumulative losses: >₹6 lakh crore (2024)
- Phase I concludes: March 2026; Phase II planned to follow