How PM-KUSUM Can Accelerate Solar Power Uptake in Indian Agriculture
The PM-KUSUM (Pradhan Mantri Kisan Urja Evam Utthaan Mahabhiyan) scheme, launched in 2019, has been a flagship initiative aimed at transforming India’s agricultural energy landscape. Scheduled to conclude in March 2026, the scheme seeks to add 34,800 MW of solar capacity across the country, supported by a central financial outlay of ₹34,422 crore. While the scheme promises significant benefits for farmers and the environment, progress to date has been a mixed bag.
According to a report by the Centre for Science and Environment (CSE), the scheme has achieved only about 30 per cent of its overall targets since inception. Data submitted to the Lok Sabha in August 2025 highlights some of the scheme’s successes: as of 30 June, solar pump installations under PM-KUSUM have saved an estimated 580 million litres of diesel annually and reduced carbon dioxide emissions by approximately six million tonnes.
Scheme Components and Progress
PM-KUSUM is structured around three primary components. Component A focuses on decentralised solar power plants up to 2 MW on farmers’ land. Component B promotes standalone solar pumps , and Component C targets the solarisation of existing grid-connected pumps.
Component B has achieved the highest adoption rate, reaching 71 per cent of its target. Standalone solar pumps of up to 7.5 HP have proven particularly effective due to their simpler deployment, fewer regulatory hurdles, and substantial subsidies. Central financial assistance covers 30 per cent of the benchmark cost (50 per cent in special category states), leaving farmers to contribute the remaining amount. Vivek Gupta, director of Oswal Pumps, notes that “the technology is proven, and replacing diesel pumps with solar variants is straightforward.” Farmers in states such as Haryana have reported annual savings of up to ₹55,000 after switching to solar-powered pumps. Additionally, these pumps allow daytime irrigation, reducing dependency on nighttime grid power.
However, adoption in Components A and C has lagged behind. Component A, decentralised grid-connected plants, has achieved only 6.5 per cent of its target as of September 2025. Barriers include high capital expenditure, land acquisition challenges, discom agreements, and lengthy regulatory approvals. Component C, solarisation of existing grid-connected pumps, has reached just 16.5 per cent penetration. In some regions, farmers have minimal running costs from the grid, which reduces the economic incentive to adopt solar solutions.
Addressing Challenges and Opportunities
The CSE report highlights that the variation in adoption across components is more reflective of implementation complexity, economics, and farmer readiness than the scheme’s inherent flaws. Component B demonstrates that when incentives, simplicity, and execution align, adoption can be rapid.
To accelerate implementation, the report suggests a customised approach. Factors such as local electricity costs, pump sizing, and water requirements should inform project design rather than enforcing a uniform national standard. Dr Debajit Palit of NTPC School of Business emphasizes that pump sizes must match land size and water needs to ensure financial viability. Decentralised implementation by agencies familiar with local demographics can also improve adoption rates.
The report recommends allowing farmers to pay upfront costs in instalments and increasing central financial assistance to offset rising solar module prices post-COVID-19. The Standing Committee on Energy, in its FY25 report, stressed that many districts are water-deficient, and subsidies for pumps up to 7.5 HP may be insufficient. They recommended a detailed study to understand ground realities and modify the scheme accordingly.
Conclusion
PM-KUSUM remains a significant step toward sustainable agriculture and energy efficiency. While progress has been uneven, the scheme’s success with standalone solar pumps demonstrates its potential. Focused interventions, decentralised execution, and tailored incentives can help accelerate adoption and ensure that farmers derive maximum benefit. With careful course correction in the final year, PM-KUSUM can achieve its ambitious targets and provide a meaningful boost to both renewable energy and the agricultural sector.
According to a report by the Centre for Science and Environment (CSE), the scheme has achieved only about 30 per cent of its overall targets since inception. Data submitted to the Lok Sabha in August 2025 highlights some of the scheme’s successes: as of 30 June, solar pump installations under PM-KUSUM have saved an estimated 580 million litres of diesel annually and reduced carbon dioxide emissions by approximately six million tonnes.
Scheme Components and Progress
PM-KUSUM is structured around three primary components. Component A focuses on decentralised solar power plants up to 2 MW on farmers’ land. Component B promotes standalone solar pumps , and Component C targets the solarisation of existing grid-connected pumps.
Component B has achieved the highest adoption rate, reaching 71 per cent of its target. Standalone solar pumps of up to 7.5 HP have proven particularly effective due to their simpler deployment, fewer regulatory hurdles, and substantial subsidies. Central financial assistance covers 30 per cent of the benchmark cost (50 per cent in special category states), leaving farmers to contribute the remaining amount. Vivek Gupta, director of Oswal Pumps, notes that “the technology is proven, and replacing diesel pumps with solar variants is straightforward.” Farmers in states such as Haryana have reported annual savings of up to ₹55,000 after switching to solar-powered pumps. Additionally, these pumps allow daytime irrigation, reducing dependency on nighttime grid power.
However, adoption in Components A and C has lagged behind. Component A, decentralised grid-connected plants, has achieved only 6.5 per cent of its target as of September 2025. Barriers include high capital expenditure, land acquisition challenges, discom agreements, and lengthy regulatory approvals. Component C, solarisation of existing grid-connected pumps, has reached just 16.5 per cent penetration. In some regions, farmers have minimal running costs from the grid, which reduces the economic incentive to adopt solar solutions.
Addressing Challenges and Opportunities
The CSE report highlights that the variation in adoption across components is more reflective of implementation complexity, economics, and farmer readiness than the scheme’s inherent flaws. Component B demonstrates that when incentives, simplicity, and execution align, adoption can be rapid.
To accelerate implementation, the report suggests a customised approach. Factors such as local electricity costs, pump sizing, and water requirements should inform project design rather than enforcing a uniform national standard. Dr Debajit Palit of NTPC School of Business emphasizes that pump sizes must match land size and water needs to ensure financial viability. Decentralised implementation by agencies familiar with local demographics can also improve adoption rates.
The report recommends allowing farmers to pay upfront costs in instalments and increasing central financial assistance to offset rising solar module prices post-COVID-19. The Standing Committee on Energy, in its FY25 report, stressed that many districts are water-deficient, and subsidies for pumps up to 7.5 HP may be insufficient. They recommended a detailed study to understand ground realities and modify the scheme accordingly.
Conclusion
PM-KUSUM remains a significant step toward sustainable agriculture and energy efficiency. While progress has been uneven, the scheme’s success with standalone solar pumps demonstrates its potential. Focused interventions, decentralised execution, and tailored incentives can help accelerate adoption and ensure that farmers derive maximum benefit. With careful course correction in the final year, PM-KUSUM can achieve its ambitious targets and provide a meaningful boost to both renewable energy and the agricultural sector.
Next Story