Powering farms: Scaling up PM-KUSUM is smart climate and energy strategy

India’s agricultural sector consumes nearly a fifth of its electricity and a hefty portion of diesel for irrigation. By replacing diesel pumps with solar-powered ones and solarising grid-connected pumps, the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme is playing a crucial role in reducing emission, lowering subsidies, and protecting farmers from volatile input costs. Phase 1 of the scheme, running through 2025-26, aims to achieve an additional 34.8 gigawatt (Gw) of solar power for irrigation through standalone solar pumps, grid-connected pump solarisation, and small solar projects on barren land. With about ₹34,000 crore earmarked, the scheme envisages the setting up of 1.4 million standalone solar agricultural pumps and the solarisation of 3.5 million grid-connected agriculture pumps, including feeder-level solarisation. In fact, demand has surged, which highlights its overwhelming acceptance and urgency for expansion. In 2024-25 alone, the Indian Renewable Energy Development Agency recorded a 27 per cent increase in loan sanctions under the scheme, reaching ₹47,453 crore, while loan disbursements rose 20 per cent.

 

In this regard, the Ministry of New and Renewable Energy’s plan to launch Phase 2 of the scheme, following its integration into the Agricultural Infrastructure Fund in August last year, seems promising. With guidance from Phase 1 learning, it may raise the central financial-assistance cap, accommodate agrovoltaic installations, where crops and solar panels coexist, and adopt scalable models like Maharashtra’s centralised land-aggregation portal, which mobilised 40,000 acres for solar farming. Replacing diesel pumps slashes carbon emission and mitigates the risk of fluctuating fuel prices. Solar power delivers peak output during the daytime, coinciding with irrigation needs, making it more efficient. Moreover, surplus electricity produced by farmers can be fed back into the grid, generating additional income at a minimal transmission loss. Solar irrigation thus offers a decentralised, resilient power support, empowering rural communities while cutting carbon footprints.

 

Of course, wind and biomass too are important components in India’s renewable mix. They matter, notably for round-the-clock power. But harnessing the wind, both onshore and offshore, remains geographically constrained and less farmer-friendly. Biomass, on the other hand, raises several logistical and sustainability questions. Solar, by contrast, is modular, farmer-controlled, and cheap. Household solar adoption is showing good results. Rooftop solar capacity in India crossed 19 Gw, while installed solar capacity surpassed 119 Gw as of July 2025. Enrolment in home-focused schemes like the PM Surya Ghar Muft Bijli Yojana has brought 1 million households on to solar power grids, proving that decentralised models are scalable and effective.

 

If Phase 2 of PM-KUSUM can match or even exceed the scale of Phase 1, India can harness the rural-energy revolution. However, there are hurdles in implementation. It is often a challenge to find contiguous land parcels that can be pooled and made available to a power project developer. Besides, several states offer affordable electricity, which reduces the incentive for farmers to switch to solar pumps. While India’s power sector needs deeper reforms, increasing the adoption of solar power in agriculture is an encouraging sign.