Govt Set to Launch New Version of PM KUSUM Scheme Focusing on Agri Solar PV Component

Why It Matters

PM KUSUM 2.0 accelerates rural clean‑energy generation, cuts irrigation costs and creates new income streams for Indian farmers, supporting the nation’s net‑zero ambitions.

Key Takeaways

• PM KUSUM 2.0 adds 10 GW agri‑PV capacity.
• Targets higher solar output beyond 34,800 MW original goal.
• Enables simultaneous farming and electricity generation on same land.
• Over 23 lakh solarised agricultural pumps installed to date.
• States actively seeking MNRE support for scheme rollout.

Pulse Analysis

India’s original PM KUSUM scheme, launched in 2019 with a Rs 34,422 crore outlay, set an ambitious target of 34,800 MW of solar capacity to power agricultural operations. By March 2026, the programme has already facilitated the installation of more than 23 lakh solar‑powered pumps, dramatically reducing diesel‑based irrigation costs and showcasing the scalability of renewable solutions in the countryside. However, the deadline looms, prompting policymakers to envision a second phase that expands both scope and financial commitment.

The forthcoming PM KUSUM 2.0 introduces a 10 GW agri‑PV component designed for the co‑location of solar arrays and crops. This model allows farmers to harvest sunlight without sacrificing arable land, creating a dual‑use system that generates electricity for the grid while preserving agricultural output. Early pilots suggest that shade‑tolerant crops can thrive under panels, while excess power can be sold back to utilities, offering a reliable revenue stream and further lowering farm operating expenses.

Strategically, the upgrade aligns with India’s broader clean‑energy roadmap, which aims to reach 450 GW of renewable capacity by 2030. By unlocking decentralized generation in rural regions, PM KUSUM 2.0 can reduce transmission losses, bolster grid resilience, and attract private investment in agrivoltaics. States already courting the Ministry of New and Renewable Energy signal strong regional demand, but successful rollout will hinge on streamlined approvals, financing mechanisms, and farmer training. If executed effectively, the scheme could become a template for other emerging economies seeking to merge food security with climate goals.