PM-KUSUM Scheme: Solarizing Agriculture and Groundwater Challenges
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Key takeaways
- India's PM-KUSUM scheme has subsidized over 2.5 million solar pumps to clean up farm energy and raise rural income.
- The government extended the scheme deadline to 31st March 2027 to achieve its target of 34,800 MW solar capacity.
- Farmers installing off-grid pumps under Component B save roughly Rs 60,000 per year on diesel fuel.
- Near-zero running costs risk severe groundwater depletion unless solar adoption connects directly with water conservation rules.
Why in News
- Over the last five years, India installed more than 2.5 million solar pumps under the PM-KUSUM scheme.
- As India prepares for PM-KUSUM 2.0, experts worry that near-free solar energy could cause severe groundwater depletion.
Key Features and Progress of PM-KUSUM
- The Ministry of New and Renewable Energy (MNRE) launched PM-KUSUM in 2019 and expanded it in 2024 to replace diesel pumps and lower carbon emissions.
- The scheme aims to add 34,800 MW of solar capacity, with an extended completion deadline of 31st March 2027.
- Under Component A, farmers can set up 10,000 MW of decentralized solar power plants ranging from 500 kW to 2 MW on barren or farm lands.
- Farmers earn extra income by selling surplus electricity back to local DISCOMs at fixed tariffs set by state regulators.
- Under Component B, the scheme plans to install 14 lakh standalone solar pumps to replace costly diesel pumps in off-grid areas.
- Switching a 5 HP pump to solar power saves a farmer around Rs 60,000 every year on diesel fuel.
- Under Component C, the government aims to solarize 35 lakh grid-connected pumps using individual and feeder-level models.
- In regular states, the central government gives a 30% subsidy, state governments provide 30%, and farmers pay 40% through cash or loans.
- For hilly states, island regions, and the North-East, the central government increases its subsidy to 50%, leaving farmers to pay only 20%.
- The Reserve Bank of India (RBI) included solar pump loans under Priority Sector Lending (PSL) rules to help farmers get bank credit easily.
- By August 2026, farmers installed 11.49 lakh off-grid pumps, solarized 15.89 lakh pumps through feeder lines, and added 1,726 MW of solar power.
- Over 21.77 lakh farmers benefited from the program, with 13.93 lakh pumps installed during financial year 2025-26 alone.
- Maharashtra set a global record by installing 49,500 solar pumps in a single month.
- The scheme saves state governments over Rs 1 lakh crore spent annually on farm electricity subsidies and cuts distribution losses.
- Replacing diesel pumps saves about 1.38 billion liters of diesel each year, cutting national petroleum import costs.
- The program mandates domestic solar cells and modules, generating 20 GW of guaranteed demand for Indian manufacturers.
- Solar pumps help reduce agricultural carbon emissions, which currently range between 45 to 62 million tonnes of carbon dioxide every year.
Challenges
- Free solar power lowers operating costs to zero, encouraging farmers to pump water constantly without any financial penalty.
- Off-grid farmers cannot store or sell unused electricity, leading to a practice where they pump excess water or sell it to neighbors.
- Financially stressed DISCOMs hesitate to buy excess power or offer good feed-in tariffs under Component C, removing incentives to save power.
- Subsidy allocations do not align with Central Ground Water Board (CGWB) data, risking pump installations in already over-exploited water blocks.
- High support prices for water-intensive crops like paddy and sugarcane encourage farmers to use free solar energy to over-irrigate.
- Small and marginal farmers struggle to pay the required 40% upfront cost, leaving wealthier farmers to benefit most from the scheme.
- Setting up Component A plants requires a power sub-station within 5 km, but many remote rural regions lack this basic infrastructure.
Way Forward
- States should launch water-saving credit programs that reward farmers with direct cash transfers when they stay below set water usage limits.
- Officials must link solar pump approvals directly to CGWB groundwater levels to restrict high-power pumps in over-exploited dark zones.
- Water-scarce eastern regions should prioritize standalone off-grid solar pumps, while water-stressed states like Punjab should focus strictly on grid connection.
- Governments must mandate micro-irrigation systems like drip and sprinkler lines under Per Drop More Crop before giving solar pump subsidies.
- State governments should adjust crop buying policies and MSP to encourage farmers to shift from paddy and sugarcane to millets, pulses, and oilseeds.
- Local authorities should give solar pump ownership to Farmer Producer Organizations (FPOs) and Water-User Associations (WUAs) to support small farmers.
- India can secure long-term agriculture by connecting solar power expansion directly with groundwater conservation and smart crop choices.