PM-KUSUM: Solar Water Pumps and Farmer Solarisation (UPSC)

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is the Government of India’s flagship scheme to solarise Indian agriculture — reducing the fiscal burden of power subsidies, cutting groundwater abuse, replacing diesel pumps with clean energy, and providing farmers with an additional income source from selling surplus solar power. Launched in 2019 under the Ministry of New and Renewable Energy (MNRE), PM-KUSUM targets 30.8 GW of solar capacity across the agriculture sector by 2026. For UPSC, the scheme links GS-III — infrastructure (energy), inclusive growth, environment, agriculture.

Scheme Architecture

PM-KUSUM has three components:

The original target of 25.75 GW was enhanced to 30.8 GW by 2026 and the scheme period was extended.

Component A: Solar Power Plants on Farmland

Farmers, FPOs, cooperatives, panchayats, or developers can set up 500 kW to 2 MW solar plants on barren, fallow, or degraded agricultural land (also along canals and water bodies). DISCOMs enter into Power Purchase Agreements (PPAs) for 25 years at tariffs determined by state electricity regulators. Farmers get land rent, and the plant owner gets power-sale revenue.

Benefits

• Barren land monetisation — under-productive land becomes a revenue-generating asset.
• Reliable rural power — plants supply local feeders.
• Employment at construction and O&M stages.
• Renewable capacity addition without large displacement.

Component B: Stand-alone Solar Pumps

14 lakh stand-alone solar pumps (off-grid, up to 7.5 HP) for farmers in areas without grid electricity — replacing diesel pumps. Subsidy pattern:

• 60% from Centre and State combined.
• 30% from bank loan.
• 10% from farmer (only 5% in NE, hilly, and island states).

Benefits

• Zero operational cost after installation (sunlight is free).
• Cuts diesel burn and carbon emissions.
• Reliable irrigation in un-electrified pockets.
• Reduces kerosene/diesel subsidy burden.

Component C: Solarisation of Existing Pumps

35 lakh grid-connected pumps — either individual pump solarisation or feeder-level solarisation. Farmers use solar power for their pumps and sell surplus power to DISCOMs at agreed tariffs, earning additional income.

Feeder-level solarisation solarises the entire feeder supplying agricultural pumps — simpler, cheaper, and more scalable than individual pump installations.

Benefits

• Reduces power subsidy for DISCOMs (estimated Rs 1-2 lakh crore annually for agricultural feeders across states).
• Additional income for farmers from surplus power sale.
• Reliable daytime irrigation instead of night-time power (currently the default to ration supply).
• Reduces T&D losses at feeder level.
• Groundwater protection when combined with metering and tariff nudges.

Why Solarise Agriculture?

• Power subsidy burden: States spend over Rs 1.5 lakh crore annually on free or heavily subsidised electricity for agricultural pumps. Solarisation reduces this recurring drain.
• Groundwater over-extraction: Free power has encouraged over-pumping. 80%+ of blocks in Punjab are over-exploited. Solar with metering and buy-back can nudge efficient use.
• Diesel dependence: Over 20% of pumps use diesel. Solar pumps cut CO₂ emissions and diesel imports.
• Renewable targets: Contributes to India's 500 GW non-fossil capacity by 2030 commitment.
• Farmer income: Power sale from surplus generation directly supplements farm income.
• Reliable irrigation: Daytime solar power matches crop water needs better than rationed grid supply.

Implementation Challenges

• State capacity: DISCOMs must sign PPAs and manage feeder-level solarisation — many are financially stressed.
• Land availability for Component A.
• Upfront cost for farmers — even 10% share is significant for small farmers.
• Maintenance: Solar pumps and plants need periodic O&M; rural service ecosystems are thin.
• Grid integration: Intermittency of solar requires storage or feeder-level smoothening.
• DISCOM finances: Falling agricultural power demand (due to solar) shifts fixed costs to other consumers, straining DISCOM balance sheets.
• Over-extraction risk: Free solar power can actually worsen groundwater depletion if tariffs or metering are absent.

Complementary Schemes and Institutions

• Saubhagya — household electrification; complements rural solar.
• Ujala — LED bulb distribution for demand reduction.
• DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana) — rural feeder separation.
• Revamped Distribution Sector Scheme (RDSS) — DISCOM financial reform.
• National Solar Mission — overall 500 GW non-fossil target.
• Rooftop Solar — PM Surya Ghar Muft Bijli Yojana (2024) — residential solar, subsidy up to Rs 78,000 for 3 kW systems.

Latest developments (2024-26)

• Budget 2024-25 — enhanced outlay for PM-KUSUM scale-up; convergence with PM Surya Ghar Muft Bijli Yojana announced in February 2024.
• Budget 2025-26 — continued commitment; focus on feeder-level solarisation under Component C as the most cost-effective pathway.
• PM Surya Ghar Muft Bijli Yojana — 1 crore rooftop solar households target; over 30 lakh registrations by early 2025.
• Revamped Distribution Sector Scheme (RDSS) — Rs 3.04 lakh crore scheme to cut DISCOM AT&C losses; complements PM-KUSUM by strengthening DISCOM capacity.
• Green Hydrogen Mission — synergies with solar expansion.
• India's non-fossil capacity — crossed 200 GW by early 2025, on track for 500 GW by 2030.
• PM-KUSUM cumulative progress — as of 2024-25, about 4.8 lakh solar pumps installed under Component B + C together; Component A slower due to land aggregation challenges.
• Updated context: Feeder-level solarisation is emerging as the scalable model; states like Maharashtra (Mukhyamantri Saur Krishi Vahini Yojana), Gujarat, and Rajasthan are piloting large feeder-level projects.

UPSC Relevance

GS-III Mapping

• Infrastructure — Energy, Renewable Energy.
• Major crops, irrigation, water use efficiency.
• Government schemes — PM-KUSUM.
• Conservation — environment and climate.

GS-II Mapping

• Government policies for development in various sectors.
• Welfare schemes for vulnerable sections — farmers.

Prelims Pointers

• PM-KUSUM — launched 2019 under MNRE.
• Three components — A (solar plants on farmland), B (stand-alone pumps), C (grid-connected pump solarisation).
• Enhanced target — 30.8 GW by 2026.
• Subsidy pattern — 60% Centre+State, 30% bank loan, 10% farmer.
• PM Surya Ghar Muft Bijli Yojana — rooftop solar, launched Feb 2024.
• Non-fossil target — 500 GW by 2030.

Mains Angles

• "PM-KUSUM is both an energy and an agricultural reform. Critically examine." (GS-III)
• "Solarisation of agriculture can reduce state power subsidies and protect groundwater. Discuss."
• "Evaluate the three components of PM-KUSUM and suggest measures to strengthen implementation."
• "How can feeder-level solarisation, DISCOM reform, and groundwater management be integrated?"

PM-KUSUM is a rare scheme that aligns farmer income, state finances, and climate goals. With feeder-level solarisation gaining traction and the PM Surya Ghar programme extending solar deeper into rural India, the scheme can transform rural energy economics. For UPSC, pair the three-component architecture with the 500-GW non-fossil target and 2024-25 feeder-solarisation updates.