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The Union Government is set to revamp the Pradhan Mantri Kisan Urja Suraksha evamUtthaanMahabhiyan (PM-KUSUM) scheme. With the current phase expiring in March 2026, the upcoming PM-KUSUM 2.0 aims to address structural gaps, specifically by incorporating Battery Energy Storage Systems (BESS) to harmonize solar generation with agricultural power demand.

Understanding PM-KUSUM: Evolution and Structure

Launched in 2019 by the Ministry of New and Renewable Energy (MNRE), PM-KUSUM is a "triple-win" initiative designed to provide energy security to farmers, improve DISCOM finances, and contribute to India’s climate goals (COP30).

Core Components of the Scheme:

• Component A: Installation of decentralized ground-mounted, grid-connected solar power plants (up to 2 MW) on barren or fallow land.
• Component B: Deployment of standalone solar-powered agriculture pumps to replace diesel-based irrigation in off-grid areas.
• Component C: Solarization of existing grid-connected agriculture pumps through two sub-models:
  • Individual Pump Solarization (IPS)
  • Feeder Level Solarization (FLS): Solarizing the entire electricity feeder to improve efficiency at scale.

Funding Model (Shared Responsibility):

• Central Government: 30% subsidy.
• State Government: 30% subsidy.
• Farmer Contribution: 40% (often supported by bank loans).

(Note: For North Eastern, Hilly, and Island regions, the Central subsidy can go up to 50%).

The Shift to PM-KUSUM 2.0: Why Battery Storage?

The primary limitation of the current scheme is the temporal mismatch between solar energy generation and agricultural demand—a phenomenon often referred to as the "Duck Curve" challenge.

• The Mismatch: Solar power peaks around midday. However, agricultural irrigation demand often starts early in the morning and continues well after sunset.
• The Solution (BESS): Integrating batteries allows the storage of surplus solar energy generated during peak hours. This stored power can then be discharged during non-solar hours (evening/early morning), ensuring a reliable and round-the-clock (RTC) power supply for farmers.
• Policy Debate: The Ministry of Power has proposed a 4-hour storage capacity, whereas the MNRE suggests a 2-hour capacity. Discussions with the Ministry of Finance are ongoing to finalize the subsidy structure for these batteries.

Progress and Challenges (As of 2026)

While the program has made significant strides, it currently trails its ambitious target of 34.8 GW.