PM-KUSUM, Solar Irrigation & Groundwater

  • 22 Aug 2026

In News:

India’s agricultural solar programme, PM-KUSUM, has installed over 2.5 million solar pumps in five years. As the government prepares PM-KUSUM 2.0, the key challenge is to expand clean-energy irrigation without worsening India’s groundwater crisis.

Solar Irrigation–Groundwater Link

Solar irrigation is not inherently harmful to groundwater. Its impact depends on the design of the solar model, ownership, pricing incentives, local hydrogeology and cropping pattern.

  • Grid-connected solar: Farmers can sell surplus electricity to the grid, creating an incentive to reduce pumping. Under Gujarat’s Suryashakti Kisan Yojana (SKY), farmers received around ?7/unit and earned about ?21,900 annually on average. Solar farmers showed slower growth in energy consumption and irrigation than non-solar farmers.
  • Fee-for-service model: In Bangladesh, solar pump operators supplied water to multiple farmers within a fixed command area. Despite solar irrigation being 20–30% cheaper than diesel, farmers did not apply more water because excessive use by one farmer reduced the operator’s ability to serve others.
  • Standalone pumps: Outcomes vary according to pump capacity, groundwater depth and operating experience.

Regional Approach is Essential

Groundwater impacts differ with aquifer characteristics, soil, cropping patterns and returns from irrigation.

  • Punjab–Haryana: Irrigation is already widespread and dominated by rice and wheat; therefore, solarisation can primarily reduce energy subsidies and emissions rather than significantly expand irrigation.
  • Eastern India: Large rainfed areas suffer from unreliable electricity and high diesel costs. Here, solar pumps can expand irrigation access, productivity and climate resilience.

Water–Energy–Food Nexus

Groundwater irrigation generates an estimated 45–62 million tonnes of CO? annually, while agricultural electricity subsidies exceed ?1 lakh crore/year. Solar irrigation can reduce both.

In Gujarat, a grid-connected solar farmer offsets about 12.3 tonnes of CO? annually, while subsidy savings reportedly covered nearly one-fourth of government investment within two years.

PM-KUSUM: Way Forward

Under PM-KUSUM 2.0, policy should be region-specific:

  • Expand grid-connected solar in water-stressed regions with incentives for water conservation.
  • Improve feed-in tariffs/buyback prices and simplify grid connectivity.
  • Combine feeder solarisation with micro-irrigation and direct incentives for reduced pumping.
  • Use models such as Punjab’s Pani Bachao, Paisa Kamao and Haryana’s Mera Pani Meri Virasat.
  • Retain standalone pumps in irrigation-deficit, poorly electrified and low-groundwater-risk areas.
  • Promote Water User Associations, farmer cooperatives and water-selling entrepreneurs rather than only individual pump ownership.

PM-KUSUM 2.0

  • 31 Mar 2026

In News:

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.

Parameter

Performance Highlight (Status Feb 2026)

Total Target

34.8 GW

Achieved Capacity

~12.16 GW

Component B

Over 10 Lakh standalone pumps installed.

Component C

~6,637 MW achieved (primarily through Feeder Level Solarization).