PM-KUSUM 2 may help farmers cut irrigation costs, install solar pumps and earn from solar power generation on vacant or barren land.
By Robin Kumar Attri
PM-KUSUM 2 is expected to expand solar irrigation support for farmers.
Solar pump assistance can range from 30% to 50%.
Farmers can install solar plants up to 2 MW on eligible land.
GST reduction has lowered the cost of solar equipment.
Final subsidy, eligibility and application rules are still awaited.
Farmers across India could soon get more opportunities to use solar energy for irrigation and earn additional income from their land. The government is preparing the second phase of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM), popularly referred to as PM-KUSUM 2.
Union Minister Pralhad Joshi has provided an update on the proposed second phase, stating that the government is working on a new and improved version of the scheme after the progress made during its first phase. However, the government has not yet announced the final provisions, subsidy structure or application process for PM-KUSUM 2.
The scheme is aimed at reducing farmers' dependence on diesel and conventional electricity for irrigation while encouraging the use of solar pumps and solar power generation.
The second phase is expected to continue supporting farmers in adopting solar energy for agricultural activities. Solar pumps could help farmers reduce their irrigation costs by lowering their dependence on diesel and grid electricity.
The government is also looking at promoting modern technologies and domestic manufacturing of solar equipment. Technologies such as lithium-ion cell manufacturing are expected to receive greater attention, with the broader aim of making solar equipment more affordable and durable for farmers.
If PM-KUSUM 2 provides better facilities and financial support than the first phase, it could make solar energy more accessible to a larger number of farmers.
Under the existing PM-KUSUM framework, eligible farmers can receive central financial assistance for installing solar pumps. In many cases, central assistance ranges from 30% to 50%, although the actual support depends on the applicable scheme provisions and state government rules.
The state government's contribution and the farmer's share are also determined according to the relevant state-level guidelines.
Farmers who already have grid-connected irrigation pumps can also opt for solarisation under the scheme. This can allow them to use solar energy for irrigation and potentially reduce their regular electricity expenses.
One of the important features of PM-KUSUM is the opportunity to use vacant or barren farmland for solar power generation.
Eligible farmers can install solar power plants on their land, with project capacity under the existing provisions going up to 2 MW, depending on available resources and applicable conditions.
The electricity generated by these plants can be sold to the local electricity distribution company, or DISCOM, at a tariff determined by the state. This gives farmers an opportunity to use otherwise unproductive land to generate an additional source of income alongside agriculture.
The cost of renewable energy equipment has also been affected by a reduction in GST. According to Union Minister Pralhad Joshi, the GST rate on renewable energy equipment and its components has been reduced from 12% to 5%.
This reduction has lowered the cost of solar equipment. A 5 HP solar pump is estimated to have become around Rs 17,500 cheaper following the GST reduction.
Based on the government's target of installing 10 lakh new solar pumps, the estimated combined savings for farmers could reach around Rs 1,550 crore.
The cost of rooftop solar systems has also been affected. A 3 kW solar system installed on a residential rooftop under the PM Surya Ghar Yojana is reportedly around Rs 9,000 to Rs 10,500 cheaper.
The first phase of PM-KUSUM has already made significant progress in expanding solar energy in the agricultural sector.
According to government data, 1,986.3 MW of grid-connected solar power plants have been installed so far. In addition, more than 13.07 lakh standalone solar pumps have been approved across the country.
Of these approved pumps, more than 11.69 lakh have already been installed. Work has also progressed on connecting existing irrigation pumps with solar energy.
This progress has provided the foundation for the government to move towards a second phase with a greater focus on technology, affordability and wider adoption.
The government is expected to place greater emphasis on modern technology during the second phase.
One of the key areas being considered is lithium-ion cell manufacturing, along with greater domestic production of affordable and durable solar equipment. Increasing domestic manufacturing could help improve the availability of solar equipment and potentially reduce costs over time.
For farmers who currently spend a significant amount on diesel-powered irrigation pumps, solar-powered systems could provide an alternative way to manage irrigation expenses.
If the proposed features are implemented, PM-KUSUM 2 could offer farmers multiple benefits. Solar pumps can reduce dependence on diesel and conventional electricity for irrigation, potentially lowering recurring farming costs.
Farmers with vacant or barren land could also have the option of installing solar power plants and selling the electricity generated to DISCOMs. This could turn unused land into a source of additional income.
The combination of solar irrigation and power generation could therefore provide farmers with both cost savings and new earning opportunities.
Farmers should note that the final rules, subsidy amounts, eligibility conditions and application process for PM-KUSUM 2 have not yet been officially announced.
Once the government releases the final details, farmers will be able to check eligibility and application-related information through their respective Agriculture Departments or authorised Common Service Centres (CSCs).
Until then, farmers should rely on official government announcements before applying or making payments to anyone claiming to offer PM-KUSUM 2 registration.
Also Read: NCDC Amendment Bill: Farmers May Get Easier Access to Loans and Financial Support
PM-KUSUM 2 could give farmers a stronger role in India's shift towards solar energy by supporting solar irrigation and power generation. The proposed phase may help reduce diesel and electricity expenses while allowing farmers to earn from solar plants installed on vacant or barren land. With the first phase already showing substantial progress, the next stage could further expand solar adoption in agriculture. However, farmers must wait for the government's official announcement for confirmed subsidy, eligibility and application details.
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