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Government Plans PM-KUSUM 2.0 With 10 GW Agri-Solar Component to Boost Farmer Income

Written by: Aayushi ChaubeyUpdated on: 11 Mar 2026, 6:22 pm IST
The government is planning PM-KUSUM 2.0 with a 10 GW agri-solar component that will allow farmers to generate renewable power while continuing farming activities on the same land.
PM-KUSUM 2.0
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The Centre is planning to introduce PM-KUSUM 2.0, a new version of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, aimed at expanding renewable energy generation in the agriculture sector.

The original PM-KUSUM programme was launched in 2019 with an outlay of ₹34,422 crore. It aims to promote the use of solar energy in agriculture and reduce farmers’ dependence on expensive diesel and grid electricity for irrigation.

Under the scheme, the government targeted the addition of 34,800 MW of solar capacity by March 2026 through decentralised renewable energy solutions.

Over 23 Lakh Solar Pumps Installed Under Current Scheme

Since its launch, the scheme has seen significant adoption across the country. According to official data more than 10 lakh standalone solar agricultural pumps have been installed. Besides, over 13 lakh grid-connected agricultural pumps have been solarised.

These installations help farmers power irrigation systems using solar energy while also reducing electricity consumption from conventional sources.

Several states have actively participated in the programme and continue to work with the Ministry of New and Renewable Energy (MNRE) to expand solar adoption in rural areas.

New 10 GW Agri-PV Component Proposed

The upcoming PM-KUSUM 2.0 is expected to introduce a dedicated 10 GW agri-photovoltaic (agri-PV) component, enabling solar panels to be installed alongside crops.

This approach enables farmers to generate electricity and continue agricultural activities on the same land, creating an integrated model for energy production and farming.

The ministry said the initiative could support the development of decentralised renewable energy generation in rural India, while also opening an additional income stream for farmers.

The revised scheme is expected to feature higher targets and a larger financial outlay, although final details are yet to be announced.

Read more: PM-Kisan 22nd Instalment Date Announced: Farmers Must Check Their e-KYC to Get ₹2,000.

Conclusion

With the proposed launch of PM-KUSUM 2.0, the government is looking to deepen the integration of renewable energy within India’s agricultural ecosystem.

By enabling co-location of solar panels and crop cultivation, the initiative could help farmers reduce irrigation costs, generate additional income through electricity generation, and contribute to India’s broader renewable energy targets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 11, 2026, 12:48 PM IST

Aayushi Chaubey

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