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Uttar Pradesh Boosts Solar-Powered Farming with Over 1,500 MW Projects Under PM-KUSUM Scheme

Written by: Team Angel OneUpdated on: May 27, 2025, 2:48 PM IST
Uttar Pradesh signs LoAs with 100+ developers to solarise 5,000 agri feeders under PM-KUSUM C-2, ensuring 8-hour daytime power and steady farm incomes.
Uttar Pradesh Boosts Solar-Powered Farming with Over 1,500 MW Projects Under PM-KUSUM Scheme
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Uttar Pradesh is advancing its clean energy goals with a major push to solarise agriculture feeders across the state. Under the PM-KUSUM C-2 scheme, the state has issued Letters of Agreement (LoAs) to over 100 developers for setting up solar power plants with a combined capacity of more than 1,527 MW. This move aims to ensure reliable, eight-hour daytime power supply to tubewells and pump-sets, while simultaneously boosting farmer incomes and clean energy generation. 

5,000 Agriculture Feeders to Be Solarised 

The initiative targets the solarisation of approximately 5,000 agricultural feeders by 2027. Uttar Pradesh Power Corporation Ltd (UPPCL) has already separated nearly 80% of agricultural feeders from domestic ones to facilitate dedicated and uninterrupted supply for irrigation. 

Over 1,500 MW Sanctioned Through PM-KUSUM C-2 

According to UPNEDA Secretary and Chief Project Officer Pankaj Singh, LoAs have already been issued for 1,527.2 MW of solar capacity. These plants will be located adjacent to substations that power segregated agriculture feeders. 

  • Target: 2,000 MW solar capacity by 2027
  • Capacity already allotted: 1,527.2 MW
  • Power purchase price: ₹2.99 per unit for 25 years 

Benefits for Farmers and Developers Alike 

The scheme provides farmers with a new source of income by allowing them to lease out unused or barren land to solar developers. A dedicated UPNEDA portal enables free online land registration. Developers must set up plants within 5–10 km of identified substations, requiring about four acres per MW. 

  • Lease term: 27 years
  • Estimated land use: 4 acres per MW
  • State & central support: ₹1.55 crore per MW (₹1.05 lakh central + ₹50 lakh state VGF) 

Also Read:JK Lakshmi Cement Acquires 26% Stake in Solar Power Project. 

Financial and Operational Model 

Project Officer Rakesh Agrawal explained that both farmers and developers will benefit. Farmers will receive regular lease payments and assured daytime power, while developers get secure land access and fixed power purchase agreements. DISCOMs, meanwhile, benefit from reduced power costs and transmission losses. 

Timeline and Execution 

Solar developers selected through competitive bidding will have six months from the date of their LoA to complete plant installation at the designated sites. 

Conclusion 

Uttar Pradesh’s clean energy mission is strategically merging agriculture and solar infrastructure. By empowering farmers and attracting private investment, the state is paving the way for sustainable irrigation, energy security, and rural development. 

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 research and assessments to form an independent opinion about investment decisions.

Published on: May 27, 2025, 2:48 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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