Farmers may soon get more support to use solar energy for irrigation and power generation. The government is preparing the second phase of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, known as PM-KUSUM 2.
The first phase helped many farmers install solar pumps and set up solar power projects. The next phase is expected to build on this work with better technology, lower equipment costs and more options for farm-based power generation. The final rules, subsidy amount and application process will be clear only after the government issues an official notification.
What is PM-KUSUM 2?
PM-KUSUM aims to reduce farmers’ dependence on diesel and regular grid power for irrigation. Under the scheme, eligible farmers can use solar pumps, solarise existing irrigation pumps and set up solar power plants on suitable land.
This can help reduce daily irrigation costs. It can also give farmers a second income source when they sell surplus solar power to the local electricity distribution company, known as a DISCOM.
Solar pump subsidy for farmers
Under the available PM-KUSUM provisions, the central government may provide financial support of around 30% to 50% for eligible solar pump projects. The state government may add its share, while the farmer pays the remaining amount as per the rules in that state.
The exact support can depend on the pump capacity, location, farmer category and state guidelines. Farmers should not rely on claims of a fixed subsidy until the official PM-KUSUM 2 guidelines are released.
Farmers with grid-connected irrigation pumps may also get the option to solarise them. A solarised pump can use solar power during the day and reduce the need for paid electricity or diesel. In simple terms, the sun may help with the water bill. It does not ask for tea, either.
Earn from unused or barren land
One key feature of PM-KUSUM is the use of vacant or barren land for solar power projects. Eligible farmers may be able to install a solar plant on such land. Available scheme provisions allow projects of up to 2 megawatts in some cases.
The electricity produced can be sold to the DISCOM at a tariff set under state rules. This can turn unused land into a source of income without affecting the main farming area.
Before making any investment, farmers should check land records, grid connection rules, project costs, loan terms and the power purchase agreement. A solar plant needs clear land rights and access to a suitable power line.
Lower GST may reduce solar equipment costs
As reported by the government, the GST rate on renewable energy equipment and related parts was reduced from 12% to 5%. This change may lower the purchase cost of solar equipment.
Based on the available information, a 5 HP solar pump may cost up to Rs 17,500 less after the GST reduction. The government has also estimated savings of about Rs 1,550 crore if 10 lakh new solar pumps are installed.
The final price will still depend on the brand, pump type, installation work, transport, warranty and state tender rates. Farmers should compare the approved supplier price with the total project cost, not just the equipment price.
Progress under the first phase
Government figures show that PM-KUSUM has made progress in farm solarisation. More than 1,986.3 MW of grid-connected solar power capacity has been installed. Over 13.07 lakh standalone solar pumps have been approved, and more than 11.69 lakh have been installed.
These figures show that solar pumps are moving from a small pilot option to a larger farm energy solution. The results of the first phase may guide the design of PM-KUSUM 2.
Focus on new solar technology
PM-KUSUM 2 is expected to support modern solar technology and local manufacturing. The government has also spoken about promoting technologies such as lithium-ion cell manufacturing.
Better batteries may help farmers store solar power and use it when sunlight is not available. Lower-cost equipment can also make solar pumps easier to adopt. Still, battery life, repair support and replacement cost are important points to check before choosing a system.
How farmers may benefit
- Lower spending on diesel for irrigation.
- Less dependence on grid electricity.
- Solar power for standalone or existing irrigation pumps.
- Extra income from selling power produced on unused land.
- Possible savings from lower GST and government financial support.
- Access to newer solar equipment and storage technology.
When will PM-KUSUM 2 applications start?
The official application date for PM-KUSUM 2 has not been announced in the available information. Farmers should wait for details on eligibility, documents, subsidy limits, approved vendors and the application portal.
Once the rules are released, farmers can check with their state agriculture department, renewable energy agency, DISCOM or an authorised Common Service Centre. They should use official websites and receipts for every payment. Unverified agents who promise instant approval or a fixed subsidy should be avoided.
Frequently asked questions
Can every farmer get a solar pump?
No. Eligibility depends on the scheme rules, state targets, land records, pump type and available funds.
Can a farmer sell solar power to the DISCOM?
Eligible farmers may sell power from approved solar projects under the tariff and agreement set by the state authorities.
Is the PM-KUSUM 2 subsidy fixed?
No. The final subsidy and farmer contribution will be known after the government publishes the detailed guidelines.
