Authored by Vivek Gupta, Chairman & Managing Director, Oswal Pumps

India’s clean energy transition is often measured in gigawatts installed and targets announced. Yet, one of its most transformative opportunities lies beyond utility-scale solar parks and urban rooftops, in the fields where millions of farmers continue to depend on unreliable electricity and costly diesel for irrigation.
Agriculture accounts for nearly 20 per cent of India’s total electricity consumption, much of it heavily subsidised, placing a sustained financial burden on state utilities. For farmers, this translates into inconsistent supply, forcing irrigation cycles to align with erratic power availability or expensive diesel alternatives, both of which directly impact productivity and incomes.

It is within this context that the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) emerged as a landmark intervention, one that seeks not just to decarbonise agriculture, but to fundamentally rethink how energy is produced, distributed, and consumed in rural India.
With a target of adding 34,800 MW of decentralised solar capacity by 2026, the scheme marked a decisive shift towards distributed energy systems, positioning farmers not merely as consumers, but as active participants in the energy economy.

Early Momentum, Uneven Outcomes

The progress achieved so far underscores both the scheme’s relevance and its untapped potential. As per recent government and industry updates, over 10.9 lakh solar pumps have been installed or solarised under PM-KUSUM, supported by more than Rs 7,000 crore in central financial assistance.

This scale of deployment is significant, not just in terms of numbers, but in what it represents, a growing acceptance of solar as a reliable, cost-effective alternative for irrigation. Studies suggest that solar-powered irrigation can reduce power supply costs to nearly half of conventional sources, while also improving predictability of access.

However, beneath this progress lies a clear imbalance. Adoption has been concentrated in a few leading states, while others lag due to administrative, financial, and infrastructural constraints. The gap between sanctioned capacity and actual installations continues to define the scheme’s trajectory.

This divergence is instructive. It suggests that the issue is not demand, but delivery, and that scaling PM-KUSUM will require addressing the systemic inefficiencies that continue to slow implementation.

The Execution Gap: Where Policy Meets Friction

At its core, PM-KUSUM’s limitations are less about design and more about execution. The scheme’s architecture is well-conceived, but its implementation often encounters friction across multiple institutional layers.

Approvals remain fragmented, with responsibilities divided between state nodal agencies, discoms, and financing institutions. Delays in tendering, land identification, and grid connectivity add further complexity. In many instances, projects remain stalled long after being sanctioned, highlighting the absence of time-bound processes and clear accountability.

These inefficiencies have a compounding effect. Delayed execution not only slows deployment but also erodes stakeholder confidence, including that of farmers and developers.

For PM-KUSUM 2.0 to achieve scale, execution must become the focal point. This requires not just process simplification, but a shift in mindset, from scheme administration to outcome-driven delivery. Stronger coordination, digital tracking of project milestones, and clearly defined timelines can significantly improve efficiency and reduce delays.

Financing Adoption: The Constraint Beneath the Surface

Even with subsidy support, financing remains one of the most significant barriers to adoption. For small and marginal farmers, who constitute the majority of India’s agricultural base, the upfront contribution can still be prohibitive.

Recent policy discourse has begun to acknowledge this challenge, with increased focus on improving credit access and reducing financial barriers.

However, the reality on the ground remains uneven. Access to credit is often delayed by procedural complexities, limited awareness, and risk perceptions among lenders. In many cases, the absence of tailored financing products results in missed opportunities for adoption.

Addressing this will require a more innovative approach to financing. Models that align repayment with savings from reduced diesel or electricity usage can make solar adoption more viable. Expanding the participation of NBFCs, leveraging digital lending platforms, and simplifying documentation processes can further accelerate uptake.

The objective should be clear: to make solar irrigation not just affordable, but easily accessible.

Grid Readiness: The System-Level Constraint

India’s renewable energy growth has been rapid, with the country surpassing 100 GW of installed solar capacity in 2024. However, this expansion has also exposed structural constraints in grid infrastructure. In several regions, renewable energy generation is already facing curtailment due to inadequate evacuation capacity and limited grid flexibility. For a decentralised scheme like PM-KUSUM, these challenges are particularly critical.

Feeder-level solarisation depends on the ability of local grids to absorb distributed generation without disruption. Without adequate investment in last-mile infrastructure, smart metering, and load management, the system risks inefficiencies that could undermine the benefits of solarisation. Grid readiness must therefore be treated as a foundational requirement for PM-KUSUM 2.0. Aligning solar deployment with grid upgrades will be essential to ensuring that capacity translates into actual utilisation.

Bridging the Awareness and Trust Deficit

While policy and financing create the enabling environment, adoption ultimately depends on farmer confidence. In many regions, awareness of PM-KUSUM remains limited, and concerns around system reliability, maintenance, and service support continue to influence decision-making.

This is not simply a matter of information, it is a question of trust.

Farmers are more likely to adopt solar solutions when they see consistent performance and reliable service within their own communities. Demonstration projects, local engagement, and accessible after-sales support can play a crucial role in building this confidence.

The experience of leading states shows that when awareness, execution, and service ecosystems align, adoption accelerates organically. Replicating this model across regions will be key to scaling the scheme.

One Nation, Many Realities: The Need for Adaptive Implementation

India’s agricultural ecosystem is diverse, shaped by regional variations in water availability, cropping patterns, and energy access. A uniform implementation approach, while administratively efficient, often fails to capture these nuances.

PM-KUSUM 2.0 must therefore move towards a more adaptive framework, one that allows states to tailor implementation strategies to local conditions while adhering to national objectives.

In water-scarce regions, the focus may need to be on optimising usage and integrating solar irrigation with water conservation practices. In other areas, replacing diesel pumps may deliver the greatest impact. Recognising and responding to these differences will be essential to achieving meaningful scale.

Strengthening the Ecosystem: From Deployment to Lifecycle Value

As adoption grows, the strength of the supporting ecosystem becomes increasingly important. Solar irrigation is not a one-time intervention; it is a long-term asset that requires consistent performance and maintenance.

For farmers, the decision to adopt solar is influenced not just by cost, but by confidence in reliability. Ensuring high-quality manufacturing, efficient supply chains, and robust service networks will be critical to sustaining this confidence.

Industry stakeholders must therefore move beyond product delivery to focus on lifecycle value. This includes ongoing maintenance, performance monitoring, and responsive service support, elements that are essential to long-term success.

From Access to Utilisation: Defining the Next Phase

The first phase of PM-KUSUM was centred on access, creating infrastructure and enabling adoption. The next phase must shift towards utilisation. The true impact of solarisation lies in how effectively these systems are used. This includes optimising irrigation practices, reducing water and energy wastage, and enabling farmers to derive additional value from surplus power generation.

Integrating solar irrigation with broader agricultural outcomes, such as productivity and income enhancement, will be key to maximising impact. Without this shift, the scheme risks being evaluated solely on installation metrics rather than its transformative potential.

The Road Ahead: From Ambition to Impact

PM-KUSUM represents one of the most ambitious efforts globally to integrate clean energy with agriculture at scale. Its potential to improve farmer incomes, reduce subsidy burdens, and strengthen rural energy systems is well established.

As the scheme approaches its next phase, the focus must shift from expansion to effectiveness. Execution discipline, financing innovation, grid integration, and farmer-centric implementation will define its trajectory.

The foundations are strong. The opportunity now is to build on them with greater precision, ensuring that scale is not only achieved, but sustained.
If approached with the right balance of policy intent and execution focus, PM-KUSUM 2.0 can move beyond incremental gains to deliver lasting transformation, reshaping the intersection of energy and agriculture in India.