India’s PM-KUSUM solar scheme needs farmer focus and financial fixes for phase 2

India’s Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) solar scheme has completed its first phase with significant success in solar pumps but less so in decentralized solar power plants. Energy experts are calling for a revamped focus on farmers, financing, and agrivoltaics for the upcoming PM-KUSUM 2.0.

The first phase saw nearly 90% of targeted stand-alone solar pumps installed, but only about a quarter of the target for decentralized solar power plants was achieved. Experts from the Centre for Science and Environment (CSE) highlighted the need for project readiness assessments, improved financing and payment mechanisms, and tailored agrivoltaic models to benefit farmers and manage groundwater resources.

Recommendations for PM-KUSUM 2.0 include addressing the entire delivery chain, ensuring project readiness before capacity allocation, and improving project economics and payment security from electricity distribution companies. The scheme aims to promote solar energy solutions in agriculture, including solar pumps, decentralized solar power plants, and the solarization of existing agricultural pumps.