Centre Powers Solar Push for Farmers, States Catching Up Gradually

The Central Government is extending substantial subsidies to promote solar energy in the agriculture sector under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), but several states are falling behind on implementation, government data reveals.

In a reply to the Lok Sabha, Minister of State for New and Renewable Energy and Power, Shripad Yesso Naik, detailed the financial support offered under Component B of the PM-KUSUM scheme. The component, aimed at promoting standalone solar pumps, provides farmers with up to 30 percent Central Financial Assistance (CFA). For special category states and union territories such as the North East, Jammu and Kashmir, Ladakh, Himachal Pradesh, and island regions, the Centre extends up to 50 percent CFA, with or without a state contribution. Typically, states are expected to contribute 30 percent, while farmers bear the remaining cost.

Under Component C, which covers both individual pump solarisation (IPS) and feeder-level solarisation (FLS), the government offers CFA of INR 1.05 crore per megawatt for feeder-level installations. This component does not mandate a financial contribution from states. Both Components B and C can be executed via capital expenditure (CAPEX) or renewable energy service company (RESCO) models, depending on local conditions and state preferences.

To support adoption, farmers can also access loan facilities through the Agriculture Infrastructure Fund, which provides interest subvention and simplified credit options for solar projects.

Despite these efforts, progress remains slow. As of June 30, 2025, only 8.4 lakh standalone solar pumps had been installed under Component B, out of over 13.3 lakh sanctioned. Component C shows an even lower implementation rate,just 5.98 lakh installations completed out of more than 35 lakh units sanctioned.

Component A, which enables grid-connected solar power plants up to 2 MW, also reflects sluggish progress. Of the 10,000 MW capacity sanctioned nationwide, only 639 MW has been installed, Rajasthan alone accounts for nearly half of this.

Maharashtra leads in solar pump installations under Component B, with 4.19 lakh out of 5.55 lakh pumps installed. Gujarat, Haryana, and Rajasthan have also made notable strides. However, several large states, including Bihar, Andhra Pradesh, and Telangana, have shown little to no progress despite significant allocations.

It may be noted that PM-KUSUM is a demand-driven scheme, and implementation depends on proposals and performance by individual states. However, the wide gap between sanctioned and installed capacity points to procedural bottlenecks, inadequate outreach, and local-level execution challenges.

The PM-KUSUM scheme, launched to promote clean energy access for farmers and reduce the carbon footprint of agriculture, remains central to India’s 2030 renewable energy goals.