Govt to Launch PM-KUSUM 2.0 with 10 GW Agri-PV Component: MNRE Minister
The Central Government is set to launch PM-KUSUM 2.0 with a dedicated 10 GW Agri-PV component, enabling farmers to generate solar electricity alongside crops and boosting rural income through agrivoltaic systems, announced Union Minister of New and Renewable Energy Pralhad Joshi at the 4th National Agro-RE Summit in New Delhi.
March 11, 2026. By Mrinmoy Dey
Speaking at the 4th National Agro-RE Summit in New Delhi, Joshi said that this initiative will enable farmers to generate electricity while continuing agricultural activities on the same land, creating a new model for decentralised renewable energy generation in rural India.
Highlighting the emerging potential of agrivoltaic systems, Joshi said that combining solar power generation with agricultural cultivation can significantly improve land productivity and provide farmers with an additional source of income. Estimates indicate that India’s agrivoltaic potential could range from 3,000 GW to nearly 14,000 GW, reflecting the scale of opportunity in integrating renewable energy with agriculture.
He further added that studies indicate that agrivoltaic systems can significantly enhance farmers’ earnings, with annual incomes in some cases increasing from about INR 60,000 per acre to more than INR 1 lakh per acre when electricity generation income is combined with crop cultivation.
Joshi emphasised that renewable energy technologies are playing an increasingly important role in agriculture, particularly through solar irrigation pumps, which enable farmers to reduce dependence on diesel and access reliable daytime irrigation. Diesel irrigation can cost nearly INR 6,790 per acre for wheat and over INR 8,000 per acre for crops such as cotton. Solar pumps can help farmers save between INR 5,000 and INR 6,500 per acre annually, while also reducing emissions, said Joshi.
Under the PM-KUSUM scheme, more than 10 lakh standalone solar agricultural pumps have been installed, and over 13 lakh grid-connected agricultural pumps have been solarised across the country. The Minister noted that these initiatives are enabling farmers to become “Urjadaata” (energy providers) in addition to being “Annadata” (food providers).
Joshi also highlighted the progress of the PM Surya Ghar: Muft Bijli Yojana. More than 31 lakh households have already benefited from rooftop solar installations under the scheme, enabling families to generate their own electricity and reduce electricity bills, he said.
Highlighting India’s renewable energy progress, the Minister noted that the country’s non-fossil fuel capacity has increased from about 81 GW in 2014 to nearly 275 GW today, with more than half of India’s installed electricity capacity now coming from non-fossil sources. Solar capacity expanded from about 2.8 GW in 2014 to nearly 143 GW, wind capacity increased from around 21 GW to about 55 GW, and biopower capacity rose from 8.1 GW to about 12 GW, reflecting the rapid scale-up of renewable energy deployment in the country, he said.
Addressing the event, Union Minister of State for Power and New and Renewable Energy Shripad Yesso Naik highlighted the emerging potential of agrivoltaics as a transformative solution for India’s energy transition. He noted that agrivoltaic systems enable the simultaneous generation of clean electricity and cultivation of crops on the same land, significantly improving land-use efficiency while addressing the challenge of competing land demands for renewable energy expansion.
Emphasising the importance of collaboration, Naik called for stronger partnerships among government, industry, research institutions and financial organisations to scale up agrivoltaic deployment and develop innovative, affordable solutions that make such technologies accessible to farmers across the country.
Speaking on the develpoment, Vivek Gupta, Chairman and Managing Director, Oswal Pumps, said, "The government’s announcement to introduce PM-KUSUM Yojana 2.0 is a significant step towards strengthening the integration of renewable energy within India’s agricultural ecosystem. With the proposed higher targets and a dedicated 10 GW agri-PV component, the next phase of the scheme is expected to further accelerate the deployment of solar-powered infrastructure in rural areas."
"For the industry, this development could unlock new growth opportunities, particularly for companies operating in the solar pump and renewable irrigation segments, as demand for efficient and sustainable irrigation solutions is likely to increase. Being part of this evolving ecosystem will enable industry players to contribute towards improving farmers’ access to reliable energy while supporting the broader transition towards clean and cost-effective agricultural practices," added Gupta.
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