PM KUSUM Scheme and Battery Storage, Key Developments

PM KUSUM Scheme Latest News

• The government is considering adding battery storage under the revamped PM-KUSUM 2.0 scheme. 

PM KUSUM Scheme

• The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), launched in 2019, aims to promote solar energy use in agriculture and reduce dependence on diesel and grid electricity.
• It seeks to ensure energy security for farmers while supporting India’s renewable energy targets.
• Objectives and Features
  • Promote solarisation of agricultural pumps. 
  • Provide a reliable and affordable power supply to farmers. 
  • Reduce subsidy burden on state electricity distribution companies (DISCOMs). 
  • Enable farmers to generate additional income by selling surplus power to the grid. 
  • The scheme is implemented by the Ministry of New and Renewable Energy (MNRE).
• Funding Pattern
  • Central Government: 30% subsidy. 
  • State Government: 30% subsidy. 
  • Farmer contribution: 40% (with provision for bank loans). 
  • This shared funding model ensures affordability and wider participation.

‹ ›

Components of PM-KUSUM

• Component A
  • This component focuses on setting up decentralised, grid-connected solar power plants (up to 2 MW capacity).
  • Farmers, cooperatives, and panchayats can install these plants on barren or cultivable land and sell electricity to DISCOMs.
• Component B
  • Under this component, standalone solar-powered agricultural pumps are installed in off-grid areas.
  • It helps farmers reduce dependence on diesel pumps and ensures uninterrupted irrigation.
• Component C
  • This component involves solarisation of existing grid-connected agricultural pumps.
    • It has two sub-models: Individual Pump Solarisation (IPS) and Feeder-Level Solarisation (FLS). 
  • IPS allows farmers to solarise their own pumps, while FLS solarises entire agricultural feeders, improving efficiency at scale.

Achievements and Progress

• Target: 34.8 GW solar capacity addition. 
• Installed capacity: About 12,164 MW as of February 2026. 
• Over 10 lakh standalone solar pumps installed under Component B. 
• More than 13 lakh pumps are covered under feeder-level solarisation. 
• Increased adoption of clean energy in rural areas. 
• Despite progress, implementation has been slower than expected due to financial and operational challenges.

Challenges in Implementation

• Delays in financial closure and loan disbursement. 
• High upfront cost for farmers. 
• Coordination issues between central and state agencies. 
• Grid integration challenges due to variability in solar power generation. 

News Summary

• The government is planning a revamped version of the PM-KUSUM scheme, likely to be called PM-KUSUM 2.0, to address existing gaps and improve efficiency.
• Introduction of Battery Storage
  • The Centre is considering adding battery energy storage to the scheme. 
  • The current scheme focuses only on solarisation and does not include storage systems.
  • Battery storage is being proposed to improve energy management.
• Need for Battery Storage
  • There is a mismatch between solar energy generation and agricultural power demand.
  • Solar generation peaks during midday. 
  • Agricultural demand starts in the morning and continues beyond sunset. 
  • This mismatch creates operational challenges for power distribution and grid stability.
  • Battery storage can address this issue by storing excess solar energy during peak production and supplying it later when demand persists.
• Policy Discussions
  • Different ministries have varying views on the extent of storage capacity.
  • Ministry of Power proposes up to 4 hours of storage. 
  • MNRE suggests a 2-hour storage capacity. 
  • Discussions are ongoing, including consultations with the Ministry of Finance.
• Extension of Timeline
  • The Centre has extended timelines for financial closure and project completion under the existing scheme. 
  • This decision was taken due to delays reported by stakeholders, particularly in securing loans from financial institutions.
• Transition to PM-KUSUM 2.0
  • The current scheme is set to be subsumed into the new PM-KUSUM 2.0 framework.
  • States have been advised to coordinate with banks to expedite pending projects before the transition.

Source: IE | TH