PM-KUSUM 2.0 — What's Coming for Indian Farmers
The current PM-KUSUM scheme ends in March 2026. The government is actively finalizing PM-KUSUM 2.0 — the next phase with nearly 50% more funding and significant new features. Here's everything we know so far.
Why PM-KUSUM 2.0?
The original PM-KUSUM achieved impressive results — 10+ lakh solar pumps installed — but fell short of some targets. PM-KUSUM 2.0 aims to fix gaps and scale faster:
- Agriculture accounts for 18% of India's electricity consumption — massive solar opportunity
- 5+ crore farmers still use diesel pumps or unreliable grid power
- Feeder-level solarisation reduces DISCOM agricultural subsidy burden — financial incentive for DISCOMs
- Budget 2026 doubled PM-KUSUM to ₹5,000 crore — strong signal of PM-KUSUM 2.0 scale-up
Expected Features of PM-KUSUM 2.0
1. Much Larger Budget
- Expected outlay: ~₹50,000 crore (current phase: ₹34,422 crore)
- ~45-50% funding increase over current scheme
2. Agro-Photovoltaic (Agro-PV) Models
- Solar panels installed 3-4 metres above ground — crops grow underneath
- Dual use of land: electricity + agriculture simultaneously
- Studies show: Some crops (vegetables, medicinal plants) grow better under partial solar shade
- Farmer earns from both crop yield AND solar power sale
- This model is hugely popular in Japan, Germany — PM-KUSUM 2.0 brings it to India
3. Battery Storage Integration
- Solar pumps can only run during daylight — battery storage extends operation to evenings
- Farmers can pump water early morning and evening when crops need it
- BESS integration costs partly subsidized under PM-KUSUM 2.0
4. Expanded Feeder-Level Solarisation
- Solar installed at agricultural feeder level — all connected farmers benefit
- DISCOM's agricultural power supply cost drops dramatically
- Reduces DISCOM's annual subsidy burden from state government
- Creates a financially sustainable model for agricultural solar
5. Higher Private Sector Participation
- More transparent bidding process for Component A solar plants
- Better revenue sharing models for farmer-developer partnerships
- Private solar companies can help set up agro-PV projects with farmers
State-Wise PM-KUSUM 2.0 Expectations
| State | Expected Focus | Opportunity |
|---|---|---|
| Rajasthan | Agro-PV for desert fringe agriculture | Highest solar radiation |
| Maharashtra | Feeder solarisation for sugarcane belt | Massive farm power demand |
| Gujarat | Integration with Kisan Suryoday Yojana | Proven infrastructure |
| UP + MP | Standalone pump scale-up | Largest farming populations |
| Punjab + Haryana | Feeder solarisation for paddy irrigation | High electricity subsidy burden |
What Farmers Should Do Now
- Apply under current PM-KUSUM (before March 2026 deadline) if possible — current scheme's budget is nearly exhausted in some states
- Register interest on your state agriculture portal for PM-KUSUM 2.0 updates
- Join farmer producer organizations (FPOs) — PM-KUSUM 2.0 expected to have FPO-level group applications
- Learn about agro-PV — contact MNRE or SECI for pilot project details in your state
Timeline
- March 2026: Current PM-KUSUM phase ends
- Q1 2026: PM-KUSUM 2.0 framework expected to be announced
- Q2 2026: State-level SOPs and applications expected to open
- FY 2026-27: Full implementation of PM-KUSUM 2.0 begins