PM-KUSUM 2.0 Scheme: Next Big Solar Scheme for Farmers

India’s agriculture sector is slowly moving towards clean energy, and solar power is becoming a key part of this transformation. After the success of the PM-KUSUM Scheme, the focus is now shifting to its upgraded version — PM-KUSUM 2.0.

On March 10, 2026, during the 4th National Agro-RE Summit, Union Minister Pralhad Joshi shared that the government is preparing the next phase of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, widely known as PM-KUSUM. This upcoming phase is being referred to as PM KUSUM 2.0.

This new version reflects a big change in thinking. Farmers in India are no longer seen only as food producers. Now, they are also being encouraged to become contributors to the country’s clean energy mission.

Even though the new version is still in the rollout phase, it is already being seen as the next big solar opportunity for farmers. Let’s understand what makes this scheme important, what changes are expected, and how it can benefit farmers across India.

Progress Achieved in the First Phase

The initial phase of PM KUSUM, which continued until March 2026, brought noticeable improvements in rural areas.

• Over 10 lakh solar pumps replaced diesel-based systems
• Around 13 lakh grid-connected pumps were converted to solar

These changes helped farmers reduce fuel costs and ensured better electricity availability during the day. In many areas, where power supply was irregular, solar solutions made irrigation easier and more reliable.

Why PM-KUSUM 2.0 is Needed

The original PM-KUSUM scheme helped thousands of farmers reduce their dependency on diesel pumps and unreliable grid electricity. However, some challenges were noticed:

• Slow implementation in some states
• Financial barriers for small farmers
• Limited awareness in rural areas
• Delays in approvals and installations

PM-KUSUM 2.0 is expected to address these issues and make solar adoption faster, easier, and more farmer-friendly.

What is PM-KUSUM 2.0?

PM-KUSUM 2.0 is an upgraded solar scheme designed to:

• Provide affordable solar pumps
• Promote solar power generation on farmland
• Allow farmers to earn extra income by selling electricity
• Reduce dependence on conventional energy sources

The scheme will continue to be managed by the Ministry of New and Renewable Energy, ensuring nationwide implementation.

 

Key Components of PM KUSUM 2.0

PM KUSUM is designed as a multi-part scheme, where each component solves a different problem faced by farmers.

Component A: Solar Power Plants on Farmland

Under this part, farmers can install solar plants ranging from 500 kW to 2 MW on unused or low-productivity land.

Instead of leaving such land idle, farmers can turn it into an income source by generating electricity and selling it to DISCOMs under long-term agreements (around 25 years).

This offers:

• Stable monthly income
• Reduced transmission losses
• Productive use of barren land

For farmers with land near substations, this is one of the most profitable options.

Component B: Standalone Solar Pumps

This component focuses on replacing diesel pumps with off-grid solar pumps (up to 7.5 HP).

It is especially useful for farmers in areas where electricity supply is unreliable or unavailable.

Benefits include:

• No fuel cost
• Low maintenance
• Daytime irrigation

For small farmers depending on diesel, this is the easiest way to switch to solar.

Component C: Solarisation of Existing Pumps

Farmers who already use grid-connected pumps can install solar panels to power them.

The system can generate more electricity than required, and the extra power can be sold back to the grid.

This allows farmers to:

• Reduce electricity bills
• Earn additional income
• Become energy producers, not just consumers

Component D: Feeder-Level Solarisation

A new addition, this approach focuses on installing solar plants at the feeder level instead of individual farms.

One large solar plant supplies electricity to multiple farms connected to the same line.

Key advantages:

• Daytime electricity supply
• Improved safety (no night irrigation)
• Better power management

Expected Key Features of PM-KUSUM 2.0

Although the official guidelines are awaited, industry trends suggest several improvements:

1. Increased Budget: The total budget is expected to grow from about ₹34,422 crore to nearly ₹50,000 crore. This expansion shows the government’s strong push toward solar adoption in agriculture.
2. Faster Implementation: Simplified approval processes and digital tracking systems may reduce delays.
3. Higher Focus on Small Farmers: Special provisions may be introduced for marginal farmers with limited landholding.
4. Improved Subsidy Structure: Subsidies are expected to remain attractive, making solar systems more affordable.
5. Expansion of Solar Capacity: More capacity for decentralized solar plants, including agrivoltaics (farming + solar together).
6. Better DISCOM Participation: Stronger involvement of DISCOMs to ensure smooth power purchase agreements.

Subsidy & Financial Benefits (Expected)

PM-KUSUM 2.0 is likely to follow a similar structure:

• Up to 60% subsidy (Central + State)
• 30% loan support from banks
• 10% farmer contribution

This structure makes solar installation highly cost-effective, even for small farmers.

How Farmers Can Benefit

• Reduced Irrigation Cost: Solar pumps eliminate diesel expenses and reduce electricity bills.
• Additional Income Source: Farmers can sell surplus power to the grid and earn a stable income.
• Reliable Power Supply: No more dependence on irregular electricity supply.
• Eco-Friendly Farming: Solar energy reduces carbon footprint and promotes sustainable agriculture.

PM-KUSUM 2.0 vs Existing Scheme

Impact on India’s Solar Future

PM-KUSUM 2.0 is not just a farmer scheme — it is a step toward:

• Achieving India’s renewable energy targets
• Strengthening rural economies
• Promoting decentralized solar power generation
• Reducing dependence on fossil fuels

Conclusion

PM-KUSUM 2.0 has the potential to become a game-changer for Indian farmers. By combining clean energy with agriculture, the scheme can turn farmers into both food producers and energy producers.

While the official launch is still awaited, the expectations are high. Farmers, solar companies, and policymakers are all looking forward to a more efficient and impactful version of this scheme.

 

PM-KUSUM 2.0 Scheme – FAQs

1. What is PM-KUSUM 2.0 scheme?

PM-KUSUM 2.0 is the upgraded version of the government’s solar scheme for farmers, designed to make solar irrigation easier, faster, and more affordable across India.

2. Why is PM-KUSUM 2.0 being introduced?

The new version aims to fix issues like slow approvals, low awareness, and financial challenges faced by farmers in the earlier scheme.

3. Who can apply for PM-KUSUM 2.0?

Farmers, farmer groups, cooperatives, and rural landowners are expected to be eligible under this scheme.

4. Is PM-KUSUM 2.0 officially launched?

As of now, the scheme is in rollout/planning stage, and full guidelines are expected soon.

5. What are the main benefits of PM-KUSUM 2.0?

It offers solar pumps, lower irrigation costs, extra income from power sale, and reliable electricity supply.

6. How much subsidy will farmers get under PM-KUSUM 2.0?

The expected structure is:

• 60% subsidy (central + state)
• 30% loan
• 10% farmer contribution

7. Can small farmers apply for this scheme?

Yes, PM-KUSUM 2.0 is expected to focus more on small and marginal farmers.

8. What is the main objective of PM-KUSUM 2.0?

The goal is to turn farmers into both food producers and energy producers.

9. Can farmers earn money from this scheme?

Yes, farmers can sell surplus solar electricity to DISCOMs and generate additional income.

10. What types of solar systems are included?

Solar pumps, grid-connected systems, and small solar plants on farmland are expected.

11. How is PM-KUSUM 2.0 different from the old scheme?

It is expected to be faster, more accessible, and include advanced technologies like agrivoltaics.

12. What is agrivoltaics in PM-KUSUM 2.0?

It means using the same land for farming and solar power generation together.

13. Will the application process be easier?

Yes, digital systems and simplified approvals are expected.

14. Which ministry manages this scheme?

The Ministry of New and Renewable Energy (MNRE) handles the scheme.

15. What is the expected solar capacity target?

The earlier scheme targeted around 34,800 MW, and the new version may expand further.