India is weighing an outlay of about INR350bn ($3.7bn) for the next phase of PM-KUSUM, its farm solar scheme. MNRE Secretary Santosh Kumar Sarangi told the Financial Express that no one has fixed the final sum yet. Still, it could be broadly similar to the current scheme’s central support of about INR344bn ($3.6bn).
What changes in PM-KUSUM
The renewable energy and agriculture ministries are working on the new phase together. Rather than treat solar pumps as a standalone item, it would link them to efficient irrigation and water saving. In addition, the plan includes a dedicated agrivoltaics component, so farmers can grow crops and make power on the same land. Once the design is ready, the ministry will take it to the Cabinet. Until then, the structure and funding model remain open.
Today, the scheme backs farm solar plants of 500 kW to 2 MW. It also funds standalone pumps of up to 7.5 HP and solar for grid-connected pumps.
Plain solar loses buyers
Sarangi also said demand for “vanilla” solar projects without storage has weakened. By contrast, solar with batteries “is now selling well”. As a result, SECI must now ask states what power they need before it tenders.
He added that about 50 GW of renewables a year is sustainable only if India builds more battery factories. Meanwhile, PM Surya Ghar has reached about 6mn homes. It should reach 8.5mn to 9mn by March 2027, against a 10mn target.
Read more on India’s grid limits in our grid bottleneck analysis.
Sources
- The Financial Express: ‘Centre weighing Rs 35,000-cr outlay for PM-KUSUM-II’: MNRE’s Santosh Kumar Sarangi
- The Economic Times: PM-KUSUM 2.0 may be aligned with farm schemes: Renewable energy secretary Santosh Kumar Sarangi
- PTI (via The Shillong Times): Rupee falls 2 paise to close at 94.91 against USD
