India's PM-KUSUM Scheme to Include Agrivoltaics Component

Key Financial Takeaways

  • The PM-KUSUM scheme's next phase will include a dedicated component for agrivoltaics.
  • Agrivoltaics allows farmers to generate solar power while growing crops on the same land.
  • The scheme focuses on small and marginal farmers, aiming to provide them with an additional and stable source of income.
  • Farmers can earn three streams of income: from crops, electricity sold, and diesel savings.

💡 Why It Matters

The integration of agrivoltaics into the PM‑KUSUM scheme is significant because it addresses the dual challenge of enhancing farmers' incomes and promoting renewable energy. By allowing farmers to generate solar power while continuing to cultivate their land, the scheme aims to provide a stable and additional source of income, reducing dependence on diesel and mitigating the risks associated with monsoon failures and crop price fluctuations.

Introduction to PM-KUSUM and Agrivoltaics

The Indian government has announced that the next phase of its flagship PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme will incorporate a dedicated component for agrivoltaics. This development was shared by Union Minister for New and Renewable Energy, Pralhad Joshi, during a curtain‑raiser event for the 7th Agrivoltaics World Conference 2026 in New Delhi.

What is Agrivoltaics?

Agrivoltaics involves the installation of solar panels above agricultural land, allowing farmers to continue cultivation underneath. This innovative approach aims to create an additional and more stable source of income for farmers, whose earnings can be significantly affected by monsoon conditions and fluctuations in crop prices. With agrivoltaics, farmers can potentially earn three streams of income from the same acre: from crops, electricity sold to distribution companies, and savings on diesel.

Focus on Small and Marginal Farmers

The proposed model under PM-KUSUM will focus on supporting small and marginal farmers, farmer producer organisations (FPOs), cooperatives, and panchayats. A key feature of this initiative is that the ownership of the land will remain with the farmers. This approach is particularly significant in India, where more than 85% of farmers are small and marginal, cultivating less than two hectares of land.

Implementation and Targets

The PM-KUSUM scheme, launched in 2019, aims to reduce diesel dependence in agriculture, provide energy and water security to farmers, and increase their incomes through decentralized renewable energy. The scheme has three components: setting up decentralized grid‑connected solar plants on farmers' land, installing standalone solar agriculture pumps, and solarising existing grid‑connected agricultural pumps. As of December 2025, the scheme had benefited 21.77 lakh farmers, with 9.75 lakh standalone pumps installed and 12.02 lakh pumps solarised. The overall solar capacity target is 34.8 GW by March 2026, with central financial support of Rs 34,422 crore.

Significance and Future Developments

The inclusion of agrivoltaics in PM‑KUSUM is expected to address land constraints while supporting farm incomes. The government is also pushing research to determine the most suitable combinations of crops, panel height, spacing, and solar configurations for different regions. For instance, a research centre in Pune is currently testing 17 solar configurations across 30 crops.

What to Watch

The implementation of the agrivoltaics component under PM‑KUSUM and its impact on farmers' incomes will be crucial to watch. The government's support for research in agrivoltaics and its potential to stabilise agricultural incomes in the face of climate variability will also be important areas to monitor.

🏛️ Background & Context

The PM‑KUSUM scheme was launched in 2019 with the goal of reducing diesel dependence in agriculture, providing energy and water security to farmers, and increasing their incomes through decentralized renewable energy. The scheme has made significant progress, benefiting 21.77 lakh farmers by December 2025.

👁️ What To Watch Next

The implementation of the agrivoltaics component under PM‑KUSUM and its impact on farmers' incomes will be crucial to watch. The government's support for research in agrivoltaics and its potential to stabilise agricultural incomes in the face of climate variability will also be important areas to monitor.

Source Attribution:
  • NEWZA