Scaling Solar Power for Irrigation in India

The report evaluates the PM-KUSUM scheme's grid-connected components (A and C-FLS), which aim to deploy decentralized solar power plants (1–10 MW) on farmers' land. While the economic case is strong—with land leases earning farmers an average of INR 30,000/acre annually and investments yielding 11%–16% returns—scaling has been gradual. The report identifies three primary barriers: governance challenges limiting state ownership, market barriers such as misaligned tariffs and thin financing, and structural constraints regarding land access and grid readiness. It recommends a flexible, cooperative federalism approach for the next phase, the adoption of competitive bidding for tariff discovery, and the creation of state-level 'incentive stacks' to complement Union Government incentives.

• The PM-KUSUM scheme, launched in 2019 with a total outlay of INR 34,422 crores, targets the addition of approximately 34,800 MW of solar power in the agriculture sector by March 2026.
• Solarization of agricultural land offers significant economic benefits: farmers leasing land earn an average of INR 30,000 per acre annually, while those who invest see returns between 11% and 16%.
• The scale-up of Components A and C-FLS—which focus on decentralized solar plants of 1–10 MW—is hindered by three main categories of barriers: governance issues affecting state capacity, market barriers including fragmented approvals and misaligned tariffs, and structural constraints related to grid readiness and land access.
• To improve the next phase of the scheme, the report recommends using competitive bidding for tariff discovery to reflect market conditions and suggests that states implement an 'incentive stack' to assist with grid readiness and land identification.

APA

Agarwal,, A. R. A. T. C. D. S. E. V. B. K. J. G. (2026). Scaling Solar Power for Irrigation in India. International Institute for Sustainable Development. https://www.iisd.org/publications/report/scaling-solar-power-irrigation-india

Chicago

Agarwal,, Anas Rahman, Ashwitha Tunga,Hrishabh Chandra,Priyami Dutta,Bharat Sharma,Mallik E V,Richik Bandopadhyay,Ayush Kumar Jha,Rishu Garg,Disha. Scaling Solar Power for Irrigation in India. International Institute for Sustainable Development, 2026. https://www.iisd.org/publications/report/scaling-solar-power-irrigation-india.

Wikipedia

{{cite report |last1=Agarwal, |first1=Anas Rahman, Ashwitha Tunga,Hrishabh Chandra,Priyami Dutta,Bharat Sharma,Mallik E V,Richik Bandopadhyay,Ayush Kumar Jha,Rishu Garg,Disha |title=Scaling Solar Power for Irrigation in India |publisher=International Institute for Sustainable Development |date=7 April 2026 |url=https://www.iisd.org/publications/report/scaling-solar-power-irrigation-india |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{agarwal2026scaling, author = {Agarwal,, Anas Rahman, Ashwitha Tunga,Hrishabh Chandra,Priyami Dutta,Bharat Sharma,Mallik E V,Richik Bandopadhyay,Ayush Kumar Jha,Rishu Garg,Disha}, title = {{Scaling Solar Power for Irrigation in India}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = apr, url = {https://www.iisd.org/publications/report/scaling-solar-power-irrigation-india}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }