Scaling Solar Power for Irrigation in India

This report evaluates the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, specifically Components A and C-FLS, which promote decentralized solar power plants (1–10 MW) on farmers' land to improve irrigation and reduce state power subsidies. While the economic case is strong, the report identifies governance, market, and structural barriers that have led to gradual progress, and provides recommendations for a post-2026 scheme architecture.

• The PM-KUSUM scheme was launched in 2019 with a total budget of INR 34,422 crores, targeting the addition of approximately 34,800 MW of solar power in the agricultural sector by March 2026. Its primary goals are to improve irrigation access, increase farmer income by turning them into energy producers, and lower the agricultural power subsidy burden on state governments.
• Agricultural solarization offers significant economic benefits: farmers who lease their land earn an average of INR 30,000 per acre annually, and those who invest in the projects see returns between 11% and 16%.
• The report identifies three main categories of barriers hindering the scale-up of the scheme: governance challenges affecting state ownership and capacity; market barriers including fragmented approvals, thin financing, and misaligned tariffs that deter small developers; and structural constraints related to grid readiness and land access.
• To improve the next phase of PM-KUSUM after 2026, the report recommends adopting competitive bidding-based tariff discovery to reflect market conditions, implementing an "incentive stack" where states complement Union Government incentives to prepare grids and identify land, and utilizing a flexible framework of cooperative federalism to allow states to innovate based on their specific contexts.

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} }