Scaling Solar Power for Irrigation in India

The report evaluates the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, specifically Components A (decentralized solar plants) and C-FLS (feeder-level solarization). While these components offer significant benefits—including reliable daytime power for farmers, reduced agricultural subsidies for DISCOMs, and rural employment—they have seen low uptake, with only 7% and 34% achievement against targets respectively as of December 2025. Key barriers include a mismatch between regulatory tariffs and market costs, inadequate rural grid infrastructure, complex land acquisition and leasing laws, and poor institutional coordination between state agencies and distribution companies (DISCOMs). The report recommends shifting toward competitive bidding, implementing GIS-based land identification, adopting virtual feeder segregation via IoT, and enhancing the leadership role of DISCOMs in project implementation.

• PM-KUSUM Components A and C-FLS have significantly underperformed against their targets, with Component A achieving only 7.2% (720 MW commissioned against 10 GW sanctioned) and Component C-FLS achieving 33.73% (11.9 lakh pumps solarized out of 35.6 lakh sanctioned) as of December 31, 2025.
• Solarizing agricultural demand provides substantial financial benefits to states and DISCOMs by reducing power purchase costs. For example, Rajasthan is projected to save INR 2,543 crores over 25 years (NPV) by solarizing 10% of its demand, which represents 12.47% of its FY 2022–23 agricultural subsidies.
• Farmers benefit from reliable daytime power and new income streams. Landowners leasing land for solar plants earn an average of INR 30,000 per acre annually, while those investing in plants see an estimated average return on investment (ROI) of 11%–16%.
• The scheme has generated rural employment, with estimates suggesting 4.32 full-time equivalent jobs per MW. This translates to approximately 31,872 jobs created to date under Components A and C-FLS.
• Tariff viability is a major barrier due to a mismatch between State Electricity Regulatory Commission (SERC) assumptions and market realities regarding capital costs, O&M costs, land lease rent, and grid availability.
• Rural grid infrastructure is often inadequate for decentralized solar, suffering from voltage fluctuations and reverse power flow. In Madhya Pradesh, a study showed that configuring inverters for reactive power could improve voltage profiles by ~3% and increase developer revenues by nearly 16%.
• Land identification and Right of Way (RoW) are critical bottlenecks. Challenges include outdated land records, restrictive leasing laws (often limited to 5–7 years despite a 25-year plant lifespan), and cumbersome land-use diversion processes.
• Institutional coordination is poor, particularly when DISCOMs are not the lead implementing agency. This leads to discrepancies between notified and actual substation capacities and delays in signing Power Purchase Agreements (PPAs).
• There is a significant awareness gap among farmers. A survey in Karnataka found that 61% of farmers were unaware of the scheme, and only 3% had comprehensive knowledge of all components.
• IoT-based virtual feeder segregation is a cost-effective alternative to physical segregation. A pilot by JVVNL in Rajasthan reported ~90% savings in time and cost compared to physical methods.

APA

International Institute for Sustainable Development (2026). Scaling Solar Power for Irrigation in India. https://www.iisd.org/system/files/2026-04/scaling-solar-power-irrigation-india.pdf

Chicago

International Institute for Sustainable Development. Scaling Solar Power for Irrigation in India. 2026. https://www.iisd.org/system/files/2026-04/scaling-solar-power-irrigation-india.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Scaling Solar Power for Irrigation in India |date=April 2026 |url=https://www.iisd.org/system/files/2026-04/scaling-solar-power-irrigation-india.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2026scaling, author = {{International Institute for Sustainable Development}}, title = {{Scaling Solar Power for Irrigation in India}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = apr, url = {https://www.iisd.org/system/files/2026-04/scaling-solar-power-irrigation-india.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }