Maharashtra and Rajasthan have been frontrunners in the adoption of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program Component C, demonstrating progress in scaling renewable energy infrastructure to meet the dual objectives of sustainable agriculture and energy security.

The two states are set to contribute over 10 GW of solar capacity under the PM-KUSUM program by 2025.

The PM-KUSUM program comprises three components: the installation of small-scale solar power projects (Component A), the deployment of standalone solar-powered pumps (Component B), and the solarization of existing grid-connected pumps (Component C).

Launched in 2019, the PM-KUSUM program focuses on enhancing energy access, increasing farmers’ incomes, and curbing environmental pollution using solar energy.

The deployment of solar pumps under Component C has shown varied progress across the states. The program operates through the dual mechanism of individual pump solarization and feeder-level solarization.

Maharashtra has emerged as a significant player in the feeder-level solarization segment, with 775,000 approved units and 12,748 successful installations.

Rajasthan has fared better in the individual pump solarization category, achieving the highest individual state installation rate of 27.09% with 1,739 completed installations out of 6,418 approved units.

Approvals have been made for 3,385,494 feeder-level solarization units and 171,640 individual pump solarization  units nationwide, with installation rates of 0.96% and 2.77%, respectively. 

PM-KUSUM Benefits for Solar Developers

PM-KUSUM Component C projects offer solar developers multiple benefits, including stable revenue through long-term power purchase agreements (PPAs) with DISCOMs, opportunities to scale expertise in decentralized solar installations, and reduced logistical challenges due to the smaller, distributed nature of the projects.

Developers also benefit from favorable government policies such as concessional land rates, tax exemptions, and streamlined approvals, along with access to green financing options.

Additionally, by partnering with DISCOMs for feeder-level solarization, developers benefit from improved grid infrastructure and lower connectivity risks.

Solar Farming Soars in Maharashtra

Maharashtra has taken a leading role in the implementation of PM-KUSUM, particularly under Component C.

Last April, the Maharashtra Electricity Regulatory Commission (MERC) approved the procurement of 7.7 GW of solar power under this component, aligning with the state’s renewable energy targets and broader sustainability goals.

A senior manager from a leading solar energy company, who secured a 100 MW solar project in Maharashtra under the Mukhyamantri Saur Krishi Vahini Yojana, stated, “While large-scale solar deployment in rural Maharashtra presents challenges related to land acquisition, grid infrastructure readiness, and securing timely financial approvals, we are determined to overcome these obstacles. The 100 MW project we are developing will provide farmers with reliable solar energy, reduce reliance on conventional power, and significantly support the state’s renewable energy targets.”

Maharashtra’s efforts are further amplified through initiatives like the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) 2.0, which aims to address the growing energy demand in the agricultural sector, currently estimated at 14,000 MW.

The program’s implementation, managed by MSEB Solar Agro Power, involves phased development, with a target of 4,000 MW to be achieved by April 2025.

With 2,731 substations earmarked for project rollout and projects clustered at a minimum size of 250 MW, Maharashtra’s plans reflect a strategic approach to building solar capacity efficiently and sustainably.

A solar project manager emphasized the importance of fast-tracking approvals and procurement to meet the ambitious 12-month timeline set by regulators. “We’ve streamlined our internal workflows to accelerate decision-making and procurement. This includes having dedicated teams for different project phases and tracking milestones…we start engaging with equipment suppliers, EPC contractors, and local authorities well in advance to minimize delays. This proactive approach helps us anticipate and address potential bottlenecks.”

Rajasthan’s Progress

Rajasthan, a long-standing leader in India’s solar energy market, has also made significant progress under the PM-KUSUM program.

In May, the Rajasthan Electricity Regulatory Commission (RERC) approved procuring  2.9 GW of solar power under the KUSUM program.

The managing partner of a renewable energy company, which secured a 41 MW PM-KUSUM Component C project in Rajasthan, commented, “This project highlights Rajasthan’s leadership in renewable energy and our commitment to powering agriculture with clean energy. One of the main challenges we face is coordinating with local stakeholders to ensure smooth land allocation and securing community support.”

“Additionally, integrating distributed solar power into the grid without causing disruptions is crucial. The 41 MW capacity we are developing will provide thousands of farmers with reliable, affordable energy while furthering Rajasthan’s renewable energy goals,” he said.

An executive of another company that secured a 100 MW project in Rajasthan remarked, “One of the major challenges has been managing the logistical complexities of rural deployments, from handling dispersed project sites to ensuring access to technical expertise.”

“However, the potential impact is significant. By meeting the energy needs of the agricultural community, we aim to reduce their reliance on unreliable grid power, promote sustainability, and create lasting improvements in rural livelihoods. Rajasthan’s forward-thinking renewable energy policies have given us a solid platform to contribute meaningfully to India’s clean energy objectives,” he said.

Rajasthan’s achievements in solar energy are noteworthy; by mid-2024, it became the first Indian state to derive more than 50% of its total installed power capacity from solar energy, with approximately 23 GW of solar infrastructure in place.

The state’s projects under PM-KUSUM Component C are expected to benefit over 152,000 agricultural consumers.

Rajasthan’s forward-looking policies, including incentives such as concessional land rates and 100% exemption on land tax for renewable energy projects for seven years, have significantly encouraged investment and adoption.

Scaling Solar Energy for Agriculture

Despite their strides, Maharashtra and Rajasthan also face similar challenges that threaten to slow the progress of the PM-KUSUM program.

High upfront costs have deterred small and marginal farmers from participating, even with government subsidies. Additionally, the availability of cheap electricity or reliance on traditional power procurement has reduced the incentive for farmers to switch to solar pumps.

Securing sufficient land for solar projects and integrating distributed solar power into existing grid systems remain complex. Financial constraints, logistical challenges in rural areas, and ambitious project timelines also pose significant hurdles.

“Land acquisition and grid connectivity remain challenges for large solar projects in Maharashtra and Rajasthan, but we are seeking to address these through land pooling, collaborations with state agencies for solar parks, localized grid upgrades, and decentralized installations to ensure timely and efficient implementation,” said a developer.

Stakeholders have proposed targeted solutions to address these challenges, emphasizing the need to solarize entire feeders rather than individual pumps to drive broader adoption and lower overall costs.

They highlight the program’s significant potential to mitigate climate change impacts, stressing that its success depends on meticulous implementation.

Additionally, they advocate customizing pump sizes to align with specific land and water requirements, helping farmers avoid unnecessary expenditures and ensuring more efficient resource utilization.

The continued success of the program by addressing some of the challenges can significantly enhance farmers’ energy security, promote sustainable agricultural practices, and help achieve India’s renewable energy targets.