Over 500,000 Solar Pumps Installed in India with Government Subsidies

Maharashtra led the states with the highest number of pumps installed

November 28, 2024

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Over 500,000 standalone solar pumps have been installed under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program as of October, 2024.

The PM-KUSUM aims to reduce the use of diesel in the agricultural sector and enhance the income of farmers. Under Component B is focused on installing standalone solar pumps used to irrigate farmland.

Various states have raised a demand for over 1.3 million solar pumps, and letters of award have been issued for about 970,000 pumps. In all, 540,499 pumps have been installed, meeting 42% of the target, Minister of State for New and Renewable Energy Shripad Yesso Naik told the Lok Sabha.

Among the states, Maharashtra has emerged as the top performer with 197,863 installations, followed by Haryana with 136,572 pumps. Rajasthan has installed 85,635 pumps, while Uttar Pradesh and Jharkhand have installed 53,182 and 21,522 pumps, respectively.

Hilly and northeastern states have shown moderate progress. Arunachal Pradesh has installed 663 out of 1,270 pumps, while Himachal Pradesh has installed 394 out of 700 pumps under the program.

Under the demand-driven program, farmers can replace their diesel-powered pumps with 7.5 HP solar pumps to provide irrigation solutions in off-grid areas where electricity supply is unavailable. Farmers can opt for pumps with higher capacities, but financial support is capped at the 7.5 HP limit.

The component carries central financial assistance (CFA) of 30% of the cost of the pumps, with the state government pitching in with a matching subsidy. The farmer must bear 40% of the cost of the solar pumps. For the hilly and northeastern states, the CFA is 50%.

This demand-driven initiative targets not only individual farmers but also water user associations, primary agricultural credit societies and cluster-based irrigation systems.

Financial Disbursements

Financial disbursements under the program further illustrate the disparities in implementation. Out of ₹37.49 billion (~$443.68 million) released to states, Maharashtra received the largest share at ₹13.29 billion (~$157.32 million), followed by Haryana with ₹8.84 billion (~$104.57 million) and Rajasthan with ₹8.22 billion (~$ 97.24 million). Uttar Pradesh and Jharkhand received ₹2.29 billion (~$27.05 million) and ₹0.88 billion (~$10.42 million), respectively.

However, fund utilization remains a critical concern. Despite receiving ₹0.84 billion (~$9.94 million), Karnataka achieved only 3% of its target.

In a Budget announcement, Karnataka Chief Minister Siddaramaiah said the state targets installing 40,000 solar pumps at an estimated cost of ₹11.74 billion (~$141.4 million).

Recently, the Haryana Renewable Energy Development Agency awarded contracts to supply, install, and commission 17,458 solar water pumping systems under Component B of the KUSUM program.

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