The central government is preparing to launch PM-KUSUM 2.0 to support farmers with solar energy and reduce irrigation costs. The new phase of the scheme is expected to help farmers earn extra income by generating electricity along with farming activities. Fruit, vegetable, and horticulture farmers are likely to benefit the most from this upcoming plan.
The Ministry of New and Renewable Energy (MNRE) is finalising the proposal before sending it for cabinet approval. If cleared, the scheme could be introduced in phases in the coming months with a proposed budget of around ₹50,000 crore.
The government is planning to promote the installation of raised solar panels on agricultural land under the new scheme. These solar structures will allow farmers to continue cultivation while generating electricity from the same field area. The model is expected to support fruit, vegetable, and horticulture farmers, as several crops can grow properly even under partial shade conditions created by solar panels.
The PM-KUSUM 2.0 may create a new source of income for farmers by allowing them to sell surplus electricity generated through solar systems. Along with crop earnings, farmers could receive regular income from power supplied to the electricity grid.
Farmers with larger land areas may benefit more due to higher electricity generation capacity. The scheme is also expected to improve land use efficiency by supporting both farming and power production on the same field.
The scheme is also expected to reduce the use of diesel pumps in farming activities. Solar-powered irrigation systems may help lower fuel expenses and provide affordable electricity for irrigation needs. This step could reduce farming costs, improve irrigation access, and lower pollution caused by diesel consumption.
The earlier PM-KUSUM scheme, launched in 2019, could not fully achieve several installation targets related to solar power and pump solarisation. However, the programme still benefited lakhs of farmers across different states.
Under PM-KUSUM 2.0, the focus is expected to remain on better implementation and stronger solar infrastructure support. The scheme may also promote battery storage and wider solar adoption in rural areas.
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