For Prelims: PM-KUSUM Scheme, Solar Module, Subsidy Burden on Discoms, Report Name, Publishing Body, Total Potential Demand, Demand from Electric Pumps, Demand from Diesel Pumps
For Mains: Energy transition in agriculture, Decentralised solar, PM-KUSUM, Subsidy rationalisation, Domestic manufacturing (Atmanirbhar Bharat)
Source:
Hindustan
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- ISMA report projects 116 GW additional solar module demand from agriculture.
- 100 GW demand from electric pumps, 16 GW from diesel pumps.
- PM-KUSUM added a record 7.6 GW solar capacity in FY 2025-26.
- Over 28 lakh irrigation pumps solarised by July 2026 under PM-KUSUM.
- Agriculture accounts for 17.88% of India's total electricity consumption.
Why in the news?
The Indian Solar Manufacturers Association (ISMA) report projects 116 GW of additional solar module demand from India's agriculture sector, mainly from electrifying irrigation pumps. This creates a major opportunity for domestic solar manufacturing, with PM-KUSUM scheme playing a key role.
Summary
- ISMA report 'Powering the Farms, Building the Factory' estimates 116 GW additional solar module demand from agriculture: 100 GW from electric pumps and 16 GW from diesel pumps.
- PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme added a record 7.6 GW solar capacity in FY 2025-26.
- Agriculture accounts for 17.88% of India's total electricity consumption; subsidy burden on distribution companies rose from ₹1.21 lakh crore (FY 2019-20) to ₹2.41 lakh crore (FY 2024-25).
Highlights
116 GW Demand from Farms
ISMA report projects 116 GW additional solar module demand from agriculture, with 100 GW from electric pumps and 16 GW from diesel pumps.
PM-KUSUM Drives Solarisation
PM-KUSUM added a record 7.6 GW solar capacity in FY 2025-26 and solarised over 28 lakh irrigation pumps by July 2026.
Rising Subsidy Burden
Subsidy on agricultural electricity doubled from ₹1.21 lakh crore (FY 2019-20) to ₹2.41 lakh crore (FY 2024-25).
Background
India's agriculture sector has about 2.3 crore irrigation pumps, mostly powered by grid electricity or diesel. The government's PM-KUSUM scheme aims to solarise these pumps, reducing dependence on conventional power and diesel, cutting subsidy burden, and boosting domestic solar manufacturing.
Key Analysis and Impact
The 116 GW demand is a huge opportunity for domestic solar module makers. Currently, agriculture consumes 17.88% of India's electricity, and the subsidy burden on distribution companies has doubled in five years to ₹2.41 lakh crore. Solarising pumps can reduce this fiscal strain while providing reliable daytime power to farmers. The exclusion of diesel pumps in groundwater-stressed areas is a key caveat.
Way Forward
Realising this potential requires continued policy support, mandatory use of domestic solar equipment, and steady project availability. PM-KUSUM's record 7.6 GW addition in FY 2025-26 shows momentum, but scaling up to cover all 2.3 crore pumps needs sustained investment and grid integration.
Background GK
Textbook concepts you need to understand this news
- PM-KUSUM Scheme
- Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan - a central government scheme to promote solar energy use in agriculture by solarising irrigation pumps and setting up solar power plants on barren land.
- Solar Module
- A solar module, or solar panel, is an assembly of photovoltaic cells that convert sunlight into direct current electricity. Multiple modules form a solar array.
- Subsidy Burden on Discoms
- The cost borne by electricity distribution companies (discoms) when they supply power to farmers at subsidised rates, with the government reimbursing the difference.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: 116 GW additional solar module demand from agriculture; 100 GW from electric pumps, 16 GW from diesel pumps.
- Data: Record 7.6 GW solar capacity added under PM-KUSUM in FY 2025-26.
- Data: 28 lakh+ pumps solarised by July 2026; total pumps ~2.3 crore.
- Data: Agriculture electricity share 17.88%; subsidy burden ₹2.41 lakh crore (FY 2024-25).
- Nodal Body: Ministry of New and Renewable Energy (MNRE) for PM-KUSUM.
Don't make this mistake!
Swapping the source of demand: the 116 GW is potential demand from agriculture, not actual installed capacity. Also, confusing PM-KUSUM with other solar schemes like Rooftop Solar or PM Surya Ghar.
Write these in mains answers
- Energy transition in agriculture, Decentralised solar, PM-KUSUM, Subsidy rationalisation, Domestic manufacturing (Atmanirbhar Bharat)
Stuck? Get it in one tap
A report by the Indian Solar Manufacturers Association says India's farms could need 116 GW of extra solar panels. This would come from switching irrigation pumps to solar power. The government's PM-KUSUM scheme has already solarised over 28 lakh pumps and added a record 7.6 GW solar capacity in the last year. This would help farmers save on electricity and diesel costs and boost Indian solar panel factories.
- ISMA report projects 116 GW additional solar module demand from agriculture.
- 100 GW demand from electric pumps, 16 GW from diesel pumps.
- PM-KUSUM added a record 7.6 GW solar capacity in FY 2025-26.
- Over 28 lakh irrigation pumps solarised by July 2026 under PM-KUSUM.
- Agriculture accounts for 17.88% of India's total electricity consumption.
- Economy: Agriculture and Food Management
- Environment: Renewable Energy
Related concepts: PM-KUSUM Scheme, Solar Module, Subsidy Burden on Discoms
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which ministry is primarily responsible for implementing the PM-KUSUM scheme mentioned in the news?
Explanation: PM-KUSUM is a scheme under the Ministry of New and Renewable Energy (MNRE). The Ministry of Agriculture focuses on crop and farmer welfare, not energy. The Ministry of Power handles grid electricity, and the Ministry of Environment deals with climate policy, not this scheme.
- Q2Hard
Consider the following statements regarding the ISMA report on solar module demand:
- 1.The report estimates 116 GW of additional solar module demand from India's agriculture sector.
- 2.The demand from electric pumps is estimated at 16 GW, while diesel pumps contribute 100 GW.
- 3.The report was released at the India Renewable Energy Summit on 2 November 2026.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: the report projects 116 GW additional demand. Statement 2 is incorrect: electric pumps account for 100 GW, diesel pumps for 16 GW (the values are swapped). Statement 3 is correct: the report was released at the India Renewable Energy Summit on 2 November 2026. Hence option C is correct.
- Q3Medium
According to the ISMA report, what was the total subsidy burden on electricity distribution companies for agricultural power supply in FY 2024-25?
Explanation: The subsidy burden rose to ₹2.41 lakh crore in FY 2024-25. ₹1.21 lakh crore was the figure for FY 2019-20, ₹1.85 lakh crore is a plausible but incorrect intermediate, and ₹2.90 lakh crore is an overestimate.
- Q4Medium
What is the primary objective of solarising irrigation pumps under the PM-KUSUM scheme?
Explanation: The scheme aims to provide energy security to farmers, reduce reliance on conventional power and diesel, and lower the subsidy burden on discoms. Export promotion and revenue generation for discoms are not primary objectives, and the scheme does not directly control agricultural produce prices.
Frequently asked questions
1. What is the estimated solar module demand from India's agriculture sector?
The Indian Solar Manufacturers Association (ISMA) report estimates 116 GW of additional solar module demand: 100 GW from electric pumps and 16 GW from diesel pumps.
2. Which scheme is driving solarisation of irrigation pumps in India?
The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, under the Ministry of New and Renewable Energy, is driving solarisation of irrigation pumps.
3. How much solar capacity was added under PM-KUSUM in FY 2025-26?
A record 7.6 GW of solar capacity was added under PM-KUSUM in FY 2025-26.
4. What is the subsidy burden on discoms for agricultural electricity?
The subsidy burden on distribution companies for agricultural power supply rose from ₹1.21 lakh crore in FY 2019-20 to ₹2.41 lakh crore in FY 2024-25.
All sources
- Original5 November 2026 · Read story
