KUSUM scheme

The KUSUM Scheme—formally known as Kisan Urja Suraksha evam Utthaan Mahabhiyan—is a national initiative aimed at promoting the use of solar energy in the agricultural sector while enhancing farmers’ income and energy security. Launched to reduce the dependence of farmers on conventional power sources and diesel-based irrigation, the scheme encourages the installation of solar pumps, grid-connected renewable power plants, and decentralised solar energy systems. It represents a major step towards integrating clean energy solutions with rural livelihoods, supporting India’s broader goals of sustainable development, renewable energy expansion, and climate resilience.
Designed as a collaborative effort between the central government, state governments, and beneficiaries, the KUSUM Scheme seeks to empower farmers, reduce agricultural input costs, and promote environmentally responsible irrigation practices.

Background and Objectives

India’s agricultural sector has long relied on grid electricity and diesel pumps for irrigation. These systems often pose challenges such as irregular power supply, high operational costs, and negative environmental impacts. The KUSUM Scheme was conceived to address these issues through widespread adoption of solar-based solutions.
The scheme’s principal objectives include:

• expanding renewable energy capacity in rural areas
• reducing dependence on fossil fuels for irrigation
• enabling farmers to generate additional income through surplus electricity sale
• improving energy access and making irrigation more reliable
• reducing the financial burden on state utilities by lowering agricultural power subsidies

By integrating energy reforms with agricultural development, the scheme contributes to a more sustainable rural economy.

Structure and Components

The KUSUM Scheme consists of three main components, each targeting specific areas of agricultural energy usage:

• Component A:
  • Installation of decentralised, grid-connected renewable power plants of small capacity in rural areas.
  • Farmers, cooperatives, and rural organisations can set up solar plants on barren or fallow land, enabling them to sell power to the grid.
• Component B:
  • Installation of standalone solar pumps to replace diesel-based pumps.
  • This supports irrigation in remote areas lacking reliable electricity supply.
• Component C:
  • Solarisation of existing grid-connected agricultural pumps.
  • Farmers can draw solar energy for irrigation and sell excess power to the grid, creating a potential revenue source.

Each component reflects the broader strategy of using solar energy to meet agricultural needs while strengthening rural energy independence.

Implementation Mechanism

The scheme operates through coordinated efforts involving:

• the central government, which provides financial support
• state governments, which implement projects and encourage farmer participation
• distribution companies, which facilitate grid connections and power purchase arrangements
• farmers and cooperatives, who contribute beneficiary shares and adopt solar systems

Subsidy structures typically involve shared contributions from the central government, state governments, and beneficiaries. This cost-sharing model aims to make solar technology accessible and affordable for small and marginal farmers.

Environmental and Economic Benefits

The KUSUM Scheme generates multiple environmental and economic advantages:

• Reduced Greenhouse Gas Emissions: By replacing diesel pumps with solar-powered alternatives, the scheme lowers carbon emissions and promotes clean energy usage.
• Lower Irrigation Costs: Solar pumps provide a long-term reduction in operational expenses for farmers, particularly those dependent on diesel.
• Income Generation: Surplus electricity generated from grid-connected systems can be sold, offering a supplementary income stream.
• Efficient Land Use: Installation of solar plants on barren land promotes productive utilisation of land previously unused.
• Improved Water Management: More reliable energy for irrigation supports better crop planning and water usage.

These benefits demonstrate the scheme’s potential to improve agricultural sustainability while contributing to India’s renewable energy ambitions.

Challenges and Implementation Issues

Despite its strengths, the scheme faces several challenges:

• High Initial Investment: Even with subsidies, upfront costs can be significant for small farmers.
• Awareness Gaps: Limited knowledge about solar technology and its long-term benefits affects adoption.
• Grid Integration Issues: In some regions, existing grids are inadequate to support decentralised solar injection.
• Maintenance Needs: Solar systems require periodic maintenance, and access to reliable service providers can vary.
• Land Availability: For solar power plants under Component A, identifying suitable land poses constraints in densely cultivated areas.

Addressing these issues is essential to ensuring broad and effective implementation.

Contribution to National Goals

The KUSUM Scheme aligns with several national priorities:

• Renewable Energy Expansion: Supporting targets for solar capacity under national energy missions.
• Doubling Farmers’ Income: Providing opportunities for cost reduction and revenue generation.
• Sustainable Agriculture: Encouraging eco-friendly irrigation practices.
• Climate Action: Contributing to commitments under global climate frameworks.
• Rural Development: Strengthening energy access and infrastructure in remote areas.

Its multifaceted impact positions it as a cornerstone of India’s transition towards clean and inclusive energy systems.

Significance and Future Prospects

KUSUM represents a transformative approach to integrating renewable energy with agriculture. As implementation progresses, it offers the potential to reshape rural energy landscapes, reduce dependency on conventional power sources, and open new economic opportunities for farmers.
Future prospects include:

• wider adoption of solar pumps
• technological improvements in efficiency and durability
• increased participation of cooperatives and self-help groups
• enhanced grid infrastructure supporting decentralised generation
• exploration of hybrid systems combining solar with energy storage