PM-KUSUM solar pumps 2026: progress, state performance and KUSUM 2.0

In 50 words: PM-KUSUM has deployed ~2.8 million solar agricultural pumps and 4 GW of grid-connected solar by Q1 2026. State implementation varies sharply — Maharashtra and Rajasthan lead; Punjab and Haryana lag — driven by DISCOM cooperation, subsidy speed and installer ecosystems. KUSUM 2.0 is expected H2 2026 with larger targets.

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is India's flagship scheme for solarising agriculture — replacing diesel and grid-powered irrigation pumps with solar, and turning farmers into power producers. By Q1 2026 it had deployed roughly 2.8 million solar pumps and 4 GW of decentralised grid-connected solar, a major contribution to India's rural energy transition. But the headline numbers hide enormous variation between states, and the scheme's three components have delivered very unevenly. This guide explains the three components, the state-by-state performance and why it diverges, the mid-course pivot on Component A, the economics for farmers, and the expected KUSUM 2.0 expansion.

What is PM-KUSUM?
The three components and their outcomes
State performance variation
Why states diverge
The Component-A pivot
The economics for farmers
What KUSUM 2.0 may bring
What to watch next in 2026
Frequently asked questions

1. What is PM-KUSUM?

PM-KUSUM is a central-government scheme launched to solarise Indian agriculture, addressing three linked problems at once: farmers' reliance on expensive or unreliable diesel and grid power for irrigation, the heavy subsidy burden that agricultural power places on state distribution companies (DISCOMs), and India's renewable-capacity targets. It works by subsidising solar pumps and decentralised solar generation, with costs typically split between the central government, the state, and the farmer (often roughly 30/30/40, though structures vary). The scheme is implemented through state nodal agencies and DISCOMs, which is precisely why outcomes vary so much by state (§3-4). At its heart, PM-KUSUM aims to give farmers cheaper, cleaner irrigation while easing DISCOM finances and adding distributed solar to the grid.

2. The three components and their outcomes

PM-KUSUM has three components, which have delivered to very different degrees:

| Component | What it funds | Target | Delivered (Q1 2026) | |---|---|---|---| | Component A | 10 GW decentralised grid-connected solar at substation level | 10 GW | ~4 GW | | Component B | Standalone (off-grid) solar pumps for farmers | 1.75 million | ~2.0 million | | Component C | Solarisation of existing grid-connected pumps | 1 million | ~0.8 million |

The pattern is clear: Component B (standalone pumps) overdelivered, exceeding its target, because it's a relatively simple, farmer-facing product. Component C (solarising existing pumps) is close to target. Component A (grid-connected solar) badly underdelivered against its 10 GW goal, prompting a redesign (§5). So the "solar pump" side of KUSUM has been the success story, while the grid-generation side struggled.

3. State performance variation

Cumulative pumps deployed under Components B and C vary enormously by state:

| State | Pumps deployed | Status | |---|---|---| | Maharashtra | 480,000 | Leader | | Rajasthan | 420,000 | Leader | | Gujarat | 380,000 | Strong | | Madhya Pradesh | 290,000 | Strong | | Karnataka | 260,000 | Solid | | Punjab | 95,000 | Well below target | | Haryana | 85,000 | Well below target |

The gap between the leaders (Maharashtra, Rajasthan) and the laggards (Punjab, Haryana) is striking — and instructive, because all states had access to the same central scheme. The difference is execution, not policy.

4. Why states diverge

Three factors explain the divergence, and they're a useful lesson for any subsidy-driven programme:

DISCOM cooperation. The willingness of state distribution companies to engage with farmers, process applications and clear subsidies varies dramatically. Where DISCOMs see solar pumps as a way to cut their own agricultural-power subsidy burden, they push hard; where they don't, the scheme stalls.
Subsidy-disbursement speed. Maharashtra and Rajasthan invested in dedicated processing infrastructure to pay subsidies quickly; Punjab and Haryana did not, and slow payments deter both farmers and installers.
Local installer ecosystem. States with developed local MSME (micro, small and medium enterprise) installer networks scale far faster than those reliant on outside contractors, because local installers reach dispersed rural customers.

The takeaway: the central scheme provides the funding, but state-level administrative capacity and DISCOM buy-in determine whether it actually reaches farmers.

5. The Component-A pivot

Component A's original design — 500 kW to 2 MW solar projects at substation level, built by utility-scale developers — under-delivered badly, reaching only ~4 GW of its 10 GW target. The problem was that the model didn't fit: utility developers found the small, scattered substation-level projects unattractive, and land and grid-connection complexities slowed them. The 2025 pivot reworked Component A around MSME-led project ownership with DISCOM PPA back-stops — smaller local players building and owning projects, with the DISCOM guaranteeing offtake. This better-fitting model has accelerated 2026 commissioning, showing that matching the ownership structure to who actually wants to build matters as much as the subsidy.

6. The economics for farmers

For a farmer, a PM-KUSUM solar pump transforms irrigation economics. A diesel pump costs heavily in fuel and runs only when fuel is bought; a grid pump depends on erratic, often night-time agricultural power. A subsidised solar pump, by contrast, provides free daytime power for irrigation after a modest upfront contribution (often ~40% of cost, sometimes financed). Under Component C, farmers who solarise a grid-connected pump can even sell surplus power back to the DISCOM, turning the pump into a small income source. The combination — lower irrigation cost, daytime reliability, and potential export income — is why Component B demand outran its target, and why solar pumps are among the most tangible rural benefits of India's energy transition.

7. What KUSUM 2.0 may bring

A PM-KUSUM 2.0 scheme is expected in H2 2026 and will likely scale the targets substantially — reporting suggests around 15 GW for Component A and roughly 5 million standalone-plus-solarised pumps by 2028. Beyond bigger numbers, the key things to watch are an updated subsidy structure (to fix the disbursement-speed problem) and stronger DISCOM-coordination mandates (to address the cooperation gap that held back laggard states). If KUSUM 2.0 learns from the Component-A pivot and the state-variation lessons, it could close the execution gap that limited the first scheme.

8. What to watch next in 2026

KUSUM 2.0 notification (expected H2 2026) — targets, subsidy structure and DISCOM mandates.
Component A under the new MSME model — whether commissioning accelerates toward the goal.
Laggard-state turnaround — whether Punjab and Haryana fix DISCOM and disbursement bottlenecks.
Pump-to-grid export — Component C farmers earning from surplus power.
Integration with agrivoltaics — combining pumps and solar with crops (see agrivoltaics in India 2026).

9. Frequently asked questions

What is PM-KUSUM?

A central Indian scheme to solarise agriculture — subsidising standalone solar pumps, solarising existing grid pumps, and adding decentralised grid-connected solar — implemented through states and DISCOMs.

How many solar pumps has PM-KUSUM deployed?

About 2.8 million solar pumps plus ~4 GW of grid-connected solar by Q1 2026, with Component B (standalone pumps) exceeding its target.

Why do some states do so much better than others?

Because of DISCOM cooperation, the speed of subsidy disbursement, and the strength of local installer networks. Maharashtra and Rajasthan lead; Punjab and Haryana lag despite the same central scheme.

What are the three components of PM-KUSUM?

Component A (decentralised grid-connected solar at substations), Component B (standalone solar pumps), and Component C (solarising existing grid-connected pumps).

Why did Component A underdeliver?

The original utility-developer model didn't fit small substation-level projects. A 2025 pivot to MSME-led ownership with DISCOM PPA back-stops has accelerated commissioning.

Is a solar pump worth it for a farmer?

Yes — it replaces costly diesel or unreliable grid power with free daytime irrigation after a subsidised upfront cost, and under Component C farmers can sell surplus power back to the DISCOM.

What is KUSUM 2.0?

An expected H2 2026 expansion likely scaling targets to ~15 GW Component A and ~5 million pumps by 2028, with an updated subsidy structure and stronger DISCOM-coordination mandates.

Researched and drafted with AI assistance; reviewed and edited by Pruthvi A.. Companion reading: PM Surya Ghar Yojana complete guide 2026, agrivoltaics in India 2026, solar panel cost India 2026 complete guide, India rooftop solar 30 GW target. Browse more solar coverage. Standards: editorial, AI disclosure.

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