Wider adoption of solar-powered agricultural pumps and feeder systems under PM-KUSUM could improve power availability for farmers, encourage more sustainable energy consumption and reduce the subsidy burden on utilities, according to a new report.
Supported by PM-KUSUM, India’s agricultural sector could generate demand for an additional 116 GW of solar modules to fulfil the country’s ambitions to build a self-reliant solar manufacturing ecosystem, according to a report by the Indian Solar Manufacturers Association (ISMA).
The New Delhi-based industry body estimates that agricultural solarisation could create demand for 100 GW of solar capacity through grid-connected pumps and another 16 GW through diesel-pump replacement, excluding pumps located in groundwater-stressed regions. With nearly 23 million irrigation pumps installed across the country, the sector represents one of the largest domestic demand opportunities for India’s solar manufacturing industry.
The study, Powering the Farms, Building the Factory, was released at the recently concluded Bharat Renewable Energy Summit & Expo 2026 in New Delhi. It highlights the growing momentum of the PM-KUSUM programme, which added a record 7.6 GW of solar capacity in FY2025-26 and helped solarise more than 2.8 million irrigation pumps by July 2026.
Amit Manohar, Secretary General, ISMA, said, “PM-KUSUM has emerged as an important link between India’s agricultural development and domestic solar manufacturing ambitions. The estimated 116 GW of additional module demand from the agricultural sector presents a significant opportunity for Indian manufacturers.”
The report notes that agriculture accounts for 17.88 per cent of India’s electricity consumption, while tariff subsidies billed by distribution companies increased from ₹1.21 trillion in FY2019-20 to ₹2.41 trillion in FY2024-25. According to the study, wider adoption of solar-powered agricultural pumps and feeder systems could improve power availability for farmers, encourage more sustainable energy consumption, and reduce the subsidy burden on utilities.
Launched in 2019, PM-KUSUM aims to solarise India’s agricultural sector through solar-powered pumps and grid-connected renewable energy systems, while providing farmers with an additional source of income.
Strengthening Manufacturing Demand
The report also points to the role of the Domestic Content Requirement (DCR) under components ‘B’ and ‘C’ of PM-KUSUM in supporting domestic manufacturing demand. By October 2026, the two components had installed 13.8 GW of solar capacity, meeting nearly two-thirds of the 20.8 GW domestic manufacturing demand originally projected.
The report recommends retaining the DCR provisions, establishing clear state-level deployment targets and creating multi-year tender pipelines to provide greater demand visibility for manufacturers. It also calls for stronger implementation models to address land access, statutory clearances and grid connectivity challenges that often affect project execution.
In addition, the study highlights the need to expand upstream manufacturing capabilities, particularly in wafers and ingots, to deepen domestic value addition and strengthen India’s solar manufacturing supply chain.