Redesigning PM-Kusum 2.0

Phase 1 of PM KUSUM officially concluded in March 2026 with a sharply uneven implementation. Component B, covering standalone solar pumps, installed 11.8 lakh pumps, achieving 90 per cent of its sanctioned target. Component A installed 2,200 MW against a 10,000 MW target. Component C, particularly feeder-level solarisation, emerged as the most scalable pathway, though statelevel performance varied sharply. However, multiple states have recorded zero MW installations between all three components. These gaps now inform the design of PM KUSUM 2.0.

The second phase introduces several structural changes: a near-doubling of central financial outlay to Rs 51,000 crore; formal linkage of Components A and C with the Agriculture Infrastructure Fund (AIF) for concessional, long-tenure credit; and greater emphasis on feeder-level solarisation and agrivoltaics. Battery energy storage systems are also under active consideration, addressing a design gap Phase 1 left unresolved. Storage is essential in diverting peak hour generation to the rest of the day. Additionally, grid diagnostics become essential for programme design for over-pressured feeders in states with high adoption.

But for EPC developers, financiers and farmers, the revised framework brings stricter compliance requirements. Rural projects continue to face DISCOM counterparty risk and higher borrowing costs. Component A also remains concentrated among farmers with land near substations, access to collateral and familiarity with solar markets. PM KUSUM 2.0 proposes agrivoltaics and FPO-led aggregation to widen participation, though these models remain largely untested at scale.

Centre for Science and Environment (CSE) invites you to a webinar to discuss these changes and unresolved implementation challenges. Join us to examine what the proposed redesign gets right, where execution risks remain, and what the next phase must address.

FOR MORE DETAILS, CONTACT

BINIT DAS
Program Manager
Renewable Energy Unit, CSE
Mobile: +91 80933 26269
Email: binit.das@cseindia.org

BISWAJIT GHOSH
Researcher
Renewable Energy Unit, CSE
Mobile: +91 7980143101
Email: biswajit@cseindia.org