The government is preparing to sharpen the design of PM-KUSUM 2.0 around a more durable balance between food security and energy security, with a senior official saying the programme will increasingly focus on agri-photovoltaics, where farming activity is preserved even as solar power is generated on the same plot of land.
The shift matters because India's clean-energy transition has repeatedly run into one of its most sensitive constraints: land. Large-scale solar deployment has often competed with agriculture for space, especially in densely populated rural regions where every acre carries economic and social value. By contrast, agri-photovoltaics offers a way to generate electricity without forcing farmers to choose between crops and power income, making it one of the more promising models for a country that must expand renewable capacity while safeguarding food production.
Dual-Use Land Model
PM-KUSUM, originally conceived to support solarisation in agriculture and reduce dependence on diesel and grid stress, has already been an important policy bridge between rural livelihoods and the energy transition. The proposed 2.0 version appears to be moving beyond simple solar pump deployment toward a more integrated land-use strategy. That evolution reflects a broader policy recognition that India's renewable build-out cannot rely only on utility-scale solar parks; it must also work within the realities of fragmented landholdings, irrigation needs and farm incomes.
Agri-photovoltaics is particularly relevant in this context because it allows panels to be installed at heights or in configurations that let crops continue beneath or between them. In principle, this can reduce evaporation, provide partial shade in hot regions and create a second revenue stream for farmers through power generation. But the model also requires careful agronomic design. Panel spacing, crop selection, water management and local climate conditions all determine whether the system enhances or harms productivity. The official emphasis on "where farm production is not compromised" suggests the government is aware that the credibility of the programme will depend on measurable agricultural outcomes, not just installed megawatts.
Policy Meets Rural Economics
The economic logic behind PM-KUSUM 2.0 is straightforward but consequential. Farmers face volatile input costs, especially for electricity and diesel used in irrigation. Solar-based solutions can lower operating expenses, improve predictability and potentially create income from surplus power. For the state, distributed solar in agricultural areas can ease subsidy burdens over time and reduce pressure on transmission infrastructure.
Yet implementation has historically been uneven in rural energy schemes because financing, procurement and maintenance can be difficult at the farm level. Smaller and marginal farmers often lack the upfront capital or the technical support needed to adopt new systems. If PM-KUSUM 2.0 is to scale meaningfully, it will likely need stronger credit support, clearer standards for project design and a delivery framework that is simpler than conventional infrastructure programmes. The success of agri-photovoltaics will also depend on whether states, discoms and private developers can align incentives so that farmers are not left carrying the operational risk.
The policy direction also carries macroeconomic significance. India's energy transition is increasingly being judged not only by emissions reduction but by its ability to support growth, rural resilience and fiscal prudence. A programme that reduces farm power subsidies, improves irrigation reliability and adds renewable capacity could serve all three goals. But if poorly executed, it could create new distortions, including underused land, weak asset performance and uneven access across regions.
Sustainability Test Ahead
The secretary's framing indicates that PM-KUSUM 2.0 is being treated less as a narrow solarisation scheme and more as a test case for sustainable development policy. The central challenge is not whether agri-photovoltaics is technically possible; it is whether it can be deployed at scale without reducing yields, excluding smallholders or turning farmland into a speculative asset class.
That makes the next phase of the programme especially important. India's food system remains highly sensitive to land productivity, while its power system is under pressure to expand clean generation quickly and cheaply. PM-KUSUM 2.0 is being positioned as a bridge between those imperatives. If the model works, it could become a template for rural energy policy that treats farmland not as a competing use, but as a shared platform for both food and power.
For now, the message from the government is clear: the next iteration of PM-KUSUM will be judged not simply by how much solar it adds, but by whether it can deliver energy gains without sacrificing the agricultural base that underpins rural India.