PM-KUSUM 2.0: Solarisation with Battery Storage

Context

The government is planning to revamp the PM-KUSUM scheme into PM-KUSUM 2.0, with a proposal to include battery storage to improve energy management and address solar power limitations.

Q1. What is the PM-KUSUM Scheme and why was it launched?

1. The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was launched in 2019.
2. It aims to promote solar energy use in agriculture and reduce dependence on diesel and conventional electricity.
3. The scheme seeks to ensure energy security for farmers while supporting India’s renewable energy goals.
4. It focuses on clean energy adoption in rural areas and improving farmers’ income.

Q2. What are the objectives and features of the PM-KUSUM Scheme?

1. The scheme promotes solarisation of agricultural pumps, reducing diesel usage.
2. It ensures reliable and affordable electricity supply for irrigation.
3. It reduces the subsidy burden on DISCOMs, improving financial health.
4. It enables farmers to earn additional income by selling surplus solar power to the grid.
5. The scheme is implemented by the Ministry of New and Renewable Energy (MNRE).

Q3. What is the funding pattern of the scheme?

1. The Central Government provides a 30% subsidy.
2. State Governments provide a 30% subsidy.
3. Farmers contribute 40%, with access to bank loans for financing.
4. This ensures affordability and wider participation.

Q4. What are the components of the PM-KUSUM Scheme?

1. Component A: Establishment of decentralised grid-connected solar plants (up to 2 MW) by farmers, cooperatives, or panchayats to sell electricity.
2. Component B: Installation of standalone solar-powered pumps in off-grid areas, reducing diesel dependence.
3. Component C: Solarisation of existing grid-connected pumps, including:
   1. Individual Pump Solarisation (IPS)
   2. Feeder-Level Solarisation (FLS) for large-scale efficiency

Q5. What has been the progress and achievements of the scheme?

1. Target of 34.8 GW solar capacity addition.
2. Around 12,164 MW installed capacity achieved by February 2026.
3. Under Component B, over 10 lakh standalone solar pumps are installed.
4. More than 13 lakh pumps are covered under feeder-level solarisation.
5. Increased adoption of clean energy in rural India.
6. However, progress has been slower than expected due to financial and operational issues.

Q6. What are the challenges in implementation of PM-KUSUM?

1. Delays in loan disbursement and financial closure of projects.
2. High upfront costs for farmers despite subsidies.
3. Coordination problem between central and state agencies.
4. Grid integration challenges because of variability in solar power generation.

Q7. Why is battery storage being proposed under PM-KUSUM 2.0?

1. There is a timing mismatch between solar generation and demand:
   1. Solar power peaks during midday.
   2. Agricultural demand begins in the morning and extends into evening.
2. This mismatch causes inefficiency and grid instability.
3. Battery storage can:
   1. Store excess solar energy during peak production
   2. Supply power later when demand continues
4. It helps in better energy management and reliable supply.

Q8. What are the key developments under PM-KUSUM 2.0?

1. Proposal to include battery energy storage systems in the scheme.
2. Ongoing discussions on storage capacity:
   1. Ministry of Power suggests up to 4 hours
   2. MNRE proposes around 2 hours
3. Extension of timelines for financial closure and project completion to address delays.
4. The current scheme will be merged into PM-KUSUM 2.0.
5. States have been advised to coordinate with banks to expedite pending projects.

Q9. What is the significance of adding battery storage to the scheme?

1. Improves efficiency of solar energy utilisation.
2. Enhances grid stability and reliability.
3. Ensures continuous power supply for farmers beyond daylight hours.
4. Supports renewable energy integration at a larger scale.
5. Helps in achieving India’s clean energy and climate targets.

Conclusion

The transition to PM-KUSUM 2.0 with battery storage marks a shift from simple solar adoption to smart energy management, making renewable energy more reliable and farmer-friendly.