PM-KUSUM 2.0 and Agrivoltaics: What Rajasthan Farmers and Solar Developers Should Know
A proposed ₹35,000-crore next phase of PM-KUSUM, a possible agrivoltaics programme and a new focus on solar-plus-agriculture are attracting attention. Here is what has actually been announced, what remains under consideration, and what farmers, landowners and solar developers in Rajasthan should evaluate now.
India's agricultural solar programme may be moving beyond pumps and conventional ground-mounted projects. Recent remarks by Ministry of New and Renewable Energy (MNRE) officials, alongside the 7th Agrivoltaics World Conference held in New Delhi from 21–23 October 2026, suggest that the next PM-KUSUM phase could give greater attention to dual-use farmland: food production below or alongside solar panels, with electricity generation from the same site.
For Rajasthan, with its strong solar resource and sizeable agricultural electricity demand, the discussion creates important possibilities. But three words matter: proposal, not approval. As of 22 October 2026, neither a final ₹35,000-crore package nor the eligibility and subsidy terms of a new agrivoltaics component have been formally notified.
1. What exactly has been announced?
In a Financial Express interview published on 20 October and updated on 21 October 2026, MNRE Secretary Santosh Kumar Sarangi said the Centre was considering an outlay of roughly ₹35,000 crore for the next PM-KUSUM phase, broadly comparable to the financial support for the existing programme. He also clarified that the final amount and structure were not yet decided. The discussions involve closer integration of solarisation, more efficient irrigation and water conservation.
On 9 September 2026, an official government release reported Union Minister Pralhad Joshi's intention to include a dedicated agrivoltaics component in the next phase, with particular attention to small and marginal farmers, farmer-producer organisations, cooperatives and panchayats. An MNRE release dated 21 October further confirmed the government’s intention to expand agricultural solar in the forthcoming phase.
Separately, the Economic Times reported on 19–20 October that MNRE was considering a central-sector incentive mechanism to encourage states to develop agrivoltaic projects. Officials had not finalised whether it would be a new scheme or part of an existing revised programme.
What is not confirmed: a sanctioned new budget, notified subsidy percentages, an approved state-wise allocation, a Rajasthan application window, guaranteed tariffs or automatic project eligibility.
2. What is agrivoltaics—and how is it different from a regular solar farm?
A conventional ground-mounted solar park is generally optimised for energy generation. Agrivoltaics (also called AgriPV or agri-photovoltaics) aims to design the array so agricultural activity continues on the land—for example, with sufficiently elevated panels or wider spacing that permits suitable crops, irrigation and agricultural machinery.
That distinction is technical, not merely a label. Agrivoltaics needs to consider the crops, seasonal sunlight, shading, equipment movement, water flow, foundation layout, maintenance access and the farmer's working practices. A solar plant on farmland does not automatically become a successful agrivoltaics project.
Financial Express reported that structures may be around 3.5–4 metres high in some concepts; the Economic Times reported MNRE's assessment that the extra civil works can make such projects approximately 25–30% more expensive than conventional ground-mounted solar. These are reported indicative figures, not universal design specifications or an approved subsidy rate.
3. Why is a new incentive being considered?
If a dual-use project costs more to build but sells electricity at the same tariff as an ordinary solar plant, its returns may be weaker. The additional investment must be justified by some combination of a different commercial arrangement, agricultural value, lower land-conflict costs or an appropriately designed support mechanism.
That is why an incentive cannot be assessed in isolation. Project viability depends on:
- Agricultural compatibility: crop response to shading, soil and water conditions, and uninterrupted access for cultivation.
- Solar performance: generation losses or gains from spacing, orientation and heat conditions.
- Structures and operations: wind loading, foundations, cable clearance, corrosion, cleaning and safe equipment access.
- Revenue certainty: approved procurement model, DISCOM offtake, tariffs, payment security and grid availability.
- Farmer interests: ownership or lease rights, crop-loss safeguards, sharing of benefits and contractual exit provisions.
Media reports refer to about 5 GW of potential deployment over three to four years, conditional on states' participation and tariffs. They also cite 1–2 terawatts of mapped or estimated technical potential. Neither should be confused with projects approved, funded or commissioned.
4. Where could Rajasthan benefit?
Rajasthan's existing agricultural networks and substantial solar resource make the subject relevant, but real projects must be assessed district by district. Locations with suitable crops, irrigation needs, electrical infrastructure and willing landowners may be candidates for demonstration or feasibility work.
There are at least four distinct stakeholder questions:
Farmers and landowners: Can the same plot continue producing viable crops? Who owns the modules and structures? Will there be a lease, energy revenue, irrigation benefit or a combination? What happens if crops or access are affected?
Farmer-producer organisations and cooperatives: Can members aggregate suitably located land and irrigation requirements while retaining transparent governance and fair benefit sharing?
Solar EPC companies and developers: What additional structural design, agricultural research, permits, procurement terms and long-term maintenance obligations would a dual-use project require?
DISCOMs, financiers and public agencies: Does the proposed project have a realistic feeder or substation connection, a credible buyer, an acceptable tariff and a measurable agricultural outcome?
This is not a reason to promise a standard investment return or subsidy today. Instead, it is a reason to improve the quality of project preparation.
5. How does it relate to PM-KUSUM Components A, B and C?
The existing MNRE framework differentiates these pathways:
| Existing PM-KUSUM route | General purpose | Practical relevance to the debate |
|---|---|---|
| Component A | Decentralised grid-connected generation projects, generally 500 kW–2 MW under the published framework | Agrivoltaics may prompt fresh design or procurement questions, but existing Component A approval does not automatically qualify a project for a future incentive. |
| Component B | Standalone solar irrigation pumps for eligible off-grid agricultural use | An evolving irrigation-and-water-conservation focus may affect future programme design, but new rules are awaited. |
| Component C | Solarisation of existing grid-connected agricultural pumps and feeders | Feeder, load and procurement arrangements can influence future integrated farm-energy models. |
MNRE's publicly available scheme overview refers to a programme period ending 31 March 2026, while the national portal still publishes implementation information. Applicants should rely on the current Rajasthan state and DISCOM notices for live applications, not assume that a previous tender or subsidy schedule has been renewed.
6. What should interested applicants do before a new scheme is notified?
Start with an evidence-based feasibility file rather than a payment to an intermediary. Collect the land records or proposed lease details, district and village, crops and cropping seasons, irrigation and pumping arrangements, approximate area, electricity connection and nearby network information (where known). For larger projects, include a preliminary energy-offtake or buyer strategy.
Then compare at least two concepts: a conventional solar project under an applicable notified pathway, and a genuine dual-use agrivoltaics design. Compare capital costs, expected electricity revenue, agricultural output, operating access and long-term risk under realistic scenarios. A financial model that assumes a future subsidy before it exists can create serious investment exposure.
Do not pay unofficial application fees or claim guaranteed allotment, power purchase or government approval on the strength of these October 2026 reports.
Wattscore perspective: the next opportunity is better project integration
The development to watch is not merely the proposed budget. It is whether India can create a practical commercial and technical framework that makes solar generation, agriculture, irrigation and distribution-grid needs work together.
Wattscore can discuss preliminary PM-KUSUM project assessment, solar EPC scoping, technical feasibility, PMC / Owner's Engineer services and agrivoltaics feasibility with farmers, FPOs, landowners and developers. Any assignment would be subject to a clearly defined scope and current official requirements. We do not represent ourselves as a government sanctioning authority or promise applications or subsidies.
Explore Wattscore’s PM-KUSUM and Agrivoltaics page or send an agricultural solar enquiry to discuss your location and project stage.
Sources and editorial status
- MNRE / PIB, 21 October 2026: India hosts Agrivoltaics World Conference
- MNRE / PIB, 9 September 2026: Agrivoltaics and the next PM-KUSUM phase
- MNRE: Existing PM-KUSUM scheme and Components A, B, C
- PM-KUSUM National Portal
- Financial Express, 20–21 October 2026: Proposed PM-KUSUM-II outlay
- Financial Express, 20 October 2026: Agrivoltaics incentives under consideration
- Economic Times, 19–20 October 2026: Proposed central scheme for agrivoltaics
Editorial note (22 October 2026): This is an analysis of announced intentions and media interviews, not a notification of an operational PM-KUSUM 2.0 programme. Update the article when MNRE publishes final scheme guidelines, tariffs or Rajasthan-specific procedures.