The government may come up with Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) 2 soon as PM-KUSUM 1 has been closed, Union Minister Pralhad Joshi said on Thursday.
The scheme aims to reduce the farm sector’s dependence on diesel and enhance farmers’ incomes by providing central subsidies of up to 30-50 per cent for standalone solar pumps and the solarisation of existing grid-connected pumps. It also enables farmers to set up grid-connected solar power plants of up to 2 MW on barren or fallow land and sell electricity to local discoms at state-regulated tariffs.
Addressing the 7th CII International Energy Conference, the Minister said, “PM Kusum 1 has been completed. That scheme is closed and very shortly we may come up with the PM Kusum 2.”
According to the data shared by the government, as of July 2026, 1986.3 MW of grid-connected solar power plants capacity has been been installed out of the sanctioned target of 10,000 MW. Also, 13.07 lakh standalone solar pumps have been sanctioned, with 11.69 lakh installed during the same period. The government has sanctioned 55,392 IPS pumps out of which 16,259 have been solarised. Additionally, 16,54,044 FLS pumps have been solarised.
He further noted, the government, in collaboration with industry, is working to boost demand and has disbursed over Rs 3,800 crore in incentives to discoms and Rs and 104 crores to the urban local bodies to support rooftop solar adoption and power procurement.
Also, the reduction in GST on renewable energy devices and manufacturing components from 12 per cent to 5 per cent has helped create demand by lowering costs. As a result, “For an ordinary family, this makes a typical 3 kilowatt rooftop solar system which comes under the PM Surya Ghar around Rs 9,000 to Rs 10,500 rupees cheaper. That is lesser cost,” he said.
At the utility scale, he said the GST reduction could lower project costs by Rs 20-25 lakh per MW, translating into savings of over Rs 100 crore for a 500 MW solar park. “For discoms, the estimated annual procurement saving could be around Rs 2,000 to 3,000 crore,” he noted.
Highlighting, the government has launched renewable energy equipment import monitoring system, the Minister stressed, “We all must be aware that we have revised the RCO (Renewable Consumption Obligation) compliances framework under the Energy Conservation Act.”
He further The minister further said a 5 HP solar pump could become around Rs 17,500 cheaper, resulting in savings of about Rs 1,550 crore for the rollout of 10 lakh solar pumps. He also said that the government has “extended basic cost and put an extension on the capital goods of the lithium ion cell manufacturing till March 2028,” stressing, “Together, government and industry are creating a demand, bringing down the cost and building the domestic capacity.”
