Month: March 2025

For many farmers in India, irrigation costs are a major concern. Rising diesel prices and unreliable electricity make farming more expensive and less predictable. Solar-powered irrigation reduces costs, provides reliable water access, and supports sustainable farming.

For millions of farmers in rural India, this is possible with the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme. Started in 2019 by the Government of India, it’s helping farmers switch to solar energy, making it affordable and profitable.

Cost of Setting Up a Solar-Powered Irrigation System

Installing a solar-powered pump requires an upfront investment. The main costs include:

• Solar panels – Convert sunlight into electricity.

• Pump and motor – Draw water from the ground or a water source.

• Battery or inverter (optional) – Stores power for later use.

• Installation and setup – Costs depend on location and system size.

A 5HP solar pump system (suitable for small to medium farms) may cost around ₹2.5 – ₹3 lakh before subsidies. Larger systems for bigger farms cost more.

While this may seem expensive, solar pumps have low running costs. Farmers do not need to buy diesel or worry about rising electricity prices. Over time, these savings add up.

How the PM-KUSUM Scheme Works

1. Subsidy of up to 60%

• The central and state governments cover up to 60% of the system’s cost.
• This reduces the financial burden on farmers.

2. Bank loans for 30% of the cost

• Farmers can get low-interest loans to cover another 30%.
• This means they only pay 10% upfront.

3. Sell excess electricity

• Farmers who install solar panels larger than their pump’s needs can sell extra power to the grid.
• This creates an extra income source.

For example, a 5HP solar pump costing ₹3 lakh may only require an upfront payment of ₹30,000, with the rest covered by subsidies and loans.

Long-Term Savings for Farmers

Switching to solar irrigation leads to major cost savings.

1. No fuel costs – A diesel pump uses about 3 liters of diesel per hour, costing ₹250 per day for 4 hours of operation. Over a year, this adds up to ₹75,000+ in diesel costs. Solar pumps eliminate this expense.

2. Low maintenance – Solar pumps have fewer moving parts than diesel pumps, leading to lower maintenance costs.

3. Income from excess power – Under PM-KUSUM, farmers can sell extra electricity to the grid, turning their solar system into a source of extra income.

Overall, a solar irrigation system pays for itself in 5-7 years through savings and incentives.

Why Should Farmers Switch to Solar?

✔ Lower costs – Save on diesel and electricity bills.
✔ Reliable water supply – No dependence on power grids.
✔ Government support – Subsidies and low-interest loans make it affordable.
✔ Environment-friendly – Solar reduces pollution and supports sustainable farming.
✔ Extra income – Sell surplus electricity for additional earnings.

With rising diesel prices and increasing electricity costs, solar irrigation is the future of farming in India. The PM-KUSUM scheme makes it easier for farmers to adopt solar and enjoy long-term financial benefits.

Low progress, loan delays, and lack of know-how are issues. The PM-KUSUM scheme aims to help 3.5 million farmers get solar pumps by 2026.

By investing in solar today, farmers can secure their future, reduce costs, and make agriculture more sustainable.

India’s solar sector continues to break records, demonstrating the country’s commitment to renewable energy. In 2024, rooftop solar installations reached an unprecedented 3.2 GW, marking over 86% increase from the previous year.

This surge pushed India’s total rooftop solar capacity to 13.7 GW by the end of December 2024, a milestone that underscores the nation’s rapid adoption of sustainable energy solutions.

Driving Forces Behind the Growth

A significant contributor to this achievement was the PM Surya Ghar: Muft Bijli Yojana, a government initiative aimed at promoting residential solar installations. With strong support and subsidies, this program encouraged widespread adoption, leading to residential consumers accounting for 74% of all new rooftop installations in 2024.

The remaining contributions came from the industrial (19%), commercial (6%), and government (0.8%) sectors.

The capital expenditure (CAPEX) model dominated the installation landscape, comprising 88% of the year’s installations, while the operational expenditure or renewable energy service company (OPEX/RESCO) model accounted for the rest.

State-Level Leadership in Solar Expansion

Certain states have emerged as leaders in rooftop solar adoption, playing a pivotal role in driving the overall growth of the sector.

• Gujarat, contributing 36% of total rooftop solar installations in 2024.
• Maharashtra, accounting for 20% of installations.
• Kerala, adding 9% to the total rooftop solar capacity.

These states have benefited from proactive policy frameworks, financial incentives, and streamlined regulatory processes that have made solar adoption easier and more attractive.

Challenges & Future Outlook

While the record-breaking installations indicate strong momentum, sustaining this level of growth presents challenges. Some of the key hurdles include:

• Fluctuating Module Prices: The cost of solar panels and associated equipment has seen volatility due to supply chain disruptions and international market dynamics. Stabilizing these costs will be crucial for continued growth.
• Financing & Awareness: While government subsidies have helped, access to affordable financing options remains a challenge, particularly for middle-income households and small businesses.
• Grid Integration & Storage: As rooftop solar adoption grows, grid stability and energy storage solutions will become increasingly important to manage excess power and ensure seamless integration.

Despite these challenges, the outlook remains optimistic. With continued government support, falling technology costs, and increased consumer awareness, India is well on track to achieve its ambitious renewable energy targets.

India’s record-breaking rooftop solar installations in 2024 highlight the nation’s commitment to renewable energy and its potential to lead in sustainable development.

Continued support from government initiatives, coupled with active participation from residential and industrial sectors, will be crucial in maintaining this upward trajectory and achieving long-term energy goals.

The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the world’s largest domestic rooftop solar initiative, has crossed a historic milestone with over 10 lakh homes now powered by solar energy in one year as per an official statement from the Ministry of New and Renewable Energy (MNRE).

Making Solar Power Accessible to Millions

Launched by Prime Minister Narendra Modi on February 13, 2024, the initiative is designed to make rooftop solar installations affordable and accessible. With 47.3 lakh applications already received, the government has disbursed Rs. 4,770 crore in subsidies to over 6.13 lakh households.

A key feature of the scheme is its easy financing options, including collateral-free loans up to Rs. 2 lakh at a subsidized 6.75% interest rate. This ensures that homeowners, regardless of financial standing, can harness solar energy.

State-Wise Adoption in India

Several states have made remarkable progress:

1. Gujarat leads with 3,51,273 solar-powered households (41.47% of total installations).
2. Uttar Pradesh and Kerala follow closely with 73,602 and 65,423 households, respectively.
3. Chandigarh and Daman & Diu have achieved 100% of their rooftop solar targets for government buildings.

The government aims to reach 1 crore solar-powered households by 2026-27, setting the stage for a self-sufficient energy future.

The Economic & Environmental Impact

The benefits of PMSGMBY extend far beyond just free electricity:

• Massive cost savings:

Households see a drastic reduction in electricity bills, while the government is expected to save Rs. 75,000 crore annually.

• Lower carbon footprint:

Each rooftop installation offsets carbon emissions equivalent to planting 100 trees.

• Job creation:

The initiative is expected to generate 17 lakh direct jobs in the renewable energy sector.

What’s Next for India’s Rooftop Solar Journey?

The program is set to add 30 GW of solar capacity through residential rooftop installations by 2027. With a 25-year system lifespan, these solar panels will generate 1,000 billion units (BU) of electricity, preventing 720 million tonnes of CO2 emissions.

A unique addition to the initiative is the creation of “Model Solar Villages”, where one village per district is selected to showcase large-scale solar adoption. With Rs. 1 crore allocated per village, these communities will serve as benchmarks for clean energy self-reliance.

At REnergo, we specialize in helping homeowners, businesses, and industries navigate this transition smoothly. From system selection to installation and subsidy facilitation, we ensure that you make the most of this transformative initiative.

With a target of 500 GW of non-fossil power capacity by 2030, India is making significant progress, but not at the pace required.

In 2024, India added nearly 28 gigawatts (GW) of solar and wind capacity, setting a new record for annual additions. Solar power alone accounted for 70% of these additions, reinforcing its role as the backbone of India’s energy transition.

Yet, despite this momentum, fossil fuels still contributed more than two-thirds of the total increase in power generation last year.

According to the latest report from Global Energy Monitor (GEM), India must double its annual solar and wind capacity additions over the next five years to stay on track to meet its 2030 targets.

Why Solar is India’s Best Bet for Clean Energy Growth

1. Utility-Scale Solar Must Accelerate

India’s renewable pipeline is strong, but its expansion must outpace fossil fuel growth. Despite record installations, India still plans to increase its coal-fired capacity by 80 GW by 2031-32, raising concerns about long-term energy sustainability.

Solar, especially large-scale utility projects, must be deployed at a much faster rate to ensure that renewables can offset the expansion of coal. The growing adoption of floating solar farms, hybrid solar-wind projects, and agrivoltaics presents a significant opportunity to push solar deployment beyond traditional land-based installations.

2. Strengthening Transmission and Storage Infrastructure

One of the biggest challenges facing India’s solar growth is inadequate transmission infrastructure and limited energy storage capacity. While solar power is abundant, its intermittent nature requires robust storage solutions and grid integration to ensure reliability.

Investing in advanced battery storage technologies, pumped hydro storage, and smart grid solutions is essential to improve grid stability and maximize the use of solar power.

The government must also accelerate the expansion of high-voltage transmission lines to facilitate seamless distribution of solar energy from generation hubs to high-demand areas.

3. Policy and Financial Support is Key

While solar costs have declined significantly in recent years, higher financing costs remain a key barrier to large-scale adoption.

Public-private partnerships, innovative financing models, and policy interventions, such as long-term power purchase agreements (PPAs) and viability gap funding (VGF) will play a critical role in making solar projects more viable and bankable.

Read more about how you can take advantage of Government Incentives here.

4. Expanding Beyond Utility-Scale

While utility-scale projects are leading the charge, rooftop solar and decentralized solar solutions must be aggressively expanded.

Urban centers must increase adoption of rooftop solar on commercial and residential buildings.

Rural electrification efforts should prioritize off-grid solar solutions to power remote communities, reducing dependency on fossil fuels.

Industrial and agricultural sectors must integrate captive solar power generation, reducing operational costs while advancing sustainability goals.

India’s ability to meet its 2030 energy targets depends on how fast and effectively it can scale solar deployment. The challenge is not just about adding capacity, it’s about ensuring that solar energy replaces fossil power as the dominant source in India’s energy mix.

At REnergo, we are committed to driving India’s solar transformation, supporting large-scale projects, advocating for innovation, and enabling a cleaner, more sustainable energy future.