How PM KUSUM Scheme Makes Solar-Powered Irrigation Affordable for Farmers

 

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.

The Role of Solar in Rural Electrification in Nepal

 

In Nepal, access to reliable electricity remains a significant challenge for many rural and remote communities. While urban centers benefit from grid connectivity, an estimated 40% of the rural population still lacks access to dependable power.

 

As of 2025, Nepal is intensifying its commitment to sustainable development, with solar energy emerging as a strategic solution for electrifying these underserved areas.


Recent Developments in Renewable Energy

In October 2024, Nepal hosted Renewable Energy Week 2024, a transformative event dedicated to promoting sustainable energy solutions and fostering a clean energy future. The event facilitated the sharing of success stories and collaboration on strategies to accelerate the transition to sustainable energy.

 

Additionally, in September 2024, the Nepal Infrastructure Summit 2024 was held in Kathmandu, gathering policymakers, industry leaders, and innovators to discuss the critical role of clean energy in the nation’s development.

 

Companies like Huawei Digital Power showcased their green energy solutions, highlighting innovations in solar power and energy storage systems.


Government Initiatives and Key Developments

The Nepalese government has taken concrete steps to accelerate solar adoption. The Alternative Energy Promotion Centre (AEPC) is spearheading efforts to expand off-grid solar power, targeting 1,500 remote villages by 2030.

 

At the Power Summit 2023, held in Kathmandu, industry leaders and policymakers convened to discuss strategies for rural electrification. Minister of Energy, Water Resources, and Irrigation Shakti Bahadur Basnet emphasized the government’s commitment to achieving universal electrification by leveraging solar power.

 

Discussions focused on financial models, public-private partnerships, and technical innovations to scale up solar solutions in rural Nepal.


The Role of Off-Grid Solar Solutions

The Nepal Electricity Authority (NEA) reports that 99% of the population now has access to electricity, with 97% connected to the national grid and 2% relying on off-grid solutions, including micro-hydro and solar plants.

 

By harnessing the abundant solar energy available, Nepal is making strides toward energy independence and economic development in its rural regions.

 

The demand for off-grid solar solutions is increasing, driven by advancements in technology, decreasing costs, and strong government support. With reliable solar power, rural communities can enhance productivity, improve quality of life, and create new economic opportunities.


 

Nepal’s solar revolution is more than just an energy solution. It is a catalyst for economic empowerment and sustainable development. By prioritizing rural electrification, Nepal is setting an example for how clean energy can transform lives and communities.

 

The push for localized solar manufacturing, strategic investments, and strong policy support is essential to sustaining this momentum.

 

At REnergo, we are committed to staying at the forefront of renewable energy trends, providing insights into Nepal’s solar progress, and supporting initiatives that drive sustainability and development.

How Government Incentives Like PLI are Fueling India’s Solar Expansion

With an ambitious goal of achieving 500 GW of non-fossil fuel-based energy by 2030, India is making a decisive push toward self-reliance in solar manufacturing.

 

The government’s focus on reducing dependency on imported solar cells and modules is shaping the future of India’s renewable energy sector.


The Drive Towards Domestic Solar Manufacturing

For years, India has been heavily reliant on imported solar components, mainly from China. While this approach has helped scale up solar installations rapidly, it has also left the sector vulnerable to price fluctuations and supply chain disruptions.

 

Recognizing this challenge, the Indian government has launched the Production-Linked Incentive (PLI) scheme, which aims to strengthen the country’s manufacturing capabilities by providing financial support to local producers.

 

The PLI scheme is designed to not only boost manufacturing capacity but also ensure high-quality solar modules that can compete on a global scale. This move aligns with the broader vision of Atmanirbhar Bharat (Self-Reliant India), ensuring that India’s energy transition is built on a solid foundation of domestic innovation and production.


What Industry Leaders Are Saying

The shift towards local manufacturing is not just a government-driven initiative but also strong backing from industry leaders. M. S. Unnikrishnan, Managing Director of Thermax, emphasizes the critical need for India to develop a robust solar ecosystem that includes research, development, and large-scale manufacturing.

 

Similarly, Gautam Adani, Chairman of Adani Green Energy, has highlighted that achieving energy security requires India to be independent in its production of solar modules and cells.

 

Their vision aligns with India’s long-term sustainability goals. As the demand for renewable energy rises, having a self-sufficient manufacturing base will not only drive economic growth but also create thousands of jobs across the country.


Key Policy Discussions and Industry Trends

At major renewable energy summits and policy discussions, experts are focusing on three critical aspects:

  1. Quality Control and Standardization – Ensuring that India’s solar modules meet global efficiency and durability standards is a top priority. Domestic manufacturers must adopt advanced technologies to compete with international products.
  2. Financial Incentives and Infrastructure Support – The government is actively working on expanding incentives beyond the PLI scheme, including tax benefits, subsidies, and easier access to financing for new manufacturing units.
  3. Supply Chain Development – To reduce reliance on imported raw materials, India needs a comprehensive supply chain strategy that includes the production of polysilicon, wafers, and other critical components.

India’s transition to a self-reliant solar industry is not just about reducing imports, it’s about building a sustainable future powered by homegrown technology.

 

For businesses, investors, and stakeholders in the renewable energy sector, this is an exciting time. The opportunities in solar manufacturing are expanding rapidly, and those who adapt to these changes will be at the forefront of India’s green energy revolution.

 

At REnergo, we remain committed to staying ahead of industry trends, supporting the transition towards sustainability, and providing insights into the evolving solar landscape.

 

As India continues to push forward with its clean energy ambitions, we will keep bringing you the latest updates, expert opinions, and analysis on what’s shaping the future of solar energy in the country.

Why the Future of Solar Energy is Bright?

In the past few years, the large-scale deployment of solar power has faced a range of challenges.  Ambitious price targets set a high bar, with rapid technological advances needed to meet these expectations. However, the industry has excelled, with installations of solar panels set to reach a record high this year.

According to recent research from BloombergNEF, wind and solar energy are now the least expensive forms of power in two-thirds of the world, and advancements in technology are pushing it towards an even brighter future.

The DNV GL energy transition outlook provides an outlook of 33 percent of all electricity being generated from solar by 2050, with all renewables totaling 80 percent of electricity generation.

Improvements in solar and storage push positive outlook

The major drawback of solar energy is that it can only function for part of the day. A 2012 study by Lawrence Berkeley National Laboratory predicted that the more solar panels deployed, the lower the value of the energy would be, as all the energy would be delivered at once and other sources of power would still be required at night.

A follow-up study in 2016 from Nature Energy forecast costs would need to fall substantially for solar to remain competitive. The study concluded that this downward trend in the value of energy produced would make solar less competitive, unless storage capacity increased substantially. However, these studies could not anticipate the massive reduction in the costs of photovoltaics (PV) and storage technologies and how efficient these plants would become.

Tech advances drive a bright future

With strong growth, particularly in many smaller markets, the solar future is bright. The industry is set to grow 17.5 percent this year alone, with decreased costs making it a more attractive proposition.

Bifacial PV modules and the expanding application of single-axis trackers are helping to fuel this growth. Bifacial modules provide additional energy as they can absorb and convert light into electricity from both sides of the module, capturing energy that reflects from the ground.

Recent projects have been announced that take advantage of bifacial modules to increase the output beyond that of traditional mono-facial systems. DNV GL are working with customers across Egypt, Brazil, Mexico and the US, all of whom are deploying bifacial modules, to drive down costs and increase the value of these PV assets.

Combining these systems with single axis-trackers designed for bifacial applications can also increase the total energy output. However, bifacial systems require additional simulations and measurements to estimate and optimize the output. The industry is making progress toward reducing the uncertainty with a growing collection of performance data from the field, which is helping us validate models and demonstrate the added value of these assets.

Sun setting on fossil fuels

Based on the 80 percent decrease in the cost of solar over the last decade, fossil fuels are becoming increasingly less competitive, particularly during peak solar production. As such, less flexible generators are being ramped down at these times, reducing revenues and profitability for existing plants, which may end up being retired earlier than anticipated. However, as the sun begins to set, generation from solar decreases, which creates a need to quickly ramp up generation from non-renewable sources to meet afternoon and evening demand.

In dynamic energy markets with high penetration of renewables, electricity prices can vary during the day and can increase dramatically during peak times with fast ramp rates needed to compensate for solar going offline. At these times, flexible generators are required to quickly deliver power. This has resulted in flexible generators, such as gas peaker plants, being compensated at higher rates thus making dispatchable resources more cost effective. However, energy storage technologies are coming of age and enabling dispatchable solar plus storage resources to address challenges associated with variable renewables.

Moreover, the cost of energy storage has decreased vastly over the last few years. This has enabled the development of more advanced solar plus storage systems. The Los Angeles Department of Water and Power recently approved a power purchase agreement for a 400 MW solar and 300 MW / 1,200 MWh battery energy storage system north of Los Angeles, California. Additionally, NV Energy in Nevada, recently signed deals for 1.2 gigawatts of PV plus nearly 600 megawatts of storage to come on-line by 2023, just outside of Las Vegas.

Continuous decreases in technology costs, combined with the development of solar plus storage plants, creates a new paradigm for setting market prices or for power purchase agreements (PPAs) that account for the time of power dispatch from these combined assets. As solar and storage costs continue to decrease and more hybrid plants are deployed, the value of flexible, non-renewable power generation will continue to erode; thereby allowing hybrid assets to extend production and address afternoon and evening loads and decrease the need for fast ramping assets in the first place. Through flexible solar energy generation assets that can be dispatched throughout the day, solar plus storage systems are set to begin redefining dynamic energy markets and reduce the historical disadvantage of solar generation.

A healthy glow

The value of renewables goes beyond just energy or climate and is being valued across adjacent industries. A recent study by MIT predicted that investments in renewable energy generation would result in a return on that investment of 34 percent in reduced healthcare costs alone due to reduced air pollution. The study focused on ten US states whose electricity generation profiles are currently made up of an average of 42 percent coal, higher than the current 30 percent US average.

The study showed that these states could reduce healthcare costs by $4.7 billion if they hit their target of 13 percent renewable energy by 2030. Remarkably, this increases to more than $20 billion if the percentage of renewable energy was doubled to what is becoming a modest 26 percent of this region’s overall electricity generation. The study estimates a $9 billion investment in renewable capacity would be needed to reach this goal.

A recent study by the National Renewable Energy Laboratory found that solar energy reduces respiratory and cardio health issues, among other health benefits. It even has been shown to reduce the number of lost work days related to health issues.

Transition to clean energy

The climate emergency is upon us and we need to act now. Renewables are often touted as a major part of the solution for climate change, which are not only readily available today, but the costs are increasingly competitive and are forecast to decrease well into the future.

These economic benefits to healthcare come about from the transition to renewable generation, which are in addition to the known economic benefits to the energy industry and the climate.  The energy industry finds itself at the intersection of remarkable economic opportunities, at a time where the economy, climate, and public health are all urgently searching for solutions to systemic problems within each.  Renewables are poised to deliver, through technologies that are willing and able.

The solar industry is pushing forward, but markets and regulations need to keep up to enable the transition to clean energy future.

 

Source: https://www.renewableenergyworld.com/2019/11/12/why-the-future-of-solar-is-bright/#gref

What is Renewable Energy?

Renewable energy is energy produced from sources that do not deplete or can be replenished within a human’s life time. The most common examples include wind, solar, geothermal, biomass, and hydropower. This is in contrast to non-renewable sources such as fossil fuels.

Most renewable energy is derived directly or indirectly from the sun. Sunlight can be captured directly using solar technologies. The sun’s heat drives winds, whose energy is captured with turbines. Plants also rely on the sun to grow and their stored energy can be utilized for bioenergy.

Not all renewable energy sources rely on the sun. For example, geothermal energy utilizes the Earth’s internal heat, tidal energy relies on the gravitational pull of the moon, and hydropower relies on the flow of water.

Renewable energy accounts for 13.5% of the world’s total energy supply, and 22% of the world’s electricity.

Renewable energy systems are a major topic when discussing the globe’s energy future for two main reasons:

Renewable energy systems provide energy from sources that will never deplete.
Renewable energy systems produce less greenhouse gas emissions than fossil fuel energy systems.
While renewable energy systems are better for the environment and produce less emissions than conventional energy sources, many of these sources still face difficulties in being deployed at a large scale including, but not limited to, technological barriers, high start-up capital costs, and intermittency challenges.

It is important to note that the terms ‘renewable energy’, ‘green energy’ and ‘clean energy’ are not interchangeable in all cases; for example, a ‘clean’ coal plant is simply a coal plant with emissions reduction technology. The coal plant itself is still not a ‘renewable energy’ source. ‘Green energy’ is a subset of renewable energy, which boasts low or zero emissions and low environmental impacts to systems such as land and water.

 

Source: https://www.studentenergy.org/topics/renewable-energy

7 Reasons to Use Solar Energy

1. Solar Power Is Good for the Environment
The most commonly known fact about solar energy is that it represents a clean, green source of energy. Solar power is a great way to reduce your carbon footprint. There’s nothing about solar power that pollutes mother nature. Solar power doesn’t release any greenhouse gasses, and except for needing a source of clean water to function, it uses absolutely no other resources. Hence, it’s safe and environmentally-friendly. Yet, people are still in doubt why solar energy is good.

Solar power is self-sufficient and installing solar panels on your roof is a safe and easy path to contribute to a sustainable future. Starting on your home is a great way to show you care about the environment.

 

2. Solar Electricity Makes Your Home Go Off-the-Grid
The decrease in the cost of solar panels serves as a great example of why there should be an increase in the use of solar energy. Traditional electricity relies heavily on fossil fuels such as coal and natural gas. Not only are they bad for the environment, but they are also limited resources. This translates into a volatile market, in which energy prices alter throughout the day.

Solar electricity boosts your electricity independence! By investing in a 4kW solar system, which is the most common domestic size, you can easily protect yourself against unpredictable increases in utility prices, and enjoy cheap electricity throughout the entire day – the sun will never increase its rates and it gives you energy security.

Once you have solar panels up on your roof, you’ve technically reached an energy-independent status. Solar battery storage systems can also help store electricity for nighttime and rainy days.

 

 

 

3. Solar Power Can Use Underutilised Land
You may continue to wonder why solar power. With the increasing need of solar energy, it’s become easily accessible to most of us. Across countries, there are vast land that are far away from big cities or capitals, and are not used for anything at all.

With solar power, we can actually make use of the land and subsequently generate great value; solar energy provides a source of power for everyone. In this way, we don’t need to use high priced land that might be better suited for other applications.

You might have heard of solar farms – panels used to harvest solar energy in large numbers. This highlights perfectly how solar power makes use of underutilised land. For instance, a 45 acre solar farm has been recently built in the UK, and it’s able to power 2,500 homes.

 

4. Solar Power Causes Less Electricity Loss
Electricity needs to be transported from big power plants to end-consumers via extensive networks. Long distance transmissions equal power losses. Ever wondered what are solar panels used for? They’re on your roof to get energy from the sun. Rooftop solar power is helpful in increasing electricity efficiency, considering the short distance. Your energy becomes domestic and as a result you’re in control of your own bills and energy usage. Furthermore, solar power systems are durable, thus chances of service interruption are reduced.

 

5. Solar Power Improves Grid Security
When there are many of us switching to solar power, we are less likely to experience blackouts or brownouts. Every household in the UK that have solar cells installed, functions as a small power plant. This, in turn, provides us with a greater electricity grid security, especially in terms of natural or human-caused disasters.

With the help of solar panel grants, you can also be paid to export electricity back to the grid.

 

 

6. Solar Power Creates Jobs and Economic Growth in the UK
Our national economy can be helped by solar power. The more people who opt for solar, the more needs will be for companies to install solar panels. This creates additional jobs for skilled workers, and consequently keeps the economy growing.

In 2015, for instance, the UK become the second-largest solar employer, with 35,000 people, and the continent’s largest solar photovoltaic (PV) panel installation market.

 

7. Solar Power Is A Free Source of Energy
The sun provides us with more energy than we could ever use, and no one can monopolise the sunlight. Your solar power system will start saving money from the moment it’s turned on, however, the advantages of solar power are best visible in the long-term. The longer you have your solar power system, the more you enjoy the benefits of solar technology and support the environment.

Aside from solar electricity, solar energy has a second application. We often associate solar energy with electricity, which is acquired through PV panels, but it’s also possible to use the energy generated by the sun for heating purposes. This process is accomplished by deploying solar thermal systems that simply convert the sunlight into heating solutions.

The acceptance of solar technology is at hand and we can start by increasing our use of solar panels.

 

Source: https://www.greenmatch.co.uk/blog/2014/07/7-reasons-why-you-should-use-solar-power