4 min readNew DelhiMar 30, 2026 05:30 AM IST
The centre is considering incorporating a new provision for battery energy storage in the revamped Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) scheme, as it works on formulating a new version of the flagship programme, The Indian Express has learnt.
Launched in 2019, the current PM-KUSUM scheme is set to expire this month, prompting discussions within the government on rolling out an updated version, likely to be called PM-KUSUM 2.0.
While the current scheme focuses on solarisation of agricultural pumps, it does not include battery storage. The addition is actively under consideration in order to address the growing challenge of mismatch between agricultural power demand and solar generation patterns.
As per a senior official, the battery energy storage system has become a necessary addition, primarily due to the divergence between load demand and solar generation.
Agricultural demand rises in the morning, remaining steady throughout the day, and declines after sunset. In contrast, solar generation gradually increases during the day, peaks around noon, and tapers off thereafter. This misalignment has posed operational challenges for power distribution and grid management.
The proposed battery storage component is expected to bridge this gap by storing surplus solar power generated during peak hours and supplying it when demand persists but generation falls. Discussions on the design of the scheme are ongoing, with differing views between the Ministry of Power and the Ministry of New and Renewable Energy (MNRE) on the extent of storage to be provided. The Ministry of Power has suggested provisioning for up to four hours of battery storage, while MNRE has proposed a two-hour capacity, The Indian Express has learnt.
Queries sent to the Ministry of Power remained unanswered at the time of filing this report.
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In its response, MNRE confirmed that talks on PM-KUSUM 2.0 are underway, including consultations with the Ministry of Finance. “Relevant details will be communicated once discussions reach a certain level of conclusion,” it said.
The Centre has consistently positioned PM-KUSUM as a key pillar of its clean energy transition. The scheme, aimed at promoting solarisation in the agriculture sector, comprises three components: setting up of decentralised solar power plants (Component A), installing standalone solar pumps in off-grid areas (Component B), and solarising grid-connected agricultural pumps (Component C).
Under Component C, the Centre supports both individual pump solarisation (IPS) and feeder-level solarisation (FLS). While IPS enables farmers with grid-connected agricultural pumps to solarise their individual units, FLS allows states to solarise entire agricultural feeders instead of individual pumps. Together, these components target the addition of 34.8 GW of solar capacity. However, progress has been slower than anticipated. As of February this year, a total of 12,164 MW capacity has been installed under the scheme.
As per the data provided by MNRE in the parliament, 839.4 MW of capacity has been installed under Component A. Under Component B, over 10 lakh standalone agricultural pumps have been installed. Under Component C, over 12,787 pumps have been solarised through IPS, while feeder-level solarisation has covered over 13 lakh pumps, with a total installed capacity of 6,636.9 MW.
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On Saturday, the Centre also extended the timeline for financial closure and completion of projects under the scheme. The decision follows multiple requests from stakeholders who reported delays in loan extension by banks and financial institutions due to the current timeline of the scheme, which is expiring on March 31.
“The matter for extension of current scheme was taken with Department of Expenditure (DoE). The DoE has provided the guidance to subsume the existing timeline within the new scheme PM KUSUM 2.0. Thus, the states are requested to coordinate with banks to facilitate loans, and expedite financial closure of the projects as the current scheme is to be subsumed under PM KUSUM 2.0,” MNRE’s office memorandum said.
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