5. PM-KUSUM 2.0: Integrating Battery Storage and Agrivoltaics for Rural Energy Security

The Ministry of New and Renewable Energy (MNRE) is preparing to launch PM-KUSUM 2.0, a revamped version of its flagship solar scheme. The new phase aims to address the mismatch between solar generation and agricultural power demand by introducing Battery Energy Storage Systems (BESS) and a dedicated 10 GW agrivoltaics component. 

Key Summary Points

• Introduction of Battery Storage: PM-KUSUM 2.0 proposes incorporating battery storage (BESS) to store surplus solar energy generated during the day for use during peak morning or evening irrigation hours, enhancing grid stability. 

• Agrivoltaics (Agri-PV) Component: A dedicated 10 GW target has been set for agrivoltaics, where solar panels are installed at a height that allows farmers to cultivate crops underneath, ensuring dual land use. 

• Addressing Power Mismatch: The shift to battery storage aims to bridge the gap between solar peak generation (noon) and agricultural load demand (early morning/late evening), reducing the operational burden on DISCOMs. 

• Transition of Roles: The scheme envisions transforming farmers from \'Annadata\' (food providers) to \'Urjadaata\' (energy providers) by allowing them to sell surplus stored power back to the grid. 

• Enhanced Financial Safeguards: The new phase is expected to introduce mandatory bank guarantees for EPC (Engineering, Procurement, and Construction) contractors to ensure long-term plant performance and protect farmers\' investments. 

• Unified Digital Governance: A national application portal will be launched to streamline the subsidy process and improve transparency between central and state implementing agencies. 

Additional Important Keypoints 

• Storage Capacity Debate: Discussions are ongoing between the Ministry of Power (proposing 4-hour storage) and MNRE (proposing 2-hour storage) to determine the ideal battery capacity for farm pumps. 

• Integration with AIF: Components B and C of the scheme are being linked with the Agriculture Infrastructure Fund (AIF) to provide farmers with easier access to lowinterest loans. 

• Progress Milestone: As of early 2026, over 10 lakh standalone solar pumps have been installed, and 13 lakh grid-connected pumps have been solarised, though capacity addition remains below the original 34.8 GW target. 

Constitutional & Legal Provisions 

• Article 48A (DPSP): Directs the State to protect and improve the environment; the transition to solar energy directly fulfills this constitutional mandate by reducing carbon emissions. 

• Article 246 (Seventh Schedule): Agriculture is a State List subject (Entry 14), while Electricity is in the Concurrent List (Entry 38), necessitating the cooperative federalism model used in PM-KUSUM’s 30- 30-40 funding split. 

• Energy Conservation Act, 2001: Provides the regulatory framework for energy efficiency and the promotion of renewable energy sources in industrial and agricultural sectors. \'

Definition of Key Words

• Agrivoltaics: The simultaneous use of land for both solar energy production and agriculture, often using stilt-mounted panels to allow light and space for crops. 

• BESS (Battery Energy Storage System): A technology that captures energy produced at one time for use at a later time, typically using lithium-ion or similar battery chemistries. 

• Feeder-Level Solarisation (FLS): A model where an entire electricity feeder serving multiple agricultural pumps is solarised, rather than individual pumps, to achieve economies of scale. 

Conclusion 

PM-KUSUM 2.0 represents a strategic evolution from simple solar adoption to \'smart\' energy management in rural India. By integrating battery storage and agrivoltaics, the government is tackling the twin challenges of land scarcity and grid synchronization. If successfully implemented, this version could significantly de-dieselize the farm sector while providing a resilient, second source of income for the Indian farmer. 

UPSC Relevance 

• GS Paper III (Economy & Energy): Mobilization of resources, inclusive growth, and issues arising from it; Infrastructure: Energy (Renewable). 

• GS Paper III (Agriculture): Technology in the aid of farmers; issues related to direct and indirect farm subsidies.