Solar Powering Farms: India Sees Massive 116 GW Opportunity for Domestic Solar Industry
ISMA report reveals that solarising India's agricultural pumps could create a massive 116 GW demand for domestic solar modules.
India's vast agricultural landscape is poised to become a powerhouse for the country's renewable energy sector. According to a new report by the Indian Solar Manufacturers Association (ISMA), agricultural solarisation offers a staggering opportunity to generate demand for an additional 116 GW of solar modules, providing a significant boost to domestic manufacturing.
The report, titled "Powering the Farms, Building the Factory (PM-KUSUM: Solarising Agriculture and Strengthening Domestic Manufacturing)," was unveiled at the Bharat RE Summit. It outlines a strategic pathway where the transition of farming infrastructure to clean energy directly fuels the growth of India's solar manufacturing ecosystem.
Breaking Down the 116 GW Potential
With nearly 2.3 crore irrigation pumps currently in use across the country, the scale of the opportunity is immense. The ISMA report breaks down the projected demand for solar modules as follows:
- Grid-connected pumps: Potential for 100 GW of solar modules.
- Diesel pumps: Potential for 16 GW of solar modules (excluding those located in groundwater-stressed regions).
The Impact of the PM-KUSUM Scheme
A central driver of this transition is the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme. The initiative has already shown remarkable momentum, adding a record 7.6 GW of solar capacity in the 2025–26 financial year. By July 2026, more than 28 lakh irrigation pumps had been successfully solarised.
The report specifically emphasizes the importance of the Domestic Content Requirement (DCR) under Components B and C of the scheme. These requirements ensure that Indian manufacturers benefit from the rollout. By October 2026, 13.8 GW of capacity was installed under these components, fulfilling nearly two-thirds of the initially projected 20.8 GW domestic manufacturing demand.
Reducing the Burden on DISCOMs
Beyond manufacturing, the shift to solar is a financial necessity for the power sector. Agriculture currently consumes 17.88 per cent of India's total electricity. This has placed a heavy burden on power distribution companies (DISCOMs), as tariff subsidies surged from Rs 1.21 lakh crore in FY20 to Rs 2.41 lakh crore in FY25.
By solarising agricultural pumps and feeders, India can improve power availability for farmers while significantly reducing the subsidy burden on the state's energy infrastructure.
The Road Ahead: Recommendations for Growth
Amit Manohar, Secretary General of ISMA, highlighted that PM-KUSUM serves as a critical bridge between agricultural development and the nation's solar ambitions. However, he noted that maintaining this pace requires consistent policy support and a predictable pipeline of projects to attract long-term investment.
To further strengthen the ecosystem, the ISMA report suggests several key actions:
- Policy Continuity: Retaining Domestic Content Requirement (DCR) provisions to protect local industry.
- Strategic Planning: Setting clear state-wise targets and establishing multi-year tender pipelines to provide certainty to manufacturers.
- Operational Ease: Improving implementation models to streamline land access, grid connectivity, and necessary clearances.
- Deepening the Supply Chain: Developing upstream manufacturing capabilities, specifically for ingots and wafers, to reduce dependence on imports.
By aligning the needs of the farming community with the goals of the industrial sector, India aims to create a sustainable cycle of clean energy production and domestic economic growth.