New Delhi [India], November 4 (ANI): India’s agricultural sector has the potential to generate demand for an additional 116 GW of solar modules, creating a significant opportunity for domestic manufacturers and strengthening the country’s solar manufacturing ecosystem, according to a report by the Indian Solar Manufacturers Association (ISMA).
The report said the solarisation of agricultural irrigation pumps could create sustained demand for domestically manufactured solar modules and cells while supporting India’s clean energy transition.
Titled Powering the Farms, Building the Factory (PM-KUSUM: Solarising Agriculture and Strengthening Domestic Manufacturing), the report was launched at the Bharat RE Summit.
According to the report, the agricultural sector could generate demand for an additional 116 GW of solar modules, comprising 100 GW from grid-connected pumps and 16 GW from diesel pumps, excluding those in groundwater-stressed areas.
India has nearly 2.3 crore irrigation pumps, making agricultural solarisation a major potential market for the domestic solar manufacturing industry.
The report highlighted the growing contribution of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, which added a record 7.6 GW of solar capacity in FY 2025–26. More than 28 lakh irrigation pumps had been solarised by July 2026.
It also highlighted the role of the Domestic Content Requirement (DCR) under Components B and C of the scheme in supporting Indian solar manufacturers.
By October 2026, 13.8 GW of capacity had been installed under these components, meeting nearly two-thirds of the 20.8 GW domestic manufacturing demand originally projected.
The report noted that agriculture accounts for 17.88 per cent of India’s total electricity consumption, while tariff subsidies billed by power distribution companies (DISCOMs) doubled from Rs 1.21 lakh crore in FY20 to Rs 2.41 lakh crore in FY25.
Solarising agricultural pumps and feeders can help improve power availability for farmers while supporting more sustainable energy use.
Commenting on the findings, Amit Manohar, Secretary General of ISMA, said, “PM-KUSUM has emerged as an important link between India’s agricultural development and domestic solar manufacturing ambitions. The estimated 116 GW of additional module demand from the agricultural sector presents a significant opportunity for Indian manufacturers.”
He added that sustaining this momentum would require continued policy support, adherence to domestic content requirements and a predictable project pipeline to encourage investments, strengthen the domestic supply chain and expand manufacturing capabilities.
The report recommended retaining DCR provisions and establishing clear state-wise targets along with multi-year tender pipelines to provide greater certainty to manufacturers.
It also called for strengthening implementation models to facilitate land access, clearances and grid connectivity.
Further, the report stressed the need to develop upstream manufacturing capabilities, including wafers and ingots, to deepen India’s domestic solar manufacturing ecosystem.
The findings highlight the potential of agricultural solarisation to connect India’s farming sector with its domestic renewable energy manufacturing ambitions, while creating long-term demand for locally manufactured solar equipment. (ANI)
Related reading
