Rajasthan Farmers Become Energy Producers via PM-KUSUM

 

Rajasthan Farmers Become Energy Producers as State Leads India in Feeder-Level Solarisation



Rajasthan is rapidly changing the role of farmers from simply producing food to also producing electricity. Under the PM-KUSUM scheme, the state has emerged as a national leader in feeder-level solarisation, strengthening the government’s push to make farmers not just annadata but also urjadata — food producers as well as energy producers.

The development is significant for Rajasthan because agriculture in the state has long faced challenges related to water availability, irrigation costs and dependable electricity. Solarising agricultural feeders can provide daytime power for irrigation while also creating a new avenue for renewable-energy generation in rural areas.

Recent government-linked data show that Rajasthan has become one of India's strongest performers under PM-KUSUM, while the state's distribution companies have also received national recognition for feeder-level solarisation.

What Is Feeder-Level Solarisation?

Feeder-level solarisation is part of Component C of the PM-KUSUM scheme.

Instead of installing a separate solar system for every agricultural consumer, a solar power plant can be connected to an agricultural feeder and supply electricity to the farmers connected to that feeder.

Under the Ministry of New and Renewable Energy's framework, a grid-connected solar plant can be established with sufficient capacity to meet the annual electricity requirement of one or more segregated agricultural feeders. The electricity is then supplied through the distribution network.

This model is particularly relevant to Rajasthan because large areas of the state receive abundant sunlight, while agriculture requires dependable electricity for irrigation.

Rajasthan's Growing Solar Footprint

Rajasthan's progress under PM-KUSUM has accelerated sharply in recent years.

Government data show that the state had already developed hundreds of decentralised solar projects under the scheme. Rajasthan's official programme documents also record the implementation of feeder-level solarisation under Component C, with farmers and landowners able to participate by offering suitable land for solar projects.

By early 2026, reports citing Rajasthan's energy department said the state had installed 2,333 MW through 899 plants under PM-KUSUM Component C, while the combined capacity under Components A and C had reached about 2,877 MW through 1,307 decentralised solar plants.

The progress has also attracted institutional recognition. Rajasthan's DISCOMs received a Gold Award for performance under PM-KUSUM Component C's feeder-level solarisation programme at an All India Discoms Association event.

That makes the "first in the country" claim particularly relevant when referring specifically to Rajasthan's performance in feeder-level solarisation, rather than suggesting that Rajasthan leads every part of the PM-KUSUM programme.

Why Chief Minister Bhajan Lal Sharma Is Calling Farmers 'Urjadatas'

Chief Minister Bhajan Lal Sharma has repeatedly highlighted the idea of turning farmers into energy producers.

The underlying concept is straightforward: farmers can use solar energy for agricultural requirements while suitable projects can also generate electricity for the grid. The government has linked this approach with its broader objective of improving daytime electricity availability for agriculture.

In August 2025, Sharma said Rajasthan's farmers would become both annadatas and urjadatas, with the government working toward providing daytime electricity to farmers by 2027.

The policy direction is also visible in the state's implementation of decentralised solar projects. Rajasthan's model allows farmers and landowners to participate in solar development, including through arrangements involving unused or barren land near identified substations.

For farmers, that creates two potentially important benefits: better access to daytime agricultural electricity and an opportunity to earn from land or solar generation, depending on the project structure.

The Biggest Benefit Could Be Daytime Irrigation Power

For an agricultural state, the timing of electricity supply matters almost as much as the quantity.

Farmers operating irrigation pumps often need electricity during daylight hours. Solar generation naturally aligns with this requirement.

According to a Rajasthan government-linked account, solar plants established under PM-KUSUM have been helping provide daytime agricultural electricity, while the state has been working toward expanding such coverage.

The central government has also described feeder solarisation under PM-KUSUM as a way to provide affordable, reliable and sustainable irrigation power, while reducing irrigation expenses and improving rural energy self-reliance.

That makes feeder-level solarisation more than a renewable-energy programme. It is also an agricultural infrastructure initiative.

How Farmers Can Potentially Benefit

The economic impact can come through several channels.

Lower Dependence on Conventional Power

Solar generation can reduce dependence on conventional electricity sources for agricultural feeders. For farmers, reliable daytime supply can make irrigation planning easier.

Potential Land-Leasing Income

Rajasthan's Saur Krishi Ajivika Yojna (SKAY) was created to facilitate collaboration between farmers or landowners and solar developers. Under the model, suitable land can be offered for solar projects near identified substations.

This creates a potential source of recurring land income, subject to the terms of the individual project and agreement.

Reduced Irrigation Costs

Where solar power replaces more expensive sources of energy for irrigation, farmers may benefit from lower operating costs. The actual saving, however, depends on electricity tariffs, existing subsidies, pump efficiency and the specific project arrangement.

Rural Economic Activity

Large numbers of decentralised solar plants can also generate demand for construction, electrical work, maintenance, monitoring, transportation and other local services.

This is one reason the solarisation programme could have effects beyond electricity generation.

What It Means for Rajasthan's Power Sector

The impact is not limited to farmers.

Agricultural electricity is heavily subsidised in many parts of India, creating a financial burden for distribution companies. Feeder-level solarisation can potentially help DISCOMs manage the cost and supply of agricultural electricity while reducing dependence on conventional power procurement.

Rajasthan's regulatory filings demonstrate that the state's DISCOMs have been actively pursuing tariff approvals for large numbers of solar PV plants under PM-KUSUM Component C. For example, RERC records include a 2024 petition concerning 1,111 solar PV plants with an aggregate capacity of 2,929.8 MW under feeder-level solarisation.

This shows that the programme has moved beyond policy announcements into large-scale procurement and regulatory implementation.

What Investors Should Watch

For investors, Rajasthan's solarisation push could create opportunities across several parts of the renewable-energy ecosystem.

Potentially relevant areas include:

  • Solar module and equipment suppliers

  • Inverters and electrical equipment

  • EPC companies

  • Transmission and distribution infrastructure

  • Solar project developers

  • Operations and maintenance providers

  • Rural power infrastructure

  • Energy-storage technologies

However, investors should avoid treating government targets or project announcements as guaranteed revenue for any particular listed company.

The key indicators to monitor are actual project awards, commissioning, power-purchase agreements, tariffs, execution timelines, receivables from DISCOMs and changes in government subsidy or PM-KUSUM policy.

The Road Ahead

Rajasthan's advantage is not difficult to understand: the state has vast land availability and strong solar resources, while its agriculture sector has a continuing need for reliable irrigation electricity.

The challenge is execution.

Solar projects need land, grid connectivity, financing, equipment, transmission infrastructure and long-term power-purchase arrangements. Delays in any one of these areas can slow the benefits reaching farmers.

There is also a need to ensure that the economics work for all participants — farmers, developers and DISCOMs.

The national PM-KUSUM programme itself is expanding rapidly. NITI Aayog reported that as of December 30, 2025, 9,74,458 feeder-level solarisation projects had been solarised nationally, against 35,61,855 sanctioned, showing both the scale of the programme and the remaining implementation opportunity.

Conclusion

Rajasthan's emergence as a leader in feeder-level solarisation marks an important shift in the relationship between agriculture and renewable energy.

The state's PM-KUSUM progress is giving farmers a chance to become participants in the energy economy rather than remaining only electricity consumers. For agriculture, the immediate attraction is reliable daytime power for irrigation. For rural landowners, solar projects can potentially create additional income opportunities. For the power sector, the model could help improve the economics and reliability of agricultural electricity supply.

The next milestone will not simply be adding more megawatts. It will be whether those solar plants consistently deliver affordable daytime electricity, lower farm costs and sustainable income opportunities for farmers.

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This article is for informational and educational purposes only and should not be considered investment advice

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