States urged to adopt farm solar to reduce power subsidy burden
Indian States collectively spend nearly ₹2.4 lakh crore annually on electricity subsidies for agriculture and domestic consumers. The Centre is encouraging States to adopt farm solarisation and rooftop solarisation through schemes like PM KUSUM and PM Surya Ghar to eliminate this subsidy bill over time. Maharashtra is highlighted as a model, having launched the Mukhyamantri Saur Krishi Vahini Yojana in 2017, scaling its ambitions to 16 GW. The article notes challenges like the higher cost of domestic solar equipment compared to Chinese and Vietnamese alternatives, and the structural limitation of PM Surya Ghar for poor households who lack incentive to install rooftop solar.
Key Points
- Indian States incur significant annual expenditure on electricity subsidies, totaling nearly ₹2.4 lakh crore.
- The Centre promotes farm and rooftop solarisation through schemes like PM KUSUM and PM Surya Ghar to reduce these subsidies.
- Maharashtra's Mukhyamantri Saur Krishi Vahini Yojana serves as a model for decentralised solar plant installation.
- Challenges include the higher cost of domestic solar equipment and the lack of incentive for low-income households to adopt rooftop solar.
- The Utility-Led Aggregation (ULA) model under PM Surya Ghar aims to address the upfront cost barrier for consumers.
Exam Facts
- Annual electricity subsidy: ₹2.4 lakh crore
- Schemes mentioned: PM KUSUM, PM Surya Ghar
- Model State: Maharashtra (Mukhyamantri Saur Krishi Vahini Yojana, 2017)
- Installed solar capacity (India): 150 GW from solar as of March 2026
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.