India solar subsidy initiatives

In July 2026 the Indian government expanded its clean‑energy push with two distinct subsidy programmes. The PM Kusum scheme began providing heavily subsidised solar‑powered irrigation pumps to farmers in Gujarat’s remote and tribal districts, enabling year‑round water access, multiple cropping cycles and higher incomes for nearly three million pump users. By mid‑July officials reported that the scheme had led to the commissioning of 256 solar power plants totalling 695 MW and the installation of about 22,800 solar pumps, benefitting roughly 2.97 million farmers. Farmers such as Bharatbhai Vaghmare and Rajeshbhai Vasa said the pumps enable continuous irrigation, three crops per year and higher earnings.

A week later the PM Surya Ghar Muft Bijli Yojana was launched, offering households up to ₹78,000 off rooftop solar systems of 3 kW or larger. Private firm Saatvik Green Energy Limited, which manufactures over 4 GW of PV modules annually, was appointed to supply integrated residential kits, aligning its commercial growth with the subsidy.

In early August Union Minister Pralhad Joshi announced a follow‑on PM‑KUSUM 2 scheme. The programme will provide central subsidies of 30‑50 % for standalone solar pumps and for solarising existing grid‑connected pumps, and will allow farmers to install up to 2 MW grid‑connected solar plants on barren land for sale to distribution companies. As of July, 1,986 MW of grid‑connected solar capacity had been installed against a 10,000 MW target, and 1.307 million standalone pumps had been sanctioned, with 1.169 million installed. The government also disclosed over ₹3,800 crore in incentives to discoms and a GST cut on renewable‑energy equipment to lower rooftop system costs.