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Agricultural Solarisation Could Generate 116 GW Solar Module Demand: ISMA Photograph: (Pranav Kumar)
India’s agricultural sector has the potential to generate demand for an additional 116 GW of solar modules, presenting a significant growth opportunity for domestic manufacturers and strengthening the country’s solar manufacturing ecosystem, according to a report by the Indian Solar Manufacturers Association (ISMA).
Titled Powering the Farms, Building the Factory: PM-KUSUM – Solarising Agriculture and Strengthening Domestic Manufacturing, the report was launched at the Bharat RE Summit. It highlights how agricultural solarisation can support India’s clean energy transition while creating sustained demand for domestically manufactured solar modules and cells.
According to the report, the potential demand comprises 100 GW from grid-connected pumps and another 16 GW from diesel pumps, excluding those in groundwater-stressed areas. With nearly 2.3 crore irrigation pumps across the country, solarisation could significantly expand the addressable market for domestic solar manufacturers.
The report also highlights the growing momentum of the PM-KUSUM scheme, which added a record 7.6 GW of solar capacity in FY26. More than 28 lakh irrigation pumps had been solarised by July 2026.
It underscores the role of Domestic Content Requirement (DCR) provisions under Components B and C in driving demand for Indian manufacturers. By October 2026, installations under these components had reached 13.8 GW, meeting nearly two-thirds of the 20.8 GW of domestic manufacturing demand originally projected.
Agriculture accounts for 17.88% of India’s electricity consumption, while tariff subsidies billed by distribution companies (DISCOMs) doubled from ₹1.21 lakh crore in FY20 to ₹2.41 lakh crore in FY25, the report noted. Solarisation of agricultural pumps and feeders could improve power availability for farmers while supporting more sustainable energy consumption and reducing the subsidy burden on DISCOMs.
Commenting on the findings, Amit Manohar, secretary general of ISMA, said PM-KUSUM had 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. Sustaining this momentum will 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,” he said.
The report recommends retaining DCR provisions, setting clear state-wise targets and establishing multi-year tender pipelines. It also calls for strengthening implementation mechanisms to facilitate land access, regulatory clearances and grid connectivity. Further, it recommends greater emphasis on upstream manufacturing capabilities, particularly wafers and ingots, to deepen India’s domestic solar manufacturing ecosystem.
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