India’s agricultural sector can absorb an additional 116 GW of solar modules, creating a significant opportunity for domestic manufacturers—according to a new 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 on 2 November 2026. It highlights the potential of agricultural solarisation to support India’s clean energy transition while creating sustained demand for domestically manufactured solar modules and cells.
With nearly 2.3 crore irrigation pumps across the country, solarisation presents a substantial opportunity to expand the domestic solar manufacturing market.
According to the report, India’s 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.
The report highlights the growing momentum of PM-KUSUM, which added a record 7.6 GW of solar capacity in FY 2025–26, with over 28 lakh irrigation pumps solarised by July 2026. It also underscores the role of the Domestic Content Requirement (DCR) under Components B and C in driving demand for Indian manufacturers. By October 2026, 13.8 GW had been installed under these components, meeting nearly two-thirds of the 20.8 GW of demand for domestically made solar cells and modules originally projected.
Agriculture is India’s third-largest power consumer. It accounted for 17.88% of the country’s electricity consumption in FY 2024. To keep irrigation affordable, tariff subsidies billed by DISCOMs doubled from INR 1.21 lakh crore in FY20 to INR 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, 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. 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.”
The report recommends retaining DCR provisions, establishing clear state-wise targets and multi-year tender pipelines, and strengthening implementation models that facilitate land access, clearances and grid connectivity. It also calls for greater focus on upstream manufacturing capabilities, including wafers and ingots, to deepen India’s domestic solar manufacturing ecosystem.
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