Impact Analysis of PM KUSUM Scheme Individual Pump Solar Component C

Pradhan Mantri Kisan Urja Suraksha Utthaan Maha Abhiyaan (PM KUSUM) Scheme, launched by the government of India, allows for the availability of solar-powered agricultural pumps at subsidized rates to farmers of the country. The scheme's Individual Pump Solar (IPS) Component C intends to use grid-connected solar pumps. This way, the farmer saves money on the electricity he would have bought from the grid and generates an income by selling the surplus energy back to the grid. This would create a parallel revenue stream for the farmers while saving up simultaneously. This paper probes the impact of the PM KUSUM Scheme, especially component C, on the environmental and economic front. The Ministry of New and Renewable Energy (MNRE) has released a list of the number of pumps allocated to various states in the country under the PM KUSUM Scheme. MNRE has also released a price list of the pumps the farmers can buy. Using this list and calculated projection of pump categorization, purchase cost estimates have been made in this paper, which would later be used to calculate the time period for Return on Investment (ROI). Using the available annual daylight hours and the average time, the farmers would use the pump to irrigate the fields; energy savings have been calculated. The energy saved here refers to the amount of electrical power the farmer would have taken from the grid but instead met his demands with the solar pump. The electricity produced is sold back to the grid during the remaining period, and the income generated is calculated. Since generation capacity changes over time, the projected power mix was calculated for analysis. Furthermore, year-wise, CO2 emissions saved were also calculated. These calculations are used to estimate carbon credits saved annually by the country to give a better perspective of this scheme's impact. Calculations show average annual carbon credit savings from 2026 onwards (after the full implementation) worth INR 307 million and about 114,935 metric tonnes worth of annual CO2 emission savings, and an ROI period of 1 year and nine months for the farmers.

I. Introduction

As far as energy is concerned, India has about 445 GW of installed capacity and about 1734 BU (Billion Units) of annual electricity production. For a population of 1.45 Billion, this amounts to about 1196 units per person annually, or just over three units daily [1]. Even though this is not evenly distributed, most of it is consumed in urban areas, leaving little for the rural population. This accounts for less electricity in rural areas, where most food is produced. Availability of fewer resources leads to poor yield and, in many cases, bankruptcy for farmers, which is a significant reason for farmer suicides in the country. Electric pumps majorly consume electricity in agriculture. Currently, in most rural households, electricity is provided at night, which calls for farmers to irrigate farms at night. Nocturnal irrigation comes with its own demerits, like less visibility, uneven irrigation, farmers not being able to perform effectively, etc.