Decentralised Solar Initiatives Drive Capacity Growth

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Why in news

  • Decentralised solar programmes, led by PM-KUSUM and rooftop solar, contributed 40% of India's total solar capacity additions during the early months of FY27.

What are PM-KUSUM and PM Surya Ghar Schemes?

  • PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was launched in 2019 by the Ministry of New and Renewable Energy to de-dieselise the farm sector through solar agricultural pumps and solarisation of grid-connected pumps.
  • PM Surya Ghar: Muft Bijli Yojana provides central financial assistance for installing rooftop solar units on residential households.

Current Trends in Solar Expansion

  • Decentralised additions are offsetting slowdowns in utility-scale solar parks caused by power evacuation and transmission corridor constraints.
  • Shift from large land-intensive solar parks toward localized generation reduces transmission losses and land acquisition bottlenecks.

Why it matters

  • Supports India's updated NDC commitment under the Paris Agreement to achieve 50% non-fossil fuel cumulative electric capacity by 2030.
  • Promotes grid decentralization and financial sustainability of state electricity distribution companies (DISCOMs).

Key terms

Decentralised Renewable Energy

Power generated on-site or near the point of use through small-scale systems rather than central power stations.

Utility-Scale Solar

Large-scale solar power plants designed to feed generated electricity directly into the high-voltage transmission grid.

Prelims facts

  • PM-KUSUM contains components for standalone solar pumps, solarisation of grid pumps, and grid-connected RE power plants on barren farm land.

Mains discussion

  • Evaluate the structural challenges in utility-scale solar expansion versus the potential of decentralized solar power.

Source: Economic Times

← All Mains notes for 26 August 2026

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