India’s irrigation sector is rapidly shifting from diesel to solar under the PM-KUSUM scheme, with nearly 60% of pumps now converted. Private firms like Corrit Energy and Infra are entering this space to solve financing hurdles for farmers. The company aims to grow its capacity to 500 megawatts in 18 months, as the industry prepares for future mandates on battery storage.
The agricultural landscape in India is seeing a major change as farmers move away from expensive diesel-powered irrigation pumps to solar-based systems. Data shows that approximately 60% of irrigation pumps across the country now run on solar power, a significant move away from the traditional diesel reliance that has burdened farmers with high fuel costs for decades. This shift is primarily driven by the central government’s Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme, which encourages farmers to install solar panels on their land.
Overcoming Financial Hurdles
While the shift to solar is beneficial, many individual farmers struggle to secure the financing needed to install these systems. A typical solar installation, even for a small plant of 2 megawatts, requires a capital expenditure of ₹8 crore or more. Most banks are often hesitant to lend this amount to individual farmers due to a lack of documented income records. To bridge this gap, private renewable energy companies, such as Gurugram-based Corrit Energy and Infra, are stepping in as intermediaries. These companies partner with landowners through joint ventures, providing the technical expertise and financial backing required to meet bank lending standards. This model allows the projects to move from the planning stage to actual construction by leveraging corporate-backed agreements.
Expansion and Industry Outlook
The demand for agricultural solar assets is rising, largely because these projects often come with government-backed power purchase agreements, which offer predictable revenue. Corrit Energy and Infra currently operates 100 megawatts of projects and has announced plans to scale this capacity to 500 megawatts within the next 18 months. While the agricultural sector remains a primary focus, the company is also diversifying into providing solar power solutions for heavy industries like steel and automobile manufacturing. This diversification is a common strategy in the renewable sector to reduce dependence on a single customer type.
Looking ahead, the next phase of growth for the renewable energy sector will likely depend on the adoption of battery energy storage systems. Government mandates are increasingly requiring grid-connected solar plants to include battery storage to ensure power supply remains stable even during peak demand or low-sunlight periods. For investors, the success of these large-scale expansions will depend on the company's ability to maintain efficient project execution, manage debt levels while scaling up, and navigate the regulatory requirements that come with government-backed energy projects. Tracking the progress of these 500 megawatts of capacity and the rollout of battery-integrated systems will be essential to understanding the sector's long-term profitability.