The Rajasthan Renewable Energy Corporation Limited (RRECL) allotted 722 MW of solar power capacity to 623 farmers in the state under the PM-KUSUM scheme. This is expected to help farmers generate income from their unfertile or semi-barren land. The farmers can set up plants of capacities in the range of 0.5 MW to 2 MW. Under the scheme, farmers who do not have funds to invest also have the option to lease out land to private developers and receive an annual income. Rajasthan Electricity Regulatory Commission has approved a tariff of Rs 3.14 per kWh, which is relatively higher than the prevalent solar tariffs being discovered across various states.
Beyond helping the farmers with electricity supply in the day time and helping them generate income, the distributed solar plants will also allow the distribution companies (discoms) to reduce transmission and distribution losses. This may be a much-needed respite for the discoms of Rajasthan.