PM KUSUM Yojana

Introduction

For millions of Indian farmers, irrigation is one of the biggest recurring costs — diesel pumps burn through fuel budgets, and grid-connected pumps depend on electricity that's often unreliable or expensive during peak farming hours. Over 3 crore diesel-powered agricultural pumps are estimated to be in use across India today, and for most small and marginal farmers, diesel is the single largest input cost after seeds and fertiliser.

The PM-KUSUM Yojana was designed to fix exactly this problem, turning farmland into a source of clean energy and, in many cases, extra income. This guide covers what PM-KUSUM is, how its three components work, real cost and subsidy numbers by pump size, eligibility, documents, the application process state by state, common mistakes, and how to apply in 2026.

What Is PM-KUSUM Yojana?

PM-KUSUM stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan — roughly translated as the Prime Minister's scheme for farmer energy security and upliftment. Launched in 2019 by the Ministry of New and Renewable Energy (MNRE), the scheme aims to:

1. Provide reliable, daytime solar power to India's agricultural consumers
2. Reduce farmers' dependence on diesel and unreliable grid electricity for irrigation
3. Ease the financial burden of power and fuel subsidies carried by state governments and DISCOMs
4. Create an additional income stream for farmers by letting them sell surplus power back to the grid
5. Support India's broader climate and renewable energy commitments by de-dieselizing agriculture

The scheme is implemented through State Implementing Agencies / State Nodal Agencies (SNAs) — such as GEDA in Gujarat, RRECL in Rajasthan, HAREDA in Haryana, UPNEDA in Uttar Pradesh, and JREDA in Jharkhand — working alongside local DISCOMs. As of 2026, the scheme has been extended under MNRE guidelines, with a further phase expected to follow.

The Three Components of PM-KUSUM

PM-KUSUM isn't a single scheme — it's structured into three components, each targeting a different farmer need.

Component A: Grid-Connected Solar Power Plants on Farm Land

Farmers, farmer cooperatives, panchayats, and water user associations with barren or underutilized land can set up small solar power plants (typically 500 kW to 2 MW) and sell the electricity generated directly to the local DISCOM under a Power Purchase Agreement (PPA).

1. Turns unproductive land into a source of guaranteed income
2. No irrigation use required — the plant simply feeds power to the grid
3. Long-term PPA income, often for 25 years
4. Best suited for landowners who want passive income rather than an operational role in farming the land

Component B: Standalone Solar-Powered Irrigation Pumps

This is the most widely adopted part of PM-KUSUM, targeting installation of roughly 14 lakh off-grid solar agriculture pumps nationally. Farmers can install a new standalone solar irrigation pump (no grid connection needed) to replace diesel pumps entirely.

1. Covers pump capacities up to 7.5 HP in most states (up to 15 HP in North-Eastern states, Jammu & Kashmir, Ladakh, Uttarakhand and Himachal Pradesh)
2. Eliminates diesel costs and dependence on unreliable grid power for irrigation
3. Ideal for farms in off-grid areas with poor or no grid electricity access
4. Solar PV capacity of up to two times the pump's kW rating is permitted, to ensure adequate output through the day

Component C: Solarisation of Existing Grid-Connected Pumps

Farmers who already have a grid-connected irrigation pump can add solar panels to power it during the day, and — if they generate more power than they use — sell the surplus electricity back to the DISCOM, effectively turning their pump connection into a small income source.

1. Farmers become "Urjadata" (energy providers) instead of only "Annadata" (food providers)
2. No need to replace the existing pump — solar panels are added alongside it
3. Modern installations increasingly include Universal Solar Pump Controllers (USPC), letting farmers run other equipment like grinders or threshers using the same inverter when the pump isn't in use
4. Central Financial Assistance (CFA) covers up to 30% of solarisation cost in general states (up to 50% in hilly/island regions); where a state offers no additional subsidy, farmers can finance up to 70% of the balance through bank loans

PM-KUSUM Subsidy Structure (Official MNRE Framework)

Under Component B, the officially notified subsidy structure from MNRE works like this:

General category states:

1. Central Financial Assistance (CFA): 30% of the benchmark cost (or tender cost, whichever is lower)
2. State subsidy: at least 30%
3. Remaining farmer share: at most 40% — of which up to 30% can be covered through a bank loan, leaving as little as 10% as the farmer's actual upfront cash contribution (where the farmer opts for financing)

Special category states (North-Eastern states, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and Andaman & Nicobar Islands):

1. Central Financial Assistance (CFA): 50% of the benchmark cost
2. State subsidy: at least 30%
3. Remaining farmer share: at most 20%

Important nuance: The widely repeated claim that "farmers pay only 10%" is accurate only when the farmer takes the maximum available bank loan on top of the standard 60% (central + state) subsidy — it isn't a flat guarantee everywhere. Some states don't offer the full 30% top-up, and vendor pricing above the MNRE benchmark cost is always borne fully by the farmer, not shared by the subsidy. Always confirm your state's exact structure before budgeting.

What Does a PM-KUSUM Solar Pump Actually Cost?

Costs vary by pump capacity, state benchmark pricing, and vendor, but here's a general 2026 range for Component B before subsidy:

*Farmer share shown assumes the 10% minimum scenario (60% government subsidy + 30% bank loan). Where a state does not offer the full subsidy top-up, or a farmer doesn't opt for the loan, the out-of-pocket amount will be significantly higher — closer to 40% of system cost in general states. These figures are indicative; always check your state's official benchmark cost before finalizing.

Worked example: A farmer installing a 5 HP standalone solar pump under Component B, with a system cost of ₹3.3 lakh, receiving the standard 60% central+state subsidy and opting for the maximum bank loan, would pay roughly ₹33,000 upfront — with the remaining ~₹99,000 financed through the loan. Diesel savings on a comparably sized pump often run ₹80,000–₹1,30,000 a year, meaning payback on the farmer's own contribution can happen within a single irrigation season in many cases, though actual payback depends heavily on cropping pattern, pump usage hours, and local diesel prices.

Who Is Eligible for PM-KUSUM?

Eligibility varies slightly by component and by state, but generally includes:

1. Individual farmers who own cultivable agricultural land
2. Farmer Producer Organisations (FPOs), Primary Agriculture Credit Societies (PACS), Water User Associations (WUAs), cooperatives, and panchayats
3. Proof of land ownership or a valid lease agreement — especially important for Component A
4. An existing grid-connected agricultural pump connection — required specifically for Component C
5. No existing grid-connected pump on the same field — generally required for Component B, since it targets genuinely off-grid irrigation
6. A valid water source on the land for pump-based components

Documents Required

Requirements can vary slightly by state, but applicants are generally asked to submit:

1. Aadhaar card (or other government-issued identity proof)
2. Land ownership records (7/12 extract, Jamabandi, or equivalent depending on state) or lease agreement
3. Bank passbook / bank account details linked to Aadhaar, for subsidy disbursal
4. Mobile number linked to Aadhaar for OTP verification
5. Pump installation details — required capacity and site location
6. For Component C: existing electricity connection/pump details

How to Apply for PM-KUSUM — Step by Step

1. Identify the right component for your need — new standalone pump (B), solarising an existing pump (C), or setting up a power plant on land (A).
2. Check eligibility as an individual farmer, FPO, PACS, WUA, cooperative, or panchayat, per your chosen component.
3. Gather documents — Aadhaar, land records, bank passbook, and pump/site details.
4. Register on your State Implementing Agency (SIA)'s official portal — not the general PM Surya Ghar rooftop portal, which is a separate scheme for residential rooftop solar. Common state portals include GEDA (Gujarat), RRECL (Rajasthan), HAREDA (Haryana), and UPNEDA (Uttar Pradesh).
5. Submit your application with all required documents and your sanctioned pump capacity.
6. Site verification — the SIA conducts load surveys and, in many states, GPS mapping to confirm the site and pump requirement.
7. Vendor selection and tendering — approved applications move into the state's tendering process, and an empanelled vendor is assigned to design, supply, and install the system.
8. Installation and commissioning — the vendor installs the system per MNRE specifications, including approved components like the Universal Solar Pump Controller (USPC) where applicable.
9. Subsidy disbursal — the central and state subsidy portions are processed to the vendor/farmer per the state's payment mechanism, and any bank loan is disbursed per the financing terms.
10. Ongoing monitoring — many installations now include Remote Monitoring Systems (RMS), and vendors are typically responsible for maintenance reporting to MNRE for a defined period.

Approval timelines vary significantly by state and application volume — some nodal agencies, such as Gujarat's GEDA, are known for faster 30–45 day turnarounds, while others take longer depending on local infrastructure readiness.

Common Reasons Applications Get Delayed or Rejected

1. Incomplete or mismatched land documents — ensure land records match the applicant's name exactly as per Aadhaar.
2. Applying for Component B despite having an existing grid connection on the same field — this typically disqualifies the site for standalone (off-grid) pump support; Component C is the correct route instead.
3. No valid water source confirmed at the site during verification.
4. Choosing a pump capacity beyond the sanctioned/eligible range without understanding that the subsidy only covers up to the eligible HP — any additional cost for higher capacity is borne entirely by the farmer.
5. Vendor pricing above the MNRE benchmark cost — the subsidy is calculated against the benchmark, not the vendor's quoted price, so any markup increases the farmer's out-of-pocket share.
6. Applying through unofficial websites or agents — MNRE has repeatedly warned farmers against fraudulent portals or intermediaries demanding advance registration fees. Only state SIA portals and the official PM-KUSUM website should be used.

Benefits of PM-KUSUM for Farmers

1. Major cost reduction — Diesel-to-solar pump conversions can pay back the farmer's own contribution within a single irrigation season in many cases, given how much recurring diesel costs a standalone pump eliminates.
2. Reliable daytime power — Solar pumps run independent of grid outages, which matters most during peak irrigation windows.
3. New income stream — Components A and C let farmers earn from surplus power generation or land leasing, not just save on costs.
4. Lower long-term maintenance — Modern KUSUM installations use high-efficiency Mono-PERC panels and remote monitoring systems (RMS), reducing manual oversight and improving system uptime.
5. Environmental impact — Fewer diesel pumps in operation means lower emissions and reduced fuel dependency at the farm level.

Frequently Asked Questions

What does PM-KUSUM stand for? Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan — a Ministry of New and Renewable Energy scheme to bring solar power to Indian agriculture.

Which component should I choose? Component A if you want to lease land for a solar plant without farming it yourself; Component B if you need a new standalone solar pump with no existing grid connection; Component C if you already have a grid-connected pump and want to add solar and potentially sell surplus power.

Is the subsidy really 60%? Under the official MNRE structure for Component B, central and state subsidy together generally total 60% of the benchmark cost in most states (30% central + at least 30% state), with the remaining 40% as the farmer's share — of which up to 30% can be financed through a bank loan, bringing the farmer's actual upfront cash contribution down to as little as 10% in the best case.

How much does a solar pump cost under PM-KUSUM? Before subsidy, a 3 HP pump typically costs ₹1.8–2.5 lakh, a 5 HP pump ₹2.5–3.5 lakh, and a 7.5 HP pump ₹4.5–5 lakh, depending on state benchmark pricing and configuration.

Can I apply for PM-KUSUM if I don't own the land? Generally, valid land ownership or lease documentation is required. Requirements vary slightly by state and component, so check your State Implementing Agency's specific eligibility rules.

Can I install a higher-capacity pump than my sanctioned subsidy covers? Usually yes, but the subsidy amount is calculated against the MNRE benchmark cost for your sanctioned capacity — any additional cost for a higher-capacity pump is borne entirely by the farmer.

How long does approval take? Timelines vary significantly by state and nodal agency workload — some states process approvals within 30–45 days, others take longer. Always track status through your official state portal.

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