PM Kusum Yojana: Get Up to 60% Subsidy on Solar Pumps & Plants; Farmers Can Earn Rs 60,000–Rs 1 Lakh per Acre Annually for 25 Years by Selling Power to DISCOMs; Check Application Process

The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) is an innovative government scheme that aims to empower farmers with clean solar energy. It helps reduce their dependence on diesel and grid electricity while also creating long-term income opportunities by allowing farmers to sell surplus electricity to distribution companies (DISCOMs). Here’s a complete guide to the benefits, subsidies, income opportunities, and application process under PM-KUSUM.

What is PM-KUSUM Yojana?

Launched by the Ministry of New and Renewable Energy (MNRE), PM-KUSUM aims to de-dieselize the agricultural sector and increase farmers’ income through solar energy. The scheme provides subsidies up to 60% of the total cost for installing solar pumps and plants. Additionally, bank loans up to 30% of the cost can be availed.

The scheme has three main components:

• Component A: Grid-connected solar power plants (500 kW to 2 MW) on farmers’ barren or fallow land.

• Component B: Stand-alone solar pumps for off-grid areas.

• Component C: Solarisation of existing grid-connected agriculture pumps, including feeder-level solarisation.

PM Kusum: Benefits for Farmers

1. Daytime Irrigation: Solar-powered pumps enable farmers to irrigate their fields during the day, improving productivity and saving time.

2. Subsidy Support:

• 30% subsidy from the Central Government.

• 30% subsidy from the State Government.

• Farmers pay only 10% upfront, and the rest can be financed via bank loans.

3. Long-term Income:

• Farmers installing solar plants on barren land can earn Rs 60,000 to Rs 1 lakh per acre per year for 25 years by selling electricity to DISCOMs.

• The solar panels have a lifespan of 25 years and require minimal maintenance.

4. Save Diesel Costs: Solar pumps eliminate the recurring costs of diesel, reducing both pollution and financial burden.

PM Kusum Yojana: Component-Wise Overview

Component A: Ground-Mounted Solar Power Plants

• Farmers can install 500 kW to 2 MW capacity solar plants on barren land.

• DISCOMs buy the power at a tariff decided by the State Electricity Regulatory Commission (SERC).

• Farmers may install the plant themselves or lease their land to a developer and earn annual rent.

• Projects near substations (within 5 km) are preferred.

• DISCOMs are eligible for Performance-Based Incentive (PBI) of Rs 0.40/unit or Rs 6.6 lakh/MW for 5 years.

Component B: Stand-alone Solar Pumps

• Designed for areas with no grid connectivity.

• Farmers receive a 30% central and 30% state subsidy. They can avail bank loans for 30% of the cost.

• Farmers only pay 10% upfront.

• Special regions like NE states, Ladakh, J&K, Himachal, Uttarakhand, etc., get 50% central subsidy.

• Pumps are durable and easy to maintain.

Component C: Solarisation of Existing Pumps

• Suitable for grid-connected pumps.

• Farmers can use solar power for irrigation and sell surplus electricity to DISCOMs.

• Solar PV capacity allowed is up to two times the pump capacity (kW) to enable farmers to meet irrigation needs and sell surplus electricity to DISCOMs.

• Same subsidy pattern: 30% central + 30% state subsidy, and bank loan for 30%.

• In special regions, 50% central subsidy is applicable.

Feeder-Level Solarisation (FLS): Collective Solar Power for Farmers

Under PM-KUSUM’s Component-C, the government allows solarisation of entire agricultural feeders instead of giving solar pumps to individual farmers. A large solar power plant is set up to supply daytime electricity to all pumps on the feeder.

• Free or subsidized power for farmers during the day.

• Solar plants are installed using CAPEX (govt funds) or RESCO (private developer) models.

• 30% subsidy (Rs 1.05 Cr/MW) for normal states.

• 50% subsidy (Rs 1.75 Cr/MW) for special states like J&K, NE states, etc.

• No need for individual solar pumps, all connected farmers benefit.

• Reduces diesel use, lowers pollution, and ensures long-term income and energy security.

How Does It Work Financially?

Financially, the scheme is designed to be highly farmer-friendly. Farmers are not required to bear the full cost of the solar equipment upfront. Instead, they pay only 10% of the total cost, while the remaining amount is covered through government subsidies and easy loans.  

The loan repayment is manageable, as farmers can use the income generated from selling excess electricity to the grid or the savings from reduced diesel usage. Typically, the loan can be repaid within 5 to 6 years. Since the solar equipment has a lifespan of up to 25 years, farmers can enjoy a steady income for many years even after the loan is fully repaid.

How to Apply?

1. Visit the Official Portal: https://pmkusum.mnre.gov.in

2. Select Your State: Check implementing agency and vendor details.

3. Choose Component: Based on land, pump type, and electricity connection.

4. Fill the Application Form as per guidelines.

5. Submit Required Documents like land ownership proof, identity proof, and bank details.

6. Wait for Approval and Subsidy Sanction.

For more assistance, check the state-wise implementing agencies or contact your local agricultural department or DISCOM. 

PM-KUSUM is not just a subsidy scheme; it’s a sustainable farming revolution. It empowers farmers to adopt clean energy, cut fuel costs, increase crop productivity, and generate long-term income. Whether you’re a small landholder or a progressive farmer, switching to solar under PM-KUSUM is a smart, profitable move.