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🇮🇳 Government of India Scheme

PRADHAN MANTRI KISAN URJA SURAKSHA
EVAM UTTHAAN MAHABHIYAN

(PM-KUSUM)

Empowering India's farmers with clean solar energy — adding 34,800 MW of solar capacity with ₹34,422 Crore in Central Financial support.

34,800 MW
Target Solar Capacity
₹34,422 Cr
Central Financial Support
14 Lakh
Solar Pumps (Comp. B)
35 Lakh
Pump Solarisation (Comp. C)
⏰ Scheme Available Till 31.03.2026 — Extended Till 31.03.2027

Apply now through your State Implementing Agency or visit the PM-KUSUM portal.

Scheme Components

Three Pillars of Solar Empowerment

The PM-KUSUM scheme operates through three complementary components, each targeting a different aspect of agricultural solar adoption.

Component A
10,000 MW

Decentralized Solar Plants

Setting up of Decentralized Ground/Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants by farmers on their land.

Component B
14 Lakh

Stand-alone Solar Pumps

Installation of Stand-alone Solar Agriculture Pumps in off-grid areas where grid supply is not available to individual farmers.

Component C
35 Lakh

Pump Solarisation

Solarisation of Grid Connected Agriculture Pumps including Feeder Level Solarization for reliable daytime power.

Detailed Information

About The PM-KUSUM Scheme

🎯 Objective

The PM-KUSUM Scheme allows inter-se transfer of quantities between Component-B and Component-C. All three components of the scheme aim to add Solar capacity of about 34,800 MW by March 2026 with the total Central Financial support of ₹34,422 crore.

The PM KUSUM Scheme has the following components:

🔹 Component A:

  • Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants by the farmers on their land.

🔹 Component B:

  • Installation of 14 Lakh Stand-alone Solar Agriculture Pumps.

🔹 Component C:

  • Solarisation of 35 Lakh Grid Connected Agriculture Pumps including Feeder Level Solarization.

Salient Features

🔹 Component A:

  • Renewable Energy Power Plant (REPP) of capacity 500 kW to 2 MW will be setup by individual farmers/group of farmers/cooperatives/panchayats/Farmer Producer Organisations (FPO)/Water User associations (WUA) hereinafter called Solar Power Generator (SPG). If the above specified entities are not able to arrange equity required for setting up the REPP, they can opt for developing the REPP through developer(s) or even through local DISCOM.
  • DISCOMs will notify sub-station wise surplus capacity which can be fed from such REPP to the Grid and shall invite applications from interested beneficiaries for setting up the solar energy plants.
  • The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
  • DISCOM would be eligible to get PBI @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the Commercial Operation Date (COD).

🔹 Component B:

  • Individual farmers will be supported to install standalone solar Agriculture pumps in off-grid areas, where grid supply is not available.
  • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, will be provided. The State Government will give at-least a subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed so that farmer has to initially pay only 10% of the cost.
  • In North Eastern States, Ladakh, J&K, Himachal Pradesh, Uttarakhand, Lakshadweep and A&N Islands — CFA of 50% will be provided. State Government subsidy of at-least 30%; remaining at-most 20% by the farmer.

🔹 Component C: Individual Pump Solarisation (IPS)

  • Individual farmers having grid connected agriculture pump will be supported to solarise pumps. Solar PV capacity up to two times of pump capacity in kW is allowed.
  • The farmer will be able to use the generated solar power for irrigation needs and the excess solar power will be sold to DISCOMs.
  • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, will be provided. State Government subsidy of at-least 30%; remaining at-most 40% by the farmer. Bank finance available — farmer pays only 10% initially.
  • In NE States, Ladakh, J&K, HP, Uttarakhand, Lakshadweep and A&N Islands — CFA of 50%. State subsidy of at-least 30%; remaining at-most 20% by farmer.

🔹 Component C: Feeder Level Solarisation (FLS)

  • Instead of individual solar pumps, states can solarize the agriculture feeders.
  • Where agriculture feeders are not separated, loan for feeder separation may be taken from NABARD or PFC/REC. Assistance for feeder separation may be availed from the Revamped Distribution Sector Scheme (RDSS) of the Ministry of Power.
  • Solar plants of capacity that can cater to the requirement of the agriculture load of the selected feeder can be installed through CAPEX/RESCO mode for a project period of 25 years.
  • CFA of 30% on the cost of installation of solar power plant (up to Rs. 1.05 Cr/MW) will be provided. In NE States, Ladakh, J&K, HP, Uttarakhand, Lakshadweep, and A&N Islands — 50% subsidy (up to Rs. 1.75 Cr/MW).
  • The farmers will get day-time reliable power for irrigation free of cost or at tariff fixed by their respective state.

📋 How To Avail The Financial Assistance?

🔹 Component A:

  • The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) approved by the respective State Electricity Regulatory Commission (SERC).
  • In case the farmers/group of farmers/cooperatives/panchayats/FPO etc. are not able to arrange equity required for setting up the REPP, they can opt for developing the REPP through developer(s) or through local DISCOM. In such a case, the land owner will get the lease rent as mutually agreed between the parties.
  • To avail of the PBI, the Implementing Agencies are requested to submit their claims for projects completed one year post their commissioning date, till 5 years from COD, along with the Signed Copy of the Joint Metering Report and Receipt of lease rent paid to the beneficiary/land-owner, wherever applicable.

🔹 Component B & Component C (IPS):

  • State-wise allocation for solar pumps and solarisation of existing grid-connected pumps will be issued by MNRE, after approval by a Screening Committee under the chairmanship of the Secretary, MNRE.
  • On acceptance of the allocated quantity by the implementation agencies and submission of the detailed proposal as per MNRE format, within a given time, the final sanction will be issued by MNRE.
  • Projects for solarisation or installation of pumping systems shall be completed within 24 months from the date of sanction by MNRE. Extension up to 3 months by Group Head and up to 6 months by Secretary in MNRE.
  • Funds up to 30% of the applicable CFA would be released as advance to the implementing agency only after placement of letter of award(s) to the selected vendors.
  • The balance eligible CFA along with applicable service charges would be released on acceptance of the Project Completion Report, Utilization Certificates as per GFR, and other related documents.
  • MNRE CFA and State Government's subsidy will be adjusted in the system cost and the beneficiary will have to pay only the remaining balance.

🔹 Component C (FLS):

  • CFA applicable under the FLS can be released in the following manner:
CAPEX Mode: Advance CFA up to 40% of the total eligible CFA will be released to DISCOMs on completion of tendering process and signing of work agreement with EPC contractor. Balance CFA on successful commissioning of solar power plant.
RESCO Mode: No advance CFA. The CFA up to 100% of the total eligible CFA will be released to the RESCO developer through DISCOM on successful commissioning and declaration of the Commercial Operation Date (COD).

📞 Whom To Contact?

Need Help with PM-KUSUM?

Innocepts Solar is a trusted EPC partner for PM-KUSUM implementations. We can help you navigate the application process and install your solar system.