PM-KUSUM Yojana

Solar for agriculture — de-dieselize irrigation, raise farm income, and add 34.8 GW of distributed solar by March 2026.

  • 34.8 GW Cumulative target (A+B+C)
  • ₹34,422 Cr Central financial support
  • Till Mar 2026 Current scheme timeline
PM-KUSUM Program Banner
Component A

500 kW – 2 MW RE Plants

Decentralized plants near 33/11 kV substations with 25-year PPAs.

Component B

Standalone Solar Pumps

Central CFA 30% (50% NER/Hilly/Islands) + State ≥30% + Loan/Farmer.

Component C

Solarize Grid-Connected Pumps

Up to 2× PV vs. pump kW (≤7.5 HP CFA cap); feeder-level option too.

Quality

5-Year AMC & Insurance

Vendor AMC, quarterly inspections, remote monitoring, BIS compliance.

Scheme Overview

  • Launched 08 Mar 2019; scaled in 2020 & 2023; extended to March 2026.
  • Implemented by State Implementing Agencies (SIAs) & DISCOMs via state/central portals.
  • Focus: de-dieselize farm irrigation, provide day-time reliable power, and boost farmer income.
  • Equipment to meet MNRE/BIS specs; remote monitoring & insurance mandated.
Targets34.8 GW
Central Support₹34,422 Cr
Timelinetill Mar 2026

Component A — Decentralized RE Plants (500 kW – 2 MW)

Key Features

  • Plants preferably within ~5 km of 33/11 kV (or 66/11/110/11 kV) substations.
  • DISCOMs pre-notify sub-station-wise capacity and ceiling levelized tariff.
  • Selection via EoI/first-come or bidding if oversubscribed; model PPA of 25 years.
  • RPG handles connectivity line/bay; timelines ~15 months from LoA (penalties for delay).
  • DISCOM eligible for PBI: ₹0.40/kWh or ₹6.6 lakh/MW (whichever lower) for 5 years.

Who can set up?

Individual farmers, groups/cooperatives/FPOs/WUAs, panchayats, or developers (including DISCOM as RPG if land is leased). Model land-lease & PPA formats are provided in the guidelines.

Component B — Standalone Solar Pumps

Subsidy & Cost Sharing

  • Central CFA: 30% of benchmark/tender cost (50% for NER/Hilly/Islands).
  • State Subsidy: ≥30% (where applicable). Remaining up to ~40% by farmer/loan.
  • Central-share-only mode allowed if State subsidy not provided; farmer bears balance.
AMC: 5-year vendor AMC with insurance, remote monitoring, quarterly inspections.

Eligibility & Caps

  • Replacement of diesel pumps or new standalone solar pumps.
  • Typical cap up to 7.5 HP per beneficiary; group installations allowed with HP-wise CFA cap.
  • SIAs allocate pump quantities; vendors empanelled through state tenders.

Component C — Solarization of Grid-Connected Pumps

Options & CFA

  • Options include pump-level solarization (hybrid: solar+grid) and feeder-level solarization.
  • CFA limited to PV up to 2× pump kW for pumps ≤7.5 HP (higher HP allowed but CFA capped at 7.5 HP equivalent).
  • Central CFA up to 30% (50% for NER/Hilly/Islands). States may add their subsidy.
  • Where no State subsidy: farmer can implement with Central CFA + own share/loan (banks may finance up to ~70%).

Benefits

  • Reliable day-time supply; potential incentive for water-power saving vs. benchmark use.
  • Feeder-level plants can credit DISCOM and enable timely agri connections in some states.

How to Apply (High-Level Flow)

Review open windows for Component A/B/C, quantities, and timelines announced by your state. Read tender/portal notes on eligibility, caps, and documents required before you proceed to registration.

Enter farmer details, land/pump info (HP, grid status), and select Component A/B/C or feeder-level as per portal option. Upload basic documents as specified to generate your application.

Choose from empanelled vendors or selected bidders. Finalize configuration meeting MNRE/BIS standards. Get BoQ/quotation and confirm timelines subject to feasibility approvals.

DISCOM/SIA processes feasibility and sanctions: PPA (A), pump sanction (B), or solarization approval (C). Pay beneficiary share and arrange loan where applicable.

Vendor installs as per standards; inspection done by DISCOM/SIA. Remote monitoring is set up and insurance documents are issued before commissioning.

CFA is released as per guidelines against benchmark/tender cost (lower of the two), routed to SIA/vendor/beneficiary depending on mode. AMC starts post-commissioning.

Tip: For Component A, follow the sub-station capacity notice and ceiling tariff; for Component C feeder-level, states may centrally tender the plant and sign long-term PPAs.

Loans & EMI

  • Beneficiary share can be financed by banks/NBFCs (commonly up to ~70% in some C-options).
  • EMIs depend on rate & tenure; align EMIs with expected diesel/electricity savings to keep net outgo low.
  • CFA is computed on benchmark/tender cost (whichever is lower). Disbursal routing varies by state/mode.
Documents for loan (indicative): KYC, land/pump papers, quotation/PI, portal application/approval, income proof where required.

Required Documents

Aadhaar & Address ProofLand Records / Pump DetailsElectricity Connection (for C)Bank DetailsPhotographs & Installation ReportsPPA/Agreements (A) • Feeder/Pump approvals (C)

Quick FAQs

What are the three components under PM-KUSUM?

A: 10,000 MW decentralized ground/stilt-mounted RE plants (500 kW–2 MW) with 25-year PPAs; B: Standalone solar pumps (replacement of diesel pumps); C: Solarization of grid-connected agri pumps (incl. feeder-level).

How much subsidy is available for pumps?

Central Government provides 30% CFA (50% for NER/Hilly/Islands). States typically provide at least 30%. The balance (up to ~40%) is farmer’s share/loan. States may also run Central-share-only mode.

Are loans/EMIs possible?

Yes. Banks/NBFCs may finance the beneficiary share (up to ~70% in some C-options). EMI terms depend on the lender; CFA does not go to the bank by default unless structured so by the SIA/lender.

Is maintenance covered?

Vendors must provide 5-year AMC/CMC with insurance against theft/natural calamities, remote monitoring, and quarterly inspections.

Who implements the scheme?

MNRE issues guidelines; States/UTs (SIAs/DISCOMs) implement via their portals/tenders; PM-KUSUM National Portal provides scheme info and links.

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