PM KUSUM Yojana: Complete Scheme Details & Benefits 2025

The PM-KUSUM Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is one of India’s major renewable energy initiatives aimed at supporting farmers through solar pumps, solar power plants, and feeder-level solarisation.

This scheme not only reduces electricity costs for farmers but also promotes clean and sustainable energy use in agriculture.

The scheme aims to add 34,800 MW of solar capacity by March 2026 with a total central financial support of ₹34,422 crore.

Objectives of PM-KUSUM Yojana

• Promote decentralized solar power production.
• Reduce farmers’ dependence on costly diesel pumps.
• Enable farmers to earn through sale of surplus solar power.
• Provide reliable day-time electricity for irrigation.
• Strengthen rural energy security.

Components of PM-KUSUM Yojana

The scheme includes three major components, each designed to provide solar solutions to farmers across India.

Component A – Solar Power Plants (10,000 MW)

Key Features

• Farmers or groups can install ground-mounted or stilt-mounted solar power plants ranging from 500 kW to 2 MW on their land.
• If farmers cannot invest, developers or DISCOMs can install the plant, and farmers can earn lease rent.
• DISCOMs purchase the generated power at a tariff approved by the respective State Electricity Regulatory Commission (SERC).
• DISCOMs receive Performance-Based Incentive (PBI) of:
• o ₹0.40 per unit, or
• o₹6.6 lakh per MW, whichever is lower,
• for five years from COD (Commercial Operation Date).
• Landowners earn stable income through leasing while contributing to renewable energy growth.

Component B – Standalone Solar Agriculture Pumps

Who Can Benefit

• Farmers in off-grid areas where electricity supply is unavailable.

Subsidy Structure

• 30% Central Financial Assistance (CFA) + 30% State subsidy.
• Farmer contributes up to 40%, but bank loans are available so they pay as low as 10% upfront.

Special Category States

• North Eastern States, Ladakh, J&K, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, Lakshadweep
• Receive 50% CFA, 30% State subsidy, farmer pays only 20%.

Component C – Solarisation of Grid-Connected Pumps

Component C has two parts: Individual Pump Solarisation (IPS) and Feeder Level Solarisation (FLS).

Component C (IPS) – Solarisation of Individual Pumps

• Farmers can solarise existing grid-connected pumps.
• Solar PV capacity allowed: up to 2× the pump capacity.
• Excess solar power can be sold to DISCOMs for additional income.

Subsidy Pattern

• 30% CFA + 30% State subsidy; farmer pays up to 40% (with options for bank finance).
• Special category states receive 50% CFA and lower farmer contribution (20%).

Component C (FLS) – Feeder Level Solarisation

• States can solarise entire agriculture feeders instead of individual pumps.
• Where feeders are not separated, loans may be taken from NABARD, PFC, or REC.
• Plants can be set up via CAPEX or RESCO mode for 25 years.

Subsidy Structure

• 30% CFA (up to ₹1.05 crore per MW).
• Special category states receive 50% CFA (up to ₹1.75 crore per MW).
• Farmers get day-time reliable power, often free or at low tariff.

How to Avail Financial Assistance

For Component A

• Power is purchased by DISCOMs at SERC-approved tariff.
• Farmers without funds can hand over development to developers or DISCOMs and earn lease rent.
• PBI claims must be submitted with:
• Joint Metering Report
• Proof of lease rent paid (if applicable)

For Component B & Component C (IPS)

• MNRE issues state-wise allocation after committee approval.
• Implementing agencies must submit detailed proposals to receive sanction.
• Projects must be completed within 24 months (with extension options).
• Up to 30% CFA released as advance after tender finalization.
• Balance CFA released after final project completion and verification.

For Component C (FLS)

• CAPEX Mode:
• Up to 40% CFA as advance post tender and agreement signing.
• Remaining CFA on successful commissioning.
• RESCO Mode:
• No advance CFA.
• 100% CFA released after COD.

How to Apply for PM-KUSUM Yojana

You can access state-wise implementing agencies, vendor lists, and application details through the PM-KUSUM official portal:

• Visit the central portal:
• pmkusum.mnre.gov.in
• View state-wise details for Component A, B, C (IPS), and C (FLS).
• Check approved vendors and pump rates for Component B.
• (Links not displayed here but available on the official site as per your data.)

Benefits of PM-KUSUM Yojana

• Reduced irrigation costs and freedom from diesel.
• Opportunity to earn through surplus solar energy sale.
• Increased farmer income through land leasing for solar plants.
• Reliable day-time power for irrigation.
• Support for national renewable energy goals.
• Lower carbon emissions and cleaner environment.

Conclusion

The PM-KUSUM Yojana is a game-changing initiative for Indian farmers, promoting affordable and sustainable solar energy usage in agriculture. With multiple components, attractive subsidies, easy financing, and income-generating opportunities, the scheme empowers farmers while strengthening India’s clean energy future.

Whether you want to install solar pumps, solarise existing pumps, or set up solar power plants, the PM-KUSUM portal makes the application and implementation process easy and transparent.