KUSUM Yojana 2024: Complete Solar Subsidy Guide for Farmers

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a landmark government scheme launched to support farmers with solar energy solutions. With subsidies up to 90% on solar pumps and opportunities to earn from solar power generation, KUSUM Yojana is transforming rural India's energy landscape.

What is PM-KUSUM Yojana?

Launched in 2019 by the Ministry of New and Renewable Energy (MNRE), PM-KUSUM aims to add 30.8 GW of solar capacity by 2026 through three components targeted at farmers. The scheme provides financial support for solar pumps and enables farmers to generate additional income by selling surplus power to the grid.

Key Objectives of KUSUM

De-dieselisation of agriculture sector by replacing diesel pumps with solar
Reduce farmer's dependence on grid electricity for irrigation
Provide additional income source to farmers through solar power generation
Support India's renewable energy and climate change commitments
Enhance water and energy security in rural areas

Three Components of PM-KUSUM Yojana

Component A: 10,000 MW Solar Power Plants on Barren Land

Under Component A, farmers can set up small solar power plants (500 kW to 2 MW) on their barren, fallow, or marshy land and sell power to DISCOMs under 25-year Power Purchase Agreements (PPAs).

Capacity: 500 kW to 2 MW per plant
Land requirement: 2 acres per MW approximately
PPA rate: ₹3.07-3.40/kWh depending on state
Contract period: 25 years with DISCOM
Farmer's investment: Nil (if land is leased to developer)
Annual income: ₹40,000-80,000 per acre from land lease

Alternatively, farmers can invest in the plant themselves and earn higher returns through power sale. FPOs, cooperatives, and panchayats can also participate.

Component B: Standalone Solar Pumps (Up to 7.5 HP)

This is the most popular component, providing solar water pumps to farmers who don't have grid connectivity or face irregular power supply.

Pump capacity: Up to 7.5 HP (5.5 kW)
Central Government subsidy: 30%
State Government subsidy: 30%
Farmer's contribution: 40% (can be financed through bank loan)
Additional subsidy for SC/ST/Small farmers in some states
Estimated cost for 5 HP pump: ₹2.5-3 lakhs
Farmer pays approximately: ₹1 lakh only

Component C: Solarisation of Grid-Connected Pumps

Farmers with existing grid-connected pumps can solarise them and sell surplus power back to the grid—a dual benefit of free irrigation and additional income.

Solar capacity: Up to 2 times the pump capacity
Central Government subsidy: 30%
State Government subsidy: 30%
Farmer's contribution: 40%
Surplus power purchase rate: ₹3.07/kWh (varies by state)
Potential earning: ₹50,000-1,00,000 per year from surplus sale
Free electricity for irrigation

KUSUM Yojana Eligibility Criteria

Different components have specific eligibility requirements:

For Component A (Solar Power Plants)

Individual farmers owning barren/fallow land
Group of farmers / Farmer Producer Organizations (FPOs)
Panchayats and Cooperatives
Water User Associations (WUA)
Land should be within 5 km of DISCOM substation

For Component B (Standalone Pumps)

Individual farmers with agricultural land
No existing grid connection for irrigation
Water source available (borewell, open well, canal, pond)
Priority to small and marginal farmers
SC/ST farmers get additional preference

For Component C (Grid-Connected Solarisation)

Farmers with existing grid-connected agriculture pumps
Valid electricity connection in farmer's name
Willingness to sign agreement for surplus power sale
Adequate shadow-free space for solar panels

Documents Required for KUSUM Application

Aadhaar Card (mandatory)
Land ownership documents (Khasra, Khatauni, 7/12 extract)
Bank account details (passbook copy)
Passport size photographs
Existing electricity bill (for Component C)
Water source certificate/proof
Caste certificate (for SC/ST additional benefits)
Income certificate (if applicable)
Mobile number linked with Aadhaar

How to Apply for KUSUM Yojana: Step-by-Step

Visit the official PM-KUSUM portal (mnre.gov.in/kusum) or state nodal agency website
Register with mobile number and basic details
Select the component you want to apply for (A, B, or C)
Fill the detailed application form with land and personal details
Upload required documents in specified format
Submit application and note the application number
Wait for verification by state nodal agency
After approval, deposit your share of contribution
Installation by empaneled vendor (like Greenify)
Inspection and commissioning by state agency
Start using solar pump / Receive subsidy disbursement

State-Wise KUSUM Implementation Status

Different states are at various stages of KUSUM implementation. Here's the status of major agricultural states:

Rajasthan: Most active state, over 1 lakh pumps sanctioned
Maharashtra: Strong Component B implementation
Uttar Pradesh: Large-scale Component A projects underway
Madhya Pradesh: Focus on Component B and C
Gujarat: Advanced net metering for Component C
Karnataka: KREDL implementing all three components
Punjab & Haryana: Targeting grid-connected pump solarisation
Tamil Nadu: TEDA managing KUSUM implementation

Financial Benefits Calculator

Let's calculate the actual savings and earnings for a typical farmer:

Component B Example: 5 HP Solar Pump

Total system cost: ₹2,75,000
Central subsidy (30%): ₹82,500
State subsidy (30%): ₹82,500
Farmer pays (40%): ₹1,10,000
Annual diesel saving: ₹50,000-70,000
Payback period: 1.5-2 years
Free irrigation for 25+ years after payback

Component C Example: 10 HP Pump Solarisation

Solar system size: 15 kW (1.5x pump capacity)
Total system cost: ₹6,00,000
Central + State subsidy (60%): ₹3,60,000
Farmer pays (40%): ₹2,40,000
Annual power generation: ~22,000 units
Self-consumption for irrigation: ~8,000 units (₹56,000 value)
Surplus sold to grid: ~14,000 units @ ₹3.07 = ₹43,000
Total annual benefit: ~₹99,000
Payback period: 2.5 years

Common Challenges and Solutions

Challenge: Complex application process → Solution: Apply through empaneled vendors like Greenify who handle paperwork
Challenge: 40% farmer contribution → Solution: Avail bank loans at subsidized interest rates
Challenge: Delay in subsidy disbursement → Solution: Ensure all documents are complete before applying
Challenge: Finding quality vendors → Solution: Choose only MNRE/state empaneled installers
Challenge: Maintenance concerns → Solution: Opt for AMC with installer, most issues are minor

Why Choose Greenify for KUSUM Installation?

MNRE and state nodal agency empaneled vendor
End-to-end service from application to commissioning
Quality Tier-1 solar panels with 25-year warranty
Dedicated team for subsidy documentation
Pan-India service network for maintenance
Post-installation support and monitoring
Transparent pricing with no hidden costs

Frequently Asked Questions

Can I apply for multiple components?

Yes, a farmer can apply for Component A (land-based power plant) and Component B (standalone pump) simultaneously if they meet eligibility criteria for both.

What happens if my application is rejected?

You can re-apply after addressing the reasons for rejection. Common reasons include incomplete documents or land not meeting requirements. Greenify's team can help review and resubmit applications.

Is there a deadline to apply?

PM-KUSUM is an ongoing scheme until 2026. However, state quotas fill up quickly, so applying early is recommended.

Get Started with KUSUM Today

Don't miss this opportunity to get 90% subsidy on solar pumps and transform your farming operations. Contact Greenify for a free consultation and eligibility check. Our team will guide you through the entire process from application to installation.

PM-KUSUM Yojana 2024: Complete Guide for Farmers to Get 90% Subsidy on Solar Pumps