Pradhan Mantri KUSUM Yojana Explained

What is PM-KUSUM Scheme?

The PM-KUSUM or Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan scheme is an initiative launched by the Government of India under the aegis of the Ministry of New and Renewable Energy (MNRE). The PM KUSUM launch date was in 2019. The scheme’s objective is to provide assistance in installing off-grid solar pumps on village land (rural areas) and thus decrease their dependence on the grid. It is valid for grid-connected areas.

The idea is to increase farmers’ income by selling extra electricity generated and reducing the over-dependence of farmers on diesel. The scheme was launched by the Ministry of New and Renewable energy across the nation.

Also Read: Small Business Ideas In Village

Aim of the KUSUM Scheme

Through this scheme, the government plans to add 25,750 MW of solar electricity by 2022. The Central government plans to infuse Rs. 34,422 crores in this scheme.

Objectives of the KUSUM Scheme

Under the scheme, farmers, cooperative societies, farmers-cooperative groups, and panchayats can apply to install solar pumps. The total cost incurred in implementing the project is so planned that the farmers’ financial burden is negligible. The overall cost is divided into three categories:

• Government to provide a 60% subsidy directly to farmers
• 30% will be provided through soft loans to farmers
• 10% actual cost to be incurred by farmers.

Latest Updates on PM KUSUM Solar Pump Yojana 2025

The PM KUSUM under MNRE has undergone updates to improve accessibility and align with India’s renewable energy goals. Key updates on KUSUM solar scheme details include:

• Scheme Extension: The scheme is extended until March 31, 2026, ensuring continued benefits for farmers.

• Financial Assistance: Subsidy for solar pumps up to 15 HP, with central assistance ranging from 30% to 50%, benefitting farmers in remote regions like the Northeast and hilly areas.

• Components Highlight:
  • Component A: Installation of 10,000 MW decentralised solar power plants.
  • Component B: Deployment of 14 lakh stand-alone solar pumps in off-grid areas.
  • Component C: Solarisation of 35 lakh grid-connected agricultural pumps.

• Relaxation of Norms: The Domestic Content Requirement (DCR) for solar cells under Component C has been relaxed until March 31, 2024, accelerating project implementation.

• Support and Monitoring: Dedicated web portals and toll-free helplines enhance monitoring and farmer support.

Farmers can do PM KUSUM Yojana status check on official portals for updates on implementation and subsidies.

PM KUSUM Yojana Eligibility

Eligibility under the PMKUSUM Yojana extends to several categories:

• Individual farmers: Owners of agricultural land can lease their land to developers or install solar systems for irrigation.

• Group of farmers: Collective solar installations allow resource pooling for shared benefits.

• FPOs (Farmer Producer Organisations): They can set up solar power plants on owned or leased land, utilising the energy for farming or selling excess power to the grid.

• Panchayats: Eligible to install solar plants on common or government land, ensuring communal energy and income generation.

• Cooperatives: Agricultural cooperatives can install solar systems to reduce costs and enhance sustainability.

Documents Required to Apply for the PM KUSUM Scheme

Applicants must provide the following documents to apply for the KUSUM solar scheme:

• Aadhaar card
• Land ownership documents (e.g., Khasra-Khatauni)
• Bank account passbook
• Declaration form
• Registered mobile number
• Passport-sized photograph

Farmers must deposit 10% of the setup cost for the KUSUM solar pump during the application. Subsidy approval typically takes 90-120 days, after which solar pumps are installed.

Components of PM-KUSUM Scheme

There are three main components of the KUSUM scheme:

• Component A – The scheme plans to add 10000 MW of Renewable power by establishing individual renewable power plants up-to 2 MW size. These power plants are to be decentralized, ground-mounted, and connected to the grid. These are to be set up on barren land and should come up within a 5km radius of the sub-station.

• Component B – To install, 17.50 lakh standalone off the grid Solar Powered Agriculture Pumps with an individual capacity of the pump up-to 7.5 HP. It is meant to replace existing diesel pumps already in use. A farmer can install a higher capacity pump, but the financial assistance will only be granted to a 7.5 HP agriculture pump.

• Component C – To solarize 10 lakh on-grid or grid-connected agriculture pumps with individual pump capacity up-to 7.5 HP. The excess electricity generated from these plants will be sold to the respective DISCOMS on pre-fixed tariff bases.

How to implement the KUSUM scheme?

For implementing the KUSUM scheme, the State Nodal Agencies of MNRE will coordinate with respective States/UTs, Discoms, and farmers.

The components A and C under the scheme are to be implemented only in Pilot mode until 31^st December 2019. On successful implementation of the Pilot project, the two components of the scheme will be further scaled up, after receiving necessary approvals.

Component B of the scheme, an ongoing sub-program is to be implemented in its entirety without any requirement of a Pilot project.

Implementation

Component A:

•  Individual farmers, farmer groups, panchayats, cooperative societies, or farmer producer organizations can set up renewable power plants with 500 KW to 2 MW capacity. In case of failure to arrange funds, the above entities can collaborate with interested developers or with local DISCOMS to establish renewable power plants.
• Once operational, the DISCOMS will notify regarding sub-station wise surplus power that can be fed to the grid through these renewable projects.
• The surplus renewable power thus generated will be purchased on a feed-in tariff basis by local DISCOMS. The tariff is to be determined and fixed by the State Electricity Regulatory Commission.
• The DISCOMS are eligible for Procurement Based Incentive (PBI) @ 40 paise per kWh or Rs 6.60 lakh per MW installed capacity per year, whichever is lower for five years.

Component B:

• For standalone power pumps with 7.5 HP capacity, central financial assistance would be 30% of the tender cost or benchmark cost. The State government will provide a 30% subsidy, and another 30% will be arranged for farmers through Banks in the form of loans. Farmers will chip in with only 10% of the actual cost of the project.
• In the North East, Himachal Pradesh, Uttarakhand, J&K, Andaman and Nicobar Islands, the Central assistance will be 50% of the tender cost or the benchmark cost, while 30% will be in the form of subsidy provided by State government. The rest 20% will be arranged by the farmer with loans up to 10% by banks and farmers, putting in 10% of the actual cost.

Component C:

• The financial assistance provided to farmers in this grid-connected agriculture pump will be similar to component B. 30% cost will be CFA. In comparison, another 30% by the respective State government and out of rest 40%, Banks will provide loans for 30%, and the farmer has to arrange only 10% of the project’s cost.
• For North-east, Himachal, Uttarakhand, Andaman & Nicobar Islands, 50% project cost will be funded by Central government, rest 30 % by State, and 10% cost is to be given as loan by banks. The farmers have to bear only 10% of the project cost.

Beneficiary

The scheme aims to provide stable and continuous income to farmers or rural landowners for 25 years. It will be put to good use of the barren or uncultivated land. In the case of cultivated land,  solar panels are installed at a height that doesn’t disrupt farming.

While providing a regular supply of electricity during the day to agricultural land, the close vicinity of the projects to sub-stations ensures low transmission loss to DISCOMS. It will wean away farmers from using diesel, another positive or win-win situation for the environment and the economy.

To increase farmer’s income and reduce their over-dependence on diesel, the KUSUM scheme was launched. The scheme puts to use the barren land in rural areas and cultivable fields for producing renewable energy. With the government’s financial assistance, both State and Central, the farmers’ financial burden is kept to the minimum. The KUSUM scheme can transform the rural economy for the better and improve the economic conditions of the farmers substantially.

Component wise Details of sanctions &State Implementing Agencies (2020-2021)

What is the cost distribution to establish a solar plant?

The cost distribution is as follows:

Benefits of PM KUSUM Yojana

The PM KUSUM scheme under MNRE offers several advantages such as:

• Subsidy lists cover up to 60% of costs, with farmers bearing only 10% and access to 30% loans.
• Provides access to solar pumps that improve irrigation with advanced technology.
• Enables income generation by selling surplus solar energy to the government.
• Encourages eco-friendly farming practices, reducing greenhouse gas emissions.
• Facilitates better land use by installing solar plants on barren or cultivable lands.
• Promotes renewable energy adoption, aligning with India’s sustainability goals.

How to Avail the Financial Assistance for PM KUSUM Subsidy

The PM KUSUM Yojana offers financial assistance through its multiple components, allowing farmers and other eligible entities to participate in the scheme.

• Component A: Under this component, the solar power generated by decentralised solar power plants is purchased by DISCOMs at feed-in-tariff rates approved by the State Electricity Regulatory Commission. If landowners or groups of farmers cannot arrange equity, they can lease their land to developers or local DISCOMs. The lease rent is mutually agreed upon. For availing PBI, claims must be submitted with the Joint Metering Report and proof of lease rent payments.

• Component B and Component C: For PM KUSUM Yojana component B and C, allocation for solar pumps and grid-connected solarisation projects is issued by MNRE. Sanctioned projects must be completed within 24 hours. Funds covering 40% of the applicable MNRE CFA (Central Finance Assistance by Ministry of New and Renewable Energy) are released upfront to implementing agencies after vendor selection. The remaining CFA is released post-project completion upon submission of reports, certificates, and other relevant documents.

• Component C: CFA disbursement depends on the implementation mode:
  • Capital Expenditure (CAPEX): 40% advance is released after tendering and work agreement signing. The balance CFA is provided upon commissioning and operationalisation of the solar plant.
  • Renewable Energy Service Company (RESCO): CFA is fully disbursed post-commissioning and COD declaration.

How to Apply for the PM KUSUM Scheme?

Follow these steps to apply for this scheme:

1. Visit the official portal and select the registration section.
2. Complete the online form with accurate details.
3. Accept the declaration terms and click “Submit.”
4. Log in to the Solar Pump application form section for subsidy registration.
5. Provide the required information and upload all the supporting documents.

Conclusion

The PM KUSUM Yojana is a transformative initiative empowering farmers with renewable energy solutions and financial support through subsidies. By leveraging barren lands and advanced solar technologies, it promotes sustainable farming practices and income generation. For businesses seeking additional financial assistance, Lendingkart offers convenient and accessible business loan solutions.

Read More:
Business loan for women
Agriculture business plan
Dairy farm loan
Mudra Loan
Small Scale Industries in India
GST Registration Online
Aadhar Card Status
PAN Card Correction & Update
Aadhaar Card Download
PAN Card Apply Online
Instant PAN Card through Aadhaar
PAN Card Mistakes – To Avoid
How to Link Aadhaar with PAN Card
PAN Card Details Search By Name, DoB, PAN Number & Address
What is a Cancelled Cheque

KUSUM scheme FAQs:

1. When was the Kusum scheme launched?

+
The scheme was launched in 2019. Although two components (A and C) of the scheme were Pilot based projects initially, Component B was operational and is further ramped up by the agencies.

2. How can I avail of the benefit of the Kusum scheme?

+
By entering the details and filling the form online at the official Kusum Yojna website, you can apply and, after that, avail the benefit of the scheme. You can download the Kusum form from – https://mnre.gov.in/solar/schemes/

3. What is the off-grid solar system?

+
The off-grid solar system is a standalone project. It includes not only solar panels but also requires other components such as batteries, inverter, grid box, accessories, etc. Here the generated electricity is stored and can be used as per requirement.

4. When was KUSUM scheme launched?

+
In July 2019, the guidelines for PM-KUSUM Yojna were framed and subsequently the scheme was launched. MNRE-Ministry of New and Renewable Energy launched it for installing solar pumps and renewable power plants across the country.

5. What are the main components of Kusum scheme 2021?

+
The different components of Kusum scheme are:
• Solar pump distribution – the first phase of the Kusum scheme includes distribution of the solar-powered pumps.
• Establishment of Solar power factory – Government of India wants to encourage the establishment of Solar power plants in India.
• Setting up of Solar-powered tube wells – To construct tubewells powered by solar power instead of diesel Genset.
• Modernization of Tube wells – By modernization of current tubewells by replacing old pumps with new pumps that are solar-powered.

6. How to check the list containing registered applications under Kusum scheme?

+
Step 1 – Firstly visit Kusum Yojna official website. On the website, check the option – List of registered Kusum applications.
Step 2 – Once you open the link, a list containing selected applications appears. You can check your name on the list.

7. How is Kusum scheme beneficial to Farmers?

+
Under the Kusum scheme, a farmer can solarize present grid-connected agricultural pump up to capacity 7.5HP. Solar PV capacity twice the pump’s capacity in KW is thereby allowed as per the scheme; however, states can determine the PV capacity. The solar power generated can be utilized for agriculture while the excess power can be sold to the electricity grid.

8. Who will be covered under Component B of the Kusum scheme?

+
Under Component B of the Kusum scheme, People covered are:
• Individual farmers
• Water user associations
• Community/Cluster-based irrigation system

9. Can farmers lease their agricultural land to interested parties for the establishment of the solar power plant?

+
Yes, individual farmers under Component A of the Kusum scheme can lease/rent their land to a developer for the establishment of the renewable power plant.

10. What are the specific benefits and subsidies available for farmers under the PM Kusum Scheme, and how can they apply for them?

+
Under the PM Kusum Scheme (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), farmers in India can access various benefits and subsidies. This initiative encourages the adoption of solar pumps and solar power generation. Farmers can apply for financial assistance to set up solar power plants, which can reduce their electricity bills and provide an additional income source through surplus power generation. Detailed information and application procedures are available through official PM Kusum Yojana channels.

11. Is there any requirement or restriction on the type or size of agricultural land for farmers to be eligible under the PM Kusum Scheme?

+
Under the PM Kusum Scheme, there are no specific requirements or restrictions concerning the type or size of agricultural land for farmers to be eligible. The scheme aims to promote the use of solar energy in the agricultural sector, making it accessible to all farmers, regardless of their land size or type. For more details on PM Kusum Yojana, please refer to the official scheme documents.

PM Kusum Scheme News

15 Horsepower Solar Pump to be provided to farmers by government

The government will provide financial assistance to the farmers for solar pumps up to 15 HP. Kusum Yojana has directed that each farmer should get Rs 2 lakh per acre of area irrigated by solar water pumps under the scheme, a statement from the water resources department said. The government also wants to make it legal for every landowner in Telangana to install 3-20 acres of the solar system on their own, as well as permitting non-tribal farmers to install up to 100 acres (1 Rai) under the same scheme.

The decision was taken at a meeting held between CM KCR and top officials at his camp office near the Osman Sagar lake on Monday evening, its release stated. The prime minister had discussed with irrigation secretary Maqbool Hossain technical matters related to water sharing during grassroots level meetings with representatives of farmers’ unions, unions of farmers organizations, and local bodies in Hyderabad on Sunday night.KCR had earlier promised that all eligible land owners would be entitled to financial assistance provided they can show proof of being able to install a solar water pump with a capacity not less than 1 HP and have it installed within one year after they get developed farmland

News Updated Date: 09th August 2022

Related Articles

PM SVANidhi Scheme

Know everything about the PM SVANidhi scheme that provides affordable working capital loans to street vendors in India.

Udyogini Scheme

Explore how the Udyogini Scheme empowers women entrepreneurs with financial assistance and business opportunities.

RoDTEP Scheme

Understand the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme and its benefits for Indian exporters.