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Central govt scheme · 60–90% subsidy
Solar for farmers

PM-KUSUM — 60 to 90% subsidy on solar pumps, plus sell power to the grid

Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) helps farmers install solar pumps and grid-connected solar plants on barren farmland at heavily subsidised rates — with an option to earn from selling surplus power. Launched by MNRE, extended till FY 2025-26.

₹34,422 cr
Total scheme outlay
30.8 GW
Target solar capacity
up to 90%
Subsidy for NE + hill states
₹6,000+
Est. per HP/year savings on diesel

What is PM-KUSUM, in one paragraph

PM-KUSUM has three components. Component A lets farmers set up small solar power plants (0.5-2 MW) on barren/fallow land and sell power to the DISCOM. Component B gives farmers 60% subsidy on standalone off-grid solar pumps (2-10 HP) — the most common use. Component C converts existing grid-connected agricultural pumps to solar, so the surplus can be sold to the DISCOM. Most smallholders will use Component B.

The three components

Component A

Ground-mounted solar plants on barren land

Set up a 500 kW – 2 MW solar plant on unused farmland. Sell power to DISCOM at a state-fixed rate.

Best for: farmers with 2+ acres of barren/unproductive land near a power sub-station.

~₹80,000/acre/year rental income (indicative)
Component B ★ most used

Standalone off-grid solar pump

Replace your diesel pump with a solar-driven one (2, 3, 5, 7.5 or 10 HP). No grid connection needed.

Best for: farmers in areas with unreliable grid power or expensive diesel.

30% central + 30% state + 30% farmer / 10% loan
Component C

Solarise your existing grid pump

Convert your existing grid-connected pump to solar. Use for irrigation, sell surplus to DISCOM.

Best for: farmers already on the grid, wanting to cut electricity bill + earn.

30% central + 30% state + 40% farmer / loan

Component B subsidy stack — what YOU actually pay

For a typical 5 HP solar pump costing ~₹3.05 lakh, here is how the money splits (general states — NE and hill states are more favourable):

Who paysShare₹ on a 5 HP pump
Central government subsidy30%₹ 91,500
State government subsidy30%₹ 91,500
Farmer's own contribution30%₹ 91,500
Bank loan (optional)10%₹ 30,500
You effectively pay (own funds)30%₹ 91,500

Regional variation: In NE / hill states / islands the central + state subsidy stack goes up to 90% — you pay only 10%. Some states (Rajasthan, Maharashtra, Haryana) top up the state share further for SC/ST/small-marginal farmers.

Who is eligible

  • Individual farmers (with land ownership documents)
  • Group of farmers (jointly)
  • Farmer Producer Organisations (FPOs) — often best route for Component A
  • Panchayats
  • Water User Associations
  • Cooperatives

You need land records (or a lease, for FPOs), an Aadhaar-linked bank account for subsidy disbursal, and a connected DISCOM account for Components A and C.

How to apply (Component B — most common)

  1. Visit kusum.mnre.gov.in (central portal) OR your state's PM-KUSUM portal (list linked below).
  2. Register with your Aadhaar-linked mobile number.
  3. Select Component B, enter your land + pump details.
  4. Choose from the state-empanelled solar-pump vendors listed on the portal.
  5. Pay your 30% farmer share online — receive a digital receipt.
  6. Vendor installs within 90-120 days. State inspects. Subsidy is released.
Beware of middlemen. Do NOT pay an agent to "get your PM-KUSUM approved faster." The scheme is applied online for free. Any "processing fee" beyond your 30% share is a scam. Only use empanelled vendors listed on the official portal.

Honest reality — what to expect

  • Wait time is 4–9 months from application to a working pump — state DISCOMs are the bottleneck.
  • Solar pumps work best where groundwater is 30-40 m or shallower. Deeper wells need bigger HP + battery backup + more money.
  • Maintenance is required. Panels need to be washed once a month in dry-dusty regions to maintain output.
  • Life: Panels last 20-25 years; motor/inverter typically 7-10 years and need replacement — factor this in.
  • You cannot always sell power back. Selling to DISCOM (Components A/C) only works if there is a state PPA + grid connectivity — check with your DISCOM first.

Ready to apply?

Head to the official portals below. Application is fully free. Beware of anyone charging you for it.