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.
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
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.
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.
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.
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 pays | Share | ₹ on a 5 HP pump |
|---|---|---|
| Central government subsidy | 30% | ₹ 91,500 |
| State government subsidy | 30% | ₹ 91,500 |
| Farmer's own contribution | 30% | ₹ 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)
- Visit kusum.mnre.gov.in (central portal) OR your state's PM-KUSUM portal (list linked below).
- Register with your Aadhaar-linked mobile number.
- Select Component B, enter your land + pump details.
- Choose from the state-empanelled solar-pump vendors listed on the portal.
- Pay your 30% farmer share online — receive a digital receipt.
- Vendor installs within 90-120 days. State inspects. Subsidy is released.
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.