India's farming community has long struggled with unreliable and expensive electricity — particularly for irrigation. The PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, launched by the Ministry of New and Renewable Energy (MNRE) in 2019, is the government's most ambitious attempt yet to solve this problem. In 2025, with the scheme receiving renewed funding and expanded targets, it remains the single most important solar policy for Indian farmers to understand.

This guide breaks down everything you need to know: what PM KUSUM is, how each component works, who qualifies, how to apply, and what you can realistically expect in terms of savings and income.

What is PM KUSUM?

PM KUSUM is a centrally sponsored scheme with a total target of deploying 30.8 GW of solar capacity by 2026, specifically aimed at the agriculture sector. The scheme has three distinct components — A, B, and C — each targeting a different part of the farmer's energy needs. The central government provides financial support, with states offering additional assistance in most cases.

The overarching goals of the scheme are:

PM KUSUM at a Glance (2025)
  • Total Target: 30.8 GW of solar capacity
  • Central Subsidy: Up to 30% (Component B: 60% combined with state)
  • Beneficiaries: Individual farmers, farmer groups, water user associations, co-operatives
  • Nodal Agency: MNRE (central), respective State Nodal Agencies
  • Scheme Status (2025): Active, with revised targets and enhanced funding

The Three Components of PM KUSUM

Component A: Decentralised Solar Power Plants (10 GW)

Component A targets the installation of small solar power plants — between 500 kW and 2 MW — on barren, fallow, or agricultural land. These plants are connected to local 33/11 kV substations and sell electricity directly to the DISCOM (distribution company) at a pre-agreed tariff.

Here is how the business model works for a farmer under Component A:

For Rajasthan farmers in particular, Component A has been especially active. The state has already commissioned several hundred MW under this component, with Jaipur, Jodhpur, and Barmer districts seeing significant activity.

Component B: Solar Powered Agriculture Pumps (20 Lakh Pumps)

This is the component most directly relevant to individual farmers. Component B replaces conventional diesel or grid-powered irrigation pumps with standalone solar pumps of 7.5 HP capacity or lower. The financial structure is highly attractive:

SourceContribution
Central Government30% of benchmark cost
State Government30% of benchmark cost
Farmer's Own Contribution10% of benchmark cost
Bank Loan (if needed)Remaining 30%

In most states, the combined subsidy reaches 60% of the total cost, meaning a farmer typically pays only 10% out of pocket, with the remaining 30% financed via a bank loan. For a 5 HP solar pump costing approximately ₹2.5 lakh, a farmer's actual cash outflow is just ₹25,000.

The benefits extend beyond the initial saving. Farmers who previously spent ₹60,000–₹90,000 annually on diesel for irrigation eliminate that cost entirely. The solar pump runs for 25+ years with minimal maintenance — essentially a one-time investment for a generation's worth of free irrigation.

Component C: Solarisation of Grid-Connected Agriculture Pumps (15 Lakh Pumps)

Component C is designed for farmers who already have grid-connected electric pumps. Instead of replacing the pump, this component adds solar panels on top of the existing pump infrastructure. The system works in two modes:

This component is particularly powerful because it converts an existing expense (electricity bill for irrigation) into a revenue source. Farmers typically see their agricultural electricity bills drop to zero and begin earning ₹8,000–₹15,000 per year from surplus generation.

Eligibility Criteria

The eligibility requirements vary slightly by component and state, but the broad criteria are:

Importantly, there is no minimum land holding requirement for Components B and C. Even small and marginal farmers with less than one acre are eligible for solar pump subsidies.

How to Apply for PM KUSUM

The application process is managed at the state level. Here are the general steps:

  1. Identify your State Nodal Agency (SNA): Each state has a designated agency — in Rajasthan, this is RREC (Rajasthan Renewable Energy Corporation). Visit the SNA's official portal.
  2. Register online: Create an account on the state portal, typically using your Aadhaar number and linked mobile number.
  3. Submit your application: Fill in details about your land, existing pump (for Component C), water source, and choose the pump capacity you need (Component B).
  4. Wait for allocation: Applications are processed on a first-come-first-served basis, subject to fund availability. Once approved, you receive a demand letter.
  5. Make initial payment: Deposit the farmer's contribution (typically 10% for Component B) to trigger the procurement process.
  6. Installation: A MNRE-empanelled vendor installs the pump within the agreed timeline (typically 60–90 days after payment).

"Before the solar pump, I spent ₹6,000 every month on diesel just to water my fields. After the PM KUSUM pump, that cost is zero. The government paid 60% and I got a bank loan for the rest. My loan EMI is ₹2,200 per month — I'm still saving ₹3,800 every month from day one." — Ramvilas Meena, Farmer, Dausa, Rajasthan

Real Numbers: What Can Farmers Expect?

Let us look at a practical example for a farmer in Rajasthan operating a 5 HP solar pump under Component B:

Common Challenges and How to Navigate Them

Despite its benefits, PM KUSUM implementation has faced some well-documented challenges:

How FGPS Solar Can Help

Navigating government subsidy schemes can be overwhelming. FGPS Solar has a dedicated PM KUSUM advisory team that helps farmers in Rajasthan and neighbouring states:

Whether you have 1 acre or 100 acres, PM KUSUM likely has something for you. The subsidy window is open — the only question is whether you act on it before your district's allocation runs out for the year.