PM Kusum Scheme: Components, Subsidy & How to Apply

• Encourages solar energy for agriculture to reduce diesel use.
• Offers up to 60% subsidy and 30% loan support.
• Open to farmers, FPOs, cooperatives, and panchayats.
• Enables income from excess solar power sale.
• Supports environmentally friendly and sustainable farming.

In some regions of India, electricity is not always dependable, and diesel prices are going up. For Indian farmers, that’s a serious problem. The PM Kusum scheme is related to using solar energy to solve this issue. The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan is the full form of the PM Kusum scheme. Farmers who want to switch to solar-powered pumps are provided with financial assistance under this scheme. Working on to boost the profitability, lowers irrigation costs, and delivering dependable power to farmers. Learn about the eligibility and benefits of the PM Kusum scheme, as well as how to make it work for you.

In 2019, the Ministry of New and Renewable Energy (MNRE) launched the PM Kusum Scheme in India. The goal of the program is to provide sustainable energy sources to the agriculture sector. The primary objective is to reduce farmers' dependence on diesel irrigation pumps by offering solar-powered substitutes. Thus, the program aims to boost farmers' incomes and advance renewable energy by offering substantial financial support.

Key Objectives of the PM Kusum Scheme

The PM Kusum Scheme aims to replace diesel-based irrigation with clean solar energy. Below are the key objectives driving this initiative:

Encourage solar irrigation by switching to solar-powered pumps from diesel ones for a reliable and affordable water supply.

Permitting the sale of excess solar energy back to the grid to boost the farmer's revenue.

Increase energy efficiency by promoting greener energy use in agriculture and lowering dependence on fossil fuels.

Encourage the use of sustainable farming practices and renewable energy technology to promote rural development.

With three main components, the PM Kusum Scheme is specifically designed to encourage the use of solar energy in the agricultural sector. Together, these elements enable farmers to generate more revenue through solar power generation. With lowering their dependency on diesel and grid electricity.Below is a thorough explanation of each of the three elements:

Component A - Installing solar power plants on barren land

This component is centered on installing distributed solar power plants on decentralised agricultural land.

On fallow or bare ground, solar plants with a maximum capacity of 2 MW can be installed.

Distribution Companies, or DISCOMs, purchase the produced power at a predetermined rate.

Plants can be set up by farmers, cooperatives, panchayats, Water User Associations (WUAs), and Farmer Producer Organisations (FPOs).

Projects should be located within 5 km of the grid substation to minimise power transmission loss.

Component B – Independent Solar Pumps for Remote Locations

By making solar-powered irrigation systems accessible, this component seeks to assist farmers in isolated areas.

Allows for the installation of independent solar pumps with a maximum horsepower of 7.5.

Due to their independence from the electrical grid, these pumps are perfect for locations with little or no power.

A 60% subsidy is offered by the program (30% from the Central Government and 30% from the State Government).

Note:The subsidy provided by individual states could be variable.

Farmers have to bear approximately 10% of the total cost; the remaining 30% would be covered by institutional loans.

Component C – Solarisation of Existing Grid-Connected Pumps

This component promotes the solarisation of existing electric pumps connected to the power grid.

Farmers can use solar energy for daytime irrigation and sell surplus electricity to DISCOMs.

These systems are designed to generate more than twice the energy required by the pump.

This allows for both effective self-consumption and additional income through power sale.

The same subsidy structure applies — 60% subsidy, 10% farmer contribution, and 30% financing support. Also Read: Types Of Government Health Insurance Schemes In India

The PM Kusum Scheme offers farmers significant cost savings and income growth. It's helpful in the ways listed below:

Provides farmers with a 60% subsidy on solar pumps, to increase the accessibility and affordability of solar-powered irrigation.

Farmers can generate additional revenue by selling excess solar power to the grid.

Solar pumps promote a cleaner and greener farming practice, by lowering carbon emissions.

By eliminating the need for expensive, unreliable diesel, solar pumps reduce stress and save money.

The program reduces dependency on fossil fuels and improves energy security by encouraging the use of renewable energy.

The PM Kusum Scheme is open to a wide range of farmers and agricultural entities. Here’s a list of eligible applicants:

Individual Farmers, anyone who owns agricultural land can apply for the scheme.

Farmer Producer Organisations (FPOs) can also apply to install solar pumps.

Co-operatives & Panchayats groups can apply to set up solar power plants or install solar pumps.

Water User Associations (WUAs) associations can benefit from the scheme as well.

Documents Required

Applying for the PM Kusum Scheme is relatively simple, and the process is as follows:

Visit your state’s renewable energy department website or the MNRE official portal .

Choose the PM Kusum scheme section.

Sign up by entering your name, contact number, and email ID. You may need to verify through OTP.

Provide details like your land ownership, location, pump type, and power requirement. Take your time—accuracy matters.

Keep scanned copies ready: Aadhaar card, land documents, electricity bill (if any), and a passport photo. Upload them carefully.

Review all entries before submitting. After submission, you’ll get a reference number to track the status online.

Officials may visit your land to check feasibility. Once approved, they’ll notify you to proceed with vendor selection.

Pick from listed vendors on the portal. Coordinate with them for installation and subsidy processing.

If you need financial assistance, you can explore Aditya Birla Capital’s loan options for solar-related investments.

The PM Kusum Scheme could be the ideal option if you're a farmer trying to increase your revenue and reduce irrigation expenses. Install solar power now to enhance your future while also helping to create a cleaner, greener one.Visit Aditya Birla Capital's official website to find out more about financing options or government-backed loan products to help you achieve your solar goals.