For an Indian farmer, two of the heaviest recurring costs are diesel for irrigation pumps and unreliable, expensive grid power for agriculture. The central government's PM-KUSUM scheme — Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan — tackles both. It helps farmers replace diesel pumps with solar ones, solarise their existing grid-connected pumps, and even turn unused farmland into an income-generating solar plant. This guide breaks down the three components, who qualifies, the benefits and how to apply — in clear language for farmers and landowners.
What PM-KUSUM is trying to do
PM-KUSUM is a national mission to push solar into the agriculture sector with three linked goals: de-dieselise irrigation, give farmers a reliable daytime power source for pumping, and create an additional income stream from solar generation. It does this through three components, each suited to a different situation.
The three components explained
| Component | What it covers | Who it suits | Income / benefit |
|---|---|---|---|
| A | Grid-connected ground-mounted solar (small plants) on barren/fallow farmland | Farmers/landowners with unused land near a substation | Sell generated power to the DISCOM |
| B | Standalone (off-grid) solar pumps | Farmers without a grid connection using diesel pumps | Replace diesel; free daytime pumping |
| C | Solarisation of existing grid-connected agricultural pumps | Farmers with an existing grid pump connection | Run the pump on solar; sell surplus back |
Component A — solar on your farmland for income
Under Component A, a farmer or developer sets up a small grid-connected, ground-mounted solar plant (commonly up to around 2 MW) on barren, fallow or cultivable wasteland — typically land near an electricity substation so the power can be evacuated efficiently. The electricity generated is sold to the local DISCOM at a tariff, turning otherwise idle land into a steady income source. This suits landowners who have unused acreage close to the grid and want to monetise it without farming it.
Component B — standalone solar pumps
Component B targets farmers who currently rely on diesel pumps and don't have a reliable grid connection. It supports the installation of standalone (off-grid) solar water pumps, replacing diesel entirely. The benefit is direct: no more diesel bills, no fuel logistics, and reliable daytime pumping powered by the sun. This is the component most associated with the phrase "solar pump subsidy."
Component C — solarise your existing pump
Component C is for farmers who already have a grid-connected agricultural pump. It funds a solar plant to power that pump, so it runs on free solar energy during the day — and any surplus generation can be sold back to the DISCOM. There are typically two modes (individual pump solarisation and feeder-level solarisation), and the right one depends on your local utility's programme.
Why it matters for farmers
PM-KUSUM stacks several benefits that directly improve farm economics:
- Lower irrigation cost — replace diesel or grid power with free daytime solar generation.
- Extra income — sell surplus or generated power to the DISCOM (Components A and C).
- Daytime reliability — pump when you need to during the season, without depending on erratic grid supply or fuel availability.
- Subsidy support — central and state assistance significantly reduces the upfront cost, with the balance often financeable.
- A long-life asset — a properly built solar pump or plant runs for decades with minimal maintenance.
Who qualifies and what it costs
Eligibility broadly covers farmers, groups of farmers, cooperatives, panchayats, FPOs (Farmer Producer Organisations) and water-user associations, with the specifics depending on the component and your state's implementation.
On cost, PM-KUSUM is structured as a subsidised scheme — central financial assistance is combined with state support, and the farmer contributes the remaining share (which is often financeable through a bank loan). The exact subsidy percentages, capacity limits and farmer-contribution shares vary by component and by state, and they are revised from time to time.
Important: PM-KUSUM's component shares, subsidy levels and capacities change with MNRE and state notifications. Always confirm the current terms with your state nodal agency / DISCOM and the latest MNRE notification before committing — don't rely on older figures.
How to apply
While the precise portal and process differ by state, the path generally looks like this:
- Identify the right component — standalone pump (B), solarising an existing grid pump (C), or a land-based plant (A). This depends on whether you have a grid connection, a diesel pump, or unused land near a substation.
- Check eligibility and current terms with your state nodal agency (often the state energy development agency) or DISCOM.
- Apply through the official channel — most states run an online PM-KUSUM portal; applications are also routed via the DISCOM or nodal agency.
- Site assessment and sizing — your pump's horsepower, water requirement, land and connection determine the system size.
- Empanelled vendor selection — schemes typically require installation by an approved/empanelled vendor.
- Installation, inspection and commissioning — the system is installed, inspected and energised; for Components A and C, the metering and DISCOM agreement enable power sale.
Solar pumps vs grid-connected income — which path?
Think of it as a choice driven by what you have:
- You irrigate with a diesel pump and have no reliable grid → Component B (standalone pump) is the clear fit: eliminate diesel, gain daytime pumping certainty.
- You already have a grid-connected pump → Component C (solarisation) lets you run it on solar and sell surplus — keeping your existing connection while cutting costs.
- You have unused, barren or fallow land near a substation → Component A turns that land into a small power plant and a recurring income stream, separate from your farming.
Many farms can combine approaches over time — solarising the pump first, then exploring a land-based plant if suitable acreage exists.
How SilInfra helps
PM-KUSUM is genuinely valuable, but the paperwork, sizing and vendor requirements can be daunting. As an ISO-certified solar EPC with 10+ years and 7 MW+ installed, SilInfra handles the full journey: feasibility and component selection, correct sizing for your pump or land, ALMM-listed equipment, professional installation, and the scheme paperwork — so you end up with a working, bankable solar asset rather than a stack of forms. We can also advise on whether energy storage makes sense for your situation, and our consulting team can map the most cost-effective route for your farm.
If you're new to solar fundamentals, our beginner's guide to solar energy is a good primer, and battery storage for solar projects explains where storage fits in.
FAQ
Who is eligible for PM-KUSUM?
Broadly, individual farmers, groups of farmers, cooperatives, panchayats, FPOs and water-user associations — with specifics depending on the component and your state's rules. Check eligibility with your state nodal agency or DISCOM.
How much subsidy do I get under PM-KUSUM?
PM-KUSUM combines central and state financial assistance, with the farmer contributing the remaining share (often loan-financeable). The exact percentages vary by component and state and are revised periodically, so confirm current figures with your state nodal agency before applying.
What's the difference between Components B and C?
Component B installs a standalone (off-grid) solar pump for farmers without a reliable grid connection. Component C solarises an existing grid-connected pump so it runs on solar and lets you sell surplus power back. B replaces diesel; C upgrades a grid pump.
Can I earn income from PM-KUSUM solar?
Yes — under Component A you sell power from a land-based plant to the DISCOM, and under Component C you can sell surplus generation from your solarised pump. Component B primarily saves cost (no diesel) rather than generating sale income.
Do PM-KUSUM solar systems need specific modules?
Like other government-supported solar, PM-KUSUM installations should use ALMM-listed modules and approved equipment, installed by an empanelled vendor. We ensure compliant components on every project.
Get a free PM-KUSUM assessment
The fastest way to know which PM-KUSUM component fits your farm — and what it will cost after subsidy — is a proper feasibility check. SilInfra handles everything from component selection and sizing to compliant equipment, installation and scheme paperwork, so you get a working solar asset without the bureaucracy. Get a free assessment, talk to our consulting team, or estimate a system on the calculator to take the first step. Remember to verify current PM-KUSUM terms with your state nodal agency before committing — your power partner is here to guide you through it.