What Is PMKUSUM?

What is PMKUSUM?

PMKUSUM is the central government's scheme for solar in agriculture, launched in 2019 and administered by MNRE. It is the agricultural counterpart to the residential rooftop programmes that PM Surya Ghar later expanded. Where PM Surya Ghar covers rooftop systems on homes, PMKUSUM covers solar pumps, ground-mounted solar plants on farmer land, and solarisation of existing grid-connected agricultural pumps.

The scheme has three components. Component A targets ground-mounted solar plants of 0.5 to 2 MW on farmer-owned barren or cultivable land, with the farmer or a developer selling electricity to the local DISCOM at a feed-in tariff — on cultivable plots, some developers pair the array with agrivoltaic dual land use so crops keep growing beneath the elevated structure. Component B finances standalone solar pumps for off-grid farms, replacing diesel pump sets. Component C solarises existing grid-connected agricultural pumps, letting the farmer use solar generation for the pump and export surplus to the DISCOM under net or gross metering.

The scheme structure reflects the dual problem of Indian agriculture. Agricultural electricity is heavily subsidised or free in many states, which keeps farmer cash costs low but strains DISCOM finances. Diesel pump sets are expensive to run, dependent on diesel availability, and add to greenhouse-gas emissions. PMKUSUM tries to replace both with solar, improving farmer income through surplus sales while reducing DISCOM subsidy burden over time.

Why PMKUSUM matters

For Indian farmers, PMKUSUM is the most direct path to reducing pumping cost. As an illustration with assumed numbers (not official figures), a diesel pump might use ₹40,000 to ₹80,000 of fuel a year on a small farm, while a solar pump costs the farmer a one-time share after subsidy and has no fuel cost. The payback math can be dramatic where diesel is the alternative. Work it out with real quotes and your state's subsidy terms.

For solar EPCs, PMKUSUM is a high-volume rural deployment opportunity. The supply chain (solar pumps, controllers, panels, structures) is more rural-execution heavy than residential rooftop. EPCs with strong rural channel partner networks and ITI-trained technicians in agricultural districts have the operational edge, a point echoed in an installer's field guide to PMKUSUM execution.

For DISCOMs, Component C is the most strategic. Converting existing free-electricity agricultural pumps to solar reduces the DISCOM's daytime peak load, lowers cross-subsidy burden, and creates new export-buying obligations that are smaller in scale than the avoided subsidised consumption.

For policy, PMKUSUM is the agricultural arm of India's solar deployment. Combined with rural electrification, off-grid mini-grids, and Component A's developer-driven small ground-mounted plants, it builds a different solar deployment pattern from the urban rooftop concentration that PM Surya Ghar drives.

How PMKUSUM works

1. Component selection. The farmer or developer identifies which component fits their situation: Component A for ground-mounted plant on farmer land, Component B for off-grid pump, Component C for existing pump solarisation — engineering firms sizing Component A plants often start from a detailed breakdown of Component A design rules before finalising layout.
2. Application. Apply through the state nodal agency or the DISCOM. Each state has slightly different paperwork, though the underlying DISCOM approval workflow for grid interconnection follows a similar sequence nationwide.
3. Vendor selection. The State Implementing Agency selects vendors by tender. Equipment follows MNRE specifications, and the central subsidy is calculated on the lower of the benchmark cost and the tender cost.
4. Subsidy structure. For a Component B standalone pump, central assistance is 30 percent (50 percent in northeastern, hill states and islands). A state share of at least 30 percent is optional since the amendment of 20 November 2023: with it the farmer pays up to 40 percent, without it 70 percent. Component A has no capital subsidy; the DISCOM gets an incentive of 40 paise per unit for five years. Component C individual pumps get the same central percentage as Component B, and feeder-level plants get ₹1.05 crore per MW.
5. Installation. The empanelled installer mounts modules, installs the pump and controller, and connects to the existing irrigation infrastructure.
6. Commissioning. State agency or DISCOM verifies and commissions the system.
7. Operation. Pump runs on solar generation. Component C systems export surplus to DISCOM under the state-specific metering arrangement, and the choice between the two structures maps directly onto the broader net metering versus gross metering decision that residential installers already navigate.
8. Subsidy disbursement. Subsidies flow from central and state budgets to the vendor or directly to the farmer per scheme rules.

Illustrative example: Component B solar pump for a small farmer

Farmer. An illustrative farmer with a 4-acre farm, assumed for this example (not a real person or case). The farmer uses a 5 HP diesel pump consuming an assumed 1,500 litres of diesel a year at an assumed ₹95 per litre (₹1,42,500 annual fuel cost).

System. A 7.5 HP solar pump system under PMKUSUM Component B. Assume a total project cost of ₹3.6 lakh. In a state that gives its optional 30 percent share, the subsidy is 30 percent central (₹1,08,000) + 30 percent state (₹1,08,000) = ₹2,16,000, and the farmer contribution is ₹1,44,000 (40 percent), which bank finance can cover except for the first 10 percent. If the state gave nothing, the farmer would pay 70 percent, ₹2,52,000.

Operation. Pump runs on solar during daylight hours. The cropping pattern is matched to daytime watering. Diesel pump retired (kept as backup for emergency use).

Cash impact. Annual diesel cost avoided: ₹1,42,500. EMI on farmer loan (₹1,44,000 over 7 years at 10 percent agricultural rate): roughly ₹2,400 per month or ₹28,800 per year. Net annual saving in year 1: ₹1,13,700. After loan closure in year 7, the saving rises to about ₹1,42,500 a year. System runs for 20-plus years with minimal maintenance.

Net result. On these assumptions the farmer's payback on the contribution is roughly 15 months, and savings over 20 years come to about ₹26 lakh with diesel use and price held flat. A real case will differ.

Benefits of PMKUSUM

• Direct fuel cost replacement. Diesel pump operating cost goes to near-zero.
• Substantial subsidy. Up to 60 percent of standalone pump cost where the state pays its share; 30 percent central only otherwise.
• Farmer-side cash benefit. Component A pays farmers for ground-mounted solar exports.
• DISCOM-friendly Component C. Reduces subsidised consumption load.
• Low-touch operation. Solar pumps need little daily attention beyond cleaning.
• Long asset life. Modules last 25-plus years; pumps and controllers 5 to 10 years.
• Empanelment quality control. State agencies maintain vendor lists.
• NABARD-linked finance. Easier credit access for farmer contribution.
• Rural employment. Installation and maintenance create rural service jobs.

Limitations of PMKUSUM

State execution variance. Some states have rolled out aggressively; others have moved slowly.

Pump sizing complexity. Sizing for crop water needs across seasons requires careful design.

Water table dependence. Where groundwater is deep, larger systems are needed and the economics shift.

Limited night operation. Solar pumps run during the day. Some crops with overnight watering needs require buffer tanks.

Component A land requirement. 0.5 to 2 MW ground-mounted plants need a few acres of suitable land.

Pump and controller life shorter than modules. Replacement after 5 to 10 years adds lifetime cost.

Subsidy budget cycles. Annual allocations can run out before all applications are processed.

Vendor quality variance. Empanelment is procedural; service network varies by district.

PMKUSUM in India

Component	Coverage	Subsidy structure
Component A	Ground-mounted solar 0.5 to 2 MW on farmer land	No capital subsidy; the plant owner sells power to the DISCOM at the agreed tariff, and the DISCOM gets 40 paise per unit for five years
Component B	Standalone solar pumps for off-grid farms	30 percent central (50 percent in northeastern, hill states and islands) + optional state share of at least 30 percent + farmer pays the rest
Component C	Solarisation of existing grid-connected pumps, individually or by whole feeder	Individual pumps: same central percentage as Component B, state share optional, surplus can be sold to the DISCOM. Feeder level: central assistance of ₹1.05 crore per MW

Official data to 30 June 2026 shows most Component C pumps solarised in Maharashtra, Gujarat, Rajasthan, Karnataka and Madhya Pradesh (Lok Sabha Unstarred Question 1613, 29 July 2026). Each state has its own implementing agency, vendor selection process, and tariff arrangement for Component A.

Quick facts

Full form	Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan
Launched	2019, under MNRE
Target audience	Indian farmers
Components	A (farmland solar plant), B (off-grid pump), C (pump solarisation)
Subsidy	Component B: 30 percent central (50 percent in NE, hill states and islands) + optional state share of at least 30 percent
Implementation	State Nodal Agencies + DISCOMs
Equipment	Empanelled solar pump systems, modules, controllers
Farmer financing	NABARD-linked agricultural credit options

Common mistakes about PMKUSUM

1. Confusing PMKUSUM with PM Surya Ghar. Surya Ghar is residential rooftop; KUSUM is agricultural pumps and plants.
2. Treating Component A as available to any farmer. The 0.5 to 2 MW land requirement is significant.
3. Sizing pumps to peak demand instead of average. Solar pumps work best when sized to crop seasonal water needs with intelligent storage.
4. Ignoring water-table data. Deep water requires larger systems with very different economics.
5. Choosing non-empanelled vendors. Subsidy disbursement is tied to empanelled installation.
6. Quoting national subsidy as guaranteed in state X. State contributions vary; verify.
7. Forgetting Component C net-metering arrangement. The state DISCOM rules apply.
8. Underestimating pump and controller replacement cost. Lifetime cost should include the 5 to 10 year replacement cycle.
9. Treating subsidy as automatic. Application, approval, and disbursement all have lead times.

Key takeaways

• PMKUSUM is MNRE's agricultural solar scheme covering pumps and farm-land solar plants.
• Three components: A (ground-mounted on farmer land), B (off-grid pump), C (pump solarisation).
• Component B central subsidy is 30 percent (50 percent in NE, hill states and islands); the state share is optional since 20 November 2023.
• Implementation runs through state nodal agencies and DISCOMs.
• Component C lets farmers solarise existing grid-connected pumps and export surplus.
• Vendors are selected by state tender, and the subsidy is tied to installation by the selected vendor.
• Largest Component C uptake to June 2026: Maharashtra, Gujarat, Rajasthan, Karnataka, MP.

Frequently Asked Questions

Sources

• Ministry of New and Renewable Energy. Consolidated PM-KUSUM guidelines, 17 January 2024. MNRE CDN copy
• Press Information Bureau. PM KUSUM progress and implementation, 23 December 2023, which records the removal of the mandatory state share by an amendment dated 20 November 2023.
• State Nodal Agencies. Implementation-level details for each state.
• State Electricity Regulatory Commissions. Feed-in tariffs for Component A under PMKUSUM.
• NABARD. Agricultural finance and PMKUSUM-related credit schemes.
• Indian Council of Agricultural Research (ICAR). Solar pump sizing guidelines for crop water requirements.
• Bridge to India and Mercom India. Independent analysis of PMKUSUM rollout.