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. 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. A diesel pump can consume ₹40,000 to ₹80,000 in fuel per year for a small farm. A solar pump under PMKUSUM, after subsidy, often costs the farmer ₹50,000 to ₹1,50,000 upfront and runs with effectively zero fuel cost for two decades. The payback math is dramatic where diesel is the alternative.

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.

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.
2. Application. Apply through the state nodal agency or the DISCOM. Each state has slightly different paperwork.
3. Approval and empanelment. An empanelled vendor is selected from the state nodal agency's list. Equipment specifications follow MNRE benchmarks.
4. Subsidy structure. Component B standalone pump typically has 60 percent total subsidy (30 percent central + 30 percent state), with the farmer paying 40 percent. Component A and C have different commercial structures including capital subsidy and feed-in tariff arrangements.
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.
8. Subsidy disbursement. Subsidies flow from central and state budgets to the vendor or directly to the farmer per scheme rules.

Real example: Component B solar pump for a small farmer in Madhya Pradesh

Farmer. Ramesh Patel, 4-acre farm in Sehore district, MP. Currently uses a 5 HP diesel pump consuming roughly 1,500 litres of diesel a year at ₹95 per litre (₹1,42,500 annual fuel cost).

System. A 7.5 HP solar pump system under PMKUSUM Component B. Total project cost: roughly ₹3.6 lakh. Subsidy structure: 30 percent central (₹1,08,000) + 30 percent MP state share (₹1,08,000) = ₹2,16,000. Farmer contribution: ₹1,44,000 (40 percent), often financed through NABARD-linked agricultural credit.

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. Ramesh's effective payback on his contribution is roughly 18 months. Lifetime savings exceed ₹25 lakh.

Benefits of PMKUSUM

• Direct fuel cost replacement. Diesel pump operating cost goes to near-zero.
• Substantial subsidy. Around 60 percent of standalone pump cost subsidised.
• 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	Capital cost + feed-in tariff from DISCOM
Component B	Standalone solar pumps for off-grid farms	30 percent central + 30 percent state + 40 percent farmer
Component C	Solarisation of existing grid-connected pumps	30 percent central + 30 percent state + 40 percent farmer; surplus export at feed-in tariff

States with strong PMKUSUM uptake at the time of writing include Maharashtra, Rajasthan, Madhya Pradesh, Gujarat, Karnataka, Tamil Nadu, and Uttar Pradesh. Each has its own nodal agency, empanelled vendor list, 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	Around 60 percent total (30 central + 30 state) for Component B
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 subsidy is roughly 60 percent total (central + state); farmer pays 40 percent.
• Implementation runs through state nodal agencies and DISCOMs.
• Component C lets farmers solarise existing grid-connected pumps and export surplus.
• Empanelled vendor selection is required for subsidy disbursement.
• Active states: Maharashtra, Rajasthan, MP, Gujarat, Karnataka, Tamil Nadu, UP.

Frequently Asked Questions

Sources

• Ministry of New and Renewable Energy. PMKUSUM scheme operational guidelines. mnre.gov.in
• Press Information Bureau. Cabinet announcements on PMKUSUM components and revisions.
• 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.