The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM Kusum) scheme, launched in March 2019, represents a pivotal shift in India’s agricultural energy landscape. Designed to provide energy and water security to farmers while “de-dieseling” the farm sector, the initiative aims to add approximately 34,800 MW of solar capacity by March 2026 with a central financial allocation of ₹34,422 crore.
What is PM Kusum Yojana? Empowering the ‘Urjadata’
The scheme is a socio-economic intervention intended to double farmers’ income by reducing input costs and creating new revenue streams. Historically, farmers were merely energy consumers burdened by unreliable grid power and expensive diesel; PM Kusum transforms them into ‘Urjadatas’ (energy providers) who can generate their own power and sell the surplus back to the grid. By late 2025, the scheme has facilitated close to 9.2 lakh standalone solar pumps, marking a historic shift toward low-carbon energy in rural India.
Choosing the Right Component: A, B, or C?
The operational framework of PM Kusum is divided into three distinct pillars, each tailored to specific agricultural needs.
• Component A (Decentralised RE Plants): Aimed at setting up 10,000 MW of small-scale solar or renewable energy plants (500 kW to 2 MW) on barren, fallow, or marshy land. Farmers can also use cultivable land by installing panels in a stilt fashion, allowing crops to grow underneath.
• Component B (Standalone Pumps): Focuses on off-grid areas to replace existing diesel pumps with standalone solar irrigation pumps of capacity up to 7.5 HP.
• Component C (Solarisation of Grid Pumps): Supports the solarisation of 35 lakh existing grid-connected agricultural pumps. This allows farmers to meet irrigation needs via solar power and sell surplus electricity to Distribution Companies (DISCOMs).
Subsidy Breakdown: How the Government Pays for Your Solar Pump
Financial assistance is the primary driver for adoption, with a layering of central and state support.
1. General Category States: Farmers receive a 60% total subsidy (30% Central Financial Assistance + 30% State Government subsidy). The remaining 40% is the farmer’s share, of which 30% can be financed via bank loans, meaning the farmer often pays only 10% upfront.
2. Special Category States: In the North-Eastern region, hilly states (Himachal Pradesh, Uttarakhand, J&K, Ladakh), and Islands, the central subsidy increases to 50%, reducing the farmer’s total contribution to just 20%.
3. Feeder Level Solarisation (FLS): Under Component C, a fixed financial assistance of ₹1.05 crore per MW is provided to solarise entire agricultural feeders.
PM Kusum Eligibility Checklist and Required Documents
The scheme is inclusive, targeting a wide range of rural stakeholders including individual farmers, groups of farmers, FPOs, cooperatives, panchayats, and Water User Associations (WUAs).
Mandatory Documents for 2025 Registration:
• Aadhaar Card: Primary proof of identity.
• Land Ownership Records: Latest copy of Khasra-Khatauni, Jamabandi, or RTC to prove land possession.
• Bank Details: Passbook copy showing the account number and IFSC code for Direct Benefit Transfer (DBT).
• Other Requirements: Recent passport-size photographs, a mobile number linked to Aadhaar, and a self-declaration form confirming no prior solar subsidies have been claimed.
Step-by-Step Guide: How to Apply Online for PM Kusum
Farmers should use official channels to ensure their applications are processed securely.
1. Visit the Official Portal: Access the national site at https://pmkusum.mnre.gov.in.
2. Select State Link: Navigate to the “State Portal Links” to find your specific state’s implementing agency (e.g., UPNEDA for Uttar Pradesh or AEDA for Assam).
3. Registration: Register as a new user using your Aadhaar and mobile number to receive an OTP for verification.
4. Fill Application Details: Choose the desired component (A, B, or C) and provide personal, bank, and land information.
5. Upload and Submit: Upload scanned documents and note the Application ID for tracking.
6. Verification and Installation: After department verification, choose a government-approved vendor from the empanelled list to install the system.
Maximising Your Profits: Selling Surplus Power to the Grid
Under Components A and C, farmers can generate a steady, non-seasonal income stream independent of crop cycles. In Component A, DISCOMs sign a 25-year Power Purchase Agreement (PPA) to buy power at a pre-determined Feed-in Tariff (FiT). Farmers leasing barren land to developers can earn up to ₹80,000 per hectare annually. In Component C, individual pump solarisation (IPS) allows the export of surplus power to the grid, which is measured through net-metering or gross-metering.
Unique Angle 1: Feeder-Level vs Individual Solarisation
While Individual Pump Solarisation (IPS) gives farmers direct control, Feeder Level Solarisation (FLS) is becoming the preferred large-scale model. In FLS, a single solar plant is installed to cater to the aggregate load of an entire agricultural feeder, often through a RESCO model where a developer bears the upfront cost. This reduces the financial burden on individual marginal farmers and ensures reliable daytime power for the whole community.
Unique Angle 2: The ROI and Economic Impact Analysis
Switching to solar provides massive operational savings. A 5 HP diesel pump typically consumes 4.6 litres of fuel daily; replacing it with a solar pump can save a farmer at least ₹60,000 per year in diesel costs. Comprehensive studies indicate that farmers typically recover their initial 10-40% investment within 2.5 to 5 years, after which irrigation becomes virtually free for the remainder of the pump’s 20-25 year lifespan.
Unique Angle 3: Safety First – Preventing Online Fraud
Because of PM Kusum’s popularity, scammers often use fake websites to dupe farmers. Crucially, the Government of India does not charge any registration fee for applying online. Any site asking for an “application fee” (e.g., ₹5,000 – ₹10,000) or an upfront payment for a “Kusum ID” is fraudulent. Always verify through the official toll-free helpline: 1800-180-3333.
PM Kusum Yojana Price List
The PM Kusum Yojana does not have a single fixed price across India, as actual system costs vary by vendor, pump type (surface or submersible), region, and panel efficiency. However, the scheme is structured to ensure that farmers generally pay only 10% to 40% of the total cost after government subsidies.
Indicative Price List for Solar Pumps (2025)
The following table provides indicative system costs before and after subsidies based on late 2025 data:
| Pump Capacity | Indicative Total System Cost (Before Subsidy) | Estimated Farmer Cost (After ~60% Subsidy) |
| 2 HP | ₹1.2 – 2.2 lakh | ₹12,000 – ₹25,000 (Varies by state) |
| 3 HP | ₹1.8 – 3.0 lakh | ₹24,000 – ₹45,000 |
| 5 HP | ₹3.0 – 4.0 lakh | ₹70,000 – ₹1.2 lakh |
| 7.5 HP | ₹4.0 – 6.0 lakh | ₹1.6 – ₹2.4 lakh |
| 10 HP | ₹5.0 – 6.0 lakh | ₹2.0 – ₹2.5 lakh |
Note: For large-scale projects under Component A (decentralised power plants), the cost for a 1 MW plant is estimated at ₹4 crore or more.
State-Specific Pricing Examples
State implementations can drastically change the final price for the farmer:
• Assam: A 2 HP DC Submersible pump has a total unit cost of ₹1,71,857. Under the state’s Component B funding pattern, the farmer’s share is fixed at just ₹23,749.
• Uttar Pradesh: While many farmers pay 10% upfront, the state offers an enhanced 70% state subsidy (in addition to the central subsidy) for farmers from Scheduled Tribe, Vantangia, and Musahar castes, further reducing their contribution.
Subsidy and Loan Breakdown
The financial burden is shared through a “layering” model to make the technology accessible to marginal farmers:
1. Central Government (CFA): Provides 30% of the benchmark or tender cost (increased to 50% in North-Eastern, hilly regions, and islands).
2. State Government: Typically provides another 30%.
3. Bank Loan: Farmers can avail a term loan for 30% of the cost, which is often repaid through the revenue generated from selling surplus power.
4. Farmer Contribution: The final upfront payment for the farmer is usually only 10% of the project cost.
Revenue Potential (Selling Power)
Under Components A and C, the “price” of the system is offset by the income it generates.
• Feed-in-Tariff: DISCOMs purchase surplus solar power at rates typically ranging from ₹3.60 to ₹3.75 per kWh.
• Leasing Income: Farmers can earn up to ₹80,000 per hectare annually by leasing barren land to developers for solar plant installation.
• Diesel Savings: Replacing a 5 HP diesel pump can save a farmer at least ₹60,000 per year in fuel costs.
Critical Fraud Warning
The Government of India does not charge any registration fee to apply for the PM Kusum Yojana. Farmers should only apply through the official national portal (https://pmkusum.mnre.gov.in) or verified state nodal agency websites to avoid scams asking for “Kusum ID fees”.
Frequently Asked Questions on PM Kusum Yojana
Who is eligible to apply for the different components of PM Kusum?
Individual farmers, groups of farmers, Farmer Producer Organisations (FPOs), panchayats, cooperatives, and Water User Associations (WUAs) are all eligible. For Component A, solar plants must be located within 5 km of a grid substation to be viable.
What is the subsidy structure and how much does a farmer actually pay?
In most states, the government provides a 60% subsidy (30% central + 30% state). Farmers can finance another 30% via bank loans, meaning they only pay 10% of the total cost upfront. Special category states (North-East, hilly regions, and Islands) receive a higher central subsidy of 50%, reducing the farmer’s share to 20%.
Can farmers earn extra income by selling surplus electricity to the grid?
Yes. Under Component A (decentralised plants) and Component C (grid-connected solarisation), farmers use solar power for irrigation and sell surplus energy to DISCOMs at a fixed feed-in tariff. Farmers can also earn up to ₹80,000 per hectare annually by leasing barren land to developers for solar plants.
How can I apply online and what is the process to avoid fraud?
Farmers should apply only through the official national portal (https://pmkusum.mnre.gov.in) or their specific state nodal agency’s portal. The government does not charge any registration fee; any website asking for money to generate a “Kusum ID” is fraudulent.
What mandatory documents are required for PM Kusum registration in 2025?
Applicants must provide an Aadhaar Card, land ownership records (Khasra-Khatauni or Jamabandi), bank account details (passbook copy), passport-sized photographs, and a valid mobile number linked to Aadhaar. Grid-connected applicants also need a recent copy of their electricity bill.