PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is the Ministry of New and Renewable Energy’s flagship scheme to solarise Indian agriculture: it helps farmers set up small solar power plants, buy standalone solar pumps and solarise their existing grid-connected pumps, so that irrigation runs on daytime solar power instead of diesel and subsidised grid electricity.
What Is PM-KUSUM?
PM-KUSUM was approved by the Cabinet Committee on Economic Affairs in February 2019 and launched in March 2019 by the Ministry of New and Renewable Energy (MNRE). It is a Central Sector scheme with Central Financial Assistance (CFA) flowing through the state implementing agencies and the power distribution companies (DISCOMs).
- Aim: energy security and additional income for farmers, and de-dieselisation of the farm sector.
- Target: about 34,800 MW of solar capacity by 31 March 2026 (the original target of 25,750 MW by 2022 was scaled up and the scheme’s tenure was extended).
- Central support: roughly Rs 34,422 crore of Central Financial Assistance over the scheme period.
The Three Components
- Component A – decentralised solar plants: 10,000 MW of small grid-connected renewable plants of 500 kW to 2 MW each, set up by farmers, groups of farmers, cooperatives, panchayats, FPOs and water user associations on barren, fallow, pasture or agricultural land (stilt-mounted plants let cultivation continue). The DISCOM buys the power at a feed-in tariff fixed by the State Electricity Regulatory Commission. DISCOMs receive a Procurement-Based Incentive (PBI) of Rs 0.40 per kWh or Rs 6.6 lakh per MW per year, whichever is lower, for five years.
- Component B – standalone solar pumps: installation of about 14 lakh standalone solar agriculture pumps of up to 7.5 HP in off-grid areas, replacing diesel pumps.
- Component C – solarisation of grid-connected pumps: solarising about 35 lakh grid-connected agriculture pumps, either individually (Individual Pump Solarisation) or through Feeder Level Solarisation (FLS), so that farmers get reliable daytime power and can sell surplus electricity to the DISCOM.
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How the Subsidy Works
- For Components B and C the cost is shared 30% Central Financial Assistance, 30% state subsidy and 40% by the farmer; the farmer’s share can be financed through bank loans.
- In the North-Eastern states, hill states (Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Ladakh) and the island territories the Central share rises to 50%, the state gives 30% and the farmer pays only 20%.
- Component A has no capital subsidy for the farmer; the incentive is the assured purchase of power at the regulated tariff, with the PBI paid to the DISCOM.
Why the Scheme Matters
- Farmers’ income: a farmer who solarises a pump or sets up a small plant earns from surplus power sold to the grid, in addition to saving on diesel.
- DISCOM finances: agricultural power is heavily subsidised; daytime solar supply cuts the subsidy burden and transmission losses.
- Environment: at full deployment the scheme is expected to avoid around 32 million tonnes of CO2 a year and reduce diesel consumption in agriculture.
- Grid: decentralised generation close to the load reduces the need for long transmission lines.
Progress and Recent Developments
TomorrowNABARD Sprint 60: the 2025 cut-offs and your 60-day Phase I planRegister free →- Component B (standalone pumps) has been the fastest-moving part of the scheme, with several lakh pumps sanctioned and installed across states such as Maharashtra, Haryana, Rajasthan, Uttar Pradesh and Punjab; Feeder Level Solarisation under Component C has picked up in Maharashtra and Rajasthan.
- The scheme tenure was extended to 31 March 2026 to meet the revised target.
- Reports in 2026 suggest a PM-KUSUM 2.0 with wider coverage is under consideration; the basic architecture of the three components is expected to continue.
Important Facts for Examsmost asked
- Full form: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan; Ministry: MNRE; launched March 2019.
- Three components: A (500 kW-2 MW plants, 10,000 MW), B (14 lakh standalone pumps), C (35 lakh grid-connected pumps solarised).
- Subsidy pattern: 30% Centre, 30% state, 40% farmer (50-30-20 in NE, hill and island regions).
- PBI to DISCOMs: Rs 0.40 per unit or Rs 6.6 lakh per MW per year, whichever is lower, for five years.
- Target: about 34,800 MW by 31 March 2026; central support about Rs 34,422 crore.
- Feeder Level Solarisation (FLS) is the model where an entire agricultural feeder is fed by a solar plant.
FAQs
Who can apply under Component A of PM-KUSUM?
Individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organisations and Water User Associations can set up plants of 500 kW to 2 MW within five kilometres of a substation; a developer can also build the plant on the farmer’s land against lease rent.
What is the difference between Components B and C?
Component B gives a new standalone solar pump where there is no grid supply; Component C adds solar capacity to a pump that already runs on grid power, so the farmer keeps the grid connection and can sell surplus solar power.
How is PM-KUSUM relevant for NABARD and RBI exams?
It is a standard question area under agriculture finance and renewable energy: the three components, the 30-30-40 subsidy, the MNRE ministry and the capacity target are the most asked facts.
