Solar for Agriculture — PM-KUSUM Scheme 2026 Complete Guide
PM Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is India's flagship solar scheme for farmers, offering up to 90% subsidy on solar pumps and additional income from selling solar power.
PM-KUSUM Three Components
Component A: Small Solar Power Plants (500 kW to 2 MW)
- Farmers can set up solar plants on barren/agricultural land
- Power sold to DISCOM at fixed tariff (₹3–4/unit)
- Stable income: ₹50,000–2 lakh/year per acre
- Land remains usable for agri below elevated panels
Component B: Standalone Solar Pumps
- Replace diesel pumps with solar pumps
- Subsidy: Central 30% + State 30% = 60% subsidy
- Farmer pays only 40% or less (some states give more)
- No electricity bill ever for pumping
Component C: Solarization of Grid-Connected Pumps
- Add solar to existing grid-connected pumps
- Use solar during day, grid at night
- Sell excess solar power to DISCOM
- Subsidy: 30% central + 30% state
Solar Pump Subsidy by State
| State | Total Subsidy | Farmer Pays |
|---|---|---|
| Rajasthan | 90% | 10% |
| Maharashtra | 75–95% | 5–25% |
| Gujarat | 60–80% | 20–40% |
| UP | 70–90% | 10–30% |
| Madhya Pradesh | 90% | 10% |
| Karnataka | 60–75% | 25–40% |
Solar Pump Costs (Before Subsidy)
| Pump Size | Before Subsidy | After 60% Subsidy |
|---|---|---|
| 3 HP | ₹1.5–2.5 lakh | ₹60,000–1 lakh |
| 5 HP | ₹2.5–4 lakh | ₹1–1.6 lakh |
| 7.5 HP | ₹3.5–5.5 lakh | ₹1.4–2.2 lakh |
| 10 HP | ₹5–7.5 lakh | ₹2–3 lakh |
How to Apply for PM-KUSUM
- Visit pmkusum.mnre.gov.in
- Register with Aadhaar, land ownership documents
- Select your state's implementing agency
- Choose pump type and supplier from approved list
- Pay farmer contribution
- Installation within 90–120 days typically
Income from Component A Solar Plant
A 2-acre Component A solar plant (500 kW) generates:
- Annual power generation: ~7.5 lakh units
- Income at ₹3.50/unit: ₹26.25 lakh/year
- After O&M costs: ₹22–24 lakh/year net income
- 25-year income: ₹5.5–6 crore