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Government Schemes

PM KUSUM Scheme Solar Pump Subsidy and Application Guide

4 March 202612 min read

Key takeaways

  • PM-KUSUM provides substantial subsidies up to sixty percent or more for solar pumps.
  • Component B offers standalone solar pumps for off-grid farming areas.
  • Component C solarizes existing electric pumps to provide irrigation and extra income.
  • Eligible applicants include individual farmers, panchayats, and cooperatives.
  • Apply only through official state nodal portals to avoid fraudulent websites.

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was launched by the Ministry of New and Renewable Energy (MNRE) to provide water security and energy independence to Indian farmers. The scheme aims to replace diesel-powered irrigation pumps with solar pumps, reduce the carbon footprint of the agricultural sector, and provide farmers with an additional source of regular income. It consists of three components: Component A (solar power plants on barren lands), Component B (standalone solar agricultural pumps), and Component C (solarization of existing grid-connected pumps). PM-KUSUM represents a massive shift towards clean energy in rural India, helping reduce the subsidy burden on state power utilities. Farmers can utilize solar energy to irrigate their crops during the daytime, eliminating the need to work in the fields during cold nights. The scheme is implemented in partnership with state governments, which manage the local distribution and applications. Understanding the details of each component helps farmers make the best choice for their land and water needs.

Component B Standalone Solar Pumps

Component B focuses on the installation of standalone solar agriculture pumps in off-grid areas where grid electricity is not available or is unreliable. Farmers can replace their expensive and polluting diesel pumps with solar-powered pumps of capacities ranging from three horsepower to ten horsepower. Both AC and DC surface and submersible pumps are covered. The standalone solar pump system includes solar panels, a structural mount, a controller that manages power from the panels to the pump, and the pump itself. This component provides farmers with reliable irrigation during the day, eliminating the need to irrigate crops at night. Standalone pumps are highly popular in dryland farming areas where grid expansion is delayed or expensive. Since these pumps do not depend on the grid, they provide complete water independence to the farmer. The installation must be done through approved vendors to ensure system durability and compliance. Farmers should ensure they have a functional water source like a borewell before applying.

Component C Grid Connected Pump Solarization

Component C focuses on the solarization of existing grid-connected agricultural pumps. Under this component, individual farmers or groups of farmers who already have grid-connected electric pumps are provided with financial assistance to install solar panels. The solar capacity installed is usually twice the pump capacity in kilowatts. During the day, the solar power is used to run the pump for irrigation. The excess solar electricity generated is automatically fed back into the electricity grid. The local distribution company (DISCOM) purchases this excess power at a tariff fixed by the state government, providing farmers with a steady stream of income. This component helps reduce grid load, cuts power transmission losses, and turns farmers from energy consumers into energy producers. Feed-in tariffs vary by state, but typically range from three to four rupees per unit. Farmers can calculate their potential income based on their local tariffs. This system ensures that even when the pump is not running, the solar panels generate income for the family.

Subsidy Structure and Cost Sharing

The capital cost of solar pumps under PM-KUSUM is highly subsidized. The central government provides a thirty percent subsidy, and the state government provides another thirty percent subsidy. The remaining forty percent is the farmer's share, which can be paid out of pocket or funded through bank loans. In North Eastern states, hilly regions (Himachal Pradesh, Uttarakhand, Jammu and Kashmir), and islands, the central government provides a fifty percent subsidy, making the farmer's share only twenty percent. Many states offer additional top-up subsidies, reducing the farmer's contribution to ten percent. All figures are indicative, and details must be verified on the official portal. The high subsidy rates make solar pumps highly affordable for small and marginal farmers, who can recover their initial share within two to three years by saving on diesel costs. Lenders provide attractive term loans for the remaining share, which can be repaid in easy installments linked to harvest cycles. Farmers should consult local banks to check loan availability.

Eligibility Criteria for Farmers

Individual farmers, groups of farmers, water user associations, primary agricultural credit societies (PACS), joint liability groups, and community farming groups are eligible to apply. The land where the solar pump is to be installed must be registered in the applicant's name. A valid water source, such as a borewell, open well, or farm pond, is mandatory. For Component C, the farmer must have a valid grid electricity connection in their name with no outstanding dues. The selection is often done based on state-specific priority lists, with small and marginal farmers given preference. The water table depth in the region must be within the limits specified for the pump capacity to ensure efficient operations. In regions with very deep water tables, larger capacity submersible pumps are recommended. Farmers must provide a certificate of land ownership and crop details during the application process. Check the local block agriculture office for any specific regional restrictions on groundwater extraction before applying.

Step by Step Application Process

To apply for the PM-KUSUM scheme, farmers must register through the official portal of their state's renewable energy development agency (such as HAREDA in Haryana, GEDA in Gujarat, MEDA in Maharashtra, or CREDA in Chhattisgarh). Farmers should be extremely cautious of fake websites. There are numerous fraudulent portals that copy the appearance of the official website to steal registration fees. Always verify that the portal URL ends in dot gov dot in. After registering online, submit the required land and identity documents, pay the farmer's share to the nodal agency, and select an approved vendor for installation. Once the application is approved, the nodal agency will issue a work order, and the selected vendor will install the system within the specified timeline. The farmer should inspect the system after installation and sign the installation report only if the pump functions properly. The entire process from registration to installation typically takes two to four months depending on state targets.

Documents Required for Registration

When registering for PM-KUSUM, keep the following documents ready: (1) Aadhaar card of the landholder, (2) Land ownership documents such as the Jamabandi, Khasra, or 7/12 extract, (3) A copy of the bank passbook showing the account number and IFSC code, (4) Passport-size photographs, (5) A mobile number linked to the Aadhaar card, and (6) A self-declaration certifying the availability of a water source on the land. For Component C, a copy of the latest electricity bill and connection certificate is also required. Ensure that the name on the Aadhaar card matches the name on the land records exactly to avoid application rejection. If there is a mismatch, obtain a correction certificate from the local revenue officer. Having all documents ready in digital format helps speed up the online application process. Farmers can also seek assistance from local Common Service Centers to upload documents and complete the registration process accurately.

Authorized Manufacturer and Vendor Lists

The Ministry of New and Renewable Energy empanels reputed manufacturers and vendors to supply and install solar pumps under the scheme. These include companies like Shakti Pumps, Tata Power Solar, Luminous, and Premier Energies. Installing the system through an authorized vendor is mandatory to receive the government subsidy. The system comes with a five-year comprehensive warranty on the pump, motor, and controller, while the solar panels carry a twenty-five-year performance warranty. The vendor is responsible for post-installation service and maintenance during the warranty period. Using authorized vendors ensures that the components used conform to the quality standards set by MNRE. If the system develops any fault, the farmer should report it to the vendor's service center. The vendor is required to resolve the issue within seventy-two hours. Farmers should obtain the contact details of the local service center at the time of installation to ensure prompt maintenance support.

System Maintenance and Care Tips

Regular maintenance of the solar pump system is essential to ensure high efficiency and long life. The solar panels should be cleaned regularly with water to remove dust, bird droppings, and pollen, which can block sunlight and reduce power generation. Cleaning should be done in the early morning or late evening when the panels are cool to prevent thermal shock and cracking. Ensure that no shadow from nearby trees, buildings, or electric poles falls on the panels during the day, as even a small shadow can reduce the entire array's output. Check the controller display for any error codes or loose connections, and keep the controller box clean and dry. Inspect the pump intake for any sand or debris blockages. Avoid running the pump dry, as it can damage the motor. During heavy winds or storms, ensure that the solar mounting structure is tightly bolted. Following these basic maintenance steps ensures trouble-free operation of the solar pump for decades.

Economic and Environmental Benefits

The PM-KUSUM scheme offers substantial economic and environmental benefits to farmers and the nation. Economically, replacing diesel pumps with solar pumps saves farmers thirty thousand to fifty thousand rupees per year in fuel costs. The steady income from selling excess power under Component C provides financial stability, helping offset other crop production expenses. Environmentally, solar pumps reduce greenhouse gas emissions by displacing fossil fuels. It is estimated that one solar pump prevents the release of several tonnes of carbon dioxide into the atmosphere annually. Solar energy also promotes sustainable water management when combined with micro-irrigation systems like drip or sprinkler irrigation. Using solar power reduces grid electricity demand, helping state utilities conserve coal and reduce power transmission losses. The transition to solar irrigation builds climate resilience in Indian agriculture, securing food production and improving farmer livelihoods. Farmers can invest their savings into high value seeds and crop protection to boost yields.

Component A Solar Plants

Under Component A of the scheme, developers, cooperatives, or groups of farmers can set up grid-connected solar power plants of capacities ranging from five hundred kilowatts to two megawatts on barren or uncultivated lands. The power generated is purchased by the local distribution company at a pre-determined tariff, providing an income source for land owners who cannot cultivate their lands due to water scarcity or soil salinity. This component is highly beneficial for panchayats and cooperatives, as it turns unproductive waste lands into clean energy generation hubs. The income generated can be used to fund local developmental projects in the village, improving rural infrastructure and quality of life.

Selecting Pump Capacities

Selecting the right solar pump capacity is essential for proper irrigation. The capacity required depends on the depth of the water table, the water requirement of the crops, and the total land area to be irrigated. Generally, for shallow water tables up to ten meters, a surface pump is suitable. For deeper water sources like borewells up to one hundred meters, a submersible pump of higher capacity, such as five horsepower or seven point five horsepower, is necessary. Using a pump with too low capacity will result in inadequate water discharge, while an oversized pump will be expensive and can lead to excessive groundwater draw down. Farmers should consult with nodal agency technicians or empanelled vendors to assess their water requirements and choose the most suitable pump configuration.

Subsidized Bank Loans

In addition to the capital subsidy, the government has simplified the loan process for PM-KUSUM. Several public sector and private banks, including the State Bank of India and Nabard-affiliated agricultural cooperative banks, offer low-interest loans for the farmer's share. These loans are collateral-free for small limits and have repayment terms extending up to seven years. The loan installments are structured around the harvest seasons, allowing farmers to pay back the loan using their crop sales or the income earned from selling excess electricity. Some states also offer interest subvention schemes, further reducing the loan interest rate. Farmers should visit their local bank branches to inquire about the specific solar pump loan options available under the scheme.

Installation Security and Insurance

Safety of the solar installation is another important factor that farmers should consider. Solar panels and controllers are valuable assets that can attract theft in remote field locations. It is recommended to install the solar pump system in a fenced area or near the farmhouse where it can be monitored. Many manufacturers now offer smart controllers with built-in GPS tracking, which can locate the system in case of theft and disable it remotely. Nodal agencies also recommend getting insurance coverage for the solar pump system to protect against damage from natural calamities like hailstorms, lightning, or fire, as well as theft. The premium for agricultural solar pump insurance is relatively small and provides peace of mind to the farmer.

Integration with Drip Systems

Finally, combining solar pumps with micro-irrigation systems like drip and sprinkler irrigation is highly encouraged under the scheme. Some states provide combined subsidies for both solar pumps and drip systems, which can cover up to ninety percent of the total cost. Micro-irrigation reduces water consumption by thirty to fifty percent, allowing the solar pump to irrigate a larger area with the same amount of water. It also prevents soil erosion and nutrient leaching, improving fertilizer use efficiency. By adopting this integrated approach, farmers can maximize their crop yields, conserve precious groundwater resources, and build a highly profitable and sustainable farming business.

Frequently asked questions

What is the main objective of the PM-KUSUM scheme?
The scheme aims to provide energy security to farmers by installing solar water pumps and solarizing grid-connected agricultural pumps.
What is Component B of PM-KUSUM?
Component B provides financial support for installing standalone solar agriculture pumps in off-grid areas.
What is Component C of PM-KUSUM?
Component C provides support for solarizing existing grid-connected agriculture pumps, allowing farmers to sell excess power to the grid.
How much subsidy is provided under PM-KUSUM?
The central and state governments together provide up to sixty percent subsidy for solar pumps, though this varies by state.
What is the maximum pump capacity covered under the subsidy?
Financial assistance is provided for solar pumps up to seven point five horsepower, though farmers can install larger pumps without subsidy on the extra capacity.
Who is eligible to apply for a solar pump under the scheme?
Individual farmers, farmer groups, cooperatives, water user associations, and panchayats are eligible to apply.
How do I apply for the PM-KUSUM solar pump scheme?
You must apply online through the official portal of your respective state renewable energy nodal agency.
How can I identify fake PM-KUSUM websites?
Official portals always end in dot gov dot in. Avoid websites that ask for registration fees on unofficial domains.
What documents are required to apply for PM-KUSUM?
You need your Aadhaar card, land ownership documents, a bank passbook copy, passport size photos, and water source details.
Can I get a bank loan for my share of the solar pump cost?
Yes, many banks offer term loans for the farmer's contribution, which can be repaid from the savings on diesel.
What is the warranty period for the solar pump system?
The system comes with a five-year warranty from the manufacturer, and the solar panels carry a twenty-five-year performance warranty.
Can I sell excess electricity generated under Component C?
Yes, excess power can be sold to the local distribution company at a tariff fixed by the state regulator.
What regular maintenance is required for solar pumps?
You need to clean the solar panels regularly with water to remove dust, and keep the area free from shadows.
Does the scheme cover replacement of existing functional electric pumps?
Component C covers the solarization of existing grid-connected electric pumps to help reduce grid electricity demand.
Where can I find the list of approved solar pump manufacturers?
The list of empanelled vendors is published on the official Ministry of New and Renewable Energy portal and state nodal portals.

This article is for general information only and is not financial advice. Loan and scheme eligibility depends on partner and government criteria.

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