KUSUM Yojana: Agricultural Solar Subsidy Guide

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Farmers who irrigate with diesel pumps pay for the fuel every season, and diesel pump prices on 14 October 2026 ranged from ₹95.20 to ₹104.23 per litre across four major cities (CarDekho). PM-KUSUM Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is the Government of India’s scheme to move agricultural pumping and farm-based generation onto solar, with central financial assistance of 30% of the benchmark or tender cost on standalone and grid-connected pumps (50% in the special states) and a state share of at least 30%.

Launched in 2019 by MNRE, the scheme’s page lists a target of 34,800 MW of solar capacity, central financial support of ₹34,422 crore, and a scheme period till 31 March 2026 (page last updated 7 November 2025, read 14 October 2026). It operates across three components that serve three different needs, so understanding which one applies to your situation is the difference between a smooth application and months of confusion.

KUSUM Yojana is India’s agricultural solar scheme, covering Component A (decentralised solar plants of 500 kW to 2 MW), Component B (standalone solar pumps up to 7.5 HP for off-grid areas), and Component C (solarisation of grid-connected agricultural pumps, individually or at feeder level). Under Component B, central financial assistance is 30% of the benchmark or tender cost (whichever is lower), the state gives at least 30%, and the farmer pays at most 40%.

The KUSUM scheme sits alongside but entirely separate from PM Surya Ghar, which targets residential rooftop solar. KUSUM is agricultural-first and state-implemented. This guide explains every component, the funding split MNRE publishes, who may qualify, how to apply through state agencies, and the key mistakes that delay applications.

KUSUM Yojana’s Three Components: What Each One Does

The most important thing to understand about KUSUM is that it is not a single scheme with one application path. It is three distinct programmes bundled under one name, each solving a different agricultural energy problem. Applying under the wrong component wastes time.

Component A: Decentralised Solar Power Plants

Component A covers ground- or stilt-mounted renewable power plants of 500 kW to 2 MW that sell power to the local DISCOM at a tariff set by the state regulator. It is a power-plant component for developers, farmer groups and similar entities, and the MNRE page states no capital subsidy percentage for it; instead, DISCOMs receive a performance-based incentive of ₹0.40 per unit or ₹6.6 lakh per MW, whichever is less, for five years from commercial operation.

A landowner can take part by leasing land to a developer on terms in the contract, or by developing a plant with a developer’s help and a power purchase agreement with the DISCOM. We quote no lease rate or feed-in tariff because we found no sourced current state figure; get them in writing from the developer and the state’s tender documents. Before committing to a multi-decade lease, confirm soil condition, grid proximity and access, and have a land feasibility and site survey assessment done before signing.

Target: 10,000 MW of decentralised capacity (MNRE page).

Component B: Standalone Solar Pumps for Off-Grid Farmers

Component B is the part most farmers mean when they say “KUSUM scheme.” It replaces diesel-powered standalone pumps not connected to the grid with solar pumps, up to 7.5 HP, eliminating fuel costs.

Target: 14 lakh standalone solar pumps (MNRE page).

Funding split on the MNRE page:

• Central financial assistance: 30% of the benchmark or tender cost, whichever is lower (50% in the North Eastern states, Sikkim, J&K, Himachal Pradesh, Uttarakhand, Lakshadweep and A&N Islands)
• State share: at least 30%
• Farmer share: at most 40% (at most 20% in the special states)

How the farmer’s share is financed, whether in cash or through a bank loan, is set by the state nodal agency, so ask which banks and terms apply.

Component C: Solarisation of Grid-Connected Agricultural Pumps

Component C covers farmers who are already connected to the grid. Two sub-tracks exist:

• Individual pump solarisation: the farmer’s pump is solarised with a dedicated array. Central assistance is 30% of the solar PV component cost (50% in the special states), the state gives at least 30%, and the farmer pays at most 40% (at most 20% in the special states). Surplus power can flow to the grid on the terms in the state’s guidelines.
• Feeder-level solarisation: a DISCOM or implementing agency solarises the feeder. Central assistance is 30% of the installation cost, up to ₹1.05 crore per MW (50%, up to ₹1.75 crore per MW, in the special states). Individual farmers do not install anything.

Target: 35 lakh grid-connected pumps (MNRE page).

The KUSUM Subsidy Numbers: What a Farmer Actually Pays

The funding split above applies to a benchmark or tender cost that each state publishes, so the rupee amounts depend on your state’s benchmark. The table applies the MNRE percentages to illustrative pump costs, which are assumed inputs and not state benchmarks.

The costs are illustrative; actual costs vary by state, technology (surface vs submersible, DC vs AC) and whether a variable frequency drive is included. States publish benchmark costs through their nodal agencies. One common arrangement splits the farmer’s share into a cash payment and a bank-financed part, but that is set by each state.

Diesel savings are a farmer’s own arithmetic. For a 3 HP pump running 6 hours a day for 200 days a year at an assumed 0.3 litre per HP per hour (check your engine’s rating) and ₹96 per litre (within the ₹95.20 to ₹104.23 range of pump prices on 14 October 2026, CarDekho): 3 × 6 × 200 × 0.3 = 1,080 litres, or about ₹1,03,680 a year.

Who Is Eligible for KUSUM Yojana

Eligibility varies by component and by state. The MNRE page lists no income limit and no minimum acreage, but each state’s guidelines set the detailed conditions, so confirm with the state nodal agency.

Individual farmers:

• Agricultural land (for Components A and B)
• An existing off-grid pump for Component B replacement
• An existing grid-connected agricultural electricity connection for Component C
• Aadhaar-linked bank account
• Land records establishing agricultural use

Farmer groups, FPOs, water user associations and panchayats: whether and how they can apply varies by state and component; ask the nodal agency for its current rules, the documents it requires (such as registration certificates or resolutions) and how pooled land counts toward the 500 kW minimum of Component A.

The KUSUM Component Match: Which Track Is Right for You?

This framework helps farmers identify the right KUSUM component before approaching their state nodal agency. Using the wrong track wastes time at every application step.

The KUSUM Component Match: A Decision Framework

Work through the following questions in order:

1. Do you have barren or fallow land suitable for a 500 kW to 2 MW plant, or a way to pool land with others?

   • Yes → Consider Component A (lease the land or develop a plant with a developer)
   • No → Continue to question 2

2. Do you currently irrigate with a diesel or kerosene pump that is NOT connected to the electricity grid?

   • Yes → Apply for Component B (standalone solar pump)
   • No → Continue to question 3

3. Do you have an existing agricultural electricity connection for a pump?

   • Yes → Apply for Component C (solarise your grid-connected pump, or find out whether your feeder is being solarised)
   • No → You may not yet be eligible for KUSUM; ask your nodal agency what applies when you obtain a grid connection

4. Do you qualify under multiple components?

   • A farmer with both suitable land AND a diesel pump may be able to pursue Component A and Component B through separate applications. Ask your nodal agency whether your state allows it.

This framework resolves a common confusion in KUSUM applications: approaching a state office for “KUSUM” without knowing which component you need.

How to Apply: State Portals and DISCOM Processes

KUSUM is a state-implemented scheme. There is no single national application portal comparable to pmsuryaghar.gov.in for PM Surya Ghar. Applications go through the state nodal agency for renewable energy or the state agriculture department, and the process differs between states.

General application sequence for Component B (the most common track):

1. Locate your state nodal agency: Find your state’s contact on the PM-KUSUM national portal. Common nodal agencies include MEDA in Maharashtra, RREC in Rajasthan, GEDA in Gujarat, PEDA in Punjab and UPNEDA in Uttar Pradesh.

2. Register on the state portal: Each state operates its own digital portal. You will typically need Aadhaar number, land records, bank account details and existing pump or borewell details.

3. Submit application and upload documents: Documents typically include the land ownership record, Aadhaar, bank passbook and photographs of the existing diesel pump. State nodal agencies verify agricultural use and pump specifications.

4. State verification and approval: The nodal agency verifies the application, checks for duplicate applications on the same land parcel or connection, and issues an approval letter.

5. Arrange the farmer’s share: If part of the farmer’s share is bank-financed, approach a bank the state agency accepts, with the approval letter.

6. Commissioning and subsidy claim: After installation, the vendor submits a commissioning report. The state nodal agency verifies it and releases the subsidy portions as its guidelines provide.

State Nodal Agencies: Where to Apply

Implementation varies by state, so ask your state agency for its current status, empanelled vendor list and processing practice. The agencies below are examples:

• Rajasthan: Rajasthan Renewable Energy Corporation (RREC). Farmers in the state combining KUSUM with a residential rooftop application can also review the Rajasthan solar subsidy guide for the separate PM Surya Ghar process.
• Maharashtra: Maharashtra Energy Development Agency (MEDA), with MSEDCL involved for grid-connected solarisation. The net metering India complete guide covers the MSEDCL-specific regulations relevant to Component C surplus sales.
• Punjab: Punjab Energy Development Agency (PEDA). Punjab’s agriculture relies heavily on grid-connected tubewells, so grid-connected solarisation (Component C) is the relevant track for many farmers. EPCs bidding on feeder-level DISCOM tenders will find Heaven Green Energy’s PM-KUSUM/DREGP feeder solarisation overview a useful reference for how these bundled tenders are typically scoped.
• Uttar Pradesh: Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).
• Gujarat: Gujarat Energy Development Agency (GEDA). The state’s residential Surya Gujarat top-up is covered separately in the Gujarat solar subsidy guide for farming households that also want to solarise their home.

PM Surya Ghar vs KUSUM Yojana: Understanding the Difference

A significant number of farmers who approach state offices for “solar subsidy” confuse these two schemes. Both are MNRE schemes and both involve solar subsidies, but they are designed for different beneficiaries and different infrastructure.

A farmer who owns both a home with a residential electricity connection and agricultural land with a diesel pump can apply for both schemes independently: PM Surya Ghar covers the home and KUSUM covers the farm. The subsidies, equipment and applications are separate.

For a complete guide to PM Surya Ghar for residential applications, the PM Surya Ghar complete guide covers eligibility, the application process, ALMM requirements and state-wise top-up subsidies in detail.

The Economics of KUSUM: Payback, Diesel Savings, and Income Potential

The financial case differs by component, because the revenue model differs.

Component B Financial Model (Standalone Solar Pump)

For a 5 HP diesel pump replaced with a 5 HP solar pump under Component B, using assumed inputs (replace them with your own):

The result depends on hours run, diesel price, engine consumption and the state’s actual benchmark, so recompute with your own numbers; solar pumps run only in daylight, which may not match your irrigation schedule.

Component A Financial Model (Land Lessor Route)

A farmer leasing land to a Component A developer carries no capital cost, because the developer owns and funds the plant. The income is whatever lease the contract specifies, so get the lease rate, escalation, term and payment security in writing, and ask the developer how it is protected against DISCOM payment delays. Lease terms are commonly long (tied to the plant’s life), so read exit clauses carefully.

Component C Financial Model (Grid-Connected Pump Solarisation)

For a farmer with a grid-connected pump, the income logic is:

The tariff and the settlement rules vary by state and by DISCOM, and many agricultural connections are unmetered, so ask the DISCOM how surplus would be measured and paid before counting on any income. For a deeper analysis of solar payback calculations across different tariff environments and system sizes, the solar inverter payback period guide includes agricultural pump scenarios.

Common KUSUM Application Mistakes: and How to Avoid Them

These are common reasons for delay or rejection; ask your state nodal agency which apply in your state.

• Applying on the wrong component: A farmer with a grid-connected pump applying under Component B (standalone) is likely to be rejected, because Component B covers off-grid pumps. Match the component to your situation using the framework above.
• Using a non-empanelled vendor: Installations are generally executed by vendors on the state nodal agency’s empanelled list. Verify empanelment on the state portal before signing any vendor agreement, because a claim through an unlisted vendor may not be accepted.
• Land record mismatches: If the khasra number or owner name on your land records does not match the application, verification can fail. Update land documents before submitting, especially for inherited land not yet transferred in official records.
• Applying through the central MNRE website: Individual KUSUM applications are processed through state channels. The national portal provides information and contacts.
• Ignoring financing conditions: If part of the farmer’s share is bank-financed, ask the state agency which banks and conditions it accepts before signing a loan.
• Pump size mismatch: The installed pump must match what was approved. Substituting a different HP rating without an amendment can cause commissioning rejection.
• Not maintaining the system after installation: Maintenance obligations and warranty terms are in the vendor’s and manufacturer’s documents; read them and keep service records.

For farmers who have completed a KUSUM installation and want to understand the broader rural solar infrastructure, the on-grid vs hybrid vs off-grid decision guide explains how agricultural and residential systems can be integrated on the same farm property.

KUSUM and ALMM: Why Equipment Compliance Matters

The Approved List of Models and Manufacturers (ALMM) requirement applies to modules under KUSUM, as it does for PM Surya Ghar; check your state’s guidelines for the exact requirement. MNRE publishes no ALMM list for inverters or pump controllers, so those need exact-model documents instead:

1. Solar PV modules (panels): The specific module model and wattage must be on the MNRE ALMM list when your state’s guidelines require it.

How to verify ALMM before installation:

1. Ask the vendor for the exact make, model, and wattage of every component.
2. Cross-check each module on the live ALMM list at mnre.gov.in (under the ALMM section).
3. Confirm the listing is active on the current ALMM list; delisted entries do not count.
4. Photograph the equipment labels on delivery day and compare model numbers before installation begins.

The economics of KUSUM also intersect with net metering for Component C farmers who sell surplus power to the DISCOM. The net metering India complete guide covers the state-wise regulations governing agricultural feed-in tariff settlements.

Where the Scheme Stands in 2026

The MNRE PM-KUSUM page (read 14 October 2026, last updated 7 November 2025) gives the targets, the funding split and the scheme period, and it reports no achievement figures; it links to RE statistics reports for physical progress. We therefore publish no achievement percentages here.

The page gives the scheme period as till 31 March 2026, and MNRE has issued later extensions for some projects, so check the current status and your state’s rules before planning around it.

For farmers who have already installed KUSUM systems and are thinking about the next step (whether additional backup power for farm operations or inverter upgrades) the inverter financing options guide covers financing options.

Where Qbits Fits in KUSUM Installations

Farmers and EPC contractors executing KUSUM installations must verify the current component guidelines, implementing-agency process, module/cell requirements and approved equipment package. MNRE’s ALMM page is not an inverter list. Agricultural sites also need project-specific checks for dust, temperature, mounting, supervision and service access.

A Qbits resource worth bookmarking if you are planning a KUSUM installation:

• Hybrid Inverters: Review current QBH model documents and confirm the exact battery, firmware, PV, backup-output, transfer, communication, warranty and project requirements in writing.

For any Qbits quote, ask the seller to confirm in writing the manufacturing origin of the exact model, whether it is accepted for your KUSUM project, the service coverage for your location and the response time.

Comparing Diesel, Grid Power, and KUSUM Solar: The Full Picture

Farmers evaluating KUSUM often ask whether solar beats their current arrangement, especially where agricultural electricity is subsidised. The honest comparison depends on your own numbers.

Best for which farmer:

• Diesel pump: for a new installation, compare the farmer share under Component B with the fuel cost over the pump’s life, using your own hours and diesel consumption.
• Grid-subsidised pump: if Component C or feeder-level solarisation is available on your feeder, ask the DISCOM how participating would change your supply hours and any surplus income.
• KUSUM solar pump: worth pricing first for new pump installations and for farmers with diesel dependence, once the state benchmark and financing arrangement are known.

For the complete diesel vs solar financial comparison including payback modelling at different fuel prices, the solar vs diesel generator guide covers the numbers across agricultural, commercial, and residential scenarios.

KUSUM Yojana is a significant agricultural support scheme, but its complexity means that farmers who engage without understanding which component applies often waste months in the wrong application queue. The three components are distinct programmes with different subsidy structures, different implementing agencies and different revenue models.

The application path runs through your state nodal agency, not MNRE directly and not the PM Surya Ghar portal. Modules on the ALMM list matter where your state requires them. And the economics depend on your own diesel use, hours run, state benchmark and financing, so recompute them with your own numbers before you decide.