PM Surya Ghar vs KUSUM Yojana: Which to Pick?

ALMM and inverter compliance: MNRE’s current ALMM page publishes solar PV module and cell lists, not an inverter list. Verify the inverter’s exact model documents and applicable scheme or DISCOM requirements separately.

Two major government schemes, two different beneficiary groups, and considerable confusion between them. Homeowners ask about KUSUM when they should be looking at PM Surya Ghar; farmers hear about PM Surya Ghar when KUSUM Component B is actually the right fit. This guide draws a clear line between the two schemes so you apply to the one that actually applies to your situation.

Direct answer. PM Surya Ghar is for residential homeowners with a domestic electricity connection seeking rooftop solar subsidies. KUSUM Yojana is for farmers seeking to solarise agricultural pumps or install solar on agricultural land. The two schemes serve different beneficiary groups, different connection types, and different MNRE objectives. Choosing the wrong scheme results in an ineligible application.

Both schemes fall under MNRE’s rooftop solar programme framework but address fundamentally different energy problems. Residential rooftop solar and agricultural solar pumping need completely different policy interventions. Understanding the distinction takes five minutes and prevents weeks of misdirected applications.

Scheme Overview: Side-by-Side Comparison

₹34,000 crore. The total central allocation for KUSUM Yojana from 2019 through 2026, targeting 3.5 million farmers for pump solarisation under Component B and C. Source - MNRE KUSUM Portal{target=“_blank” rel=“noopener”}, 2026.

PM Surya Ghar: Who Should Apply

PM Surya Ghar is the right choice if your situation matches all of these criteria:

The subsidy of up to ₹78,000 for a 3 kW system, combined with net metering income, shortens the payback period of a residential installation; the exact figure depends on system cost, tariff and self-consumption (the solar IRR and payback guide shows the arithmetic). After payback, the solar system generates effectively free electricity for its remaining 20+ year life.

For the complete application process, see how to apply for PM Surya Ghar online. For required documents, see the PM Surya Ghar documents checklist.

KUSUM Yojana: The Three Components Explained

KUSUM Yojana addresses the energy challenges of India’s agricultural sector through three structurally different components.

Component A: Decentralised Ground-Mounted Solar Plants

Farmers and rural landowners with barren, fallow, or marginal agricultural land can lease it for solar plants of 0.5 MW to 2 MW capacity. The solar power generated is sold to the local DISCOM at a fixed tariff. The farmer earns annual lease income (₹20,000 to ₹60,000 per acre per year in most states) without installing or maintaining the system. The investor or developer handles all technical work; the farmer provides land access.

This component is best for large landholders with land that has low agricultural productivity. Landowners who want to keep part of the plot under cultivation while hosting panels should also look at agrivoltaic design approaches, which combine crop production with solar generation on the same land.

Component B: Standalone Solar Pumps

Farmers without a grid connection who rely on diesel pumps for irrigation can replace them with standalone solar pumps. The central subsidy covers 30% of the benchmark cost; state subsidies add 30%; the farmer pays 40% (or takes a soft loan for 40%).

This component is ideal for farmers in areas with poor or absent grid connectivity.

Component C: Solarisation of Grid-Connected Pumps

Existing grid-connected agricultural pump users can add solar panels to their pumps. The solar power first runs the pump, and surplus is exported to the DISCOM grid at a feed-in tariff. This is the most financially attractive component for farmers who already have a grid connection, the solar system simultaneously eliminates pump electricity costs and generates export income. Installers scoping these projects can find dedicated PM-KUSUM ground-mount and pump solarisation resources covering component-specific requirements.

A 5 HP pump with a 7.5 kW solar system can generate ₹50,000 to ₹1 lakh per year in feed-in tariff income in sunny states (Rajasthan, Gujarat, MP), with a payback period of 3 to 5 years after subsidies.

The 3-Question Which-Scheme-Fits-You Test

Use this framework before approaching any installer or government office.

The 3-Question Scheme Selector Framework

1. What is your electricity connection type?: If you have a domestic connection at home, PM Surya Ghar. If you have an agricultural connection or want to use agricultural land, KUSUM. If you have both, you may be eligible for both, separately.
2. What problem are you solving?: Reducing your home electricity bill: PM Surya Ghar. Eliminating diesel pump costs on your farm: KUSUM Component B or C. Generating income from barren land: KUSUM Component A.
3. Do you have a grid connection at the installation site?: Home with grid connection: PM Surya Ghar (on-grid system, net metering). Farm with no grid: KUSUM Component B (standalone pump). Farm with grid: KUSUM Component C (grid-connected pump solarisation).

These three questions determine your scheme with no ambiguity. If your situation is mixed (a farming household with both a domestic house and agricultural land) you may be eligible for both programmes simultaneously.

Financial Comparison: Net Cost After Subsidies

Understanding actual net cost helps you compare the two schemes directly.

3.5 million. The target number of farmers to be covered under KUSUM Component B and C combined by 2026-27, per MNRE’s revised targets. Source - Saur Energy India{target=“_blank” rel=“noopener”}, 2026.

Application Process Comparison

The application experience differs significantly between the two schemes.

PM Surya Ghar:

• Single national portal (pmsuryaghar.gov.in)
• Aadhaar-based eKYC login
• Online document upload
• Real-time status tracking
• PFMS direct bank transfer
• Clear stage-by-stage timeline

KUSUM Yojana:

• Varies by state, some states have online portals; others require district-level offline applications
• State nodal agency (TNEDA, GEDA, HAREDA, MSEDCL, etc.) manages the process
• Timeline is significantly longer, 3 to 12 months from application to installation in most states
• Subsidy transfer varies, some states transfer directly; others deduct from invoice

For KUSUM specifically, contact your state’s nodal agency and your agricultural DISCOM to understand the local application process. The KUSUM agricultural solar subsidy guide covers state-specific KUSUM application processes in detail.

Common Mistakes When Choosing Between the Schemes

• Applying to PM Surya Ghar with an agricultural connection: Ineligible. Agricultural connections must use KUSUM.
• A farmer applying only to KUSUM when a home solar system is also needed: Missed opportunity. A farming household can benefit from both schemes simultaneously for different installations.
• Expecting PM Surya Ghar to cover pump solarisation: The scheme covers only rooftop systems on residential buildings.
• Treating KUSUM as a faster process than PM Surya Ghar: In practice, KUSUM typically takes significantly longer due to state-level implementation variability.
• Not verifying module compliance for KUSUM equipment: Both schemes set conditions on the solar modules, which are checked against the ALMM lists, and MNRE publishes no ALMM list for inverters or pump controllers. Farmers are sometimes less familiar with this requirement and accept unverified modules from local dealers.

Where Qbits Fits

• KUSUM Yojana Agricultural Solar Guide: Detailed breakdown of KUSUM components, state applications, and equipment selection.
• PM Surya Ghar Eligibility Check: Confirm your residential connection qualifies before starting your application.