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Policies Updated October 14, 2026

PM-KUSUM

Quick Definition

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is India's flagship scheme for agricultural solar, launched in 2019. It targets 35 GW of solar capacity in agriculture by 2026 across three components: A (decentralised solar plants), B (standalone solar pumps), C (grid-connected solar pumps).

Quick Facts

Term
PM-KUSUM
Category
Policies
Industry
Agricultural Solar Policy
Primary Use
Solarising agriculture
Common Users
Farmers, state agencies, MNRE
Standards
MNRE PM-KUSUM scheme guidelines
Related Technologies
Solar pumps, solar parks, grid feeders

ALMM and inverter compliance: MNRE का मौजूदा ALMM पेज solar PV module और cell की सूचियां प्रकाशित करता है, inverter की सूची नहीं। Inverter के exact model documents और लागू scheme या DISCOM requirements अलग से verify करें।

What is PM-KUSUM

PM-KUSUM, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, is the Government of India’s flagship scheme for agricultural solar, launched in March 2019. It targets 35 GW of solar capacity in agriculture by 2026 through three components: A, B and C. For a full walkthrough of subsidy amounts and state-wise application steps, see the KUSUM Yojana Agricultural Solar Subsidy Complete Guide 2026.

The scheme addresses three distinct agricultural energy challenges: barren farm land that can host solar plants (Component A), farmers without grid access who rely on diesel pumps (Component B), and grid-connected pumps that subsidise DISCOMs (Component C). Each component has its own subsidy structure, eligible technology and implementation pathway.

Implementation runs through state agencies (state nodal agencies for renewable energy) with central financial support from MNRE. Banks provide concessional finance for the farmer share of capex. Solar modules and cells fall under the ALMM requirement where it applies; pumps and inverters follow the scheme’s technical specifications.

PM-KUSUM components

PM-KUSUM components and their capacity targets
ComponentDescriptionTarget
Component ADecentralised solar plants on farmer land10 GW
Component BStandalone solar pumps14 lakh pumps
Component CGrid-connected pump solarisation35 lakh pumps

Why PM-KUSUM matters

Diesel replacement. 35 lakh diesel pumps consume billions of litres of fuel annually. Solar pumps eliminate this.

Farmer income. Solar offers free electricity plus surplus revenue.

DISCOM relief. Agricultural subsidy is one of the largest DISCOM losses. Solarisation reduces it.

Carbon abatement. Estimated 30 to 50 million tonnes CO2 saved annually at target capacity.

Rural electrification. Component B brings electricity where the grid does not reach, often paired with an off grid inverter for standalone pump loads. Sizing the pump controller correctly matters as much as the subsidy; see Solar Inverter for Water Pump, KUSUM-Compatible Picks for HP-to-kW conversion and inrush current guidance.

Land utilisation. Component A monetises barren land.

Technical deep dive

Component A details

Component A (decentralised plants on farm land) at a glance
AspectDetail
Eligible landBarren or fallow farm land
Capacity500 kW to 2 MW per plant
TariffState FIT, typically ₹3.10 to ₹4.50/kWh
Land leaseFarmer receives ₹0.30 to ₹1/kWh equivalent
DeveloperSelected through state tender
SubsidyNone (commercial PPA model)

Component B details

Component B (standalone solar pumps) at a glance
AspectDetail
Pump capacity0.5 to 7.5 HP
Capex₹1.5 to ₹4 lakh per pump
Central subsidy30 percent
State subsidy30 percent
Farmer contribution10 percent (with 30 percent bank loan)
EquipmentDC submersible or surface pump with VFD

Component C details

Component C (grid-connected pump solarisation) at a glance
AspectDetail
Eligible pumpsExisting grid-connected agricultural
Subsidy structureSimilar to Component B
Surplus powerSold to DISCOM at FIT
Net meteringApplicable for individual pump solarisation
Feeder solarisationAggregate solar at substation level

Equipment requirements

  • BIS-certified balance of system
  • Pump motor compliant with MNRE specs
  • VFD-based variable frequency for direct solar coupling
  • Anti-theft features

Real-world applications

Replacing diesel pumps in rural Maharashtra, Rajasthan, Gujarat, MP and Karnataka.

Decentralised 1 MW solar plants on farm fallows.

Feeder-level solarisation of agricultural connections.

Tribal and remote village solar pumps.

Drip and micro-irrigation solar pumps.

Implementation status (2026 approximation)

Approximate 2026 implementation status against target, by component
ComponentInstalled (approximate)Target% achieved
Component A0.7 GW10 GW7%
Component B3.4 lakh pumps14 lakh24%
Component C1.5 lakh pumps35 lakh4%

Component B shows fastest adoption; A and C have struggled with land aggregation and DISCOM coordination.

Advantages

Significant capex subsidy.

Diesel cost elimination.

Surplus power monetisation.

Land monetisation for Component A.

DISCOM AT&C improvement.

Limitations

Component A land aggregation challenges.

DISCOM payment delays affecting FIT economics.

Service network gaps in remote areas.

ALMM and supply chain bottlenecks.

State-level implementation variation.

Common problems

Bank loan disbursement delays.

ALMM-listed equipment availability in remote districts.

Pump theft from unattended fields.

Soiling reducing yield in dusty regions.

DISCOM net metering delays for Component C.

Best practices

Verify state agency empanelment.

Choose ALMM-listed equipment.

Plan anti-theft measures for remote pumps.

Schedule annual maintenance and cleaning.

Maintain pump performance logs.

Indian market context

State nodal agencies for renewable energy implement PM-KUSUM at the state level.

Major participating states: Maharashtra, Rajasthan, Gujarat, Madhya Pradesh, Karnataka, Andhra Pradesh, Punjab, Haryana.

MNRE tracks scheme progress monthly through state-wise dashboards.

Banks under PM-KUSUM include NABARD, SBI, BoB and rural cooperative banks.

PLI Phase II includes pump-specific manufacturing incentives.

Standards and certifications

Scheme guidelines and standards that apply to PM-KUSUM equipment
StandardScope
MNRE PM-KUSUM scheme guidelinesImplementation framework
MNRE technical specifications for solar pumpsEquipment requirements
BIS certificationQuality compliance
IS 7396 / 9283Submersible pump standards

Common mistakes

Underestimating pump load profile.

Choosing pumps not in MNRE specs.

Skipping anti-theft hardware.

Inadequate maintenance schedule.

Not signing net metering for Component C.

Key takeaways

PM-KUSUM is India’s largest agricultural solar scheme with 35 GW target by 2026. Three components address decentralised solar plants on farm land, standalone solar pumps and grid-connected pump solarisation. Subsidies cover 60 percent of capex through central and state contributions. Component B leads adoption with over 3 lakh pumps installed. Component A and C face execution challenges around land aggregation and DISCOM coordination.

Further reading

For how PM-KUSUM plays out in real projects, these guides go deeper:

Sources

  • PM-KUSUM Scheme Guidelines, MNRE.
  • MNRE Technical Specifications for Solar Pumps.
  • State Nodal Agency implementation documents.
  • Current ALMM evidence for the applicable module or cell, plus separate pump, inverter, scheme, and implementing-agency documents.
  • MNRE Annual Reports.
  • IS 7396, IS 9283, submersible pump standards.
  • NABARD financing guidelines for solar pumps.
  • IEA Renewables 2024 on agricultural solar.
  • IRENA Renewable Energy in Agriculture.

Apply this term

FAQ

Frequently Asked Questions

What is PM-KUSUM in simple words?
A central scheme that subsidises solar for farmers: standalone solar pumps, solarisation of grid-connected pumps and decentralised solar plants on farm land.
What does PM-KUSUM stand for?
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan.
What are the components?
Component A: 10 GW of decentralised ground-mounted solar plants on barren farm land. Component B: 14 lakh standalone solar pumps. Component C: 35 lakh grid-connected pump solarisation.
When was PM-KUSUM launched?
March 2019.
What is the target capacity?
35 GW of solar capacity by 2026 across all three components.
What is the subsidy structure?
Up to 60 percent of capex split between central (30%) and state (30%). Farmer pays 40% (10% directly plus 30% through bank loan).
Who is eligible?
Component A: farmers with barren land. Component B: farmers without grid connection. Component C: farmers with grid-connected agricultural pumps.
What pump capacities are funded?
0.5 HP to 7.5 HP for standalone pumps. Higher capacity through Component C feeder solarisation.
How does Component A work?
Farmer leases barren land to developer. Developer installs solar plant. Plant sells power to DISCOM at FIT. Farmer gets land lease.
How does Component B work?
Standalone solar pump replaces diesel pump. Farmer pays 10% capex. Government covers 30%. Bank loan 30%. State subsidy 30%.
How does Component C work?
Existing grid-connected agricultural pumps solarised through feeder-level or individual installations. DISCOM purchases surplus.
Are PM-KUSUM components ALMM-required?
The ALMM lists solar PV modules and cells, so solar modules supplied under the scheme must meet whatever ALMM requirement applies to that component. It does not list pumps or inverters, which follow the scheme's own technical specifications. Check the current MNRE and state agency guidelines.
Is net metering applicable?
For Component C with grid-connected pumps, yes. Component B standalone does not require it.
What is the typical farmer payback?
3 to 5 years for standalone pumps, due to fuel cost replacement and subsidy.
Where does Component A solar power go?
Sold to local DISCOM at a state-determined feed-in tariff, typically ₹3.10 to ₹4.50/kWh.
Nirav Dhanani
Written by
Nirav Dhanani · CEO

Co-founder & CEO driving Qbits Energy's product strategy and growth across India.

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