PM-KUSUM Scheme Explained: Components, Subsidy, Benefits & Solar Opportunities

India is rapidly expanding its renewable energy capacity, and agriculture is playing a key role in this transition. One of the most important initiatives supporting solar adoption in rural India is the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme.

Launched by the Ministry of New and Renewable Energy (MNRE), the scheme promotes the use of solar energy for agricultural irrigation and decentralized power generation. It aims to provide reliable electricity to farmers, reduce diesel dependency, and increase rural income through solar power generation.

Official Scheme Information:
https://mnre.gov.in/en/solar/schemes/pm-kusum/

What is the PM-KUSUM Scheme?

The PM-KUSUM Scheme is a government program designed to help farmers install solar pumps and decentralized solar power plants.

The initiative targets 34,800 MW of solar capacity by 2026, helping India expand renewable energy while addressing agricultural energy needs.

Key benefits include:

  • Reduced dependence on diesel pumps
  • Reliable daytime electricity for irrigation
  • Opportunity to sell surplus solar power
  • Support for decentralized solar infrastructure

Through this scheme, farmers can become both food producers and energy producers.

What are the Components of the PM-KUSUM Scheme?

The scheme consists of three major components designed to improve energy access in agriculture.

Component A – Decentralized Solar Power Plants

Farmers, cooperatives, and entrepreneurs can set up grid-connected solar plants (500 kW – 2 MW) on barren or agricultural land.
The electricity generated is sold to local DISCOMs under long-term agreements.

Component B – Standalone Solar Pumps

This component supports the installation of solar-powered irrigation pumps, replacing diesel pumps and lowering fuel costs.
Government subsidies help reduce the initial installation cost.

Component C – Solarisation of Grid-Connected Pumps

Existing agricultural pumps connected to the grid can be converted to solar power.
This also includes feeder-level solarisation, where solar plants power multiple farms through a dedicated feeder.

Benefits of the PM-KUSUM Scheme

The PM-KUSUM scheme provides both economic and environmental advantages.

Lower Irrigation Costs
Solar pumps eliminate recurring diesel expenses and reduce electricity bills.

Reliable Daytime Power
Farmers can irrigate crops during the day instead of relying on limited nighttime electricity.

Additional Income
Farmers can sell excess solar electricity to DISCOMs.

Sustainable Agriculture
Solar irrigation reduces carbon emissions and supports clean energy adoption in rural India.

Opportunities in Solar Infrastructure

The scheme also creates opportunities for:

  • Solar developers
  • EPC companies
  • Renewable energy investors

Decentralized solar projects strengthen rural power infrastructure while contributing to India’s renewable energy targets.

Future of Solar in Agriculture

Government initiatives like PM-KUSUM are transforming India’s agricultural energy system. Solar irrigation and decentralized solar plants can help farmers access reliable power, reduce costs, and adopt sustainable farming practices.

As solar adoption increases, rural communities will play a major role in India’s clean energy transition and energy security.

Conclusion

The PM-KUSUM Scheme is a major step toward integrating solar power with agriculture in India. By promoting solar pumps and decentralized solar plants, the program helps farmers reduce energy costs, increase income, and contribute to renewable energy growth.

With continued policy support and investment, PM-KUSUM will remain a key driver of sustainable agriculture and rural solar development in India.

Frequently Asked Questions (FAQs)

  1. What is the PM-KUSUM Scheme?
    The PM-KUSUM Scheme is a government initiative launched by the Ministry of New and Renewable Energy to promote solar-powered irrigation and decentralized solar power generation in agriculture. It helps farmers reduce diesel usage, access reliable electricity, and generate additional income through solar power. 
  2. What are the components of the PM-KUSUM Scheme?
    The scheme has three major components:
    Component A: Installation of decentralized solar power plants (500 kW – 2 MW).
    Component B: Installation of standalone solar irrigation pumps.
    Component C: Solarisation of existing grid-connected agricultural pumps. 
  3. What is the target capacity under the PM-KUSUM Scheme?
    The government aims to install 34,800 MW of solar capacity by 2026 through solar pumps and  decentralized solar power plants across rural India. 
  4. What are the benefits of the PM-KUSUM Scheme for farmers?
    Farmers benefit through lower irrigation costs, reliable daytime electricity, reduced diesel dependency, and the opportunity to sell surplus solar power to local DISCOMs for additional income. 
  5. Who can apply for the PM-KUSUM Scheme?
    Farmers, farmer cooperatives, panchayats, and entrepreneurs can apply under different components of the scheme depending on the type of solar installation and state-level implementation guidelines.