PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is the central scheme that helps farmers use solar power. It has three parts: Component A for small solar plants on farmland, Component B for stand-alone solar pumps, and Component C for converting existing grid-connected pumps to solar. For pumps under B and individual pumps under C, the central government pays 30% of the cost (50% in the north-eastern, hilly and island states), and the farmer pays the rest. Details last checked October 2026.
Quick facts
| Item | Details |
|---|---|
| Launched | March 2019; expanded in 2023 |
| Central financial support | Rs 34,422 crore, including service charges |
| Overall capacity target | 34,800 MW; 13.11 GW installed by 31 March 2026 (MNRE, as reported) |
| Current status | Phase 1 completion extended to 31 March 2027 for projects with a PPA or notice to proceed issued by 31 December 2025 |
| Next phase | PM-KUSUM 2.0 is being prepared; not formally notified as of October 2026 |
| Last checked | October 2026 |
The three components explained
| Component | What it covers | Target | Progress reported |
|---|---|---|---|
| A | Decentralised grid-connected solar plants on barren, fallow or farm land, with power sold to the DISCOM | 10,000 MW | 1,202 MW installed by 30 April 2026; 1,726.92 MW by 30 June 2026 (reply in Parliament, as reported) |
| B | Stand-alone off-grid solar water pumps | 14 lakh pumps | 10.9 lakh installed, about 13.07 lakh sanctioned (30 April 2026) |
| C | Solarisation of existing grid-connected agricultural pumps, either individually (IPS) or through feeder-level solarisation (FLS) | 35 lakh pumps (B and C later grouped at 49 lakh) | About 15,000 individual pumps and 15.7 lakh feeder-level pumps installed (30 April 2026) |
The progress numbers show a clear pattern: stand-alone pumps (Component B) and feeder solarisation have moved much faster than Component A and individual pump solarisation. If you are a farmer, that is useful, because it tells you where schemes are actually reaching people.
Component A: solar plants on your land
Under this component, small plants are set up near substations and the power is sold to the local DISCOM. A farmer who owns suitable land can lease it or run the plant as an income source. According to the scheme guidelines as I know them, plants are in the range of 500 kW to 2 MW; confirm the exact limits with your state nodal agency.
The farmer does not receive a direct subsidy here. Instead, the DISCOM receives a procurement-based incentive of 40 paise per kWh or Rs 6.60 lakh per MW per year, whichever is less, for five years from the commercial operation date. That is roughly Rs 33 lakh per MW over five years. The income to the landowner comes from the sale of power under the power purchase agreement, so the tariff your state commission approves matters a lot.
This component has the weakest progress. A September 2025 report said only about 650 MW was installed, and several states had nothing installed. Loans have been a bottleneck: MNRE itself said financial closure was delayed by constrained lending from banks and financial institutions.
Component B: stand-alone solar pump
This is the most popular component. It replaces a diesel pump with a solar pump that is not connected to the grid. The central government pays 30% of the benchmark cost or the tender price, whichever is lower. In the north-eastern states, hilly states and islands, including Sikkim, Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and the Andaman and Nicobar Islands, the central share is 50%.
| Who pays | Normal states | North-east, hilly states, islands |
|---|---|---|
| Central government | 30% | 50% |
| Farmer (including any state share or loan) | 70% | 50% |
The IBEF scheme page notes that the earlier rule requiring a fixed 30% state share was removed by a 2023 office memorandum, so the farmer’s share depends on whether your state adds a subsidy. Many states top up, so your actual payment may be well below 70%. Check with your state agency for the exact pump prices and state share.
Component C: solarising grid-connected pumps
Here a farmer who already has an electric pump on the grid can fit solar panels to it. Central assistance is 30% for individual pumps, with the same 50% rate for special-category states. For feeder-level solarisation, where a whole agricultural feeder is powered by solar, the central assistance is Rs 1.05 crore per MW with no mandatory state contribution, and it can be done by capital investment or through a RESCO model.
Farmers on a solarised feeder may not apply individually; the DISCOM or state agency takes the decision. That is why FLS numbers are much higher than IPS numbers.
Who can apply?
- Individual farmers, groups of farmers, cooperatives, panchayats and farmer producer organisations (as per scheme guidelines; confirm in your state).
- For Component B and C pumps: farmers with farmland and a water source, who are not served by a reliable grid connection (B) or already have a grid pump (C).
- For Component A: landowners with suitable land near a substation.
I could not confirm a single national list of required documents because the application is handled by state nodal agencies and DISCOMs. Expect to need land records, Aadhaar, a bank account and a recent passport photo as a general rule.
How to apply
- Check whether your state has an active PM-KUSUM sanction. Capacity is allocated state by state, so applications open only where the state has invited them.
- Contact your state’s nodal agency (for example the state renewable energy development agency) or your DISCOM, or look for the state’s PM-KUSUM application portal.
- Submit the application with land and identity documents and pay your share when asked.
- An empanelled vendor will survey the site and install the pump or plant.
- Keep the commissioning documents; subsidy is paid to the vendor or adjusted in your payment as per state practice.
Latest changes: deadline and PM-KUSUM 2.0
The original scheme ended in March 2026. MNRE then extended the completion deadline to 31 March 2027 for projects with a power purchase agreement or notice to proceed issued on or before 31 December 2025, as reported by Energetica India in March 2026. A later trade report says the deadline for financial closure for Components A and C was moved to 30 November 2026, with no further extension. I could not verify that last point on an MNRE page, so treat it as reported.
PM-KUSUM 2.0 is the likely successor. The Union Budget 2026-27 allocated about Rs 5,000 crore to KUSUM. Reports mention a possible outlay of Rs 50,000 crore, a 10 GW agrivoltaics component and battery storage, but these are not official until the Cabinet approves and MNRE notifies the scheme. Do not rely on rumoured subsidy percentages.
Tips for farmers
- Do not pay any middleman for a ‘KUSUM registration’. Use your state agency or DISCOM.
- Insist on a pump from an empanelled supplier with a written warranty.
- Ask for the sanction letter and the total price breakup before paying.
- Check if your state gives an extra subsidy, which can cut your payment sharply.
Conclusion
PM-KUSUM remains one of the strongest ways for a farmer to reduce diesel or electricity costs, especially through Component B pumps. Because the scheme is moving from Phase 1 to a planned 2.0, the safest step is to contact your state nodal agency now and ask what is open in your district.
Frequently Asked Questions (FAQ)
What is PM-KUSUM Yojana?
It is a central scheme to give farmers solar power through small solar plants (A), stand-alone solar pumps (B) and solarisation of grid-connected pumps (C).
How much subsidy is given for a solar pump under PM-KUSUM?
The central government pays 30% of the benchmark or tender cost, or 50% in north-eastern, hilly and island states. The state may add its own share.
Is PM-KUSUM still open in 2026?
Phase 1 projects with approvals issued by 31 December 2025 can be completed until 31 March 2027. PM-KUSUM 2.0 had not been formally notified as of October 2026.
How can a farmer apply for PM-KUSUM?
Applications are handled through the state nodal agency or DISCOM. Contact them to check if your district has sanctions.
What is feeder-level solarisation?
It means powering an entire agricultural feeder with solar, with central assistance of Rs 1.05 crore per MW, instead of fitting solar to single pumps.
