The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) is a central sector scheme launched by the Ministry of New and Renewable Energy (MNRE) to promote the use of solar energy in agriculture. It enables farmers to install solar pumps and grid‑connected solar power plants, with the aim of reducing reliance on diesel and grid electricity, while also offering potential income through surplus power sales. Based on our long‑standing engagement with the farming community in Kasaragod, we have observed that access to reliable and affordable energy is a critical enabler for sustainable farming. While Vikas Agro Service does not directly deal in solar equipment, we remain committed to supporting farmers with high‑quality irrigation pumpsets, agricultural machinery, and expert advice on system integration.

Launched in March 2019, PM-KUSUM is designed to accelerate renewable energy adoption in the agricultural sector. The scheme provides substantial financial support—in the form of subsidies and loans—for installing solar irrigation systems and solar power plants on farmlands. As of December 2025, the scheme has reportedly benefited over 21.77 lakh farmers, with a cumulative installed solar capacity of 9,466 MW across India. ^[1] These figures, as cited by the MNRE, indicate the growing reach of the programme. In our experience guiding farmers through various government initiatives, we have found that a clear understanding of the scheme's components and documentation requirements is essential for a smooth application process.

The PM-KUSUM scheme is structured around three main components, as detailed in the official guidelines:

• Three Components: Component A – grid‑connected solar power plants (up to 2 MW) on barren land; Component B – standalone solar pumps (up to 7.5 HP) for off‑grid irrigation; Component C – solarisation of existing grid‑connected pumps, including the option for farmers to sell surplus power to distribution companies (discoms). ^[2]
• High Subsidy: The central government provides a subsidy of 30% of the benchmark cost (50% for North Eastern and hilly states), with an additional state subsidy of up to 30% (depending on the state). This leaves the farmer with only about 10% of the total cost, while the remaining 30% can be covered through a bank loan. ^[1]
• Additional Income Opportunity: Under Components A and C, farmers can sell surplus electricity to discoms at fixed tariffs, potentially creating a supplementary income stream. However, actual earnings depend on grid connectivity, state policies, and power generation.
• Diesel Replacement: By transitioning from diesel pumps to solar pumps, farmers can significantly reduce their recurring fuel expenditure. Official estimates suggest potential savings in the range of ₹5,000–6,500 per acre per year, though actual savings vary based on usage patterns and local conditions. ^[1]
• Agri‑Voltaics: Solar panels installed at an elevated height allow continued cultivation beneath them, optimising land use—a feature particularly relevant for regions with limited arable land.

PM-KUSUM is open to individual farmers, groups of farmers, Farmer Producer Organisations (FPOs), panchayats, and cooperatives. The financial structure is designed to minimise the upfront burden on farmers:

• Central Subsidy: 30% of the benchmark cost (50% for NE and hilly states).
• State Subsidy: Up to 30% (varies by state; farmers should check with their state nodal agency).
• Farmer Contribution: Typically 10% of the total cost.
• Bank Loan: 30% available as a collateral‑free loan at concessional rates through partner financial institutions.

Illustrative Example: For a 5 HP solar pump with a benchmark cost of approximately ₹1.20 lakh, the farmer's upfront contribution would be around ₹12,000 (10%), while the government contributes ₹72,000 (60% subsidy) and a bank loan covers the remaining ₹36,000 (30%). These figures are indicative; farmers are advised to refer to the latest state‑wise benchmark costs and subsidy notifications on the official portal. ^[2]