PM-KUSUM Scheme: Solar Energy Benefits, Subsidies, Application Process

The Ministry of New and Renewable Energy (MNRE) introduced the  to assist farmers in installing solar irrigation pumps for their agricultural requirements. In ordePradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) in March 2019r to encourage farmers to use de-dieselized irrigation systems and lessen their reliance on diesel-powered pumps, the program offers them loans and incentives.

Under the scheme:

  • Farmers who build pump sets and tube wells are given a 60% subsidy.
  • The government provides a further 30% loan.

In order to promote the use of renewable energy in agriculture, the PM-KUSUM Scheme assists farmers in producing energy using solar power and making money by selling excess electricity to the grid.


Key Components of PM-KUSUM Scheme

  1. Component A:
    Install grid-connected decentralized solar plants (up to 10 GW) with individual plants sized from 500 kW to 2 MW.
  2. Component B:
    Installation of stand-alone solar pumps of up to 7.5 HP for individual farmers with a cost of ₹17.5 lakh.
  3. Component C:
    Financial support for solarization of 10 lakh grid-connected agricultural pumps with 7.5 HP capacity each.

Benefits of the Scheme

  1. Solar Pump Installation Subsidy:
    The Government provides 60% subsidy and 30% loan, which cuts down the farmer’s liability.
  2. Income Generation:
    The additional electricity generated from the solar plants can be sold to the government. Thus, another source of income is also created.
  3. Eco-Friendly and Sustainable Farming:
    Solar-powered pumps replace the diesel-driven ones. Thus, eco-friendly and sustainable farming is encouraged.
  4. Barren Land Utilization
    The barren or uncultivated land can be used for solar plant installation and thus, ensure income for the next 25 years.
  5. Decrease in Environmental Pollution:
    Solar energy reduces pollution and encourages clean energy in rural areas.

Eligibility Criteria

  1. Individual farms may apply for solar pumps.
  2. A group of farmers, working with Cooperatives, Milk Unions, FPOs, SHGs, or private enterprises, may apply under the cluster concept.
  3. Panchayats and Water User Associations may apply for solar pump installations under the plan.
  4. Commercial enterprises, such as entrepreneurs, cooperatives, Gaushalas, and dairies, may establish huge biogas or CBG facilities.

Application Process (Online & Offline)

Online Application:

  1. Registration:
    Visit the official PM-KUSUM portal and click on ‘Citizen Assessment’.
  2. Fill in Details:
    Complete the registration form with required personal and financial details.
  3. Submit the Application:
    After filling in the details, submit the application form and ensure that the supporting documents are uploaded.
  4. Deposit 10% of the Cost:
    After successful online application, farmers need to deposit 10% of the cost to the supplier for setting up the solar pump.

Offline Process:

Farmers can also approach local authorities or implementing agencies for offline application submission.


Documents Required

  1. Aadhaar Card
  2. Land Documents (including Khasra/Khatauni)
  3. Bank Account Passbook
  4. Declaration Form
  5. Mobile Number
  6. Passport-size Photograph
  7. Income Proof (Self-certification/Affidavit)
  8. PAN Card (for Commercial Model applicants)
  9. GSTN (for businesses)

Frequently Asked Questions (FAQs)

  1. What is Biomethanation?
    Biomethanation is the process of converting organic waste into biogas using biological methods.
  2. What is Component-A of the PM-KUSUM Scheme?
    Component-A involves installing decentralized solar plants (10 GW capacity), which can support farmers by generating renewable energy.
  3. Who can apply for Component-B?
    Component-B supports the installation of standalone solar pumps of 7.5 HP capacity for farmers.
  4. What is Component-C?
    Component-C involves providing financial assistance for solarization of grid-connected agricultural pumps.
  5. Is there any subsidy for solar pumps?
    Yes, the government provides 60% subsidy for solar pump installation and 30% loan.
  6. Can farmers lease their land for renewable energy plants under Component-A?
    Yes, farmers can lease their land for solar plant installation under Component-A.
  7. What is the repayment period for the subsidy amount?
    The repayment period depends on the terms set by the implementing agencies.

Sources and References

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top