KUSUM for Tenant Farmers: Rules & Pathways 2026

How tenant farmers and sharecroppers can access PM-KUSUM: 4 eligibility paths, lease deeds, the FPO route, documents and the scheme's 2026 status.

KUSUM for Tenant Farmers: Rules & Pathways 2026

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was designed around an unstated assumption, that the applicant farmer holds clean, recorded title to the land. That assumption excludes a large number of working cultivators in India who farm through tenancy, sharecropping, oral lease, or an unmutated joint patta, because in most states only a recorded landowner or registered lessee can sign the KUSUM application in front of the DISCOM (electricity distribution company) or state agency. For tenant farmers and sharecroppers, the question is not “do I qualify?” but “which legal pathway gets the pump or the plant onto land I cultivate but do not own?”

This guide maps the four legitimate routes a tenant farmer can take under PM-KUSUM, a registered long-term lease, a joint patta arrangement, a Farmer Producer Organisation (FPO) cooperative model, and the Component C grid-tied pump route through the landowner. Each has its own paperwork, cost, and risk profile.

Direct answer. Tenant farmers and sharecroppers cannot apply for PM-KUSUM directly without a recognised land claim. The four working pathways are: a long-term lease deed registered with the sub-registrar (states set the minimum term, often 10 years or more); a joint patta entry in the revenue record; joining an FPO or SHG (Self-Help Group) that installs the system and shares benefits per share; or letting the landowner apply for Component C grid-tied pump solarisation while the tenant continues using the pump. Pump subsidies are 30% central plus the state share; Component A has no capital subsidy. New applications depend on PM-KUSUM 2.0, as the scheme period ended on 31 March 2026.

Scheme status, October 2026. PM-KUSUM’s sanctioned period ran to 31 March 2026. MNRE has allowed only projects whose PPA was signed, or whose Notice to Proceed was issued, on or before 31 December 2025 to complete, by 31 March 2027, with no extension beyond that date (MNRE office memoranda of 28 March, 25 May and 28 September 2026 on the PM-KUSUM national portal). New applications depend on PM-KUSUM 2.0, which MNRE described in March 2026 as at the proposal stage. Sorting out a lease or FPO membership now still helps, because land-document rules will matter again when a window opens; confirm with your state agency whether one is actually open.

If you cultivate land you do not own, this guide will tell you which of the four paths fits your tenancy type, what documents you actually need, and where state tenancy law in Maharashtra, Uttar Pradesh, Bihar, Punjab, or Rajasthan will help or block you.

Why KUSUM Eligibility Excludes Most Pure Tenant Farmers

PM-KUSUM rests on three components. Component A finances 500 kW–2 MW decentralised solar plants on barren or fallow farmland that feed the grid. Component B subsidises standalone off-grid solar irrigation pumps. Component C solarises existing grid-connected agricultural pumps. Every one of the three requires the applicant to demonstrate an enforceable land claim, title, patta, or registered lease, because the DISCOM needs to know who owns the asset on the land and who is responsible if a dispute lands at the revenue court.

A pure tenant farmer with no written agreement holds no such claim under DISCOM rules. The Ministry of New and Renewable Energy (MNRE) guidelines leave land-document rules to the states, and state agencies typically ask for an ownership record or a registered long-term lease. Oral tenancy, batai (sharecropping) arrangements settled by handshake, or annual khorkhi rotations do not qualify on paper, even when the cultivator has been on the same land for two decades.

The result is a paperwork problem stacked on a structural problem. A farmer who has the irrigation need, the agronomic case, and the willingness to take a 10% loan still fails the eligibility filter unless one of four paths is opened. For a complete overview of how the three components actually work, start with our PM-KUSUM complete guide.

31 Mar 2026
PM-KUSUM scheme period ended
MNRE office memorandum, 28 Mar 2026
State-set
Minimum lease term for KUSUM
Often 10+ years; check your state agency
2.0
PM-KUSUM 2.0 needed for new applications
Proposal stage, MNRE, Mar 2026
30 to 60%
Pump subsidy (central + state)
Components B and C; none on A

The 4-Path Tenant Farmer KUSUM Eligibility Map

We call this The 4-Path Tenant Farmer KUSUM Eligibility Map because every tenant cultivator we have advised falls into one of these four categories. The right path depends on three variables, your relationship with the landowner, the tenancy law that applies in your state, and how much capital expenditure (capex) you are willing to share with a cooperative.

PathWho it fitsTenant capex shareSubsidy accessTime to install
1. Registered long-term leaseTenant with cooperative landownerUp to 40% under Comp BFull Component B (30% central + state share)90 to 150 days
2. Joint patta routeFamily-held land with multiple heirsSplit per shareFull B or C120 to 180 days
3. FPO / SHG cooperativeSmall / marginal tenant farmers₹500–₹5,000 share buy-inCooperative captures the pump subsidy180 to 270 days
4. Component C through landownerTenant on land with existing grid pumpZero, tenant pays nothingLandowner captures subsidy; tenant benefits60 to 120 days

Path 1: Notarised Long-Term Lease Deed

This is the direct path. The landowner signs a registered long-term lease in your favour (check the minimum term your state accepts; 10 years or more is common), the deed is stamped and registered at the sub-registrar’s office, and you, the lessee, apply for KUSUM Component B (off-grid pump) or Component A (small ground-mounted plant) in your own name. Where the state accepts leases, the registered lease stands in for the patta. If you are weighing whether a long lease or an outright land purchase makes more sense for your solar plans, our land lease vs purchase for solar glossary entry walks through the trade-offs.

Cost is modest. Stamp paper runs ₹100–₹500 depending on state schedule, sub-registrar registration adds ₹2,000–₹5,000, and notarisation is under ₹500. The landowner’s incentive is usually a one-time signing payment of ₹10,000–₹50,000 plus a continuing share of the irrigated produce, negotiated privately.

The deed must explicitly mention the right to install fixed solar infrastructure, the right to draw groundwater, and the right to interconnect with the grid if Component C is contemplated. Without these specific clauses, the DISCOM legal cell may reject the lease as silent on the asset right.

Path 2: Joint Patta Route

In a large share of north Indian holdings, the patta is recorded in the name of a deceased ancestor and held jointly by several legal heirs. If you are one of the heirs and currently cultivate the land, you do not need a separate lease, you need a mutation entry in the revenue record confirming your share, plus a no-objection certificate (NOC) from the other co-pattadars. With the NOC and the mutation, the DISCOM treats you as a co-owner eligible to apply directly.

Joint patta is particularly relevant for Component A (the 500 kW–2 MW landowner plant), where multiple heirs of a fallow holding pool consent to lease the land to a developer and share the revenue. See our Component A landowner guide for the lease-to-developer economics that make this work.

Path 3: FPO and SHG Cooperative Model

When the tenant cannot obtain a written lease, and in most batai arrangements the landlord refuses, the cooperative route opens a different door. A Farmer Producer Organisation (FPO) registered under the Companies Act or as a Producer Cooperative under state law is itself an eligible applicant under PM-KUSUM: MNRE’s guidelines name FPOs for Component A and allow cluster pumps for FPOs and Water User Associations under Component B. The FPO buys or leases land in its own name, installs the solar plant or the cluster of pumps, and distributes the benefits, irrigation water, electricity, revenue, to its member-shareholders per share.

A tenant farmer joins the FPO by buying a share (typically ₹500–₹5,000) and gains access to subsidised solar irrigation that they could never have applied for individually. The central scheme for forming and promoting 10,000 FPOs, implemented through agencies including NABARD (National Bank for Agriculture and Rural Development), supports FPO formation and includes an equity grant. The Self-Help Group (SHG) variant is functionally identical but routed through women’s collectives under the Deendayal Antyodaya Yojana – NRLM.

Path 4: Component C Through the Landowner

The simplest path requires no paperwork at all on the tenant’s side. If the landowner already operates a grid-connected agricultural pump and the tenant is using the same pump under a continuing batai or rent arrangement, the landowner applies for KUSUM Component C individual pump solarisation (or benefits when the DISCOM solarises the feeder), and the tenant simply continues to draw irrigation as before. The solar capex is the landowner’s, the subsidy belongs to the landowner, but the tenant gets reliable daytime irrigation that the diesel or erratic grid never provided. See our diesel-to-solar pump replacement guide for how that claim is documented.

Component C breaks into two variants, IPS (Individual Pump Solarisation) and FLS (Feeder Level Solarisation). For a deep dive on which variant suits which situation, read our KUSUM Component C grid-tied pump guide.

How Long-Term Lease Documentation Works

The lease deed is the single document on which Paths 1, 2, and parts of 3 stand or fall. The DISCOM legal cell scrutinises this paper the way a bank scrutinises a property mortgage. Get the format right the first time.

What a long-term lease deed should contain
Lease clauseRequired wordingWhy DISCOM checks it
Parties and identityFull names, Aadhaar numbers, addressesConfirms parties are real and traceable
Land descriptionKhasra / khata / survey number, area in hectares, village, tehsil, districtMatches against revenue record
Lease duration”Ten (10) years from the date of registration, with option to renew” (or your state’s minimum)Short leases can fail the state’s land-proof check
Rent / considerationOne-time + annual amounts, in figures and wordsAvoids future dispute on payment
Right to install solar”Lessee has full right to install fixed solar PV infrastructure, pumps, and balance of system”Without this the asset right is silent
Right to draw groundwaterReference to state groundwater rulesAligns with KUSUM pump installation
Right to grid interconnectionRight to apply for net metering or feeder connectionNeeded for Component C variants
TerminationNotice period, asset removal termsProtects both parties at lease end
RegistrationSub-registrar stamp, date, document numberWithout registration the deed is non-binding

Stamp duty is governed by each state’s Stamp Act and usually depends on the rent and the lease term; check the current schedule with your sub-registrar (in Rajasthan, the registration and stamps department). Some states restrict agricultural leasing under their tenancy laws, which can make Path 1 difficult and push tenants towards Path 3.

FPO and SHG Route, Strongest for Tenant Farmers

If you have no written lease and the landowner will not sign one, the FPO route is your best opening. The mechanics differ from Paths 1 and 2 in a fundamental way, the FPO holds the asset, not the individual tenant. You participate as a member-shareholder.

FPO and SHG models for tenant farmers
FPO modelHow it worksBest forSubsidy structure
Land-leasing FPOFPO leases pooled land from members and non-members; installs Component A 500 kW plantMarginal tenant farmers in a contiguous beltNo capital subsidy on Component A; income from the 25-year DISCOM PPA
Pump-cluster FPOFPO installs Component B standalone or cluster pumps for membersScattered tenant cultivators on small plots30% central + at least 30% state; for group pumps, central aid counts up to 7.5 HP per member
Service FPOFPO does not own assets; aggregates KUSUM applications and shares subsidy with membersTenants who have any partial land claimMembers claim subsidy individually, FPO charges service fee
SHG-led modelWomen’s SHG federation installs cluster of pumps, often with NRLM supportWomen tenant farmersKUSUM pump subsidy; check whether any NRLM support can be combined

Source: MNRE PM-KUSUM page for the 30% central assistance, the state share of at least 30% and the 7.5 HP limit on standalone pumps. The model descriptions and member-level details are this article’s own.

The FPO route also has a financial advantage that is rarely discussed. Banks and NBFCs (non-banking finance companies) under the SIDBI and NABARD refinance windows lend against the FPO’s pooled balance sheet, not the individual tenant’s. A tenant who cannot get a ₹2 lakh pump loan in their own name can get the same pump through an FPO that has a ₹50 lakh refinance line.

Tenant cultivator, no patta, no lease? Heaven Green Energy partners with FPOs and SHGs across Rajasthan, Maharashtra, and UP. We help you find the right cooperative to join, handle the technical proposal, and manage the KUSUM application end-to-end. Get your free advisory call →

A practical sequencing point, if no FPO exists in your block, the central government’s 10,000 FPO scheme can support starting one. A group of tenant farmers can register an FPO with a modest corpus, but allow several months for registration before it can apply for anything. For the state-level KUSUM pathways that interact with FPO models, see our KUSUM Rajasthan, KUSUM Maharashtra application guide, and KUSUM UP application guide.

State Tenancy Law Considerations

Tenancy law in India is a state subject, and the KUSUM application sits on top of whatever the state allows or forbids. Five states cover the bulk of our tenant-farmer enquiries.

StateKey tenancy statuteWhat to check before choosing a path
MaharashtraMaharashtra (formerly Bombay) Tenancy and Agricultural Lands Act, 1948Whether you hold protected-tenant status, and restrictions on new leases
Uttar PradeshUP Revenue Code, 2006Whether the landowner is permitted to lease, and your tenant category (for example asami)
BiharBihar Tenancy Act, 1885Any limits on lease terms that rule out a long registered lease
PunjabPunjab Security of Land Tenures Act, 1953Whether you already hold tenancy rights under the Act that the agency recognises
RajasthanRajasthan Tenancy Act, 1955Khatedar (recorded) versus ghair-khatedar status; khatedars apply as landholders
KarnatakaKarnataka Land Reforms Act, 1961Agricultural tenancy is heavily restricted, so ask KREDL what land proof it accepts

Some states accept other proof of cultivation for small pumps, but we have not found a state rule that lets an unwritten lease stand in for a land record; always get your implementing agency’s accepted-documents list in writing. Occupancy tenants in Punjab should read our KUSUM Punjab application guide.

For Rajasthan-specific subsidy stacking, where state DREBP grants sit on top of central KUSUM, see our DREBP and PM-KUSUM stacking guide.

Common Documentation Mistakes

Across the tenant-farmer applications we have advised through 2024 to 25, six mistakes account for the majority of rejections at the DISCOM document-verification stage. Each is preventable.

If you have already received a rejection on any of these grounds, check how long your state keeps the reference open, fix the document and resubmit rather than starting over.

Decision: Which Path Suits Your Tenancy Type

The two paths most tenant farmers debate are Path 1 (notarised lease) and Path 3 (FPO/SHG cooperative). Both work, but they suit very different situations.

FPO / SHG route, pros and cons
  • Pro No lease required from a reluctant landowner
  • Pro Pooled finance, NABARD refinances FPO balance sheet
  • Pro SHG variant can draw on NRLM support
  • Pro Shared maintenance cost across members
  • Con Asset belongs to FPO, not individual
  • Con Slower install timeline, 180 to 270 days
  • Con Governance disputes within FPO can stall benefits
Notarised lease, pros and cons
  • Pro Asset belongs to tenant directly
  • Pro Full Component B subsidy in tenant's name
  • Pro Faster install, 90 to 150 days
  • Pro Clean exit if tenant moves on
  • Con Requires cooperative landowner
  • Con Blocked where state tenancy law restricts long leases
  • Con Stamp duty and registration cost ₹5,000–₹15,000 upfront

Verdict. If your landowner is cooperative, register a long-term lease that meets your state’s minimum and take Path 1, you keep the asset, the subsidy, and the irrigation control. If the landowner is unwilling or absent, join an FPO and take Path 3, slower and shared, but it does not depend on a lease from your own landowner. If you simply use the landowner’s existing grid pump under a batai arrangement, push for Path 4, the landowner gets the subsidy, you get reliable daytime irrigation, and you sign nothing.

The Path 2 joint patta route is narrower but worth checking, many tenant cultivators are actually unrecorded co-heirs on family land and the right paperwork at the patwari office converts them into eligible applicants overnight.

How Heaven Green Energy Helps Tenant Farmers

Heaven Green Energy is MNRE-empanelled and has handled KUSUM applications across the four pathways for tenant cultivators in Rajasthan, Maharashtra, UP, and Madhya Pradesh. The tenancy paperwork is where most installers refuse to engage, we built a dedicated process for it.

  • Tenancy review, we look at your jamabandi or 7/12 extract and tell you which of the four paths fits your situation.
  • Lease drafting, registered agricultural lease deed with the specific solar and groundwater clauses DISCOMs accept.
  • FPO partnership, direct working relationship with NABARD-supported FPOs across our service belts; we introduce you and handle the technical proposal.
  • State subsidy stacking, DREBP in Rajasthan and any other state top-ups that apply; we map the full subsidy you can claim.
  • Component C tenant-friendly setup, for Path 4 we negotiate the landowner application and document the tenant’s continuing irrigation rights.
  • End-to-end DISCOM coordination, application, feasibility, vendor approval, installation, commissioning.

Explore the services that match your situation:

For state-specific application steps, see KUSUM Rajasthan, KUSUM Maharashtra, or KUSUM UP.

Frequently Asked Questions

Can a tenant farmer apply for PM-KUSUM without owning the land?

Not directly, the application requires a recognised land claim, and new applications now depend on PM-KUSUM 2.0 because the scheme period ended on 31 March 2026. Four pathways open KUSUM access to tenants: a registered long-term lease deed meeting the state’s minimum term (Path 1), a joint patta arrangement with a co-heir NOC (Path 2), joining a Farmer Producer Organisation or Self-Help Group that holds the asset (Path 3), or having the landowner apply for Component C grid-tied pump solarisation while the tenant continues using the pump (Path 4).

What is the minimum lease duration accepted under KUSUM in 2026?

MNRE’s guidelines do not set a national minimum; state agencies do, and 10 years or more, registered at the sub-registrar’s office on the appropriate stamp paper, is a common requirement. A lease shorter than your state’s minimum is rejected even if registered. The lease deed must include explicit clauses granting the right to install fixed solar infrastructure, the right to draw groundwater under state rules, and the right to apply for grid interconnection if Component C is being considered. Whether an option-to-renew period counts toward the minimum depends on the state, so ask before drafting.

How much does a registered agricultural lease for KUSUM cost in 2026?

Total cost is usually ₹5,000–₹15,000 in most states. Stamp paper runs ₹100–₹500 depending on state schedule, sub-registrar registration adds ₹2,000–₹5,000, notarisation is under ₹500, and stamp duty calculated on the average annual rent multiplied by lease years adds the balance. Rates differ by state, and some states restrict long agricultural leases, which can block Path 1.

What is the FPO route under PM-KUSUM and how does a tenant farmer join one?

A Farmer Producer Organisation registered under the Companies Act or as a Producer Cooperative is itself eligible to apply for KUSUM. The FPO holds the solar asset and distributes irrigation, electricity, or revenue benefits to its member-shareholders per share. A tenant farmer joins by buying a share, typically ₹500–₹5,000, and gains access to subsidised solar that they could never apply for individually. The central 10,000 FPO scheme, implemented through agencies including NABARD, supports formation and includes an equity grant.

For Path 3, the FPO leases or buys the land in its own name, so consent is needed from the landowner whose plot is being used, but not from every tenant’s individual landowner. In practice, FPOs aggregate scattered plots and the consent is bundled into the FPO’s land-pooling agreement. For Path 1 (direct lease) and Path 2 (joint patta), the landowner’s signed and registered consent is essential at the time of lease registration.

Can a sharecropper or batai cultivator access KUSUM without a written agreement?

Not directly. Pure batai arrangements settled by handshake do not satisfy the DISCOM’s land-claim requirement. The cultivator must convert the relationship into one of the four pathways, convince the landowner to sign a registered long-term lease (Path 1), join an FPO that holds the assets (Path 3), or persuade the landowner to apply for Component C with the cultivator continuing to use the pump (Path 4).

What happens to the KUSUM solar pump if my lease ends or the landowner reclaims the land?

The registered lease deed must include a termination clause stating the asset removal terms, typically the lessee removes the panels and pump at lease end, with the landowner having a right of first refusal to buy the equipment at depreciated value. If the lease is silent on this, the landowner may be able to claim the fixed solar infrastructure as part of the land. Heaven Green Energy includes this clause in every tenant lease we help draft.

Which states have the most tenant-friendly KUSUM application process?

It depends less on the KUSUM portal than on state tenancy law and the agency’s accepted-documents list. States with active FPO networks make Path 3 practical, while states that restrict agricultural leasing make Path 1 hard. Uttar Pradesh, for example, distinguishes bhumidhars from asami tenants. Ask your implementing agency for its accepted land documents in writing before choosing a path.

Can a tenant farmer claim the full PM-KUSUM subsidy or only a partial amount?

Through Paths 1, 2, and 3, the tenant or the FPO claims the full applicable subsidy, 30% central plus at least 30% state for Component B (typically 60% in total); Component A plants get no capital subsidy and earn through the DISCOM PPA instead. Through Path 4, the landowner claims the Component C subsidy because the landowner is the applicant; the tenant’s benefit is reliable daytime irrigation without paying any capex. The subsidy quantum does not change based on tenancy status; only the applicant identity changes.

Written by
Dipak Khagad

COO of Heaven Green Energy. Runs installation delivery, quality, and after-sales — the operating engine behind every rooftop, ground-mount, and C&I project Heaven Green ships.

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