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. In 2026, that assumption excludes the majority of working cultivators in India. Roughly 55% of agricultural households operate through some form of tenancy, sharecropping, oral lease, or joint patta, and only the registered landowner can sign the KUSUM application form in front of the DISCOM (electricity distribution company). 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 in 2026 — 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 in 2026 are: a notarised long-term lease deed of 10 years or more registered with the sub-registrar; 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. Subsidy access ranges from 30% to 60% depending on the route.

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) KUSUM guidelines specifically list “land ownership document” or “long-term lease of minimum 10 years duration registered with the revenue department” as the eligibility document. 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.

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.

Path	Who it fits	Tenant capex share	Subsidy access	Time to install
1. Notarised long-term lease	Tenant with cooperative landowner	30–40% under Comp B	Full Component B (60%)	90–150 days
2. Joint patta route	Family-held land with multiple heirs	Split per share	Full B or C	120–180 days
3. FPO / SHG cooperative	Small / marginal tenant farmers	₹500–₹5,000 share buy-in	Cooperative captures 60% subsidy	180–270 days
4. Component C through landowner	Tenant on land with existing grid pump	Zero — tenant pays nothing	Landowner captures subsidy; tenant benefits	60–120 days

Path 1: Notarised Long-Term Lease Deed

This is the direct path. The landowner signs a registered lease agreement of 10 years or more in your favour, 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. The DISCOM accepts the registered lease in lieu of patta.

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 eligible to apply for PM-KUSUM. 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. NABARD (National Bank for Agriculture and Rural Development) supports FPO formation under its FPO Equity Grant scheme; many state agriculture departments add a top-up. 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 — feeder-level or individual pump solarisation — 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.

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.

Lease clause	Required wording	Why DISCOM checks it
Parties and identity	Full names, Aadhaar numbers, addresses	Confirms parties are real and traceable
Land description	Khasra / khata / survey number, area in hectares, village, tehsil, district	Matches against revenue record
Lease duration	”Ten (10) years from the date of registration, with option to renew”	Below 10 years fails KUSUM eligibility
Rent / consideration	One-time + annual amounts, in figures and words	Avoids 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 groundwater	Reference to state groundwater rules	Aligns with KUSUM pump installation
Right to grid interconnection	Right to apply for net metering or feeder connection	Needed for Component C variants
Termination	Notice period, asset removal terms	Protects both parties at lease end
Registration	Sub-registrar stamp, date, document number	Without registration the deed is non-binding

Stamp duty is governed by each state’s Stamp Act. In Rajasthan, agricultural lease above 5 years attracts 1% of the average annual rent multiplied by lease years, capped per the Rajasthan Stamps Act schedule. In Maharashtra the rate is similar; in Uttar Pradesh and Bihar the rates differ, and Bihar specifically caps agricultural lease tenure at 7 years under its tenancy law — making Path 1 difficult in Bihar without converting to 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 model	How it works	Best for	Subsidy structure
Land-leasing FPO	FPO leases pooled land from members and non-members; installs Component A 500 kW plant	Marginal tenant farmers in a contiguous belt	FPO claims 30% central + state subsidy on Component A
Pump-cluster FPO	FPO installs 50–200 Component B standalone pumps; allocates to members	Scattered tenant cultivators on small plots	FPO claims 60% (30% central + 30% state) on each pump
Service FPO	FPO does not own assets; aggregates KUSUM applications and shares subsidy with members	Tenants who have any partial land claim	Members claim subsidy individually, FPO charges service fee
SHG-led model	Women’s SHG federation installs cluster of pumps under NRLM	Women tenant farmers in MGNREGA-eligible blocks	Stacks NRLM grant + KUSUM 60%

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, NABARD’s PRODUCE Fund and the central government’s 10,000 FPO scheme make it cheap to start one. Twenty-five tenant farmers can register an FPO with a corpus of ₹50,000–₹1 lakh and become KUSUM-eligible inside six months. 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.

State	Key tenancy statute	Lease tenure allowed	KUSUM-specific note
Maharashtra	Bombay Tenancy and Agricultural Lands Act, 1948	Protected tenants have permanent rights; new leases restricted	Protected tenants qualify as owners for KUSUM after 12 years’ continuous cultivation
Uttar Pradesh	UP Revenue Code, 2006	Bhumidhar-with-transferable-rights can lease up to 15 years	Asami (non-transferable) tenants need landowner consent on application
Bihar	Bihar Tenancy Act, 1885 (and 1948 amendments)	Lease above 7 years requires collectorate sanction	Path 3 (FPO) is the dominant route; Path 1 rarely clears
Punjab	Punjab Security of Land Tenures Act, 1953	Tenants holding for 6+ years gain occupancy rights	Occupancy tenants qualify directly for KUSUM Component B
Rajasthan	Rajasthan Tenancy Act, 1955	Khatedar tenants are effectively owners; ghair-khatedar need lease	Most KUSUM Rajasthan applications are from khatedars; ghair-khatedars use Path 3
Karnataka	Karnataka Land Reforms Act, 1961	Oral lease recognised up to 5 years per 2023 KREDL circular	Special carve-out — oral lease accepted for Component B if witnessed by gram panchayat

The Karnataka carve-out is worth highlighting because it is unique. A 2023 circular from the Karnataka Renewable Energy Development Limited (KREDL) accepts an oral lease evidenced by a gram panchayat resolution as sufficient land proof for Component B applications under 7.5 HP. No other state has matched this rule. If you cultivate in Karnataka, this single carve-out resolves the entire tenant farmer eligibility problem for small pumps.

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 2024–25, six mistakes account for the majority of rejections at the DISCOM document-verification stage. Each is preventable.

1. 1
   Unregistered handwritten lease. A plain-paper lease, even with two witnesses and a panchayat stamp, fails DISCOM verification in all states except Karnataka. Always register at the sub-registrar.
2. 2
   Lease silent on solar installation right. A standard agricultural lease that mentions only the right to cultivate does not grant the right to mount fixed solar infrastructure. Add an explicit clause.
3. 3
   Lease tenure under 10 years. A 9-year lease, even registered, fails. The KUSUM rule is 10 years minimum, including the option-to-renew period stated in the deed.
4. 4
   Co-pattadar NOC missing. For Path 2 (joint patta), every co-heir must sign the NOC. A missing brother or sister anywhere in the line of succession voids the application.
5. 5
   Revenue record and lease deed mismatch. The khasra number, area, and village spelling on the lease must match the jamabandi or 7/12 record exactly. A digit transposition triggers rejection.
6. 6
   FPO membership certificate not on letterhead. Path 3 applicants must submit an FPO certificate on FPO letterhead with CIN (Corporate Identification Number) or registration number. A typed membership note is rejected.

If you have already received a rejection on any of these grounds, the application reference number stays valid for 30 days — 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.

Verdict. If your landowner is cooperative, register a 10-year-plus lease 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 works in every state including Bihar. 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, MAHA-DISCOM top-up in Maharashtra, and the UP solar pump component all stack on KUSUM; 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:

• KUSUM Complete Guide — the full background on all three KUSUM components and the 2026 budget.
• KUSUM Component A Landowner — for fallow-land owners wanting revenue without tenant involvement.
• KUSUM Component C Grid-Tied Pump — Path 4 details for landowner-tenant arrangements.
• Solar Calculator — see your KUSUM Component B pump subsidy and payback in 60 seconds.
• Contact Us — free tenant-farmer eligibility review by our team.

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 under MNRE’s 2026 rules — the application requires a recognised land claim. However, four pathways open KUSUM access to tenants: a registered long-term lease deed of 10 years or more (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). Karnataka uniquely accepts oral lease for Component B under 7.5 HP.

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

The minimum is 10 years, registered at the sub-registrar’s office on the appropriate stamp paper. A 9-year lease 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. The option-to-renew period can be counted toward the 10-year requirement if the deed states it clearly.

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. Rajasthan, Maharashtra, and UP rates are similar; Bihar restricts agricultural leases above 7 years, which often blocks Path 1 entirely in that state.

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. NABARD’s FPO Equity Grant supports formation; state agriculture departments often top up.

Does the landowner need to give consent if a tenant applies through an FPO?

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 10-year 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). In Karnataka the 2023 KREDL circular allows oral lease witnessed by gram panchayat for pumps under 7.5 HP.

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, state property law treats fixed solar infrastructure as part of the land and the landowner inherits it. Heaven Green Energy includes this clause in every tenant lease we help draft.

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

Karnataka leads — the 2023 KREDL circular accepts oral lease witnessed by gram panchayat for Component B under 7.5 HP, the only state with this carve-out. Rajasthan, Maharashtra, and Madhya Pradesh have well-developed FPO networks supported by NABARD that make Path 3 practical. Bihar is the hardest because its Tenancy Act caps agricultural lease at 7 years, blocking Path 1 entirely. Uttar Pradesh distinguishes bhumidhar tenants (transferable rights, eligible) from asami tenants (need landowner consent).

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 typically 30% state for Component B (total 60%), and 30% central for Component A landowner plants. 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.