Over 1.4 crore diesel-powered irrigation pumps run across India’s agricultural land, burning approximately 6 billion litres of diesel per year. For the average farmer, diesel cost consumes 20–30% of the input budget for every crop cycle. PM KUSUM — the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan — was designed to break this dependency by replacing diesel pumps with solar, and providing farmers a second income stream through surplus power generation.
This guide explains all three components of PM KUSUM, the 60% subsidy structure, eligibility, how to apply in 2026, and the state-level differences that matter most.
Direct answer. PM KUSUM pays up to 60% subsidy (30% central + 30% state) for solar-powered irrigation pumps under Component B. Component A lets landowners lease their land for solar plants and earn a guaranteed rental income. Component C solarises existing grid-connected pumps. The scheme is administered by MNRE and runs through state-level nodal agencies like GEDA in Gujarat and RRECL in Rajasthan.
What Is PM KUSUM?
PM KUSUM (PM Kisan Urja Suraksha evam Utthaan Mahabhiyaan) was launched in 2019 under the Ministry of New and Renewable Energy (MNRE) to achieve three interrelated goals:
- Provide solar power to India’s 2.5 crore agricultural consumers.
- Reduce the central and state governments’ electricity subsidy burden on agricultural power.
- Add distributed solar capacity to the national grid through farmer-owned small plants.
The scheme has three distinct components targeting different beneficiaries:
Most farmers apply under Component B — the standalone solar pump replacement. This is what most people mean when they say “KUSUM scheme for farmers.”
Component B — Standalone Solar Pumps (Most Applicable)
Subsidy Structure
Net farmer cost: As low as 10% of the total system price — the farmer pays only ₹18,000–₹35,000 for a 3–5 HP solar pump that costs ₹1.8–₹3.5 lakh, depending on state and system size.
Eligible Pump Sizes
| HP rating | Applicable farm size | Typical water output/day |
|---|---|---|
| 3 HP | Up to 2 acres (small farm) | 50,000–80,000 litres |
| 5 HP | 2–5 acres (medium farm) | 80,000–1,20,000 litres |
| 7.5 HP | 5–10 acres | 1,20,000–2,00,000 litres |
| 10 HP | 10+ acres or deep borewells | 2,00,000+ litres |
Component B Eligibility
To apply for Component B:
- Indian farmer with agricultural land (own or leased)
- Valid water source on or near the land (borewell, open well, canal)
- No existing grid-connected electricity connection for the pump (off-grid pumps are the primary target; grid-connected pump owners apply under Component C)
- State-specific: some states require minimum land holding; check with your state nodal agency
Component A — Solar Plants on Agricultural Land
Under Component A, farmers or landowners can lease their agricultural or barren land to a project developer or install their own 500 kW to 2 MW solar plant and sell the electricity to the DISCOM at a fixed tariff under a Power Purchase Agreement (PPA).
Income potential: At ₹2.50–₹3.50 per kWh feed-in tariff (state-specific), a 500 kW plant generating ~7 lakh kWh per year earns ₹17.5–₹24.5 lakh per year. Lease rental alone for a landowner who does not operate the plant: ₹25,000–₹50,000 per acre per year.
This component is for larger landholdings — minimum 1.5–2 acres per MW depending on state. For a detailed breakdown, see our guide on KUSUM Component A — Landowner Guide.
Component C — Grid-Connected Pump Solarisation
If you already have a grid-connected agricultural pump, Component C helps you add solar to it. Your pump runs on solar first; surplus solar units are fed to the grid and you earn additional income.
Subsidy structure: Similar to Component B (60% combined), but tailored for retrofit installations. The farmer continues using grid power as backup when solar is insufficient.
How to Apply for PM KUSUM
The application process goes through your state’s nodal energy agency, not the PM Suryaghar portal.
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Identify your state nodal agency:
- Gujarat: GEDA (Gujarat Energy Development Agency) — geda.gujarat.gov.in
- Rajasthan: RRECL — rrecl.com
- MP: MPRA — mprenewable.nic.in
- Maharashtra: MAHAURJA — mahaurja.com
- UP: UPNEDA — upneda.org.in
- National portal: pmkusum.mnre.gov.in
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Check active application window — KUSUM applications open in batches. Your state nodal agency announces application windows. Gujarat and Telangana accept applications year-round; other states have defined windows.
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Submit application with documents — Aadhaar, land records (Khasra/Jamabandi), existing pump details (for Component C), bank account.
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Selection and approval — applications are reviewed by the state nodal agency. Selection may be lottery-based in oversubscribed states.
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Vendor selection and installation — the state agency empanels vendors. The pump is installed by an empanelled vendor.
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Commissioning and subsidy disbursement — after commissioning, the 60% subsidy is processed by the state agency (typically 30–60 days for Gujarat/GEDA).
KUSUM in Gujarat — Why GEDA Matters
The Gujarat Energy Development Agency (GEDA) is one of India’s most active and efficient PM KUSUM nodal agencies. Gujarat’s advantages:
- Year-round application acceptance (no fixed windows)
- Fast GEDA processing — approval in 30–45 days
- Over 1 lakh solar pumps already commissioned under PM KUSUM in Gujarat
- GEDA-empanelled vendors available across all districts including Kutch, Saurashtra, and North Gujarat
Heaven Green Energy is GEDA-empanelled for PM KUSUM installations. Our Gujarat farmers get end-to-end support from land assessment to commissioning.
Diesel vs Solar Pump ROI
The financial case for replacing a diesel pump under PM KUSUM:
| Factor | Diesel pump (5 HP) | KUSUM solar pump (5 HP) |
|---|---|---|
| Annual diesel cost | ₹80,000–₹1,20,000 | ₹0 |
| Annual maintenance | ₹8,000–₹15,000 | ₹2,000–₹4,000 |
| Upfront cost | ₹40,000–₹60,000 (pump only) | ₹25,000–₹35,000 (10% of system) |
| System life | 8–12 years | 25 years |
| Annual operating cost | ₹88,000–₹1,35,000 | ₹2,000–₹4,000 |
Net annual saving per 5 HP pump: ₹80,000–₹1,30,000. After the farmer’s 10% contribution of ₹25,000–₹35,000, payback is less than 4 months. This is among the fastest paybacks of any solar installation in India.
💰 Real numbers
A cotton farmer in Saurashtra with a 5 HP diesel pump typically spends ₹90,000–₹1,10,000 on diesel per year. Under PM KUSUM, their farmer contribution for a new 5 HP solar pump is approximately ₹28,000. Their diesel savings in year 1 alone exceed their total investment.
How Heaven Green Energy Helps Farmers
Heaven Green Energy is GEDA-empanelled and has completed hundreds of KUSUM installations across Gujarat.
- DREBP & PM KUSUM Services — our dedicated KUSUM service page.
- KUSUM Gujarat GEDA Guide — Gujarat-specific process.
- KUSUM Component B Application Guide — step-by-step for pump replacement.
- Diesel Pump vs Solar Pump ROI — full cost comparison.
- Contact us — talk to our KUSUM-certified team.
Frequently Asked Questions
What is the farmer’s contribution under PM KUSUM Component B?
The farmer pays a minimum of 10% of the system cost upfront. The remaining 30% can be covered by a concessional agricultural bank loan. The central and state governments together fund 60%. For a 5 HP system costing ₹2.8 lakh, the farmer’s upfront share is approximately ₹28,000.
Can tenant farmers apply for PM KUSUM?
Yes. Tenant farmers with a valid tenancy agreement (crop sharing agreement or lease deed) are eligible for Component B. They need the landowner’s consent and a copy of the tenancy agreement as property proof.
Is PM KUSUM available for all states?
PM KUSUM is a central government scheme available across India. Implementation pace varies by state — Gujarat, Rajasthan, MP, Maharashtra, and UP are among the most active. Some states have exhausted their current-year quota and have waitlists. Check your state nodal agency’s website for current quota availability.
Can Component A, B, and C be combined for the same farm?
In principle, yes — different components target different aspects of farm energy use. In practice, most states process components separately. A farmer cannot typically receive both Component A (solar plant for grid export) and Component B (standalone pump) for the same plot simultaneously, but can apply for different plots.
How long does a PM KUSUM pump last?
Solar pumps installed under PM KUSUM have a design life of 25 years for panels and 10–15 years for pump and motor. The state empanelled vendor provides a 5-year comprehensive warranty as part of the KUSUM scheme requirements. Annual maintenance is minimal — mainly cleaning and minor checks.
