Millions of diesel-powered irrigation pumps still run across India’s agricultural land, and for a farmer who depends on one, fuel is a large share of the input budget in 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 central and state subsidy structure, eligibility, where the scheme stands in 2026, and the state-level differences that matter most.
Direct answer. Under Component B, PM KUSUM pays 30% central financial assistance (50% in north-eastern, hill and island states/UTs) on solar irrigation pumps up to 7.5 HP, the state adds at least 30%, and the farmer pays the rest (at most 40%). Component A lets landowners lease their land for solar plants and earn a rental income. Component C solarises existing grid-connected pumps. The scheme is run by MNRE through state implementing agencies (for example the Gujarat DISCOMs via GUVNL, and the Rajasthan Horticulture Development Society). MNRE has extended implementation to 31 March 2027 (Lok Sabha reply, 29 July 2026), but new registrations under PM-KUSUM 1.0 have closed in several states, so check your state portal before you plan.
What Is PM KUSUM?
PM KUSUM (PM Kisan Urja Suraksha evam Utthaan Mahabhiyaan) was launched on 8 March 2019 under the Ministry of New and Renewable Energy (MNRE) to achieve three interrelated goals:
- Give farmers reliable solar power for irrigation and a source of extra income.
- 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: Under the default split the farmer pays 40% of the system price, but only 10% has to be paid upfront if the remaining 30% is taken as a bank loan. States that pay more than 30% (Madhya Pradesh pays a 60% state share, for example) cut the farmer share further. Actual pump prices are the tender rates your state agency publishes.
Eligible Pump Sizes
| HP rating | Applicable farm size | Typical water output/day |
|---|---|---|
| 3 HP | Up to 2 acres (small farm) | 50,000 to 80,000 litres |
| 5 HP | 2 to 5 acres (medium farm) | 80,000 to 1,20,000 litres |
| 7.5 HP | 5 to 10 acres | 1,20,000 to 2,00,000 litres |
| 10 HP | 10+ acres or deep borewells (central CFA is limited to 7.5 HP outside NE, hill and island states) | 2,00,000+ litres |
Component B Eligibility
To apply for Component B:
- Indian farmer with agricultural land (own or leased, see our tenant farmer rules guide)
- Valid water source on or near the land (borewell, open well, canal, see how to size your pump by borewell depth)
- 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
- Panels used for Component B and C installations must be DCR (Domestic Content Requirement) compliant, not just ALMM-listed; see our DCR vs non-DCR buyer impact guide for how to verify this on a vendor’s quote
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 to 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: For individual pump solarisation, MNRE pays 30% of the cost of the solar PV component (50% in NE, hill and island states/UTs), the state at least 30%, and the farmer at most 40%; solar capacity up to twice the pump rating in kW is allowed. States can instead solarise whole agricultural feeders (feeder-level solarisation), where MNRE CFA is 30% up to ₹1.05 crore per MW. 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 implementing agency, not the PM Suryaghar portal. MNRE’s national portal lists each state’s agency and portal link.
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Identify your state nodal agency:
- Gujarat: the four DISCOMs (DGVCL, MGVCL, PGVCL, UGVCL) through GUVNL, pmkusum.guvnl.com
- Rajasthan: Rajasthan Horticulture Development Society, applications through e-Mitra (emitra.rajasthan.gov.in)
- MP: MPUVNL, cmsolarpump.mp.gov.in
- Maharashtra: MEDA and MSEDCL; MSEDCL now takes new standalone-pump applications under the state’s Magel Tyala Saur Krushi Pump Yojana
- UP: Department of Agriculture, pmkusum.upagriculture.com
- National portal: pmkusum.mnre.gov.in
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Check whether registration is open: KUSUM applications open in batches against MNRE allocations. Several states (Maharashtra’s MEDA portal and Punjab’s PEDA, for example) stopped new registrations after PM-KUSUM 1.0 closed to new sanctions on 31 December 2025, and say fresh allocations will follow PM-KUSUM 2.0. Check your state portal for the current status.
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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 central and state subsidy is settled by the state agency with the vendor; the farmer pays only their own share.
KUSUM in Gujarat
In Gujarat, MNRE lists the four state DISCOMs (DGVCL, MGVCL, PGVCL and UGVCL, coordinated by GUVNL) as the implementing agencies for Component B, with the state portal at pmkusum.guvnl.com. As of 31 July 2026, MNRE data show:
- All 22,792 sanctioned Component B standalone pumps installed
- 3,04,948 grid-connected pumps solarised under Component C feeder-level solarisation
- Empanelled vendors across all regions 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% upfront, with 30% on loan) |
| System life | 8 to 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. Against a 10% upfront contribution of ₹25,000–₹35,000, payback on the upfront cash is less than 4 months; counting the 30% bank loan as well, the farmer’s full 40% share still pays back within about the first year or two. 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 upfront contribution for a new 5 HP solar pump can be approximately ₹28,000, with a further 30% of the cost on a bank loan. Their diesel savings in year 1 alone exceed the upfront payment.
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?
Under MNRE’s default split the farmer pays at most 40% of the system cost: 10% upfront and up to 30% through a bank loan. The central government funds 30% (50% in NE, hill and island states/UTs) and the state at least 30%; some states pay more. For a 5 HP system costing ₹2.8 lakh, the upfront share at 10% 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 implemented through state agencies. Implementation pace varies; MNRE names Rajasthan, Maharashtra and Haryana among the front runners. MNRE has extended implementation to 31 March 2027, but several states stopped new registrations after PM-KUSUM 1.0 closed to new sanctions on 31 December 2025. Check your state agency’s portal for current status.
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 to 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.