Rising electricity bills, diesel costs, and erratic power supply are squeezing farmer incomes across India. What if you could get free daytime electricity for irrigation, slash costs dramatically, and even earn extra income by selling solar power? PM KUSUM Yojana 2026 offers farmers up to 60% subsidy on solar pumps. Learn eligibility, Components A/B/C, how to apply online, state portals & latest deadline extension.

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM Yojana) is the government’s flagship scheme delivering exactly that. Extended till 31 March 2026, it targets adding 34,800 MW solar capacity with ₹34,422 crore central support.

Whether you want a standalone solar pump, to solarise your existing connection, or install a grid-connected power plant on barren land for steady rental income — this scheme has options tailored for you.

What is PM KUSUM Yojana ?

PM KUSUM stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. It is India’s flagship solar energy scheme for the agricultural sector, launched in March 2019 by the Ministry of New and Renewable Energy (MNRE), Government of India.

Core Mission:

• Replace diesel and grid-dependent irrigation pumps with solar-powered pumps
• Allow farmers to generate and sell surplus solar electricity for additional income
• Reduce agriculture’s carbon footprint and dependence on fossil fuels
• Strengthen energy security in rural India

Scale of the Scheme:

• Target: Installation of solar capacity amounting to 28,250 MW across India
• Components: Three distinct sub-schemes (A, B, and C) covering different farmer needs
• Beneficiaries so far: Over 4.11 lakh farmers have benefited nationally (as of 2024)

PM KUSUM Yojana 2026 — Latest News & Key Updates

Update	Details
Deadline Extended	MNRE extended completion deadline to 31st March 2027 (for PPAs signed before 31 Dec 2025)
Guidelines Revised	Comprehensive updated guidelines issued on 17 January 2024
Manufacturing Boost	Gautam Solar delivered 60 MW of solar panels for PM-KUSUM and is scaling to 5 GW capacity
Scheme Period	Originally extended to March 2026, now further extended to March 2027 for eligible projects

Three Components of PM KUSUM Explained

PM KUSUM is not a single programme — it has three distinct components, each designed for a different type of farmer need.

Component A — Decentralised Solar Power Plants on Land

Who it’s for: Farmers, cooperatives, panchayats, or landowners with barren/cultivable land near a power sub-station.

What it covers:

• Setting up grid-connected, ground-mounted solar power plants of up to 2 MW capacity
• The solar power generated is sold to DISCOMs (electricity distribution companies) via a Power Purchase Agreement (PPA)
• Farmers can use Agrivoltaic technology — solar panels on stilts, so crops can still grow underneath

Financial Model:

• Land requirement: Approximately 2–4 acres per MW of solar capacity
• Loan support: SBI and other banks offer loans up to 70% of project cost
• Income source: Fixed tariff payments from DISCOMs for every unit of power sold

Best for: Farmers with surplus or barren land who want a steady additional income without changing their farming practices.

Component B — Standalone Solar Agricultural Pumps

Who it’s for: Farmers in areas without existing electricity grid connectivity.

What it covers:

• Installation of brand-new standalone solar-powered irrigation pumps
• Pumps range from 3 HP to 7.5 HP (and above in some states)
• No grid connection required — fully off-grid and self-sufficient

Financial Structure:

Contribution	Percentage
Central Government Subsidy	30%
State Government Subsidy	30%
Bank Loan (7-year repayment)	30%
Farmer’s Own Contribution	10%

Best for: Farmers in remote villages where electricity supply is unreliable or non-existent.

Component C — Solarisation of Existing Grid-Connected Pumps

Who it’s for: Farmers who already have grid-connected electric pumps.

What it covers:

• Installing solar panels on top of existing pumps to reduce or eliminate electricity bills
• Any surplus solar power is fed into the grid and purchased by DISCOMs
• Farmers use solar first; excess goes to the grid for income

Financial Support:

• 30% of benchmark cost from Central Government OR the tendered price (whichever is lower)
• Additional 30% from State Government in most states

Best for: Farmers with existing electric pumps who want to cut electricity bills and earn from surplus power.

Who is Eligible? Full Eligibility Criteria

Primary Eligible Categories

• Individual farmers who own cultivable or barren agricultural land
• Groups of farmers pooling land or resources
• Farmer Producer Organizations (FPOs)
• Village Panchayats and registered agricultural cooperatives
• Water User Associations (WUAs)
• Landowners with barren, marshy, or pasture land near a power sub-station
• Tenant farmers with a valid lease agreement or land-use certificate (in select states)

Basic Eligibility Conditions

• Must be an Indian citizen with agricultural land
• Must not be a defaulter on any bank loan
• Land should be suitable for solar installation (proximity to sub-station matters for Component A)
• SC/ST farmers may receive additional priority and top-up benefits in several states
• Small and marginal farmers are given priority in most state-level implementations

Solar Pump Cost Before & After Subsidy

Pump Capacity	Cost Before Subsidy	Farmer Pays (10%)
3 HP Solar Pump	₹2.0 – ₹2.5 lakh	₹20,000 – ₹25,000
5 HP Solar Pump	₹3.0 – ₹3.5 lakh	₹30,000 – ₹35,000
7.5 HP Solar Pump	₹4.5 – ₹5.5 lakh	₹45,000 – ₹55,000
10 HP Solar Pump	₹5.0 – ₹6.0 lakh	₹50,000 – ₹60,000

Return on Investment (Indicative)

• Annual diesel savings (replacing a 5 HP pump): ₹40,000 – ₹60,000
• Annual income from surplus power sale: ₹10,000 – ₹25,000 (varies by state tariff)
• Typical payback period: 2–4 years on your 10% investment
• System lifespan: 20–25 years

The numbers make a compelling case. A farmer paying ₹30,000 upfront on a 5 HP pump can recover that cost within 2 seasons — and then earn from it for the next two decades.

Read More: “PM Surya Ghar Muft Bijli Yojana 2026: Complete Guide”

Documents Required for PM KUSUM Yojana 2026

Prepare these before beginning your application to avoid delays:

Identity & Land Proof:

• Aadhaar Card (mandatory)
• Bank Account details (linked to Aadhaar)
• Land ownership documents / Khasra-Khatauni / 7/12 extract
• For tenant farmers: Valid lease agreement or land-use certificate

Technical & Financial:

• Farmer registration number (from agriculture department portal, if applicable)
• Bank passbook copy
• Photograph (passport size)
• Mobile number linked to Aadhaar (for OTP and SMS notifications)

For Component A (Solar Plants):

• Land proximity details to nearest power sub-station
• Site layout plan (may be required at later stages)

How to Apply Online — Step-by-Step

Central Portal Application (General Steps)

Step 1: Visit the official MNRE PM-KUSUM page at mnre.gov.in or your State Nodal Agency’s portal (see state list below).

Step 2: Register with your mobile number and Aadhaar details. An OTP will be sent for verification.

Step 3: Click “Apply / Registration” and select the relevant Component (A, B, or C).

Step 4: Fill in the online application form:

• Personal details (name, Aadhaar, mobile)
• Land details (area, location, survey number)
• Pump/system details (capacity required)

Step 5: Upload all required documents in the specified format (PDF/JPG, typically under 2 MB each).

Step 6: Submit the form and note your Application ID. You will receive confirmation via SMS/email.

Step 7: The State Nodal Agency conducts a site inspection. Upon approval, you will be notified to deposit your 10% farmer contribution to the authorized agency.

Step 8: Installation is completed by the empanelled vendor. The entire process typically takes about 90 days from payment date.

Step 9: Track your application status by logging in with your Application ID or registered mobile number.

Benefits Beyond Irrigation

PM KUSUM Yojana is often described only as a “pump subsidy scheme.” That undersells it dramatically. Here’s the full picture:

Direct Financial Benefits

• Elimination of diesel costs: Average savings of ₹40,000–₹60,000 per year
• Reduced electricity bills: Particularly under Component C
• Additional income: Sell surplus power to DISCOMs at guaranteed tariff rates
• Long-term asset: Solar system lasts 20–25 years with minimal maintenance

Operational Benefits

• Uninterrupted irrigation: No dependence on erratic grid supply or diesel availability
• Crop planning flexibility: Farmers can irrigate on their schedule, not the power schedule
• Reduced maintenance: Solar pumps have significantly fewer moving parts than diesel pumps

Environmental Benefits

• Reduction in carbon emissions from agricultural sector
• Decreased groundwater over-extraction (solar pumps are typically more energy-efficient)
• Contribution to India’s 500 GW renewable energy target by 2030

Community & Policy Benefits

• Feeder-level solarisation under Component C reduces load on state power grids
• Improved rural electrification indirectly benefits entire villages
• Scheme supports India’s COP commitments on green agriculture

Common Mistakes that get Applications Rejected

Avoid these pitfalls that commonly derail applications:

1. Blurry or low-resolution document scans — Use a scanner app; avoid clicking photos in poor lighting
2. Name mismatch across documents — Aadhaar name, land records, and bank account must match exactly
3. Applying under the wrong Component — Understand A, B, and C before selecting; wrong choice = rejection
4. Not checking vendor empanelment — Only empanelled vendors are covered; check your state’s approved list
5. Applying during monsoon months — Site inspections often get delayed; apply between October–March for faster processing
6. Missing bank linkage — Subsidy is transferred directly to your bank. Ensure Aadhaar is linked to your account
7. Ignoring SMS alerts — Critical updates (inspection dates, payment requests) come via SMS; don’t ignore them
8. Applying through unofficial agents — Use only official state portals; middlemen often submit incorrect forms

Frequently Asked Questions (FAQ)