The Indian government offers farmers a golden chance through the PM Kusum Yojana. By installing solar pumps with a 60% subsidy and using just 10% of their own money, farmers can generate free irrigation electricity and sell extra power to the grid. This solar solution is not just about saving energy; it brings long-term income for farmers, protects the environment, and helps reduce dependency on diesel.
The PM Kusum Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), launched in 2019 by the Ministry of New and Renewable Energy (MNRE), has become one of the most farmer-friendly schemes in recent years. With the 2024-25 extension, more farmers can benefit from solar power.
Farmers Can Use and Sell Electricity for 25 Years
Under this scheme, solar panels installed on agricultural land generate electricity. Farmers can first use this power to run irrigation pumps. The extra electricity can be sold to the state power distribution companies (DISCOMs), creating a steady income for up to 25 years.
This turns the pump from a power consumer into a power generator. Solar panels, once installed, need very low maintenance and have a working life of around 25 years. The income from selling extra electricity could range between Rs. 60,000 to Rs. 1 lakh every year, depending on the capacity and usage.
What is PM Kusum Yojana’s primary purpose?
The scheme has several long-term goals:
- Provide irrigation electricity through clean solar energy
- Replace diesel pumps and reduce the power shortage
- Reduce farmer expenses on electricity and fuel
- Increase income by selling surplus energy
- Improve rural energy access and reduce pollution
- Boost the rural economy and create local jobs
The government designed this scheme with the future of farmers in mind and the country’s commitment to clean and green energy in mind.
Solar Pumps: A New Source of Earnings for Farmers
Traditionally, farmers used diesel or electricity-based pumps for irrigation. This led to heavy electricity bills, rising diesel costs, and pollution. The PM Kusum Yojana gives them a much better option—solar-powered pumps.
Solar pumps are available in different capacities based on land and water needs. Once installed, they do not need fuel and run entirely on sunlight. It lowers irrigation costs and reduces pollution at the same time.
Farmers can sell extra electricity to the grid and earn a fixed income for 25 years under a Power Purchase Agreement (PPA) with DISCOMs.
Three Major Components of PM Kusum Yojana
The scheme is divided into three components to cover different areas of solar energy use:
1. Component A: Solar Power Plants on Farmland
Farmers can set up decentralized grid-connected solar power plants with up to 2 MW capacity on their unused or barren land. The total target is to create 10,000 MW through such solar plants.
This is a big opportunity for farmers who have land but don’t use it for agriculture. They can now earn rent or become energy producers.
2. Component B: Standalone Solar Pumps
The second component aims to provide 20 lakh standalone solar pumps to farmers who do not have access to the power grid. These pumps help irrigate land without connection to electricity lines or diesel engines.
This directly benefits farmers in remote or hilly areas where regular power supply is unavailable.
3. Component C: Solarization of Existing Grid-Connected Pumps
Under this part, the government plans to solarize 15 lakh existing electric pumps by adding solar panels. These pumps will continue to use the electricity grid but will now also generate solar power.
The pump owners can use the power for irrigation and send the surplus to the grid. This is perfect for farmers who already have electric pumps.
Who Can Apply for PM Kusum Yojana?
The scheme is not limited to individual farmers. The following groups can apply:
- Individual farmers
- Group of farmers
- Farmer Producer Organisations (FPOs)
- Panchayats
- Co-operative societies
- Water user associations
This makes the scheme more flexible and allows group investments and joint benefits, especially in areas with shared water sources or common land.
How Much Will the Farmer Pay?
The most significant benefit of the PM Kusum Yojana is the financial support it offers:
- 60% subsidy: The Central and State Governments provide a 60% subsidy directly into the farmer’s bank account.
- 30% loan: Banks offer a loan for 30% of the project cost.
- 10% contribution: The farmer only needs to pay 10% from their pocket.
So, for a Rs. 1 lakh solar pump system, the farmer will pay only Rs. 10,000 upfront. The rest will be managed through subsidies and bank loans. Farmers can repay the loan in small parts using the income generated from solar electricity.
Solar System Lifespan and Maintenance
Solar systems under PM Kusum have a long life. Most solar panels work efficiently for 25 years. They don’t require much maintenance, either. Regular cleaning and small checks are enough to keep them working.
Also, many suppliers offer warranty and maintenance support under government contracts. This makes the system easy to manage, even for rural users.
Significant Savings on Diesel and Electricity Bills
One of the hidden costs for Indian farmers has always been high diesel and power bills. Switching to solar reduces this burden completely.
- No diesel cost
- No frequent repair of diesel pumps
- No more power cuts
- Complete freedom in irrigation timing
Solar pumps give reliable irrigation with zero monthly cost. Even better, solar energy is clean and silent—unlike noisy diesel engines.
Application Process: How to Apply for PM Kusum Yojana
The Ministry of New and Renewable Energy (MNRE) runs the scheme through nodal agencies in every state. Farmers can apply online and offline.
Steps to Apply:
- Visit the official MNRE website – https://mnre.gov.in
- On the homepage, find the PM Kusum Yojana section.
- Read the guidelines carefully.
- Click on the registration link.
- Fill out the application form with basic and land details.
- Upload proof of identity, land documents, and photographs.
- Apply and wait for approval.
After registration, local nodal officers will contact the applicant. They will guide farmers about vendors, pump types, pricing, and installation.
Farmers can also visit the nearest Agriculture Department office or Renewable Energy Department office for help in registration if required.
What You Need to Register:
- Aadhaar Card
- Land ownership documents
- Bank passbook
- Passport-size photo
- The mobile number linked with Aadhaar
Some states may ask for additional documents like electricity bills or farmer ID cards.
PM Kusum Scheme Helps More Than Just Farmers
While the primary goal is to support farmers, PM Kusum Yojana also helps in:
- Reducing the load on state electricity boards
- Cutting carbon emissions
- Encouraging private investment in solar
- Promoting job creation in rural areas
- Supporting India’s solar power targets under the International Solar Alliance
The scheme supports the government’s aim to increase non-fossil fuel-based energy capacity to 500 GW by 2030.
Sources: Ministry of New and Renewable Energy (MNRE), Press Information Bureau (PIB), India.gov.in, State Renewable Energy Portals.
