For farmers, diesel pumps are costly and grid power is unreliable. PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) helps replace them with solar — cutting running costs to near zero and even earning from surplus power. Here's how it works, brand-neutral.
The three components
PM-KUSUM has three parts, run by MNRE through state agencies and DISCOMs:
- Component A — small grid-connected solar plants (set up on barren/fallow farmland); farmers or developers sell power to the DISCOM.
- Component B — standalone solar pumps for off-grid farms, replacing diesel pumps.
- Component C — solarisation of existing grid-connected pumps (and feeder-level solarisation), so the farmer runs the pump on solar and can feed surplus to the grid.
Most individual farmers engage with Component B (a new solar pump) or Component C (solarising the pump they already have).
The money: subsidy + loan + small share
The standout feature is the funding split for solar pumps. Broadly:
- A large central + state subsidy covers the bulk of the cost,
- a portion can be met by a bank loan,
- leaving the farmer to contribute only a small share upfront.
The exact percentages are set by the scheme and can vary by state and category — always confirm the current split on the official portal or with your state nodal agency before committing.
Why it's worth it
- Near-zero running cost — sunlight replaces diesel; no fuel bills.
- Reliable daytime irrigation — pump when the sun shines, independent of grid timings.
- Extra income — under Component C/A, surplus solar power can be sold to the DISCOM, turning the pump into an earning asset.
- Clean and low-maintenance — solar pumps have few moving parts.
How to apply
- Check eligibility and the current subsidy split on your state's PM-KUSUM / DISCOM portal.
- Apply through the state nodal agency; get approval and choose an empanelled vendor.
- Arrange your small farmer contribution (and a bank loan for the financed portion, if any).
- Installation and commissioning by the approved vendor; subsidy is settled per scheme rules.
Use an empanelled vendor and standard-compliant equipment — it's required for the subsidy and for a clean grid connection.
Financing the farmer's share
Even the small farmer contribution can be financed, repaid from the diesel savings. This is exactly the kind of clean-energy financing IndiaCard helps arrange — matching farmers to regulated lenders. For the broader rooftop picture, see rooftop solar basics and net metering & subsidy.