The PM KUSUM Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is one of India’s most impactful government schemes aimed at transforming rural energy access and supporting farmers with solar power.
Launched by the Ministry of New and Renewable Energy (MNRE), the scheme focuses on providing farmers with reliable, sustainable, and low-cost energy solutions — while also contributing to India’s goal of increasing its renewable energy capacity.
At Solyug Renewables, we’ve seen firsthand how solar technology under the KUSUM scheme is empowering farmers across Gujarat and other states. Let’s understand what makes this scheme so important, what its components are, and how it helps create a cleaner, more profitable future for Indian agriculture.
Why PM Kusum Yojana Was Introduced
Before this scheme, many farmers depended on diesel or grid-based electricity for irrigation. Both came with challenges — rising fuel costs, power shortages, and inconsistent supply during critical farming hours.
PM KUSUM was introduced to change that narrative.
The scheme’s core objectives are:
- Reducing dependency on diesel and conventional power
- Promoting decentralised solar energy generation in rural areas
- Ensuring stable irrigation power supply for farmers
- Helping farmers earn income by selling surplus solar power to the grid
In short, KUSUM empowers farmers to become energy producers rather than just energy consumers.
The Three Components of PM KUSUM Yojana
The KUSUM scheme is divided into three main components (A, B, and C) — each designed for a specific purpose in solar adoption.
Component A – Decentralized Grid-Connected Solar Power Plants
Under this component, farmers, cooperatives, or groups can set up small solar power plants (up to 2 MW) on barren or cultivable land.
The electricity generated is sold directly to the state DISCOMs at a fixed feed-in tariff.
This allows farmers to:
- Earn an additional source of income by selling electricity
- Utilize unproductive land effectively
- Contribute to the rural grid and reduce transmission losses
For EPC companies like Solyug Renewables, this component presents a valuable opportunity to develop small-scale, distributed solar projects that bring mutual benefits to both farmers and utilities.
Component B – Standalone Solar Pumps
This is perhaps the most visible part of the scheme. Farmers can install off-grid solar pumps (up to 7.5 HP) for irrigation in areas where electricity supply is limited or unreliable.
Key benefits include:
- No dependency on diesel or grid electricity
- Reduced irrigation costs and zero fuel expenses
- Continuous power availability during the day
- Long-term savings on operational costs
The government provides up to 60% subsidy (30% from the Centre and 30% from the State), while farmers contribute only 40% — which can also be financed through bank loans.
In states like Gujarat, this model has already benefited thousands of farmers who are now running irrigation pumps entirely on clean solar energy.
Component C – Solarization of Existing Grid-Connected Pumps
For farmers who already have grid-connected electric pumps, this component allows them to solarize their existing systems.
Farmers can use solar panels to power their pumps, and any surplus energy generated can be sold back to the grid.
This not only reduces electricity bills but also turns farmers into renewable energy producers.
Benefits:
- Stable irrigation power even during low-grid voltage hours
- Income generation through net-metering
- Reduced load on the state electricity network
In Gujarat, several pilot projects under Component C have shown excellent results, with farmers reporting both financial savings and income from surplus power sales.
Subsidy and Financial Support
The financial structure of the KUSUM scheme is designed to make solar affordable:
- 60% subsidy shared equally between the Central and State Governments
- 30% loan assistance through financial institutions
- 10% contribution from the farmer (out of total project cost)
This model ensures that the farmer’s upfront investment remains minimal while promoting large-scale adoption across India.
Some states even offer additional top-up subsidies to make solar pumps nearly free for small and marginal farmers.
Implementation and Role of EPC Partners
The implementation of KUSUM is a joint effort involving MNRE, State Nodal Agencies (SNAs) like GEDA in Gujarat, DISCOMs, and approved EPC companies.
EPC partners like Solyug Renewables play a vital role in:
- Site assessment and solar design
- Supplying and installing MNRE-approved equipment
- Ensuring subsidy compliance
- Maintenance and post-installation service
With our deep technical expertise and experience in handling large-scale solar EPC projects, we ensure that every KUSUM installation meets quality standards and delivers maximum performance for the farmer.
Progress and Impact So Far
Since its launch, the KUSUM Yojana has transformed how agriculture uses power.
According to recent government data, over 3.5 lakh solar pumps have already been installed nationwide, generating thousands of megawatts of clean energy.
States like Gujarat, Rajasthan, Maharashtra, and Madhya Pradesh are leading adoption, with significant contributions from local EPC partners.
Each solar pump installed means one less diesel engine running — saving crores in fuel expenses and reducing carbon emissions across rural India.
Challenges in Implementation
While the scheme has been a success overall, a few challenges still exist:
- Awareness among farmers remains limited in remote areas
- Upfront financing can be a hurdle despite subsidy support
- Delays in state share disbursement affect project timelines
- Grid infrastructure in some regions is not ready for solar integration
However, with growing awareness and government push, these challenges are being addressed steadily.
The Future of PM KUSUM Yojana
The Government of India has set an ambitious target of adding 34,800 MW of decentralized solar capacity under KUSUM by 2026.
This includes over 20 lakh standalone solar pumps and 15 lakh grid-connected solarized pumps — making it one of the largest renewable initiatives globally.
For EPC companies and farmers alike, this presents a once-in-a-generation opportunity to collaborate for a greener, energy-secure rural India.
Final Thoughts
The PM KUSUM Yojana is more than just a subsidy program — it’s a movement that’s turning India’s agricultural landscape into a renewable energy powerhouse.
At Solyug Renewables, we take pride in helping farmers, cooperatives, and institutions transition to clean solar energy.
From paperwork to installation and maintenance, our team provides end-to-end EPC services to ensure every KUSUM project runs smoothly and profitably.
If you’re a farmer or business interested in joining the PM KUSUM initiative, reach out to us — let’s work together to build a sustainable future powered by the sun.