Introduction
India is on a mission to transform its energy landscape with renewable solutions. Among the most impactful initiatives is the PM-KUSUM Ghar Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan). Launched by the Ministry of New and Renewable Energy (MNRE), the scheme is designed to empower farmers and rural households by integrating solar energy into agriculture and domestic power needs.
The goal is multi-fold: reduce dependency on diesel and conventional electricity, promote decentralized solar energy, and provide farmers with additional income through surplus energy sales. For EPC companies like Solyug Renewables, PM-KUSUM also represents an opportunity to implement high-quality solar projects while helping rural communities embrace sustainability.
Why PM-KUSUM Ghar Yojana Was Introduced
Traditionally, Indian farmers have relied heavily on grid electricity or diesel pumps for irrigation. These sources come with challenges:
-
High operational costs: Diesel prices fluctuate, increasing the cost of irrigation.
-
Unreliable grid supply: Rural electricity is often inconsistent, affecting crop schedules.
-
Environmental impact: Diesel engines emit pollutants, contributing to air pollution and climate change.
To tackle these issues, PM-KUSUM was conceptualized to provide farmers with clean, reliable, and cost-effective solar power solutions while enabling them to participate in the renewable energy market.
Key Objectives
-
Promote solar-powered irrigation: Enable farmers to access affordable, uninterrupted energy.
-
Reduce diesel consumption: Minimize greenhouse gas emissions and dependence on fossil fuels.
-
Generate rural income: Farmers can sell surplus electricity to the grid, creating a new revenue stream.
-
Support energy decentralization: Smaller, distributed power systems reduce transmission losses and improve grid efficiency.
Components of PM-KUSUM Ghar Yojana
The scheme is structured into three main components (A, B, C), each addressing a specific need in the agriculture and energy sector.
Component A – Decentralized Grid-Connected Solar Plants
Farmers, cooperatives, or institutions can set up small-scale solar power plants (up to 2 MW) on barren or cultivable land. The electricity generated is fed into the grid, allowing farmers to earn income from energy sales.
Component B – Standalone Solar Pumps
This component targets irrigation directly. Farmers can install solar-powered pumps (up to 7.5 HP) to replace diesel or grid pumps. These systems often come with up to 60% subsidy, making solar adoption cost-effective.
Component C – Solarization of Existing Grid Pumps
Farmers with grid-connected pumps can retrofit solar panels to reduce electricity bills and sell surplus power. This increases efficiency and ensures continuous irrigation during peak hours.
Financial Assistance & Subsidy Structure
The financial design is intended to minimize upfront costs for farmers:
-
Central Government Subsidy: 30%
-
State Government Subsidy: 30%
-
Farmer Contribution: 40% (can be financed via banks or NABARD loans)
This means that up to 60% of the total project cost is covered by the government. Certain states, including Gujarat, provide additional top-up incentives, further reducing the financial burden on farmers.
Implementation Process
The PM-KUSUM scheme is implemented jointly by MNRE, State Nodal Agencies (SNAs), DISCOMs, and approved EPC companies.
Key steps include:
-
Application Submission: Farmers apply online through state portals or MNRE.
-
Site Inspection & Approval: Eligibility and technical feasibility are assessed.
-
Installation by Certified EPC Companies: Firms like Solyug Renewables handle project execution, ensuring MNRE-compliant solar pumps and panels.
-
Subsidy Disbursement & Commissioning: Subsidy is released directly to the farmer’s account after verification.
Benefits to Farmers and Rural Communities
-
Cost Savings: Reduced fuel and electricity expenses.
-
Income Generation: Selling surplus power adds a recurring revenue stream.
-
Reliable Energy: Solar systems provide uninterrupted irrigation power.
-
Environmental Impact: Lower diesel usage and reduced carbon footprint.
-
Land Utilization: Barren land can be used for small solar plants.
Case Study: Gujarat
In Gujarat, thousands of farmers have adopted PM-KUSUM solar pumps. For example, a 5 HP solar pump installation in rural Ahmedabad allowed a farmer to irrigate 2 acres of land efficiently while selling 30% of the generated electricity back to the grid, generating additional income of ~₹12,000 per year.
This demonstrates the dual benefit of energy savings and income generation.
Challenges and Solutions
While the scheme has shown excellent adoption rates, some challenges remain:
-
Awareness Gap: Many farmers are unaware of application procedures. Solution: Conduct workshops and awareness drives.
-
Delayed Subsidy Disbursement: State-level approvals can take time. Solution: Streamlined coordination between SNAs and banks.
-
Technical Issues: Grid integration and pump maintenance require expertise. Solution: EPC companies like Solyug Renewables provide post-installation support.
Future Prospects
The government aims to install 20 lakh standalone solar pumps and 15 lakh solarized grid pumps by 2026, generating over 34,000 MW of decentralized solar energy. For EPC companies, this is a massive opportunity to implement high-quality solar systems across rural India while empowering farmers.
Solyug Renewables’ Expertise
Solyug Renewables provides end-to-end EPC services for PM-KUSUM projects:
-
Site assessment & feasibility studies
-
MNRE-approved equipment supply
-
Installation & commissioning
-
Maintenance & monitoring
We ensure farmers get maximum return on investment while contributing to India’s renewable energy targets.
FAQs
Q1: Who is eligible for PM-KUSUM Ghar Yojana?
A: Any Indian farmer or rural household owner with land or existing irrigation pumps.
Q2: How much subsidy can a farmer get?
A: Up to 60% of the project cost (30% Central + 30% State), with bank financing available for the rest.
Q3: Can surplus electricity be sold to the grid?
A: Yes, under Components A & C, farmers can sell excess power to DISCOMs at a fixed tariff.
Q4: How long does installation take?
A: Typically 2–3 months, depending on site conditions and approval timelines.
Conclusion
The PM-KUSUM Ghar Yojana is transforming India’s rural energy sector by combining economic benefits, energy security, and sustainability. Farmers now have the power to save costs, earn additional income, and contribute to the nation’s renewable energy goals.
For guidance and professional EPC support, Solyug Renewables ensures a smooth, subsidy-compliant PM-KUSUM installation experience.