PM-KUSUM Scheme Explained: Components, Subsidy and How to Apply

PM-KUSUM and PM Surya Ghar get mixed up constantly, and they are not the same scheme. PM Surya Ghar is for residential rooftops. PM-KUSUM, short for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan, is for farmers and agricultural land: solar power plants on barren land, standalone solar irrigation pumps, and solarising the diesel or grid-connected pumps already running on Indian farms.

This guide explains what each of the scheme's three components actually covers, the real subsidy split for each, who is eligible, and how to apply.

What PM-KUSUM is, in plain terms

PM-KUSUM is a Ministry of New and Renewable Energy (MNRE) scheme targeting 34,800 MW of decentralised solar capacity, backed by roughly ₹34,422 crore in central financial assistance. It runs through three distinct components, each solving a different problem for farmers: income from idle land, irrigation without diesel, and extra earnings from an existing grid-connected pump.

Unlike PM Surya Ghar, which is a flat subsidy per kW capped at 3kW and above, PM-KUSUM's subsidy structure varies meaningfully by component and by state, which is exactly why most explanations of it get confusing. Breaking the three apart is the fastest way to understand your own situation.

Component A: ground-mounted solar power plants

Component A lets farmers and landowners install solar power plants from 500 kW up to 2 MW on barren, uncultivable, or marshy land, either building it themselves or leasing the land to a developer. The generated power is sold to the local DISCOM under a Power Purchase Agreement (PPA), typically for 25 years.

This suits landowners with land that is not productive for farming but has grid access nearby. It does not suit anyone still cultivating the land, since Component A effectively converts it into a power plant site for the PPA term.

Component B: standalone solar pumps

Component B funds standalone solar-powered irrigation pumps up to 7.5 HP, replacing diesel pumps entirely in areas without reliable grid access. The pump runs directly off the solar array with no net metering or grid interaction required, which makes it the fastest component to get approved since there is no DISCOM interconnection process involved.

This is the component most individual farmers interact with, and the one most state nodal agencies process the highest volume of applications for.

Component C: solarising existing agricultural pumps

Component C adds solar capacity to a pump that already has a grid connection, letting the farmer run irrigation off solar during the day and, in many states, sell surplus daytime generation back to the DISCOM. This is the component that turns an existing electricity expense into a potential income source, since the pump itself keeps working exactly as before.

Component C is usually the quickest payback of the three, because the farmer is not paying for a pump they do not already own, only for the solar array and the grid-feed arrangement.

Subsidy breakdown by component

The farmer's share is rarely paid entirely out of pocket. Public sector banks offer term loans specifically for PM-KUSUM Component B and C installations, and several states route an additional top-up through their own nodal agency on top of the central figure above.

Who is eligible

Individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organisations (FPOs), and Water User Associations can all apply, with eligibility and the exact application route varying slightly by component and by state. Component A generally requires clear land title or a lease agreement and proximity to a substation for grid evacuation. Components B and C require an existing agricultural electricity connection for the solarisation path, or an irrigation requirement without one for the standalone pump path.

How to apply

Applications run through each state's nodal renewable energy agency, not a single national portal the way PM Surya Ghar does. The typical path is to register on your state agency's PM-KUSUM portal, submit land and identity documents, get your site inspected, and receive an allocation once your state's annual target and budget allow it. Processing time varies significantly by state depending on how much of that year's central allocation remains.

Because the application route differs by state, confirm your specific state nodal agency's current process before applying rather than relying on a generic checklist.

Module requirements: ALMM and BIS

Every PM-KUSUM installation must use modules from the ALMM list and carry BIS certification, the same baseline requirement that applies to PM Surya Ghar. Atal Solar's N-Type TOPCon modules are ALMM listed and BIS approved, and are supplied for both ground-mounted Component A installations and the solar arrays feeding Component B and C pump systems. Our N-Type vs P-Type guide covers why TOPCon's better low-light performance matters specifically for agricultural sites, where panels often run through dust and partial shading from nearby structures.

What changed in 2026

The scheme deadline has been extended to 31 March 2027 for projects with a Power Purchase Agreement signed by 31 December 2025. Separately, PM-KUSUM 2.0 has been discussed with an outlay of roughly ₹50,000 crore and a new 10 GW agrivoltaics component, which would let crops and solar panels share the same land. As of October 2026, MNRE had not yet notified the detailed subsidy structure for the solar pump components under 2.0, so farmers currently applying are still working under the original KUSUM framework above. Check your state nodal agency for the latest applicable rules before applying.

Final word on PM-KUSUM

PM-KUSUM is not one subsidy, it is three different programmes bundled under one name: a land-to-income route through Component A, a diesel-replacement route through Component B, and a grid-income route through Component C. The subsidy split differs meaningfully by component, and the application route runs through your state nodal agency rather than a single national portal. For residential rooftop solar, which is a completely separate scheme with its own ₹78,000 subsidy cap, see our PM Surya Ghar Yojana guide instead.

For module supply on a KUSUM installation, contact our team for ALMM-listed N-Type TOPCon panels built for agricultural sites.

Frequently asked questions

Is PM-KUSUM the same as PM Surya Ghar?

No. PM Surya Ghar is for residential rooftop solar with a flat central subsidy capped at ₹78,000. PM-KUSUM is for farmers and agricultural land, covering ground-mounted solar plants, standalone irrigation pumps, and solarising existing agricultural pumps, with a different subsidy structure for each component.

What is the subsidy for a PM-KUSUM solar pump?

For Component B standalone pumps, the central government covers 30% of the cost (50% in north-eastern, hill and island states), the state covers at least 30%, and the farmer covers the remaining share, usually up to 40%, often through bank financing designed for this scheme.

Can I sell power to the grid under PM-KUSUM?

Yes, under Component A you sell power generated from a ground-mounted plant to your DISCOM through a Power Purchase Agreement. Under Component C, many states allow selling surplus daytime generation from a solarised agricultural pump back to the grid as well.

How do I apply for PM-KUSUM?

Through your state's nodal renewable energy agency, not a single national portal. Register on your state agency's PM-KUSUM portal, submit land and identity documents, and your site gets inspected before an allocation is confirmed, subject to that year's central budget for your state.

Do PM-KUSUM installations need ALMM-listed panels?

Yes. Every PM-KUSUM component requires ALMM-listed, BIS-certified modules, the same baseline module requirement as PM Surya Ghar.

When does the PM-KUSUM scheme end?

The deadline currently runs to 31 March 2027 for projects with a Power Purchase Agreement signed by 31 December 2025. A follow-on PM-KUSUM 2.0 with a larger outlay has been discussed but was not yet formally notified for the solar pump components as of October 2026.