PM-KUSUM Yojana: How Farmers Can Benefit from Solar Energy
Government Policies
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01 April, 2025
The Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) Yojana is a government initiative aimed at promoting solar energy adoption among farmers. Launched by the Ministry of New and Renewable Energy (MNRE), this scheme helps farmers reduce their dependence on grid electricity and diesel pumps while generating additional income through solar power.
In this blog, we will explore how farmers can benefit from the PM-KUSUM Yojana and how to apply for the scheme.
1. What is PM-KUSUM Yojana?
PM-KUSUM Yojana is designed to encourage the use of solar-powered irrigation systems and decentralized solar plants. The scheme has three major components:
Component A: Setting up 10,000 MW of decentralized grid-connected solar power plants on barren or unused farmland.
Component B: Installation of 17.50 lakh standalone solar-powered agricultural pumps to replace diesel-based irrigation systems.
Component C: Solarization of 10 lakh grid-connected agricultural pumps, enabling farmers to sell excess power to the grid.
2. Key Benefits for Farmers
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Reduced Electricity Costs Farmers can install solar pumps and reduce their dependence on expensive diesel or unreliable grid electricity, leading to significant cost savings.
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Extra Income from Selling Solar Power Under Component A and C, farmers can set up solar power plants and sell excess electricity to state electricity boards, generating additional revenue.
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Government Subsidies and Financial Support The Indian government provides up to 60% subsidy on solar pump installation. Farmers need to pay only 40%, with 30% available as bank loans and the remaining 10% as upfront payment.
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Sustainable & Environment-Friendly Farming Solar-powered pumps help in reducing carbon emissions and promoting eco-friendly agriculture by eliminating diesel dependency.
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Less Dependence on Monsoon With solar-powered irrigation, farmers can ensure a reliable water supply, leading to better crop yields even in areas affected by irregular rainfall.
3. How to Apply for PM-KUSUM Yojana?
Farmers can apply for the scheme through the following steps:
Visit the Official MNRE or State Renewable Energy Department Website: Check the latest notifications and application process.
Register for the Scheme: Fill out the online application form with necessary details like land records, Aadhaar number, and bank account details.
Submit Required Documents: Provide proof of land ownership, electricity bill (if applicable), and farmer identity documents. Approval and Subsidy Allocation Once verified, eligible farmers receive approval and subsidy benefits.
Installation & Power Generation: After approval, the solar pump or plant is installed, and farmers can start generating and using solar power.
4. Who is Eligible for the Scheme?
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Individual farmers with cultivable land.
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Farmer groups or cooperatives.
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Water User Associations (WUAs) and Farmer Producer Organizations (FPOs).
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Solar developers who lease farmland from farmers.
Conclusion
PM-KUSUM Yojana is a game-changer for Indian farmers, offering a sustainable way to reduce electricity costs, boost income, and promote clean energy. At Mittal Solar, we help farmers take advantage of government schemes like PM-KUSUM by providing end-to-end assistance in installation and financing.
Want to switch to solar? Contact us today for a free consultation!
Table of Content
- Introduction
- What is PM-KUSUM Yojana?
- Key Benefits for Farmers
- How to Apply for PM-KUSUM Yojana?
- Who is Eligible for the Scheme?
- Conclusion