PM-KUSUM Solar Pump Guide for Farmers

PM-KUSUM is India’s flagship scheme for putting solar to work on the farm — standalone solar pumps, solarised feeders and small ground-mounted plants. Here is how the money actually flows, what a farmer really pays, and the diesel-replacement maths that decides whether it is worth it.

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is run by the Ministry of New and Renewable Energy (MNRE) and implemented through state nodal agencies and DISCOMs. It is not one scheme but three, and knowing which component applies to you is the first filter. The first phase of the scheme ran until 31 March 2026, and MNRE has said a second phase (PM-KUSUM 2.0) will follow. Until its guidelines are notified, whether you can still apply depends on what your state nodal agency has left under its existing sanction, so check your state’s KUSUM portal before you plan around it.

The three components in one minute

• Component A — small ground-mounted or stilt-mounted solar plants (typically 500 kW to 2 MW) on barren, fallow or agricultural land. The farmer or a developer sells power to the DISCOM at a tariff fixed by the state regulator. This is a land-income play, not a pump scheme.
• Component B — standalone off-grid solar pumps replacing diesel pumps where there is no grid supply. This is the headline for most farmers and the focus of this guide.
• Component C — solarising existing grid-connected pumps, either individually or by solarising the whole agricultural feeder, so that farmers get reliable daytime supply and DISCOMs cut their subsidy burden.

Component B economics: who pays what

The standard Component B cost split in most states is central financial assistance of 30 percent, a state subsidy of at least 30 percent, and the remaining roughly 40 percent from the farmer — of which about 10 percent is a down payment and up to 30 percent can be financed through a bank loan. In the North-Eastern states including Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and the Andaman & Nicobar Islands the central share rises to 50 percent, so with the 30 percent state share the farmer pays about 20 percent. States may also implement Component B without a state share; the central 30 percent then stays and the farmer pays the remaining 70 percent.

Many states sweeten the deal further from their own budgets. Several have offered pumps at 10 percent or even token cost for small, marginal, SC/ST or tribal-area farmers in particular years. These top-ups change with state budgets, so treat any specific percentage you read online as a starting point and verify with your state nodal agency or agriculture/energy department portal.

Eligible pump sizes

Central assistance under Component B covers pumps up to 7.5 HP (about 5.5 kW), raised to 15 HP for individual farmers in the North-Eastern, hill and island states and UTs, and for each farmer in cluster or community irrigation projects in high water-table areas. You can install a larger pump, but the subsidy is calculated only up to the 7.5 HP benchmark cost — everything above that is on you. Common sanctioned sizes are 3 HP, 5 HP and 7.5 HP, in both DC and AC variants, surface and submersible. Match the pump to your water depth and daily requirement first, then check what your state has tendered; our well pump calculator helps you size from head and flow before you commit to a category.

The diesel-replacement maths: a worked example

The financial case for Component B is almost entirely a diesel-replacement case. Take a typical 5 HP diesel pump used for irrigation:

Run your own numbers rather than trusting a vendor’s brochure: hours per season, local diesel price and your actual pump size move the answer a lot. Our diesel vs solar calculator does exactly this comparison with your inputs.

How to apply

1. Apply only through official channels. Each state has a designated nodal agency (energy development agency, agriculture department or DISCOM) with its own portal. The official MNRE PM-KUSUM site lists these portals. Do not pay a registration fee that the official portal does not state. MNRE has often warned about fake websites that collect ‘registration fees’.
2. Register in the open window with land records, Aadhaar, bank details and a water-source declaration. Allocation is demand-based against a state quota, so you may land on a waitlist.
3. Pay your share and choose an empanelled vendor. Installation must be by a vendor empanelled in the state tender; choosing an outside installer forfeits the subsidy.
4. Installation and commissioning come next. Usually a joint inspection takes place before the vendor receives the subsidy.

Component C: feeder solarisation and daytime supply

If your pump is already grid-connected, Component C matters more to you than B. In feeder-level solarisation, the DISCOM (or a developer) builds a solar plant sized to the agricultural feeder’s daytime load, and farmers on that feeder get assured daytime supply instead of erratic night-time slots — without paying anything individually. Individual pump solarisation under Component C also exists, letting a farmer generate on-site and feed surplus to the grid for credit, but state adoption is uneven. If your area is scheduled for feeder solarisation, it may be cheaper to wait for it than to buy a standalone pump.

Maintenance realities in the field

• Panel cleaning is the big one. In dusty pre-monsoon months, soiling can cut output 10–25 percent. Plan a simple weekly wipe-down with water and a soft brush; avoid abrasives.
• Warranties: tenders typically require around 5 years of comprehensive warranty on the pump, controller and structure, and 25 years on panel performance. Keep the commissioning report and insist on the vendor’s service contact in writing.
• Theft and damage: remote installations do get targeted. Anti-theft nut-bolting and fencing are standard in many tenders; some states bundle insurance. Ask before signing, not after.
• Controllers fail more often than panels. The MPPT controller/VFD is the usual weak link; a vendor with a real local service network beats a marginally cheaper quote.

Caveats

State quotas fill fast — sometimes within days of a window opening — and implementation quality varies enormously between states, from smooth portals to years-long waitlists. Benchmark costs, state top-ups and eligible categories are revised periodically, and the scheme’s overall timeline has been extended more than once, so any specific date or rupee figure should be re-verified with your state nodal agency or DISCOM before you budget. Solar pumps also pump only when the sun shines; if you irrigate at night from a shared source, factor in storage tanks or schedule changes. Finally, near-free pumping can tempt over-extraction of groundwater — several states now pair KUSUM with micro-irrigation conditions for good reason. For grid-connected homes rather than farms, start with our India solar calculator instead.

Common mistakes

• Paying a ‘registration fee’ on an unofficial website — apply only via the MNRE-listed state portal.
• Oversizing the pump beyond 7.5 HP and being surprised the subsidy is capped at the benchmark.
• Comparing solar against an electric pump on subsidised farm tariffs — the maths only sings against diesel.
• Choosing a non-empanelled installer and losing the subsidy entirely.
• Ignoring water depth: a 3 HP pump that cannot lift from your actual borewell depth saves nothing.
• Skipping panel cleaning in dust season and blaming the pump for low flow.

Frequently asked questions

How much does a farmer actually pay for a PM-KUSUM solar pump?

In most states, about 40 percent of the benchmark cost: roughly 10 percent as a down payment and up to 30 percent through a bank loan, with 60 percent covered by central and state subsidies. Hill and North-Eastern states get 50 percent central support, and several states add their own top-ups for small, marginal or tribal farmers, so the effective farmer share can be much lower. Verify the current split with your state nodal agency.

What pump sizes are covered under PM-KUSUM Component B?

Central assistance typically covers standalone pumps up to 7.5 HP (about 5.5 kW), with 3 HP, 5 HP and 7.5 HP the common tendered sizes. You may install a larger pump, but the subsidy is calculated only up to the 7.5 HP benchmark cost.

How fast does a KUSUM solar pump pay back against diesel?

For a 5 HP pump running about 1,000 hours a year, diesel costs are typically around one lakh rupees annually, while the farmer share of the solar pump is roughly ₹1.2–1.4 lakh. That puts payback near 1.5 years, after which running costs are close to zero. Your hours, pump size and local diesel price will shift this, so run your own numbers.

Is PM-KUSUM still open in 2026?

The first phase ended on 31 March 2026 and MNRE has said a second phase will follow; until its guidelines are out, availability depends on your state agency’s remaining sanction, so check your state’s KUSUM portal. Check the official MNRE PM-KUSUM site and your state nodal agency portal for the current window, and be wary of unofficial sites charging registration fees.