The PM KUSUM Scheme is one of India’s most ambitious renewable energy initiatives aimed at transforming the agricultural sector through clean, affordable, and reliable solar power.
Officially known as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, the scheme is designed to reduce farmers’ dependence on diesel and grid electricity while creating additional income opportunities.
If you are an agri-entrepreneur looking for how to raise funds for a startup in India or a farmer seeking energy security, this detailed guide explains the PM KUSUM Yojana details, eligibility, components, and subsidies.
PM KUSUM Yojana Full Form
The KUSUM yojana full form stands for:
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan
The name itself reflects the core objectives:
- Urja Suraksha: Energy security for farmers.
- Utthaan: Income enhancement and rural upliftment.
What is PM KUSUM Scheme?
The PM KUSUM Scheme was launched by the Government of India to add 34,800 MW of solar capacity by March 2026. Administered by the Ministry of New and Renewable Energy (MNRE), it aims to:
- Provide affordable solar-powered irrigation.
- Reduce diesel consumption and the electricity subsidy burden.
- Enable farmers to become energy producers, not just consumers.
- Align with the Benefits Indian MSMEs get from Union Budget 2026 regarding green energy.
Why PM KUSUM Yojana is Important for Indian Agriculture
Indian agriculture heavily depends on expensive diesel pumps and erratic grid electricity. The pm kusum yojana addresses these challenges by promoting decentralized solar power.
By generating surplus power, farmers can sell electricity back to DISCOMs, creating a stable income stream, much like the opportunities found in agri-business grants.
Structure of PM KUSUM Scheme
The scheme is divided into three major components, each catering to different needs:
| Component | Focus | Capacity / Target |
|---|---|---|
| Component A | Decentralized solar power plants on barren land | 10,000 MW |
| Component B | Standalone solar agricultural pumps (Off-grid) | 14 lakh pumps |
| Component C | Solarisation of existing grid-connected pumps | 35 lakh pumps |
PM KUSUM Yojana Details: Component A
Decentralized Solar Power Plants on Farmers’ Land
Component A enables farmers and rural institutions to set up small solar power plants (up to 2 MW) and sell electricity to DISCOMs.
PM KUSUM Yojana Eligibility – Component A:
- Individual farmers and Farmer Producer Organizations (FPOs).
- Cooperatives and Panchayats.
- Water User Associations (WUAs).
Key Benefits:
- Feed-in-Tariff (FiT): Power purchased by DISCOMs at a fixed state-approved tariff.
- Lease Income: Farmers can lease barren land to developers and earn assured annual rent without any capital investment.
PM KUSUM Yojana Details: Component B
Standalone Solar Agricultural Pumps (Off-Grid)
Component B focuses on replacing diesel pumps in remote areas with solar-powered pumps.
Subsidy Structure:
*In North Eastern States, J&K, and Uttarakhand, the central subsidy is increased to 50%.
PM KUSUM Yojana Details: Component C
Solarisation of Existing Grid-Connected Pumps
This component allows farmers to solarise their existing pumps, reducing electricity bills and allowing them to sell excess power.
- Individual Pump Solarisation (IPS): 30% subsidy on the solar PV component.
- Feeder Level Solarisation (FLS): Solar plants supply clean power directly to the agricultural feeder, reducing DISCOM losses.
Focus Area of PM KUSUM Scheme
The pm kusum scheme is aligned with:
- Sustainable Agriculture: Reducing the carbon footprint of farming.
- Renewable Energy Adoption: Meeting India’s solar targets.
- MSME Integration: Encouraging small enterprises to manufacture components under the MSME Act.
Documents Required for PM KUSUM Yojana
To successfully apply, you must ensure your documentation is perfect. The Documents required for pm kusum yojana include:
- Aadhaar Card & Identity Proof.
- Land Ownership Proof (specifically for Component A).
- Bank Account Details (Passbook or cancelled cheque).
- Detailed Project Report (DPR) (for larger plants).
- Consent Letter from DISCOMs.
- Registration Proof: MSME Certification if applying as an FPO or firm.
Avoid application delays—get a complete PM KUSUM document checklist prepared correctly by professionals.
Implementation & Application Process
The pm kusum yojana application process involves:
Portal Registration: Register on the state-specific renewable energy portal.
Proposal Submission: Upload all Documents required for pm kusum yojana.
Technical Evaluation: DISCOMs and MNRE verify the feasibility.
Installation: Commissioning by approved vendors.
Subsidy Disbursement: Funds are released after successful installation.
Startups in the energy sector can also look into the HP Udgam Scheme for equity-based funding.
Role of Professional Assistance
Many applications face rejection due to incorrect component selection or non-alignment with state guidelines. Consultancies like Enego assist in:
- MSME growth advisory sessions for rural businesses.
- Optimizing subsidies for Agri-Sure Fund candidates.
- Ensuring compliance with the Startup India certificate norms for tech-led agri-firms.
Need help navigating state-specific PM KUSUM guidelines?
Conclusion: PM KUSUM Scheme as a Game-Changer for Farmers
The PM KUSUM Scheme is more than a subsidy program—it is a structural reform. By combining solar generation, irrigation security, and additional income, it empowers farmers to become stakeholders in India’s renewable future.
Whether you want to install a solar pump or lease land for a plant, pm kusum yojana offers a sustainable pathway.
Frequently Asked Questions (FAQs)
What is the PM KUSUM Yojana full form?
It stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan.
Who is eligible for PM KUSUM scheme?
Individual farmers, FPOs, Cooperatives, and Panchayats are eligible. Review the pm kusum yojana eligibility section above for details by component.
How much subsidy is available under PM KUSUM?
Up to 60% (30% Central + 30% State) for solar pumps in most regions, and up to 80% in special regions.
Can farmers sell excess solar power?
Yes, under Components A and C, you can sell surplus power to the grid at a state-approved tariff.
Can I get a without security business loan for the remaining 10-30%?
Yes, many banks offer loans for the farmer's contribution without requiring heavy collateral. Check our guide on how government grants work.