PM KUSUM Yojana | Solar Pump Subsidy Scheme | Benefits, Subsidy & Steps to Register

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Yojana was introduced in 2019 to support farmers by promoting the use of solar energy, reducing reliance on traditional power sources, and enhancing their income.

What is PM KUSUM Yojana?

The PM-KUSUM Yojana is a revolutionary initiative launched by the Government of India to promote solar energy in the agricultural sector. This scheme aims to reduce the dependency of farmers on traditional electricity sources by encouraging the use of solar-powered irrigation pumps.

With India being one of the fastest-growing solar markets, many solar panel manufacturers in india have played a crucial role in supplying efficient solar technology including DCR Solar Panels in Mono-Facial & Bifacial Solar Panels, for this scheme for this scheme. By integrating solar power into farming, the government aims to enhance farmers' incomes, promote self-reliance, and contribute to environmental conservation.

Key Components of the PM-KUSUM Scheme

Benefits of PM Kusum Yojana

The PM Kusum Solar Yojana offers several benefits to farmers and the overall agricultural sector. Some key advantages include:

1. Reduced Dependence on Grid Electricity

Traditional farming operations rely heavily on electricity supplied by the grid, which can be inconsistent, leading to difficulties in irrigation. By installing solar-powered pumps, farmers can ensure a stable and independent power supply for their fields.

2. Cost Savings on Electricity Bills

With solar-powered pumps, farmers can significantly reduce their electricity expenses. Once installed, these systems require minimal maintenance and generate free electricity, resulting in long-term savings

3. Additional Income for Farmers

One of the unique features of this scheme is the ability to sell surplus electricity generated from solar plants to the government. This provides farmers with an extra source of revenue, improving their financial stability.

4. Environmental Benefits

Solar energy is clean and renewable, reducing carbon emissions and promoting sustainable farming practices. The use of solar-powered pumps helps in decreasing the dependency on fossil fuels, contributing to a greener future.

5. Government Subsidy Support

Under this scheme, the government provides up to 90% financial assistance, which includes central and state subsidies and low-interest loans. This makes solar energy adoption affordable for farmers, even those with limited financial resources.

6. Empowering Rural Communities

The installation of solar pumps under PM Kusum Yojana improves energy access in rural areas, empowering farmers with uninterrupted electricity supply. This enhances agricultural productivity and overall economic development.

Subsidy Information under PM-KUSUM Yojana

One of the biggest attractions of the PM Kusum Solar Yojana is its subsidy structure. The Indian government provides financial assistance to farmers, making the adoption of solar technology affordable. The subsidy benefits under PM KUSUM Solar Pump Yojana are as follows:

Component A: Solar Energy-Based Power Plants (SEPP)

• Target Beneficiaries: Individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organizations (FPOs), and Water User Associations (WUAs).
• Subsidy Structure:
  • Government Support: If beneficiaries cannot arrange the required equity for setting up the solar power plants, they can opt to develop through developers or local DISCOMs.
  • Subsidy for DISCOMs: DISCOMs receive a Performance-Based Incentive (PBI) at ₹0.40 per unit of solar power purchased or ₹6.6 lakh per MW of installed capacity (whichever is lower), for five years from the Commercial Operation Date (COD).
  • Feed-in-Tariff (FiT): The power generated will be purchased by DISCOMs at a tariff determined by the respective State Electricity Regulatory Commission (SERC).

Component B: Standalone Solar Agriculture Pumps

• Target Beneficiaries: Individual farmers in off-grid areas where grid supply is unavailable.
• Subsidy Structure:
  • Central Financial Assistance (CFA): 30% of the benchmark or tender cost (whichever is lower) will be provided.
  • State Govt. subsidy: 30% additional subsidy provided by state Govt.
  • Farmer’s Contribution: The remaining cost is covered by the farmer, with a maximum of 40% of the total cost.
  • Special Subsidy for Specific Regions:
    • North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands: 50% CFA and 30% subsidy from the State Government and the remaining at-most 20% will be provided by the farmer.

Component C: Individual Pump Solarisation (IPS)

• Target Beneficiaries: Individual farmers with grid-connected agricultural pumps.
• Subsidy Structure:
  • Central Financial Assistance (CFA): 30% of the benchmark or tender cost for solarising the pumps, with up to 40% of the remaining cost to be covered by the farmer.
  • State Govt. subsidy: 30% additional subsidy provided by state Govt.
  • Special Subsidy for Specific Regions:
    • North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands: 50% CFA and 30% subsidy from the State Government and the remaining at-most 20% will be provided by the farmer.

This breakdown should provide a clearer and more concise overview of the subsidy structure without redundancy, ensuring that it remains in line with the PM-KUSUM scheme’s actual benefits.

Eligibility for PM Kusum Yojana

To ensure that the benefits of this scheme reach the intended beneficiaries, the government has set specific eligibility criteria for participation in PM Kusum Solar Yojana:

1. Farmers: The scheme is primarily aimed at individual farmers, farmer groups, cooperatives, and panchayats who own cultivable land.

2. Land Ownership: Farmers must own land where the solar panels or pumps will be installed.

3. Existing Grid Connection: Farmers with an existing electricity connection for agricultural purposes are eligible to replace their conventional pumps with solar pumps under this scheme.

4. Off-Grid Areas: Special preference is given to farmers in areas where electricity access is limited or unreliable.

5. Cooperative Societies & FPOs: Farmer Producer Organizations (FPOs) and cooperative societies involved in agriculture can also apply for the scheme.

6. No Prior Solar Installations: Farmers who have not previously availed solar subsidies under other schemes are given priority.

Documents Required for PM Kusum Yojana

To apply for the PM Kusum Solar Pump Subsidy Scheme, farmers need to submit the following documents:

1. Aadhar Card - Proof of identity and residency.

2. Land Ownership Documents - Land title deed, lease agreement, or revenue record proving ownership of the land where the solar plant will be installed.

3. Bank Account Details - Active bank account details for direct benefit transfer (DBT) of subsidies.

4. Electricity Bill - If applying for the replacement of conventional pumps, an electricity bill or connection details must be provided.

5. Passport-Sized Photographs - Recent photographs of the applicant.

6. Domicile Certificate - Proof of residency in the state where the scheme is being applied for.

7. Self Declaration Form - Self-declaration or affidavit confirming compliance with the scheme's terms and conditions.

Read More about Solar Rooftop Subsidy Scheme

Application Process for PM Kusum Yojana

Farmers interested in availing the benefits of PM Kusum Subsidy Yojana can follow these steps to apply:

Step 1: Online Registration

• Visit the official PM Kusum Yojana portal of the state government or the Ministry of New and Renewable Energy (MNRE) website.

• Click on the ‘Apply Now’ button and fill in the required details such as name, Aadhaar number, land details, and bank details.

Step 2: Submission of Documents

• Upload scanned copies of the required documents, including Aadhar Card, land ownership proof, and bank account details.

• Ensure that all details are correctly entered to avoid application rejection.

Step 3: Application Review and Approval

• Once submitted, the application is reviewed by the concerned authorities.

• The verification process includes cross-checking land ownership details, previous subsidy history, and eligibility status.

• After approval, farmers receive a confirmation message regarding their application status.

Step 4: Payment of Beneficiary Contribution

• The scheme provides a subsidy covering up to 90% of the total cost, but farmers need to contribute a small portion (typically 10%).

• Payment can be made through an online transfer or direct deposit to the assigned government account.

Step 5: Installation of Solar Pump/Plant

• After confirmation of payment, the approved vendor is assigned for the installation of the solar pump or power plant.

• The installation is completed under the supervision of the respective state renewable energy department.

Step 6: Commissioning and Monitoring

• Post-installation, the solar pump is tested for efficiency and compliance with government guidelines.

• Farmers can start using solar energy for irrigation and, if applicable, sell excess electricity to the grid.

• Continuous monitoring and maintenance services are provided under the scheme to ensure smooth operation.

Conclusion

The PM Kusum Solar Pump Yojana is a revolutionary initiative aimed at transforming India’s agricultural sector through solar energy adoption. By offering subsidies, financial support, and sustainable energy solutions, this scheme not only empowers farmers but also strengthens the domestic solar industry.

With solar panel manufacturers in India playing a crucial role in supplying high-efficiency modules, this scheme ensures that Indian farmers have access to reliable and cost-effective renewable energy. Moreover, it complements initiatives like the PM Surya Ghar Muft Bijli Yojana, reinforcing the government’s commitment to a cleaner and greener India.

Farmers looking to benefit from this scheme should apply at the earliest, take advantage of the subsidy benefits, and contribute to India’s renewable energy revolution. The future of agriculture is solar-powered, and the PM Kusum Solar Pump Yojana is paving the way for a more self-reliant and prosperous farming community.

To choose the right solar panel for home or agricultural use, consider factors such as efficiency, durability, and warranty. It is essential to select a reputable manufacturer and refer to the ALMM List to ensure the quality of the solar panels.

Read More about TOP 10 Solar Companies in India

Frequently Asked Questions (FAQs)

Here are 10 unique FAQs related to the PM Kusum Yojana – Krushi Urja Abhiyan:

1. What is the maximum limit of Solar Kusum Yojana?
   The maximum capacity under PM Kusum Yojana varies across different components. Under Component A, farmers can set up solar power plants up to 2 MW capacity.

2. How does the PM Kusum scheme work?
   PM Kusum Yojana supports farmers in installing solar pumps and solar power plants to reduce dependency on diesel and grid electricity. It provides subsidies and financial assistance to promote clean energy in agriculture.

3. What is the aim of Solar Kusum Yojana?
   The primary aim is to promote solar energy use in agriculture, reduce the carbon footprint, and ensure energy security for farmers by providing solar pumps and decentralized solar power plants.

4. What is the subsidy provided under PM Kusum?
   Farmers receive up to 60% subsidy from the government and an additional 30% loan assistance, meaning they need to contribute only 10% of the total cost. The exact subsidy may vary by state.

5. Which farmers benefit from PM Kusum Component C1?
   Small and marginal farmers, individual farmers with cultivable land, and farmer producer organizations (FPOs) are eligible under Component C1, which focuses on the solarization of grid-connected pumps.

6. What is the loan tenure and interest rate under PM Kusum?
   The loan tenure ranges from 7 to 10 years, with interest rates varying based on financial institutions. Typically, the interest rate is between 4-7% per annum.

7. Can a farmer install a solar plant on leased land under PM Kusum?
   Yes, a farmer can install a solar plant on leased agricultural land, provided they have proper agreements and permissions from local authorities.

8. Is PM Kusum available in all states of India?
   Yes, the scheme is available across all states, but implementation and subsidies may vary based on state government policies. Farmers should check with their state nodal agency (SNA) for details.

9. Can farmers sell surplus solar energy to the grid under PM Kusum?
   Yes, under Component A, farmers can sell excess electricity generated from their solar power plants to DISCOMs (power distribution companies) and earn extra income.

10. How can farmers apply for PM Solar Kusum Yojana benefits?
    Farmers can apply through the official portal of their state’s Renewable Energy Department or approach their DISCOM or local agriculture department for assistance in the registration process.