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The PM Kusum Yojana is a government scheme that supports farmers and businesses in switching to solar energy by offering subsidies and financial benefits. This blog explains how the scheme works, who can apply, and how it helps industries reduce energy costs while going green.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) is a Government of India initiative, under the Ministry of New and Renewable Energy (MNRE)—launched in 2019 to bolster decentralized solar capacity and de-dieselize agriculture.
Its dual aim is to:
Component A: Decentralized Grid-Connected Solar Plants
Farmers, cooperatives, and rural entrepreneurs can install up to 2 MW of ground- or stilt-mounted solar or other renewable energy plants, selling power directly to DISCOMs under long-term PPAs.
Component B: Solarization of Existing Pumps
This covers up to 2 HP pumps, converting diesel or grid-powered pumps to solar, with surplus power sale permitted. It’s designed to replace high-cost diesel with clean energy, boosting farm incomes.
Component C: New Solar Irrigation Pumps
Separate support for new standalone solar pumps (up to 7.5 HP), combining usage and surplus sales. Landowners can also lease land to developers for feeder-level solar projects, earning predetermined lease rents.
By tapping into this government solar subsidy for commercial use, industrial consumers can dramatically reduce upfront costs and achieve payback within 4–6 years.
For industries eyeing solar adoption, the Kusum Yojana benefits for businesses include improved CSR credentials, stable energy sourcing, and enhanced profitability.
While originally designed for agriculture, Components A and C allow industrial landowners and business parks to:
This makes the PM KUSUM yojana an attractive option for commercial solar portfolios, enabling companies to leverage the kusum solar scheme for industries to diversify their energy mix.
Jatin Singh is a content developer at Sun Photonics Pvt. Ltd., specializing in creating impactful content for solar energy solutions. With a background in tech and health, he has previously worked in digital marketing and pharma. Passionate about sustainability, and currently exploring all things about solar!
Approval by an Expert:
“This content is reviewed and approved by Dr. Sujata Bhaker, who holds a Doctorate in Renewable Energy and brings over 10 years of industry expertise.”
A Government of India initiative launched in March 2019 to deploy decentralized solar projects—solar pumps and grid-connected plants—to bolster farmers’ irrigation, boost incomes, and add 30.8 GW of solar capacity by 2022.
Individual farmers, farmer groups (FPOs, cooperatives), Panchayats, and other rural entities (e.g., schools, hospitals), as well as commercial/industrial landowners for Components A & C, provided they meet land-proximity and documentation criteria.
– Component B (solar pumps): 60 % of benchmark pump cost as central financial assistance.
– Components A & C (ground-mounted plants and solarized pumps): 30 % of benchmark cost (plus an extra 30 % for SC/ST farmers).
Download the scheme guidelines and application forms from the MNRE website, submit your completed application via your State Nodal Agency’s portal, and track approval through the online dashboard.
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