KUSUM Solar Pump Yojana

The PM KUSUM Solar Yojana is a scheme for farmers where the central government provides KUSUM solar pump sets to them on a subsidised basis. KUSUM Solar 2021's main goal is to provide sophisticated technologies for farmers to generate electricity. 

These solar pumps have a dual purpose: they help farmers with irrigation while also allowing them to generate electricity. The Centre has allocated ₹1,996 Crores in the Union Budget 2023-24 for the smooth execution of the PM KUSUM Solar Yojana.

Under the scheme, farmers using power solar pumps can sell their excess electricity to state power distribution units and benefit from it. The PM KUSUM Solar Yojana, according to the central government, has the potential to double farmers' income.

Each of the following bullet points describes one of the three distinct components of the scheme.

• Component A: Decentralised Ground/ Stilt-mounted Grid-connected Solar Plants

  • Intended for setting up solar or other renewable energy based power plants (REPP) of typically 500 kW to 2 MW capacity on barren, uncultivable land or on agricultural land in stilt/raised fashion.

  • Farmers, groups of farmers, cooperatives, panchayats, FPOs (Farmer Producer Organisations), Water User Associations (WUAs) or developers can act as Renewable Power Generators (RPGs).

  • The power generated is fed into the grid and purchased by the local Distribution Company (DISCOM) at a tariff decided by the State Regulatory Commission.

  • Enables farmers to use otherwise fallow or non-cultivable land for income generation through solar power.

  • Supports decentralising renewable energy generation closer to farm load centres, reducing losses and improving local power availability.

• Component B – Stand-alone Solar Agriculture Pumps (Off-grid Solar Pumps)

  • Enables individual farmers in areas not served by grid supply (or with unreliable grid) to install solar-powered irrigation pumps.

  • Central Financial Assistance (CFA) is provided by the Government of India. It is typically split in 2 parts, namely 30% of benchmark cost (or tender cost whichever is lower); and a higher subsidy (50%) in North-Eastern States/Hilly regions/Islands.

  • The farmer may contribute the remaining cost (often via bank finance). This helps reduce dependency on diesel/power for irrigation and cuts operating cost.

  • Helps in providing daytime solar irrigation, reducing diesel usage and contributing to farm income and environmental benefits.

• Component C – Solarisation of Existing Grid-connected Agriculture Pumps (IPS & Feeder Level Solarisation)

  • Two modes under this component:

    • Individual Pump Solarisation (IPS): Solar PV installed alongside the existing grid-connected agriculture pump, enabling daytime use of solar power for irrigation and selling excess to the DISCOM.

    • Feeder-level Solarisation (FLS): Solar projects set up at feeder level to cater to the agricultural load of the feeder, thereby providing reliable daytime supply to multiple pumps.

  • The Government provides CFA (e.g., 30% of benchmark cost, or 50% in special regions) towards solar components.

  • Enables existing grid-connected pumps to benefit from solar energy, lessening grid burden and diesel dependence, improving irrigation reliability.

The Indian government is working on a Solar Pump Scheme with the following goals.

• Pollution Control

India and France have joined forces to form the International Solar Alliance (ISA), which focuses more on renewable energy. India has set a target of 500 GW of solar power by 2030, with 172 GW already installed. 

PM KUSUM Solar Pump Yojana is one of many initiatives by the Indian Government to promote renewable energy generation.

• Reduced Diesel Consumption

In our country, diesel engines are largely utilised for irrigation where there is no electricity, and where there is electricity, coal is used more. As a result, pollution is on the rise. PM KUSUM Yojana has the potential to cut down farmers’ reliance on diesel and coal for irrigation.

•  Increasing Farmers' Income

You can use solar electricity for 300 days a year. However, watering must be done on a set schedule. Farmers can earn money by selling electricity for this purpose.

One of the crucial elements of a solar pump is its panels. Solar panels, commonly referred to as solar plates, turn sunlight into electricity. Solar panels may be found in a variety of markets:

• Polycrystalline Solar Panel

Polycrystalline Solar Panel is commonly used in large solar projects and will soon be accessible in households.

• Monocrystalline Solar Panel

A monocrystalline solar panel has been designed using the latest technology to generate power. The majority of these solar panels will be located in houses, where they will be used to charge batteries and save energy.

• Bi-Facial Solar Panel

Another sophisticated technology constructed of mono solar cells is the bi-facial solar panel. This solar panel generates solar energy from both sides, and the sun shines down on it as well.

The following section outlines the key advantages that farmers and rural communities stand to gain under the scheme:

Additional Income Generation for Farmers

The scheme enables farmers to earn extra income by installing solar plants on previously unproductive agricultural land or by selling surplus power back to the grid.

Reduced Dependence on Diesel and Grid Power for Irrigation

By promoting solar-powered pumps in place of diesel or unreliable grid supply, the scheme lowers the farmers’ operating costs and ensures more reliable daytime irrigation.

Enhancement of Energy and Water Security in Rural Areas

The decentralised solar infrastructure under the scheme ensures that irrigation and other farm-related energy needs are met reliably, contributing to improved water usage and farm productivity.

Utilisation of Unused/Fallow Land for Renewable Generation

Under one of its components, the scheme allows use of barren, fallow or uncultivable land for installation of solar power plants, thereby turning under-utilised land into revenue-generating assets for farmers.

Support for Renewable Energy Targets and Improved Grid Health

By promoting solar power generation closer to agricultural loads and facilitating feed-in to the grid, the scheme helps distribution companies meet their renewable purchase obligations and reduces transmission losses.

The applying farmer should be eligible for the KUSUM Yojana. It is a legal requirement to have an Aadhaar card. To apply, you will need the account number from your bank. 

Once you meet the required eligibility terms, you must submit the following documents when applying for the scheme:

• Aadhaar card

• Passport size photo

• Income certificate

• Bank account passbook

Farmers must apply online on the scheme's official website to receive a free solar pump under the PM KUSUM Solar Yojana (mnre.gov.in). This website has a simple application process for farmers who plan to apply for this scheme.

Follow this process when applying for this scheme:

• Visit the official website at https://www.india.gov.in/spotlight/pm-kusum-pradhan-mantri-kisan-urja-suraksha-evam-utthaan-mahabhiyan-scheme

• Complete the registration form by entering essential details, such as your name, contact number, financial information, etc.

• Click on ‘Submit’ once you check the declaration box

• Create a login ID and password, and attach all the supporting documents

The KUSUM Solar Pump programme, which intends to deliver agricultural solar pumps with a 90% subsidy, has begun in various states. Till October 2022, more than 1.75 Lakh pumps have been installed by the government aid. 

As mentioned, these pumps are eligible with a subsidy. Farmers receive subsidies for new and better solar-powered pumps under the PM Kusum Yojana. The farmers are only responsible for 10% of the overall cost of installing the solar pump. The government covers 60% of the cost, and the bank pitches the other 30% as credit.

The PM-KUSUM Scheme offers farmers a practical way to lower irrigation costs, improve energy security, and generate additional income through solar power. By reducing dependence on diesel and unstable grid supply, the scheme supports long-term sustainability and financial stability for rural communities. For farmers or agri-entrepreneurs looking to expand their operations further, access to timely business finance can make a significant difference. Platforms like Bajaj Markets allow you to compare business loan options from multiple trusted lenders in one place. Such platforms help you find suitable funding for equipment purchases, solar installations, or other growth needs.