Solar Pump and Plant Subsidy through PM Kusum Yojana: Save Up to 60% on Your Investment; Earn Potential Income of Rs 60,000 to Rs 1 Lakh Per Acre Annually for 25 Years by Selling Power to DISCOMs; Learn How to Apply
The Indian government's Ministry of New and Renewable Energy (MNRE) has launched the PM-KUSUM Yojana, a groundbreaking initiative aimed at revolutionising the agricultural sector and enhancing farmers' income through solar energy.
The scheme, designed to de-dieselise agriculture, consists of three main components. Component A focuses on grid-connected solar power plants on farmers' barren or fallow land, while Component B targets stand-alone solar pumps for off-grid areas. Component C is dedicated to solarising existing grid-connected agriculture pumps, including feeder-level solarisation.
Under Component B, farmers in India receive a combined 60% subsidy for stand-alone solar pumps. This subsidy is split equally between the Central and State Governments. Farmers can also avail bank loans for 30% of the cost. In special states like J&K and the NE states, farmers receive a 50% subsidy (Rs 1.75 Cr/MW) for solarisation under Component-C. In contrast, farmers in normal states receive a 30% subsidy (Rs 1.05 Cr/MW) for the same.
Farmers can install solar plants with a capacity of 500 kW to 2 MW under Component A. The power generated is sold to DISCOMs at a tariff decided by the State Electricity Regulatory Commission (SERC). By installing solar plants on barren land, farmers can earn an estimated Rs 60,000 to Rs 1,00,000 per acre per year for 25 years.
Component C allows farmers to use solar power for irrigation and sell any surplus electricity to DISCOMs. The solar PV capacity allowed is up to two times the pump capacity (kW). The government also allows solarisation of entire agricultural feeders under Component-C, supplying daytime electricity to all pumps on the feeder.
The PM-KUSUM Yojana is administered by the MNRE. Farmers need not worry about the high initial cost, as they only need to pay 10% upfront for the installation, with the rest financed via bank loans up to 30% of the cost. Solar-powered pumps eliminate the recurring costs of diesel, reducing both pollution and financial burden.
The solar panels installed under the scheme have a lifespan of 25 years and require minimal maintenance. The loan repayment is manageable, as farmers can use the income generated from selling excess electricity or the savings from reduced diesel usage to repay the loans.
The PM-KUSUM Yojana empowers farmers to adopt clean energy, cut fuel costs, increase crop productivity, and generate long-term income. Farmers can apply for the scheme online through the official PM-KUSUM portal, pmkusum.mnre.gov.in. The scheme is financially designed to be farmer-friendly, providing a sustainable solution for a greener and more profitable future for Indian agriculture.
