PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is India’s flagship scheme for solarising agriculture. Launched in 2019 with a total outlay of over Rs. 34,000 crore, the scheme targets three distinct areas: large solar parks on barren land, new standalone solar pumps for off-grid farmers, and solarisation of existing grid-connected pumps. For solar developers and agricultural equipment suppliers, KUSUM represents one of the largest distributed solar opportunities in India.
Understanding the three components, their CFA structures, and the state-level implementation process is critical for anyone bidding on KUSUM projects or advising farmers on pump solarisation. This guide covers each component in detail, including current subsidy rates, eligibility, and the step-by-step application process.
Component A Projects Require DISCOM PPA Execution
Under Component A, the developer must sign a 25-year power purchase agreement with the state DISCOM at a tariff discovered through competitive bidding. Projects without an executed PPA cannot claim CFA. Many developers underestimate the PPA negotiation timeline — DISCOMs in some states take 6–12 months to finalise tariffs and execute agreements.
KUSUM Component A: Grid-Connected Solar Plants on Barren Land
Component A targets the installation of 10,000 MW of decentralised ground-mounted solar plants on barren, fallow, or agricultural land. Each plant ranges from 2 MW to 10 MW in capacity. The power generated is fed into the grid, and the landowner (typically a farmer or farmer cooperative) receives lease rental income plus a share of the power sale proceeds.
How Component A Works
A farmer or group of farmers leases barren or unproductive land to a solar developer. The developer installs a 2–10 MW solar plant, connects it to the nearest 33 kV substation, and sells power to the state DISCOM under a long-term PPA. The farmer receives:
- Lease rental: Rs. 1,000–Rs. 5,000 per acre per year (varies by state)
- Escalation: Typically 3–5% annually
- Additional income: Some states offer a share of the power sale revenue
Component A CFA Structure
| Parameter | General Category States | Special Category States |
|---|---|---|
| CFA per MW | Rs. 20 lakh | Rs. 25 lakh |
| Maximum plant size | 10 MW | 10 MW |
| Minimum plant size | 2 MW | 2 MW |
| PPA tenure | 25 years | 25 years |
| CFA release: on award | 30% | 30% |
| CFA release: on installation | 40% | 40% |
| CFA release: on commissioning | 30% | 30% |
Special category states include Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, northeastern states, and island territories. These states receive a higher CFA rate to account for difficult terrain and higher project costs.
State-wise Component A Allocation (Selected States)
| State | Allocated Capacity (MW) | Key Implementing Agency |
|---|---|---|
| Rajasthan | 2,500 | RRECL |
| Maharashtra | 1,500 | MEDA |
| Gujarat | 1,000 | GEDA |
| Karnataka | 1,000 | KREDL |
| Madhya Pradesh | 800 | MPUVNL |
| Uttar Pradesh | 750 | UPNEDA |
| Tamil Nadu | 500 | TEDA |
Key Risks for Component A Developers
Land title disputes: Barren land in rural India often has unclear ownership records. Developers must conduct thorough due diligence on land titles before signing lease agreements.
Substation capacity: Many rural 33 kV substations lack spare transformer capacity. A feasibility study confirming evacuation infrastructure is essential before bidding.
PPA tariff discovery: Tariffs are discovered through reverse auction or competitive bidding. In states with low discovered tariffs (below Rs. 2.50/kWh), project viability depends heavily on the CFA and low land costs.
Using solar design software that models energy yield, land use efficiency, and grid export helps developers prepare accurate bids for Component A tenders.
KUSUM Component B: Standalone Solar Pumps
Component B aims to install 20 lakh (2 million) standalone solar-powered agricultural pumps. These pumps replace diesel pumps or provide irrigation where grid connectivity is unavailable or unreliable. A standalone pump operates entirely off-grid, with no connection to the electricity distribution network.
Component B Pump Specifications
| Parameter | Details |
|---|---|
| Pump capacity range | 3 HP to 10 HP |
| Solar array size | 3 kW to 10 kW (matched to pump HP) |
| Pump type | Surface or submersible (depending on water source) |
| Water discharge | 20,000–80,000 litres per day (varies by pump HP and head) |
| CFA coverage | 30% central + state share (varies) |
Component B CFA and Farmer Contribution
The central financial assistance covers 30% of the benchmark cost. The state government contributes a share (typically 30%), and the farmer pays the remaining amount. In practice, the split varies by state:
| Contribution | Typical Share |
|---|---|
| Central CFA (MNRE) | 30% |
| State government | 30% |
| Farmer contribution | 40% |
Some states have reduced the farmer contribution to 10–20% through additional state budgets. Farmers from scheduled caste/scheduled tribe categories often receive higher subsidies.
Who Is Eligible for Component B
- Farmers with agricultural land and no reliable grid connection
- Farmers currently using diesel pumps (priority category in many states)
- Farmers with valid land records and Aadhaar
- The pump must be installed on the farmer’s own land
Component B Pumps Are Off-Grid — No Net Metering
Standalone solar pumps under Component B are not connected to the grid. They do not qualify for net metering or export tariffs. The entire solar generation is used to power the pump. Farmers who want both irrigation and the ability to sell surplus power should consider Component C (grid-connected pump solarisation) instead.
KUSUM Component C: Solarisation of Grid-Connected Pumps
Component C targets the solarisation of 15 lakh existing grid-connected agricultural pumps. Solar panels are added to the existing pump installation, allowing the pump to run on solar during daylight hours and switch to grid power when solar generation is insufficient.
How Component C Works
A hybrid solar controller is installed between the solar array and the existing pump motor. During the day, the pump runs primarily on solar. When cloud cover or low irradiance reduces solar output, the controller automatically switches the pump to grid power. At night, the pump operates entirely on grid power.
Component C System Specifications
| Parameter | Details |
|---|---|
| Solar array size | 3 kW to 10 kW (matched to pump HP) |
| Pump capacity | Existing pump (3 HP to 10 HP typical) |
| Controller type | Hybrid AC/DC or VFD-based |
| Grid connection | Retained — pump switches to grid when needed |
| CFA coverage | 30% central + state share |
Component C CFA Structure
The CFA structure mirrors Component B: 30% central, approximately 30% state, and the remainder from the farmer. The benchmark cost is determined by MNRE annually and varies by pump HP and solar array size.
| Pump HP | Approximate Solar Array | Benchmark Cost (Indicative) |
|---|---|---|
| 3 HP | 3 kW | Rs. 1.5–2.0 lakh |
| 5 HP | 5 kW | Rs. 2.5–3.0 lakh |
| 7.5 HP | 7.5 kW | Rs. 3.5–4.0 lakh |
| 10 HP | 10 kW | Rs. 4.5–5.5 lakh |
Benchmark costs are revised by MNRE. Check the current MNRE notification for exact figures.
Step-by-Step: How to Apply for KUSUM
Check State Nodal Agency Portal for KUSUM Status
Visit your state’s renewable energy development agency website. Download the current KUSUM guidelines, application forms, and the list of empaneled vendors. Confirm your district is included in the active implementation phase. For Component A, check the MNRE website for national-level tender announcements.
Prepare Required Documents
For Components B and C: land ownership records (7/12 extract or equivalent), Aadhaar card, bank account details, existing electricity connection details (for Component C), and caste certificate if applying under SC/ST quota. For Component A: land lease agreements, DPR, company registration, financial capacity proof, and PPA draft.
Submit Application Through State Nodal Agency
Farmers apply online or at the district renewable energy office for Components B and C. For Component A, developers submit DPRs to the state nodal agency, which forwards them to MNRE. Include all documents in the first submission — incomplete applications are the leading cause of processing delays.
Complete Installation by Empaneled Vendor and Claim CFA
Select a vendor from the state-approved empaneled list. The vendor installs the system and submits commissioning documents. The state nodal agency conducts a physical inspection, verifies the installation, and processes CFA disbursement in tranches as per the milestone schedule.
Design KUSUM-Compliant Solar Pump Systems
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KUSUM vs PM Surya Ghar: Key Differences
KUSUM and PM Surya Ghar are both MNRE schemes, but they target different segments:
| Feature | PM-KUSUM | PM Surya Ghar |
|---|---|---|
| Target sector | Agriculture | Residential |
| Main benefit | Solar pumps, land lease income | Rooftop solar subsidy |
| Maximum CFA | Rs. 25 lakh/MW (Component A) | Rs. 78,000 per household |
| Grid connection | Component A and C are grid-linked | Grid-connected with net metering |
| Implementing agency | State nodal agency + DISCOM | DISCOM via national portal |
| Application portal | State-specific | pmsuryaghar.gov.in (national) |
For installers who work across both residential and agricultural markets, understanding both schemes expands the addressable customer base significantly.
Common Mistakes in KUSUM Projects
Using non-empaneled vendors: Only vendors empaneled by the state nodal agency can install KUSUM systems. Using an unregistered vendor voids CFA eligibility.
Incorrect pump sizing: Oversizing the solar array relative to the pump HP wastes capacity. Undersizing leads to insufficient water discharge. The solar array must be matched to the pump’s power requirement and the daily water demand.
Ignoring water availability: Solar pumps are often installed without adequate assessment of groundwater levels or water source reliability. A 10 HP pump is useless if the borewell runs dry in summer.
Missing land records: For Component A, incomplete land title documentation is the most common reason for project rejection. Developers should verify land records at the tehsil level before finalising lease agreements.
State-wise Implementation Status
KUSUM implementation varies significantly across states:
| State | Component A Progress | Component B/C Progress | Notable Features |
|---|---|---|---|
| Rajasthan | Active tenders, 500+ MW commissioned | High pump installation rate | Highest solar irradiance, lowest tariffs |
| Maharashtra | Multiple tenders issued | Active in drought-prone districts | MEDA manages implementation |
| Gujarat | Strong progress | Integrated with existing solar pump schemes | GEDA has prior experience with solar pumps |
| Karnataka | Moderate | Active in dry regions | KREDL coordinates with agriculture dept |
| Uttar Pradesh | Early stage | Large target, growing implementation | UPNEDA handles high volume |
| Madhya Pradesh | Moderate | Focus on tribal areas | MPUVNL manages tribal subsidies |
Related India Compliance Guides
- India PM Surya Ghar Guide — residential rooftop solar subsidy
- India MNRE Rooftop Policy — national rooftop solar framework
- India ALMM Compliance — approved component lists for all MNRE schemes
- India DISCOM Grid Connection — grid interconnection process
- India CEA Technical Standards — technical requirements for grid-connected systems
Using solar design software that supports Indian irradiance datasets and MNRE-compliant component libraries streamlines the design process for KUSUM and other agricultural solar projects.
Frequently Asked Questions
What are the three components of PM-KUSUM?
Component A installs 10,000 MW of grid-connected solar plants (2–10 MW each) on barren land. Component B installs 20 lakh standalone solar pumps for off-grid irrigation. Component C solarises 15 lakh existing grid-connected pumps with hybrid solar controllers.
What is the CFA subsidy rate under KUSUM Component A?
Rs. 20 lakh per MW for general category states and Rs. 25 lakh per MW for special category states. CFA is released in three tranches: 30% on project award, 40% on installation, and 30% on commissioning.
How does a farmer apply for a solar pump under KUSUM?
Farmers apply through their state nodal agency (e.g., RRECL, MEDA, GEDA) with land records, Aadhaar, and electricity connection details. The state agency assesses feasibility, and the farmer selects an empaneled vendor for installation.
What is the difference between Component B and Component C?
Component B installs new off-grid standalone solar pumps where no grid exists. Component C adds solar panels to existing grid-connected pumps with a hybrid controller, allowing daytime solar operation with grid backup.
Which states have the highest KUSUM allocation?
Rajasthan, Maharashtra, Gujarat, Karnataka, and Madhya Pradesh lead Component A allocations. Uttar Pradesh, Maharashtra, Rajasthan, Gujarat, and Tamil Nadu have the highest pump solarisation targets under Components B and C.
