India has approximately 22 million agricultural pump sets. A substantial fraction of these run on diesel in off-grid areas, costing farmers ₹40–80 per hour of operation, while another large fraction runs on unreliable subsidized grid power that arrives for only 6–8 hours per day in many states. PM-KUSUM Yojana is India’s flagship response to this challenge. Components B and C-IPS are designed to replace both pump categories with solar — permanently and at heavily subsidized upfront cost.
Direct answer. PM-KUSUM Component B provides 30–50% CFA (central government grant) for installing standalone solar-powered agricultural pumps in off-grid areas, targeting 14 lakh pump sets. Component C-IPS provides the same 30–50% CFA for adding solar PV to existing grid-connected agricultural pumps, allowing farmers to meet irrigation demand from solar and sell surplus energy to the DISCOM. Both components require state government co-funding of at least 30%, reducing the farmer’s effective share to 10–40%. EPCs and system integrators execute installations under state implementing agency (SIA) contracts with empanelled vendor programs.
This guide covers every technical and procedural detail an EPC, system integrator, or farmer needs to participate in Component B and C-IPS — from eligibility criteria to the step-by-step application process, to the engineering design considerations that determine whether the system actually performs after commissioning.
What Component B and C-IPS Solve and Why They Matter
The agricultural sector consumes approximately 18–20% of India’s total electricity — more than any other sector in many states. The majority of this consumption happens through inefficient, aging pump sets that were designed for grid power but routinely operate on diesel when grid supply is unavailable or for diesel pumps in completely off-grid areas.
The economics of diesel irrigation are brutal for small and marginal farmers. A 3 HP diesel pump set consumes roughly 2.5 litres of diesel per hour. At ₹95–100 per litre (diesel prices as of 2025), one hour of irrigation costs approximately ₹240–250 in fuel alone — not counting maintenance, oil changes, and engine replacement. A farmer irrigating 2 acres three times per week faces diesel costs of ₹15,000–20,000 per season.
Solar pump sets eliminate this recurring cost after the initial installation. After the subsidy structure under PM-KUSUM, the farmer’s contribution toward a 3 HP solar pump typically falls to ₹15,000–35,000 as a one-time cost — roughly equivalent to one or two seasons of diesel fuel savings.
Definition. Central Financial Assistance (CFA) under PM-KUSUM is a non-repayable grant from the Government of India through MNRE. It is not a loan, subsidy-linked loan, or conditional incentive — it is a direct reduction in the benchmark project cost that the implementing agency receives on behalf of the farmer. CFA cannot be claimed if the system uses non-ALMM-listed modules or non-empanelled vendors.
The DISCOM benefit from these components is equally significant. Diesel farmers who switch to off-grid solar (Component B) place no additional load on the distribution network. Grid farmers who add solar (C-IPS) reduce their daytime consumption — and in the dual-mode configuration, can even export surplus to the grid, helping the DISCOM reduce its agricultural subsidy burden.
Component B Explained: Standalone Solar Pumps for Off-Grid Farmers
Component B targets farmers in areas where reliable grid supply is unavailable. The scheme replaces diesel, kerosene, or petrol pump sets with solar-powered systems that operate entirely on solar energy with no grid connection.
Who Is Eligible for Component B?
The primary target group is small and marginal farmers — those with landholdings below 2 hectares — who are currently using diesel or kerosene pumps for irrigation in areas without reliable grid connectivity. Individual farmers, cooperatives, and farmer producer organizations (FPOs) can all apply, though individual farmers receive priority in most state allocation systems.
Additional eligibility criteria:
- The farmer must have legal possession or ownership of agricultural land where the pump will be installed (Khasra/Khatauni records required).
- The pump installation site must be in a genuinely off-grid location — farmers in areas with grid connectivity are directed to Component C-IPS instead.
- Farmers already enrolled in PMKSY (Pradhan Mantri Krishi Sinchayee Yojana) micro-irrigation programs receive priority in several states because their drip or sprinkler systems are well-suited to the controlled flow rates of solar pumps.
Field tip. State-level allocation for Component B is based on the number of diesel pumps registered with the state Agriculture Department. If your district has a large unregistered diesel pump population, the allocation may underestimate actual demand. Contact the State Implementing Agency (SIA) — typically the state Agricultural Department or a dedicated nodal agency like KREDL, HAREDA, or RRECL — to verify whether your area qualifies and whether applications are open.
Component B Technical Specifications
Solar pump systems under Component B are specified in terms of pump capacity (horsepower rating) and solar PV capacity. MNRE guidelines establish a direct relationship between the two:
| Pump Capacity | Maximum Solar PV Capacity | CFA Applicability (General States) | CFA Applicability (Special Areas) |
|---|---|---|---|
| Up to 2 HP | Up to 2 kW | 30% of benchmark | 50% of benchmark |
| 2.1–5 HP | Up to 5 kW | 30% of benchmark | 50% of benchmark |
| 5.1–7.5 HP | Up to 7.5 kW | 30% of benchmark | 50% of benchmark |
| Above 7.5 HP | As per pump rating | 30%, capped at 7.5 HP benchmark | 50%, capped at 15 HP for special areas |
The solar array size must match the pump HP on a 1:1 kW-to-HP basis. A 3 HP pump may not have a 5 kW solar array because the oversized array creates unnecessary inverter/controller sizing issues and does not qualify for proportionally higher CFA.
Component B Subsidy Structure
The cost-sharing mechanism for Component B ensures that farmers in most states pay no more than 40% of the benchmark or tendered system cost, whichever is lower:
30%
Central Financial Assistance (CFA)
MNRE PM-KUSUM Guidelines
30%
State Government Subsidy (minimum)
MNRE PM-KUSUM Guidelines
40%
Farmer Contribution (max)
Reducible to 10% via bank loans
50%
CFA for special area states
NE states, Ladakh, J&K, HP, Uttarakhand
If a state does not provide the 30% state subsidy, farmers can still proceed with only the 30% CFA from MNRE and arrange the remaining 70% through bank loans (NABARD-linked programs, Kisan Credit Card, or cooperative bank loans are the common routes).
Component B Application Process — Step by Step
Verify State Availability and Portal Access
Check the national PM-KUSUM portal or your state SIA's website for current allocation status. Applications open on a rolling basis as MNRE releases state-wise allocation orders. Some states (Rajasthan, MP, Maharashtra) have active windows; others are fully subscribed or awaiting new allocation.
Gather Required Documents
Documents required include: Aadhaar card, land ownership records (Khasra/Khatauni or equivalent state land record), existing pump ownership proof (diesel pump registration or purchase invoice), bank account details (for subsidy credit), recent passport photograph, and mobile number linked to Aadhaar for OTP verification.
Submit Application to State SIA
Submit the application form online (through the state portal or national PM-KUSUM portal) or offline at the district-level SIA office. Specify pump HP requirement, land area to be irrigated, water source details (bore well, open well, canal), and current pump type (diesel/kerosene).
SIA Verification and Beneficiary List Publication
The SIA verifies documents, conducts on-site GPS mapping, and confirms off-grid status. Approved beneficiaries are published on the state portal. Shortlisted farmers are notified via mobile SMS. Demand for Component B typically exceeds supply — states use lottery or priority scoring to allocate among eligible applicants.
Vendor Assignment, Installation, and AMC
Selected beneficiaries are assigned an MNRE-empanelled vendor. The vendor designs the system, supplies modules and pump controller, installs, and commissions within the SIA timeline. A mandatory 5-year Annual Maintenance Contract (AMC) covering inspection, remote monitoring, and component warranty claims is included. The subsidy is paid directly to the vendor; the farmer pays only their share.
Component C-IPS Explained: Solarizing Grid-Connected Pumps
Component C-IPS (Individual Pump Solarization) targets farmers who already have a grid-connected agricultural pump connection. Instead of waiting for grid power — which many farmers receive only 6–8 hours per day, often at night — C-IPS adds a solar PV system on top of the existing pump connection so the pump runs on solar during daylight hours.
The key design feature that makes C-IPS attractive is the dual-mode operation. In daytime solar hours, the pump draws power from the solar array. When solar is insufficient (cloud, morning, evening), the pump draws from the grid. If solar generation exceeds pump demand, the surplus is exported to the grid and credited to the farmer at the state-approved rate.
Note. Net metering is a prerequisite for the surplus export benefit under C-IPS. For a state-by-state overview of net metering availability and application processes, read our dedicated guide on [DISCOM net metering processes across India](/blog/discom-net-metering-process-india-state-by-state/). As of 2025, states including Maharashtra, Gujarat, Rajasthan, Karnataka, and Andhra Pradesh have net metering regulations in place for agricultural connections. States without agricultural net metering can still implement C-IPS in "solar-only" mode where the pump runs on solar when available and switches to grid when solar is insufficient, but surplus cannot be exported.
Component C-IPS Eligibility
- Farmers with existing grid-connected agricultural pump connections are the primary eligible group.
- The pump connection must be in the farmer’s name (or documented as belonging to the farmer) with a meter registered with the local DISCOM.
- Applicants must comply with state-specific guidelines — some states limit C-IPS to specific districts, feeder types, or pump capacities based on their DISCOM’s load management requirements.
- Pump capacities up to 7.5 HP are fully eligible for CFA. In special area states, the ceiling extends to 15 HP.
C-IPS Solar PV Sizing Rules
The solar PV capacity allowed for CFA under C-IPS is up to 2 times the pump capacity in kW for pumps up to 7.5 HP. This 2x rule exists because the surplus generation (above pump demand) is intended to flow to the DISCOM, creating a revenue stream for the farmer.
| Pump Capacity | Maximum Solar PV (CFA Eligible) | Surplus Export Potential |
|---|---|---|
| 2 HP (1.5 kW) | Up to 3 kW | Up to 1.5 kW exported during peak hours |
| 3 HP (2.2 kW) | Up to 4.5 kW | Up to 2.3 kW exported during peak hours |
| 5 HP (3.7 kW) | Up to 7.5 kW | Up to 3.8 kW exported during peak hours |
| 7.5 HP (5.6 kW) | Up to 11.2 kW | Up to 5.6 kW exported during peak hours |
| 10 HP (7.5 kW) | CFA capped at 7.5 HP benchmark | Uncapped solar array size allowed |
The export rate is determined by the State Electricity Regulatory Commission (SERC) for agricultural feeders. In several states, the export tariff is set at the relevant average cost of power supply (ACPS) or a negotiated rate — consult the state SERC order before estimating income projections.
The Pump-Solar Performance Matching Framework
A common failure mode in C-IPS and Component B projects is a mismatch between the solar array output profile and the pump’s operating head and flow requirements. This is what we call the Solar-Pump Alignment Check — a three-step verification that every EPC or system integrator should complete before commissioning a solar pump system:
Step 1 — Head-flow curve verification: The pump’s H-Q (head vs. flow) curve must be compared against the actual installation head (static head + dynamic friction losses). A pump rated for 30 metres static head but installed with 40 metres of actual head will be severely underperforming regardless of solar input quality.
Step 2 — Array sizing against peak pump demand: The solar array Watt-peak must be sized to cover the pump’s shaft power requirement under worst-case irradiance conditions (typically 9:00–15:00 local solar time in India). Oversizing by 10–15% provides a buffer for soiling, degradation, and mismatch losses.
Step 3 — Controller-inverter compatibility verification: Variable Frequency Drive (VFD) or Maximum Power Point Tracking (MPPT) controllers must be spec-matched to both the solar array voltage range and the pump motor type (surface centrifugal, submersible, or mono-block). A mismatched controller leads to motor hunting, premature bearing failure, and inverter shutdowns during partial irradiance — a common complaint on poorly designed Component B and C-IPS installations.
Watch out. Many empanelled vendors under PM-KUSUM supply a "bundled" solar pump system — panel + controller + pump — from a single manufacturer as a cost optimization. This bundled approach is acceptable for simple applications but fails on high-head bore wells where the pump hydraulics require individual specification. If your installation involves heads above 50 metres or variable water table depths, insist on separate hydraulic design verification before accepting the vendor's bundled spec.
C-IPS Application Process
The C-IPS application process is similar to Component B but adds the DISCOM to the verification chain because the system connects to the existing grid connection:
- Contact the State SIA — verify current allocation availability and scheme status for your state and district.
- Submit application documents — include Aadhaar card, land records, existing pump connection consumer number, pump HP rating and installation details, bank account details, and identity proof.
- DISCOM load survey and GPS mapping — the SIA coordinates with the local DISCOM to conduct a load survey of the existing pump connection and GPS mapping for metering. This step determines the maximum solar PV capacity that can be connected without triggering grid stability concerns on the local feeder.
- Vendor selection and tendering — approved applications move into the state’s vendor tendering process. The selected vendor designs, supplies, and installs the solar PV system, including the bidirectional meter for net metering.
- Commissioning and monitoring — the vendor commissions the system and activates the remote monitoring system. Ongoing monitoring reports are submitted to MNRE. AMC covers inspections, cleaning, and component warranty claims for five years.
Component B vs. C-IPS: Which Is Right for the Farmer?
Choosing between Component B and C-IPS depends on whether the farmer has an existing grid connection, the reliability of grid supply in the area, and the farmer’s income generation goals.
CHOOSE COMPONENT B IF
- Your area has no reliable grid supply
- Your current pump is diesel or kerosene
- You want complete independence from grid outages
- You are in a special area state (50% CFA)
CHOOSE C-IPS IF
- You already have a grid-connected pump
- You want to generate income by selling surplus solar
- Your state has net metering for agriculture
- You want solar + grid backup for reliability
| Decision Factor | Component B | Component C-IPS |
|---|---|---|
| Requires existing grid connection | No — off-grid only | Yes — grid connection required |
| Income generation potential | None (no export) | Yes — surplus exported at SERC rate |
| Grid reliability backup | None | Grid backup when solar insufficient |
| Meter required | Simple energy meter | Bidirectional net meter |
| Typical project cost (3 HP) | ₹1.5–2.0 lakh (before subsidy) | ₹2.0–3.0 lakh (before subsidy) |
| Farmer effective share (loans available) | 10–40% | 10–40% |
| AMC period | 5 years | 5 years |
Common Installation Mistakes That Kill System Performance
After commissioning thousands of solar pump systems across India, the same failure patterns appear repeatedly in Component B and C-IPS projects. Understanding these mistakes upfront saves EPCs costly post-commissioning site visits and protects warranty standing.
Incorrect cable sizing between solar array and pump controller: Rural installations often use undersized DC cable runs of 30–50 metres between the rooftop or ground-mounted solar array and the pump motor controller. At these distances, using 4 mm² cable instead of the required 6 mm² or 10 mm² results in voltage drop losses of 5–8% — directly reducing pump output below design. Always run a voltage drop calculation per IS 732 or equivalent before cable procurement.
Inadequate earthing and lightning protection: Agricultural pump installations in open fields face high lightning strike probability. IS 3043 earthing requirements demand a separate earthing electrode for the solar array frame, separate from the pump earthing system. Many vendors skip the surge protection device (SPD) for the solar side of the controller, exposing the module strings and controller to transient overvoltage damage during thunderstorms.
Module orientation without compass verification: It seems obvious, but south-facing array orientation is frequently verified only by eyeball estimate on site. A 15-degree east or west deviation from true south reduces annual energy output by 1–3% in Indian latitudes — enough to push a borderline system below the pump’s minimum operating power threshold during winter mornings.
Water table depth assumptions without hydrogeological survey: For bore-well installations, the pump HP and solar sizing should be based on the maximum dynamic water table depth during peak summer months, not the static water level. Bore wells in hard rock terrain in Rajasthan, AP, and Karnataka can see dynamic water levels drop 15–30 metres below static level during April–June. A system designed for a 30-metre static head may fail to pump water adequately during peak irrigation season if the dynamic head is 50 metres.
Field tip. For bore-well installations above 40 metres depth, always request a 3-month bore-well yield test report from the farmer or the state groundwater board before finalizing pump HP. A bore well with inadequate yield will cause the pump to run dry, triggering thermal overload protection and shortening motor life regardless of solar array quality.
Module and Equipment Standards for PM-KUSUM Projects
Both Component B and C-IPS projects must use solar PV modules listed on the MNRE Approved List of Models and Manufacturers (ALMM). Using non-ALMM modules in a CFA-supported project disqualifies the project from central financial assistance and may expose the vendor and EPC to recovery of disbursed funds.
Beyond ALMM listing, module quality standards under PM-KUSUM require compliance with BIS certification (IS 14286 for crystalline silicon modules and equivalent standards for other technologies). The pump controller and VFD/MPPT system must be from an MNRE-approved model list published by the SIA.
According to MNRE’s PM-KUSUM operational guidelines, all modules used in the program must carry IEC 61215 and IEC 61730 certifications and be manufactured in India to qualify for DCR-specified tenders in states like Rajasthan and MP.
For EPCs and system integrators, this means that procurement strategy must align with the SIA’s approved vendor and equipment list — a list that is updated periodically and must be confirmed at the time of tender submission, not at order placement.
How Heaven Designs Helps EPCs Win PM-KUSUM Contracts
EPCs bidding on PM-KUSUM Component B and C-IPS contracts need to deliver technically sound, DISCOM-format engineering documentation on tight tender timelines. The documents that SIAs review include system schematic diagrams, structural mounting design briefs, and the commissioning test procedure — all of which must align with state-specific requirements.
Heaven Designs supports EPCs across India in preparing engineering documentation for PM-KUSUM and related rural solar projects:
- Solar Rooftop Detailed Engineering Design — Complete IFC pack including SLD, equipment layout, structural BOQ, and DISCOM-compatible single-line diagram formats.
- Electrical CEIG Drawings — CEIG-approval-ready electrical drawings for grid-connected C-IPS systems, including protection relay and metering specifications.
- Solar Ground Mount Design — Layout and structural design for Component A and large C-FLS solar plants.
- Site Survey and Land Feasibility Services — On-ground verification for Component A and large C-FLS site selection, including sub-station proximity confirmation.
- Download a sample deliverable — Redacted SLD and BOQ from a completed PM-KUSUM Component A project.
Contact us today — our team responds within 24 hours with a project scope and engineering timeline estimate.
Bidding on a PM-KUSUM tender? Get DISCOM-ready drawings fast.
Download a redacted sample IFC pack from a completed Component A project — includes SLD, GA layout, BOQ, and CEIG drawing format. Understand exactly what your DISCOM reviewer expects.
Get the sample pack →FAQ
What is the difference between PM-KUSUM Component B and Component C-IPS?
Component B installs brand-new standalone solar pump systems in off-grid areas for farmers who currently use diesel or kerosene pumps. Component C-IPS adds a solar PV system to an existing grid-connected agricultural pump, enabling the farmer to run the pump on solar during the day, use the grid as backup, and export surplus solar energy to the DISCOM. Component B is the right choice for off-grid areas; C-IPS is the right choice for farmers with existing grid connections who want to reduce electricity bills and generate income from surplus solar.
How much does a farmer actually pay for a Component B solar pump after subsidies?
The effective farmer share depends on the state and the pump capacity. For a typical 3 HP standalone solar pump with a benchmark cost of approximately ₹2.0 lakh, the CFA covers ₹60,000 (30%) and the state subsidy covers another ₹60,000 (30%). The farmer’s gross share is ₹80,000 (40%), but this can be reduced to ₹20,000 (10%) through NABARD-linked bank loans. In special area states, the CFA rises to 50%, making the farmer’s effective share even lower.
Can a farmer install a solar pump capacity larger than the pump HP rating?
For Component B, the solar PV capacity is capped at 1 kW per 1 HP of pump rating — a 5 HP pump cannot have more than 5 kW of solar. For C-IPS, the cap is 2 kW per 1 HP, because the additional capacity above pump demand is intended to export surplus to the DISCOM. CFA is not available for solar capacity above these limits. A farmer can install a larger system if personally financed, but the CFA will be calculated at the applicable benchmark rate, not the actual system cost.
What documents are required to apply for Component C-IPS?
Required documents include: Aadhaar card, agricultural land records (Khasra/Khatauni or equivalent), existing grid-connected pump consumer number from the local DISCOM, proof of pump capacity (pump plate rating or DISCOM connection order), bank account details, and identity proof. The SIA may also require a GPS-mapped site photograph during the verification stage.
How long does it take from application approval to commissioning under Component B?
After a farmer’s application is approved and they are listed as a beneficiary, the typical timeline to system commissioning is 4–8 months. This includes: vendor assignment by the SIA (1–2 months), system design and equipment procurement by the vendor (1–2 months), installation and commissioning (2–4 weeks), and the SIA’s post-commissioning verification (2–4 weeks). Delays can extend this timeline in states with high demand and limited vendor capacity. The project must be commissioned within 24 months of the agreement signing date, with extensions available on request with valid justification.
Can a farmer sell excess solar power under Component C-IPS?
Yes, if the state has implemented net metering regulations for agricultural connections. Under C-IPS, the farmer installs up to 2 times the pump capacity in solar PV — the excess solar generation above pump demand flows to the grid through a bidirectional net meter. The DISCOM credits the exported units against the farmer’s electricity consumption or pays a feed-in tariff at the rate notified by the State Electricity Regulatory Commission (SERC). The additional income from solar exports is one of the primary financial benefits of C-IPS over Component B.
What happens if the MNRE-approved empanelled vendor’s system fails within the 5-year AMC period?
The vendor is contractually obligated to repair or replace any system component that fails within the 5-year AMC period at no cost to the farmer. If the vendor fails to respond within the response time specified in the AMC (typically 48–72 hours for critical failures), the farmer should escalate to the SIA. The SIA maintains a performance record for each empanelled vendor and can delist vendors with poor response rates. For major failures (module replacement, controller failure), the SIA may arrange for a substitute vendor to complete repairs and recover costs from the defaulting vendor’s security deposit.
Are there any taxes or additional charges on PM-KUSUM subsidies?
The CFA and state subsidy provided under PM-KUSUM are government grants and are not considered taxable income for individual farmers under current income tax provisions. The subsidy is transferred directly to the vendor and does not pass through the farmer’s bank account — it simply reduces the invoice amount that the farmer pays. Farmers should obtain a copy of the subsidy calculation sheet from the SIA for their records, as this documentation may be required for rural credit applications or land sale proceedings.
