PM-KUSUM

Key Takeaways

• PM-KUSUM = Indian agricultural solar scheme (2019+).
• Three components: A (decentralized solar plants), B (standalone pumps), C (grid-tied pumps).
• 60% subsidy (30% central + 30% state) for solar pumps.
• ALMM-listed modules and inverters required.
• Major rural solar growth driver in India.

How the Three Components Differ

The three components of PM-KUSUM address different farmer needs, and each carries its own design and compliance path. Component A covers small decentralized ground-mounted solar plants (typically 500 kW to 2 MW) built on farmer or panchayat land, with the generated power sold to the local DISCOM under a long-term power purchase agreement, closer in engineering scope to a small commercial solar plant than a pump installation.

Component B funds standalone solar water pumps for farms without a reliable grid connection, replacing diesel pumps directly. Component C is aimed at farmers who already have a grid-connected agricultural pump: it lets them add a solar array either to run the existing pump off-grid or, more commonly, to feed surplus daytime generation back to the DISCOM through net metering, turning the farm into a modest revenue source alongside irrigation.

Because Component A and C both involve exporting power to the grid, they trigger the same DISCOM interconnection and safety-clearance steps that any grid-tied solar project does, module and inverter selection from the ALMM list, DISCOM feasibility approval, and, above a state-defined capacity threshold, electrical inspector sign-off before energization. Component B, being an off-grid pump, skips grid interconnection but still requires ALMM-compliant equipment to qualify for the subsidy.

A Simplified Example

Consider a farmer applying under Component B for a 5 HP solar water pump priced at roughly the scheme’s benchmark cost. Under the standard subsidy structure, the central government covers 30% of the cost, the state government contributes another 30%, and the farmer finances the remaining 40% (often through a bank loan facilitated by the implementing DISCOM or state nodal agency).

The farmer never has to interconnect with the grid, so the main compliance checkpoints are pump and panel eligibility (ALMM listing) and site verification by the implementing agency rather than a full electrical inspection.

A Component A applicant, by contrast, is effectively developing a small solar plant on agricultural land and has to work through land-use clearance, structural design for the array, and DISCOM connectivity approval before the PPA is signed, a materially heavier design and permitting exercise than a standalone pump.

Related Reading

PM-KUSUM’s grid-connected components (A and C) run into the same state-specific approval chain covered in Heaven Green Energy’s DREBP & PM-KUSUM scheme page for Gujarat, which documents how the scheme is implemented on the ground for one of India’s largest KUSUM markets.

For EPCs designing the ground-mounted plants under Component A, Solar Permits India: State-Wise Processing Times 2026 breaks down how land-use and agricultural conversion clearances stack on top of the usual building, electrical, and net-metering approvals, the same layered process a KUSUM Component A plant has to clear.

Teams preparing a full submission package, whether for a KUSUM plant or any other ground-mount or rooftop project, can also use Solar Permit Design FAQ: 15 Questions EPCs Ask Before Submitting Applications as a general reference for what AHJs and DISCOMs expect to see.

PM-KUSUM is run by MNRE with CFA support, and Component A plants are often co-located with farming; see the agrivoltaics engineering guide for India.

Disclosure: Heaven Green Energy is a Heaven Designs group company.