How Farmers Can Benefit from Solar Energy: A Simple Guide to PM-KUSUM Component B and C-IPS

The PM-KUSUM Scheme, introduced by the Government of India, is revolutionizing agriculture by incorporating renewable energy solutions. Component B focuses on installing standalone solar pumps, while Component C aims at solarizing grid-connected agricultural pumps.

These programs are designed to reduce reliance on fossil fuels, ensure a consistent power supply for irrigation, and create additional income opportunities for farmers. This guide provides clear information on eligibility, financial support, and application steps, making it easier for farmers to take advantage of these solar energy initiatives.

Component B: Standalone Solar Pumps

Eligibility check

1. Who can apply?

• Individual farmers who are using diesel pumps in off-grid areas.
• Small and marginal farmers are prioritized under the scheme.
• Farmers opting for micro-irrigation systems.

2. Pump Capacity:

• Solar pump capacity is capped at the pump’s horsepower (HP) rating.
• CFA (Central Financial Assistance) up to 30% (50% for North-Eastern, Hilly, and Island regions).
• Pump capacities up to 7.5 HP are eligible for CFA. In specific regions, CFA is available for capacities up to 15 HP.

3. Documents Required:

• Aadhaar card for identification.
• Proof of farmer status and pump ownership.
• Land records to establish installation eligibility.

Things to Know Before Apply

• 30% CFA from the Central Government.
• 30% subsidy from the State Government.
• The farmer bears the remaining costs (up to 40%) directly or via bank loans.
• A pump capacity higher than 7.5 HP may be allowed, but allowed CFA will be limited to the CFA applicable for the pump of 7.5 HP.
• The CFA will be available with a pump capacity of up to 15 HP for individual farmers in the North-Eastern region (NER), Hilly region, and island.
• If state subsidies are unavailable, farmers can install solar pumps with only central government support. The farmer bears the remaining 70% of the cost directly or via a loan.
• The maximum solar PV capacity in kW is allowed as per the pump capacity in HP. For example, a 3HP pump cannot have a solar capacity of more than 3kW.

Application Process

1. Visit the Official Portal: Applications can be submitted through the respective State Implementing Agency (SIA) or designated department, such as the Agricultural or Minor Irrigation Department, or visit here to check the process flow: https://pmkusum.mnre.gov.in/#/landing/more-about-B
2. Fill Out the Application Form: Complete the online or offline application form by providing essential details, including personal information, proof of land ownership, pump specifications, and bank account details.
3. Upload/Submit Required Documents: Attach all required documents to the application, such as identity proof, land records, and pump details.
4. Verification by Authorities: Once the application is submitted, State Implementing Agencies (SIAs) will verify the documents and eligibility.
5. Approval and Selection: Eligible farmers will be informed of their selection. The list of approved beneficiaries will also be published on the state portal.
6. Vendor Assignment and Installation: Approved farmers are assigned a vendor for system installation. The vendor will handle the installation and provide a 5-year maintenance contract.
7. Subsidy and Loan Disbursement: The subsidy is directly transferred to the vendor, reducing the upfront cost for farmers. Farmers can pay their share through personal funds or loans arranged with assistance from SIAs.

Component C: Individual Pump Solarization

Eligibility Check

1. Who Can Apply?

• Farmers with grid-connected agricultural pumps are eligible to participate.
• Applicants must comply with state-specific guidelines.

2. Pump Capacity:

• Solar PV capacity up to two times the pump capacity (in kW) is allowed for pumps up to 7.5 HP.
• For the North-Eastern States, Jammu & Kashmir, Ladakh, Uttarakhand, and Himachal Pradesh, CFA is extended to pump capacities up to 15 HP.

3. Documents Required:

• Proof of land ownership or lease agreement.
• Pump installation details (capacity, location).
• Identity proof (Aadhaar card or similar government-issued ID).
• Bank account details for subsidy transactions.

Things to Know Before You Apply

1. Subsidy Structure:

• Central Financial Assistance (CFA) covers up to 30% of the solarization cost (50% for hilly and island regions).
• Farmers in states without state subsidies can opt for central subsidies and bank loans for up to 70% of the installation cost.

2. Income Generation:

• Farmers can sell surplus solar energy to the grid at state-approved rates, creating an additional income stream.

3. Net Metering:

• In the “solar and grid” option, net metering ensures seamless power import/export from the grid.

4. Maintenance:

• Vendors provide mandatory 5-year Annual Maintenance Contracts (AMC) covering inspections and remote monitoring.

Application Process

1. Contact the State Implementing Agency (SIA): Reach out to the designated SIA in your state to check availability and gather details about the scheme.
2. Submit Required Documents: Provide all necessary documents, including pump capacity and proof of ownership, to the SIA.
3. Verification and Approval: SIAs will conduct load surveys and GPS mapping of eligible pumps to finalize your application.
4. Vendor Selection and Installation: Approved applications will move to the tendering process. Selected vendors will design, supply, and install the system.
5. Monitoring and Maintenance: Vendors will ensure regular maintenance and submit reports to the Ministry of New and Renewable Energy (MNRE).

Also read: Agrivoltaics Explained: Can Solar Panels & Farms Work Together?

Conclusion:

Switching to solar energy isn’t just about cutting costs; it’s about securing a sustainable future for your farm. With the PM-KUSUM scheme, farmers can enjoy reliable daytime power, save money, and earn extra income by selling surplus energy. Whether you’re interested in installing a standalone solar pump or solarizing a grid-connected one, the process is simple and has enormous benefits. Ready to take the next step? Explore the scheme today and bring the sun’s power to your fields.