PM-KUSUM: How Farmers Are Getting Solar Pumps at 60% Subsidy

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) continues to be one of the most impactful renewable energy schemes for India’s farming community, with government data showing lakhs of farmers already benefiting from solarised irrigation. States like Jammu & Kashmir alone have installed thousands of solar agriculture pumps under the scheme in recent months.

PM-KUSUM works through three components. Component A supports setting up small solar power plants on barren or agricultural land, letting farmers earn income by selling power to DISCOMs. Component B provides subsidy for standalone solar-powered agriculture pumps, replacing costly diesel pumps in areas without reliable grid access. Component C helps farmers solarise their existing grid-connected pump sets, again enabling surplus power sales.

Under Component B specifically, eligible farmers typically pay only about 10% of the pump cost out of pocket, with 30% central subsidy, 30% state subsidy, and the remaining amount available as a bank loan. This structure has made solar pumps dramatically more accessible for small and marginal farmers who previously found diesel-based irrigation both expensive and unreliable during fuel shortages.

Beyond cost savings, the environmental case is significant — every diesel pump replaced cuts down on both farmer expenditure and diesel-linked emissions, directly supporting India’s broader renewable energy targets. State nodal agencies like CREDA in Chhattisgarh have been actively pushing PM-KUSUM enrolment alongside their own state schemes such as Saur Sujala, giving farmers multiple entry points to access solar irrigation support.

Farmers interested in applying should check with their state renewable energy development agency for the current subsidy application window, required documents, and empanelled vendor list.