How much does a solar pump actually save?

A 5 HP solar pump saves approximately ₹3,000-8,000/month in diesel or electricity costs (depending on usage and local rates). Over 25 years (solar panel lifespan), total savings are ₹10-15 lakh. The pump pays for itself within 2-4 years, after which all irrigation is essentially free.

Can I sell excess solar power?

Yes, under Component C (grid-connected solar). If your solar panels generate more electricity than your pump needs, the excess is fed to the grid and you receive payment at the DISCOM's agreed tariff rate. This can earn you ₹500-3,000/month depending on your solar capacity and usage pattern.

My state hasn't opened KUSUM applications. What do I do?

Not all states have active applications at all times — they open in batches based on budget allocation. Check your state's renewable energy department website periodically, or register for notifications. Meanwhile, some states have their own solar pump schemes with similar subsidies — check with your district agriculture office.

What maintenance does a solar pump need?

Minimal. Solar panels need occasional cleaning (dust/dirt reduces efficiency). The pump motor may need servicing every 2-3 years. There are no fuel costs, no recurring electricity charges. Most installations come with 5-year comprehensive warranty. Panel manufacturers provide 25-year performance warranty.

Can tenant farmers apply?

Generally no — you need to own the land where the solar pump will be installed. Some states allow it with a long-term lease agreement (10+ years) from the landowner. Check your state's specific eligibility rules.

Active SchemeUpdated: March 2026

☀️

PM KUSUM Yojana

Solar energy for farmers — get solar water pumps at 60-90% subsidy and earn money by selling solar power to the grid

Subsidy

60–90%

Solar Pump

Up to 10 HP

Target

35.5 GW solar

Budget

₹34,422 Cr

📝Apply (State Portal)📞MNRE Helpline

📖What is PM KUSUM Yojana?

PM KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a solar energy scheme for farmers launched in 2019 by the Ministry of New & Renewable Energy (MNRE). It has three components: (A) Setting up 10,000 MW solar power plants on barren/fallow farmland, (B) Installing standalone solar water pumps of up to 10 HP capacity, and (C) Solarizing existing grid-connected agricultural pumps.

The scheme offers 60% to 90% subsidy on solar pump installation — the farmer pays only 10-40% of the cost. For example, a 5 HP solar pump that costs ₹3-4 lakh can be installed for ₹30,000-1,60,000 out of pocket (depending on state and component). The remaining cost is covered by central government subsidy (30%) + state government subsidy (30%) + bank loan (optional).

Component A allows farmers to set up solar power plants (500 kW to 2 MW) on their barren or fallow land and sell the electricity to DISCOMs (power distribution companies) at a pre-agreed tariff. This creates an additional income stream from land that wasn't being used for farming.

Component B provides standalone off-grid solar pumps for irrigation in areas where grid electricity is unavailable or unreliable. The farmer gets a solar panel + pump set that works entirely on solar power — no electricity bill, no diesel cost. Pumps of 1 HP to 10 HP are covered.

Component C helps farmers who already have grid-connected electric pumps to install solar panels on them. The solar panels power the pump during the day, and excess electricity is sold to the grid — the farmer earns money for surplus solar power. Government provides 30% subsidy + state provides 30%.

✅Eligibility

Component A (solar plant)Individual farmers, cooperatives, panchayats, farmer producer organizations with barren/fallow land

Component B (solar pump)Individual farmers needing irrigation pumps in off-grid or weak-grid areas

Component C (solarize pump)Farmers with existing grid-connected agricultural pumps who want to add solar panels

Land requirementFarmer must own agricultural land. Component A needs barren/fallow land near electrical substation

Subsidy splitCentral: 30% + State: 30% + Farmer: 40% (some states cover farmer's share too, making it 10-20% out of pocket)

ApplicationThrough respective state nodal agencies — each state has its own portal and process. Check with your state MNRE/agriculture department.

💰Cost Breakdown — What the Farmer Actually Pays

Example: 5 HP Solar Pump (Component B) — approximate costs:

Total cost of 5 HP solar pump system: ₹3,50,000

Central government subsidy (30%): ₹1,05,000

State government subsidy (30%): ₹1,05,000

Farmer's share (40%): ₹1,40,000

Bank loan available for farmer's share: Yes, at subsidized rates

In some states (Rajasthan, Madhya Pradesh, Chhattisgarh), the state covers more than 30%, bringing the farmer's share down to just 10-20% (₹35,000-70,000).

After installation, the farmer saves ₹3,000-8,000/month on diesel or electricity costs. The solar pump pays for itself in 2-4 years, and then provides free irrigation for 20-25 years (lifespan of solar panels). Over the full lifetime, the farmer saves ₹10-15 lakh in energy costs.

📝How to Apply — State-Wise Process

Check your state's KUSUM portal

PM KUSUM is implemented through state nodal agencies. Each state has its own portal and timeline. Search for '[Your State] KUSUM Yojana' or check the MNRE website (mnre.gov.in) for state-wise nodal agency contacts.

Create an account on your state's KUSUM portal. Enter your personal details, land details, existing pump details (for Component C), and the type of solar system you want.

Submit documents

Upload: Aadhaar, land records (7/12 extract), bank account details, existing electricity bill (for Component C), and passport-size photo. Some states also need a soil/water test report.

Pay your share (or arrange bank loan)

After application approval, pay the farmer's share (10-40% of total cost). Banks provide loans for this amount at subsidized rates. Some state agencies also facilitate EMI payments.

Installation by empanelled vendor

An empanelled solar vendor installs the pump/panels. Installation takes 2-4 weeks. After installation, the state agency inspects and commissions the system. Warranty is typically 5 years for pump + 25 years for solar panels.

📝How to Apply

Check your state's KUSUM portal

PM KUSUM is state-implemented. Each state has a different portal, timeline, and additional subsidies.

Fill application with land details, pump requirements, and upload documents.

Pay farmer's share after approval

10-40% of total cost depending on your state's subsidy structure.

Installation within 2-4 weeks

Empanelled vendor installs. State agency inspects and commissions.

ℹ️PM KUSUM subsidy percentages and application processes vary by state. Check your specific state's portal for exact subsidy amounts, current application deadlines, and available capacity. Not all states have opened applications for all components.