Farming in India runs on water, and water runs on power. For decades that has meant subsidised grid electricity that often arrives at night, or diesel pumps that eat into a farmer’s income. PM-KUSUM was designed to change this by putting solar power directly into farmers’ hands. Here is how the scheme works and where it stands in 2026.
What is PM-KUSUM?
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was launched in March 2019 by the Ministry of New and Renewable Energy. It has a central outlay of ₹34,422 crore and an overall target of about 34,800 MW of solar capacity. The aims are simple: reliable daytime power for irrigation, lower diesel use, extra income for farmers and a lighter subsidy burden on state power utilities.
The three components
| Component | What it covers | Target |
|---|---|---|
| A | Small solar plants of 500 kW to 2 MW on barren or farm land, selling power to the DISCOM | 10,000 MW |
| B | Standalone solar pumps replacing diesel pumps in off-grid areas | 14 lakh pumps |
| C | Solarising existing grid-connected pumps, individually or at feeder level | 35 lakh pumps |
Who pays for a solar pump?
For Components B and C, the cost of a pump is shared three ways:
- 30% central government subsidy
- At least 30% state government subsidy
- 40% from the farmer, of which up to 30% can be a bank loan
This means a farmer usually needs to put in only about 10% upfront. In the north-eastern and hill states and the island territories, the central share rises to 50%. Many states add more than the minimum, bringing the farmer’s share down further.
Progress so far
- About 13.11 GW had been installed across all components by 31 March 2026, a little over a third of the target.
- Under Component A, power purchase agreements had been signed for 9,871 MW, but only about 1,727 MW was operating by 30 June 2026.
- Rajasthan leads Component A by a wide margin, with more than 1,236 MW installed. Madhya Pradesh had about 202 MW and Telangana 79 MW.
- Because many projects with signed agreements are still under construction, their completion timeline has been extended to March 2027.
What farmers gain
- Daytime irrigation. Solar pumps run when the sun is up, ending the hardship and danger of night-time watering.
- Lower costs. A diesel pump costs money every hour it runs. A solar pump has almost no running cost for 20 years or more.
- Extra income. Under Components A and C, farmers can sell surplus power to the DISCOM or earn lease rent for land used by a solar plant.
- Water discipline. Where surplus power can be sold, farmers have a reason to pump only what the crop needs, which helps protect groundwater.
Why progress has been uneven
PM-KUSUM is harder to deliver than a rooftop scheme. Small farmers struggle to arrange even a 10% share, banks have been cautious about lending for small solar plants, state subsidy releases are sometimes delayed, and tariffs offered for Component A power have not always been attractive to developers. Feeder-level solarisation, where a single solar plant powers all the pumps on an agricultural feeder, has emerged as the most practical route and is where much of the recent growth has come from.
How to apply
PM-KUSUM is implemented by state agencies, so applications go through the state’s renewable energy agency or agriculture department portal, not a single national website. The national portal, pmkusum.mnre.gov.in, lists the official agency for each state. The government does not charge a registration fee through private websites, so use only the links listed there.
The road ahead
Rooftop solar has shown how quickly a scheme can scale once the process becomes simple, as described in the PM Surya Ghar guide. PM-KUSUM needs the same simplicity: quicker subsidy releases, easier loans and standard contracts. States such as Telangana, which has sanctioned nearly 1,800 MW of farm-level solar plants, will be an important test, as discussed in Solar Energy in Telangana 2026.
If the scheme delivers on its targets, millions of Indian farmers will irrigate their fields with clean power that they own. Few energy policies offer as direct a benefit to as many people.