Kisan Urja Suraksha Yojana: How Solar Pumps Are Empowering India’s Farmers

For decades, Indian farmers have relied on erratic electricity supplies and expensive diesel pumps to irrigate their fields. Frequent power cuts, rising fuel prices, and unstable groundwater levels have made agriculture increasingly costly and unpredictable. Recognising this challenge, the Government of India launched the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) — a scheme aimed at empowering farmers through solar energy.

Since its implementation in 2019, the PM-KUSUM Yojana has transformed how Indian agriculture consumes energy. It has allowed lakhs of farmers to install subsidized solar pumps and power plants, promoting energy independence and financial stability while reducing the carbon footprint of rural irrigation systems.

By 2025, the PM-KUSUM scheme is on track to meet its ambitious target of adding 34,800 MW of solar capacity by March 2026. This article explores the program in detail — its components, benefits, subsidies, eligibility, and how solar energy is transforming rural India’s agricultural landscape.

What is the Kisan Urja Suraksha Yojana (PM-KUSUM)?

The PM-KUSUM Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan) is a flagship renewable energy initiative by the Ministry of New and Renewable Energy (MNRE). Its aim is to enable farmers to generate solar power for irrigation and income generation, reducing dependency on fossil fuels and grid electricity.

The scheme is jointly implemented by the Central and State Governments with a total financial outlay of ₹34,422 crore, including service charges to implementing agencies.​

Read Also: Solar-Powered Cold Storage: A Game-Changer for Tamil Nadu Farmers

Objectives of the PM-KUSUM Yojana

The scheme’s goals align with India’s commitment to renewable energy and rural development:

  • Empower farmers with affordable, decentralized solar power.
  • Reduce diesel dependency and fossil fuel emissions.
  • Enhance energy independence for agricultural operations.
  • Enable farmers to earn additional income by selling surplus electricity to DISCOMs.
  • Achieve energy security and sustainability by expanding solar capacity to rural areas.

Key Components of the Scheme

The PM-KUSUM program is divided into three major components, each targeting a specific aspect of solar energy adoption in agriculture.​

A: Decentralized Solar Power Plants

  • Installation of 10,000 MW of decentralized, ground-mounted, grid-connected solar or renewable energy power plants.
  • Plants range between 500 kW and 2 MW capacity and are installed on barren or cultivable lands (on stilts so crops can grow beneath).
  • Farmers, cooperatives, and farmer producer organizations (FPOs) can lease their land for such projects.
  • Power generated is sold to local DISCOMs at pre-fixed tariffs, ensuring regular income for participating farmers.

B: Stand-Alone Solar Pumps

  • Installation of 17.5 lakh standalone solar pumps for irrigation purposes.
  • Replaces diesel-powered pumps in off-grid and remote areas.
  • Farmers get reliable daytime electricity for irrigation at minimal cost.
  • Reduces greenhouse gas emissions while boosting productivity.

C: Solarization of Grid-Connected Pumps

  • Conversion of 10 lakh existing grid-connected pumps into solar-powered systems.
  • Farmers can use generated solar energy for irrigation and sell excess power back to the grid, earning additional revenue.

These three components collectively encourage dual benefits – energy production and income generation – spearheading a new era of sustainable agriculture in India.

Subsidy Structure Under PM-KUSUM

The government provides substantial subsidies to make solar adoption affordable. The cost-sharing structure is as follows :​

Contribution SourcePercentage of Total CostDescription
Central Government (MNRE)30%Central Financial Assistance (CFA) available to all states
State Government30%State contributes an equal share for local implementation
Farmer’s Contribution10–40%The remaining portion, often financed via loans
Special Category StatesUp to 80% subsidyHigher support for North-Eastern states, J&K, Uttarakhand, and HP

Example:

If a solar pump system costs ₹2.5 lakh, the financial breakup would be:

  • ₹75,000 (Central Govt Subsidy)
  • ₹75,000 (State Govt Subsidy)
  • ₹1,00,000 (Farmer Contribution or Bank Loan)

Thus, the farmer pays less than half of the total cost while benefiting from free solar-powered irrigation for decades.

Benefits of Solar Pumps for Farmers

The KUSUM Yojana is more than an energy reform — it is a socio-economic upliftment program for India’s 14 crore farmers. Here are its major benefits:

1. Cost Savings

Farmers using solar pumps save thousands of rupees each year by eliminating diesel and electricity costs. Operating solar irrigation systems has near-zero running cost compared to fuel-based pumps.

2. Reliable Electricity Supply

Daytime solar generation ensures predictable irrigation cycles, even in areas with poor grid connectivity.

3. Increased Income Potential

Farmers with grid-connected solar systems can sell excess electricity to nearby DISCOMs under power purchase agreements (PPAs), ensuring steady secondary income.

4. Environmental Sustainability

The program supports India’s net-zero goals by reducing carbon emissions and promoting clean energy. It also reduces groundwater contamination associated with diesel-powered pumps.

5. Reduced Subsidy Burden for States

As farmers move away from free or subsidized grid power, states save significantly on electricity subsidy payouts.

6. Empowerment of Rural Women and Small Farmers

Safer, easy-to-operate solar pumps help women farmers irrigate fields without relying on external labor or erratic electricity supply.

Economic Impact

As of October 2025, the scheme has helped deploy over 1.21 lakh solar pumps nationwide, contributing to 4.9 GW of decentralized solar capacity.​

  • Total number of farmers benefited: 2.45 lakh+
  • Average annual savings per farmer: ₹25,000–₹40,000 on fuel/electricity
  • Projected profit from power sales: ₹50,000–₹80,000 per year for grid-connected installations
  • Jobs created: Over 70,000 direct and indirect “green jobs” in solar installation, maintenance, and distribution

These metrics illustrate the scheme’s contribution to rural prosperity and national energy resilience.

Environmental Impact

Each 5 HP solar pump offsets approximately 1.3 tonnes of CO₂ annually. With more than a lakh pumps already operational, India avoids around 150,000 tonnes of CO₂ emissions per year — equivalent to planting over 7 million trees annually.

This large-scale adoption of solar irrigation systems contributes directly to India’s Nationally Determined Contributions (NDCs), advancing renewable energy targets under the Paris Climate Agreement.

State-Wise Implementation Progress

Several states have made remarkable progress under PM-KUSUM:

StateSolar Pumps Installed (2025)Remark
Rajasthan30,000+Early adopter; strong desert solar infrastructure
Uttar Pradesh25,000+Focused on replacing diesel pumps
Maharashtra21,000+Leading in Component-C solarization
Gujarat18,000+Promoting cooperative solar farms
Haryana15,000+Large institutional adoption
Madhya Pradesh12,000+High contribution from FPO-led projects

Collectively, these states contribute 70% of total installed solar agriculture capacity under KUSUM.​

How to Apply for the KUSUM Yojana

Farmers can apply both online and offline through state nodal agencies or dedicated portals.

Online Application Process:

  1. Visit the official MNRE KUSUM portal: 
  2. mnre.gov.in
  3. Select your State/UT and click “Apply for Solar Pump”.
  4. Fill in details like farmer name, Aadhaar, and land ownership documents.
  5. Upload necessary documents (ID proof, land records, bank details).
  6. Select the desired Component (A, B, or C) and type of connection.
  7. Submit and track your registration via the provided acknowledgment number.

Offline Process:

  1. Visit the District Agriculture Department or State Nodal Office.
  2. Obtain the KUSUM application form.
  3. Fill in the details manually and submit with required documents.
  4. Officials verify eligibility and issue project approval for installation.

Real-Life Example: Solar Empowerment in Rajasthan

Rajasthan serves as a model of KUSUM’s success. Farmers in desert districts such as Bikaner and Jaisalmer have installed 7.5 HP solar pumps that allow them to irrigate 8–10 acres without diesel expenses.
Local farmer cooperatives have even set up solar plants on barren land, generating renewable energy sold to the grid at ₹3.15/kWh — earning members an average annual income of ₹60,000 per acre of leased land.

Such success stories demonstrate how solar energy is transforming India’s most drought-prone regions into hubs of sustainable agriculture.

Challenges in Implementation

While the scheme has achieved impressive results, certain challenges remain:

  • Delayed Subsidy Disbursement: Some states face procedural delays during subsidy release.
  • Lack of Awareness: Rural farmers still need clearer information on scheme benefits and application processes.
  • Financing Barriers: Despite subsidies, smaller farmers find it difficult to finance their 10–20% share.
  • Technical Maintenance: Solar pumps require regular maintenance; poor after-sales service can disrupt performance.
  • Discom Coordination: Integrating decentralized energy into existing grid infrastructure requires better synchronization.

The MNRE has initiated Phase II digital reforms, allowing tracking of subsidy disbursements and vendor authentication to address these issues.

The Future of PM-KUSUM

By 2026, the scheme aims to reach 45 lakh farmers nationwide, accelerate solar pump solarization, and support feeder-level grid solutions to achieve rural energy autonomy.​

The integration of AI-based pump monitoring systems and blockchain-based energy trading models are being tested in some pilot regions. Such advancements can elevate rural energy management to global standards.

Government authorities estimate the scheme will reduce agricultural electricity consumption by 15% annually – saving nearly 3 billion units (kWh) of power every year.

Read Also: Solar-Powered e-Learning Centres: Lighting Up Education in Rural India

Frequently Asked Questions (FAQs)

1. What is the main goal of PM-KUSUM Yojana?
To empower farmers through solar power by providing subsidies on solar pumps and enabling them to earn income by selling surplus electricity.

2. Who is eligible to apply?
All individual farmers, FPOs, cooperatives, and panchayats owning or leasing agricultural land can apply.

3. What is the subsidy amount under the scheme?
60% subsidy (30% Central + 30% State), and farmers contribute only 10–40% based on financial capacity.

4. How much power can I sell to the grid?
Depending on your system capacity, surplus energy can be sold to state DISCOMs under fixed tariffs (typically ₹3.10–₹3.30/kWh).

5. What’s the lifespan of solar pumps?
Solar panels typically last for 20–25 years with minimal maintenance.

6. Can marginal farmers avail financing support?
Yes. Banks and NABARD provide low-interest loans under the Agriculture Infrastructure Fund.

7. How can I check my application status?
You can log in to the MNRE portal or contact your state DISCOM office for updates.

Conclusion

The Kisan Urja Suraksha Yojana (PM-KUSUM) represents a revolutionary step toward rural energy transformation and sustainable agriculture in India. By providing financial assistance, clean energy access, and opportunities for additional income, the government has empowered millions of farmers to achieve energy and economic independence.

As the nation moves toward its 2030 renewable energy targets, solar-powered irrigation is not just brightening fields—it is illuminating India’s path to a resilient, green future.

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