PM Kusum Yojana for Solar Pumps: Subsidy, Cost & Application Process (2026 Guide)
India’s farmers have long battled two problems: unreliable grid electricity and the rising cost of diesel for irrigation. The PM Kusum Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was designed to solve both at once by putting solar-powered pumps and solar power generation directly into the hands of farmers, at a fraction of the market price.
If you’re a farmer, agri-entrepreneur, or someone advising farmers on renewable energy adoption, here’s everything you need to know about the scheme’s subsidy structure, real costs, and how to actually apply.
What Is PM Kusum Yojana?
Launched by the Ministry of New and Renewable Energy (MNRE), PM Kusum Yojana aims to reduce farmers’ dependence on diesel and grid electricity by promoting solar-based irrigation and decentralized solar power generation. The scheme runs through three components:
- Component A — Setting up small, decentralized solar power plants (500 kW to 2 MW) on barren or agricultural land. Farmers can lease land to developers or set up plants themselves and sell surplus power to the local DISCOM, turning unused land into a steady income source.
- Component B — Installation of new standalone, off-grid solar pumps (typically 3 HP to 7.5 HP, with some guidance extending up to 10 HP) for farmers who currently rely on diesel pumps or have no grid connection.
- Component C — Solarisation of existing grid-connected pumps, allowing farmers to run their pump on solar power during the day and sell any surplus electricity back to the grid.
Component B is the one most individual farmers apply for, since it directly replaces a diesel pump with a solar one.
How Much Subsidy Do You Actually Get?
This is where things get a little state-dependent, so pay attention to the details rather than a single headline number.
The fixed, nationwide part: The central government provides a Central Financial Assistance (CFA) of 30% of the pump cost (subject to a benchmark cost cap set annually by MNRE). In the North-Eastern states, hilly regions, and other special-category states, this central share increases to 50%.
The variable, state-dependent part: On top of the central share, most state governments add their own top-up subsidy commonly around 30%, which brings the combined subsidy to roughly 60% in many states. Some states have historically pushed this even higher for specific pump categories, with the farmer’s own contribution shrinking to as little as 10%.
The farmer’s share: Whatever percentage isn’t covered by central and state subsidy is paid by the farmer and this remaining amount can often be partly financed through a bank loan (commonly up to 30% of the cost), meaning the actual out-of-pocket payment can be a small fraction of the total system price.
Because the state top-up varies so much some states contribute more, others less always check your own state’s renewable energy nodal agency portal before budgeting. Don’t assume a subsidy percentage you’ve seen quoted for one state applies to yours.
Real Cost Example
To make this concrete, here’s roughly how the numbers work out for a mid-sized pump:
| Item | Approximate Amount |
|---|---|
| Market price of a 5 HP solar pump system | ₹3–4 lakh |
| Central subsidy (30%, or 50% in special states) | Covered by MNRE |
| State top-up subsidy (varies by state) | Covered by state government |
| Farmer’s contribution (after full subsidy) | Can range from ~10% to 40% of cost, depending on state |
| Optional bank loan | Covers part of the farmer’s remaining share |
In states with the highest combined subsidy support, a system worth ₹3.5 lakh in the open market can come down to a farmer’s out-of-pocket cost in the tens of thousands of rupees. Given that diesel-dependent irrigation can cost a farmer ₹80,000–₹1,20,000 a year in fuel, the payback period on the farmer’s own contribution is often just a season or two.
Who Is Eligible?
While exact conditions vary slightly by state, the general eligibility criteria include:
- Individual farmers, groups of farmers, cooperatives, panchayats, and Farmer Producer Organisations (FPOs) who own agricultural land
- For Component B, having a water source suitable for a solar pump (borewell, open well, canal, etc.)
- Not already receiving a subsidy under a different pump scheme for the same land or connection
- Meeting minimum land-holding requirements, which vary by component and system size
Because eligibility rules differ by state, it’s worth confirming details on your state’s specific portal before assuming you qualify.
Documents You’ll Need
Keep these ready before you start the online application most rejections happen because of missing or mismatched paperwork:
- Aadhaar card
- Land ownership documents (Khasra/Khatauni, 7/12 extract, or equivalent depending on your state)
- Bank passbook or account details with IFSC code
- Recent passport-size photograph
- Mobile number linked to Aadhaar (for OTP verification)
- Electricity bill, if applying under Component C (solarisation of an existing connection)
Step-by-Step Application Process
- Find your state’s official portal. PM-KUSUM applications are not processed through a single national form each state’s DISCOM, agriculture department, or renewable energy nodal agency (like MEDA in Maharashtra, UPNEDA in Uttar Pradesh, or KREDL in Karnataka) runs its own portal and application window.
- Register as a new user. Enter your Aadhaar number and mobile number, then verify via OTP.
- Fill out the application form. This includes personal details, land details (survey/khasra number, total area), bank details, and your preferred pump capacity (HP).
- Upload scanned documents. Check the file size limits mentioned on the portal scans that are too large are a common reason for failed submissions.
- Review and submit. Double-check spelling, bank account numbers, and land details before hitting final submit.
- Save your application/registration number. You’ll need this to track your application status, so screenshot or write it down immediately.
- Wait for scrutiny and verification. State nodal officers or DISCOM staff will review your application and may conduct a field verification of your land and water source.
- Pay your contribution share. If shortlisted, you’ll receive an intimation (often via SMS) to deposit your portion of the cost.
- Installation. An empanelled vendor installs the system and hands over warranty documentation. The full process from payment to installation and subsidy transfer typically takes around 90 days.
Applications are generally processed on a first-come, first-served basis within each state’s allotted target, so early registration during an open window matters.
Frequently Asked Questions
Is there any application fee?
No the official government application process is free. If a website or agent asks for a “registration fee,” treat it as a red flag.
What is the last date to apply?
The scheme has been extended, with the current national timeline running through March 2026, and a further phase expected to follow. However, actual application windows are opened and closed by individual states based on their own targets, so the practical deadline depends on where you live.
Can I apply offline?
In some states, an offline application can be submitted at the local Agriculture Department office or DISCOM office, though the online process is generally faster.
Can I use a loan to cover my share?
Yes. Many farmers use a bank loan or agri-business loan to cover the portion of the cost not covered by subsidy.
Final Thoughts
PM Kusum Yojana isn’t just an environmental initiative it’s a practical way to cut recurring diesel costs, reduce dependence on an unreliable grid, and in the case of Component A, even turn unused land into an income stream. The subsidy math genuinely works in the farmer’s favor in most states, but the process is state-driven, so the real first step isn’t filling out a form it’s identifying which portal, which component, and which subsidy percentage applies to your specific state before you begin.
Ready to switch to solar irrigation and cut your diesel costs for good?
Solcap Solar helps farmers navigate PM Kusum Yojana from eligibility check to final installation sorting through your state’s subsidy rules, handling the paperwork, and making sure your application doesn’t get stuck in avoidable rejections. Whether you’re applying for a new standalone solar pump under Component B or solarising your existing connection under Component C, our team can guide you through every step.
👉 Visit Solcap Solar today to check your subsidy eligibility and get a free consultation for your solar pump installation.