PM-KUSUM Yojana: Solar Pump Subsidy, Eligibility and How to Apply

Reviewed by: WeCredit Research Team

PM-KUSUM is a central scheme that pays 30% of the benchmark cost of a solar irrigation pump (50% in the North Eastern and hill states), so a farmer can replace a diesel pump or run a grid pump on solar power. You apply through your State implementation agency, not through WeCredit or a bank, and a bank loan can help cover your share.

PM-KUSUM at a Glance

Item	What the official sources say
Full name	Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan
Run by	Ministry of New and Renewable Energy (MNRE), through State implementation agencies
Who it is for	Farmers, including SC and ST farmers, plus Water User Associations, Primary Agriculture Credit Societies and community irrigation groups
Central subsidy (CFA) for pumps	30% of the benchmark cost or the tender cost, whichever is lower. 50% in the North Eastern states, Sikkim, Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman and Nicobar Islands
Farmer share	The balance of the cost. It is 40% where the State adds its 30% share, and 70% where the State adds nothing
Bank finance	Available for the farmer’s share. The scheme is also covered by RBI priority sector lending
Timeline	Extended till 31 March 2027 for all components (Lok Sabha reply, 29 July 2026)

The Three Components

PM-KUSUM has three parts. Most individual farmers use Component B or C.

Component	What it covers	Who it suits
A	Decentralised grid-connected solar or other renewable plants of up to 2 MW on farmers’ land. Power is bought by the DISCOM at a fixed tariff	Farmers, groups, cooperatives, panchayats, FPOs or a developer who leases land
B	Standalone solar pumps for irrigation, replacing diesel pumps in off-grid areas	Individual farmers without a grid-connected pump on that land
C	Solarisation of existing grid-connected agriculture pumps, either pump by pump or through a whole feeder	Farmers with a grid-connected pump

For Component A, DISCOMs receive a performance based incentive of 40 paise per kWh or Rs. 6.60 lakh per MW per year, whichever is lower, for five years from the commercial operation date. That incentive goes to the DISCOM, not the landowner, so there is no pump subsidy to claim under this part.

Who Is Eligible

• The scheme is demand driven and open to farmers across the country. Any farmer, including from Scheduled Castes and Scheduled Tribes, can receive support for a standalone solar pump.
• For Component B, the land where you want the solar pump should not already have a grid-connected agriculture pump.
• New standalone pumps are not allowed in dark zone areas, where groundwater is over-exploited.
• Pump size is based on the water table, the land to be irrigated and water need. Priority goes to small and marginal farmers, and preference goes to farmers using micro irrigation.
• For Component C, you must already have a grid-connected agriculture pump.
• Water User Associations, Primary Agriculture Credit Societies and community or cluster irrigation systems can also be beneficiaries.

How Much Subsidy and Who Pays What

The central subsidy is 30% of the benchmark cost issued by MNRE or the price found in the tender, whichever is lower. It is 50% in the North Eastern states and the other states and Union Territories named in the table above. Under the original guidelines, the State government adds another 30% and the farmer pays 40%. A later PIB statement explains that the scheme can also run without the State share, in which case the central subsidy stays at 30% and the farmer bears the remaining 70%.

Cost sharing	Central (CFA)	State	Farmer
General states, with State share	30%	30%	40%
General states, without State share	30%	Nil	70%
North Eastern and hill states, with State share	50%	30%	20%

Pump size. Component B covers standalone pumps of up to 7.5 HP. A larger pump is allowed, but the subsidy is limited to what a 7.5 HP pump would get. For Component C, the subsidy covers a solar PV capacity of up to two times the pump capacity in kW. A PIB statement adds that the subsidy is available for pumps of up to 15 HP for individual farmers in the North Eastern states, hilly states and island Union Territories, and for each farmer in community irrigation projects in high water table areas.

Worked Example: A 40% Farmer Share

The numbers below are illustrative only. Your actual subsidy is worked out on the benchmark or tender cost for your pump, and your State agency will give you the figure.

Item	Share	Amount (assumed system cost Rs. 2,00,000)
Central subsidy	30%	Rs. 60,000
State subsidy	30%	Rs. 60,000
Farmer share	40%	Rs. 80,000
Bank loan against farmer share (up to 30% of cost)	30%	Rs. 60,000
Cash paid upfront by the farmer	10%	Rs. 20,000

If your State adds no share, the same Rs. 2,00,000 system would carry a central subsidy of Rs. 60,000 and a farmer share of Rs. 1,40,000. Check how much of that your bank will lend.

Bank Finance for Your Share

The scheme guidelines say bank finance may be made available for the farmer’s contribution, so that the farmer pays only about 10% at the start. MNRE has also said that solarisation of pumps under Components B and C is included under the Agriculture Infrastructure Fund loans to provide subsidised loans to farmers, and that the scheme is covered under RBI’s priority sector lending guidelines. The loan terms, interest rate and security are set by the lender. Ask your bank or your Primary Agriculture Credit Society what it will lend against a PM-KUSUM sanction.

Documents You May Need

There is no single national checklist. Each State agency publishes its own. The two State application flow charts on the PM-KUSUM portal give a good idea of what to keep ready:

• Proof of land ownership or lease details
• Photo ID such as Aadhaar, voter ID or driving licence
• Land record: the RTC in Karnataka, or the pattadar passbook or registered sale deed (attested) in Telangana
• A self-declaration by the farmer (Telangana)
• Passport size photographs (Karnataka asks for two)
• A mobile number. Karnataka accepts only one application per mobile number.

How to Apply: Step by Step

The farmer-facing process is run by each State. The scheme guidelines make the State implementation agency (a DISCOM, the Agriculture or Minor Irrigation Department, or another department the State names) responsible for selecting beneficiaries and for collecting demand through an online portal. Vendors are chosen through central tendering.

1. Find your State’s implementing agency and its PM-KUSUM application page. The national portal at pmkusum.mnre.gov.in lists state-wise agencies and flow charts.
2. Register with your mobile number and fill in the online application. In Telangana you select Component-B at this stage.
3. Upload or submit your land, ID and other documents. In Karnataka you print the acknowledgement, attach a self-attested photo and submit it to the ESCOM sub-division office with the required documents within five days.
4. Pay your beneficiary share as the State agency instructs. In Karnataka this was by demand draft, and cheques were not accepted. In Telangana it is deposited with the State agency, and the transaction details are submitted on the portal. If you take a bank loan, ask the bank how it will release its share.
5. A vendor from the approved panel is assigned according to the pump model you choose, and the pump is installed.
6. The State agency submits the completion report, and the subsidy is released to the agency and vendor under the scheme rules. As a farmer you do not claim the subsidy yourself.

The two flow charts above date from October 2022, so your State’s current steps and fees may differ. Treat them as a guide to the sequence, and follow your State portal for the real process.

Timeline: How Long Installation Takes

Stage	What the rules say
Proposal	State agencies submit proposals to MNRE through the online portal. Offline proposals are not accepted unless MNRE gives a general exemption
First release of subsidy	Up to 40% of the applicable CFA goes to the State agency as an advance, after letters of award are placed
Second release	Up to 30% of the CFA, on submission of utilisation certificates for the first release
Final release	The balance, after MNRE accepts the project completion report
Completion window	Solar pump projects are to be completed within 12 months of sanction by MNRE (15 months in North Eastern and similar states). A later PIB statement says the implementation period was extended to 24 months from the initial sanction

How Much Has Been Installed So Far

The Lok Sabha reply of 29 July 2026 gives year-wise installation figures up to 30 June 2026. They show demand shifting from new standalone pumps (Component B) towards solarising pumps already on the grid (Component C).

Financial year	Component B: standalone pumps installed	Component C: grid pumps solarised
2023-24	1,04,836	9,207
2024-25	4,56,144	3,23,645
2025-26	2,93,698	10,91,757
2026-27 (till 30 June 2026)	85,473	1,92,449

Why Applications Stall and What to Do

Problem	Why it happens under the scheme rules	What to do
You already have a grid pump on that land	Component B land should not have a grid-connected pump	Ask about Component C, which solarises an existing grid pump
Your block is a dark zone	New standalone pumps are not allowed in dark zone areas	Ask your State agency about the options for your area
No quota or window open	Targets are allocated to States by demand and performance, so each State opens and closes on its own schedule	Watch your State agency’s portal and register for alerts
Pump bigger than needed	Subsidy is capped at the 7.5 HP level for larger pumps	Size the pump to your water table, land and crop need
Missing land record or ID	State agencies verify ownership or lease before beneficiary selection	Get the land record and ID ready before registering

PM-KUSUM Compared With Related Schemes

	PM-KUSUM	Agriculture Infrastructure Fund	PM Surya Ghar
Main purpose	Solar pumps and solar plants on farms	Loans for post-harvest and community farm assets	Rooftop solar for homes
Who benefits	Farmers and farmer groups	Farmers, FPOs, cooperatives, agri-entrepreneurs	Households
How help is given	Central subsidy paid through the State agency	Bank loans with interest support	Subsidy plus a bank loan
Where you apply	State implementing agency	A bank or lender	The scheme’s own portal

If you want solar power for your house rather than your field, the PM Surya Ghar rooftop subsidy is the scheme that fits.

Is This Scheme Right for You? A Checklist

• I own or lease farmland and can show the record.
• I currently irrigate with a diesel pump, or I have a grid-connected pump I want to run on solar.
• My block is not classified as a dark zone, or I have checked what my State allows.
• I can pay my share, or my bank has confirmed finance for it.
• My State agency is currently taking applications.

Common Mistakes

• Paying an agent or a private website for a “registration” or “subsidy approval”. Applications go through the State implementing agency and the official portal.
• Assuming every State follows the same steps. Payment mode, documents and deadlines differ between States.
• Assuming the subsidy is paid into your account. It is released to the implementing agency and the vendor under the scheme rules.
• Choosing a pump larger than 7.5 HP and expecting a larger subsidy.
• Paying the beneficiary share by a mode your State does not accept, such as a cheque where only a demand draft is allowed.

PM-KUSUM is one of many central and State programmes covered in our government loan schemes hub, where you can compare other schemes for farmers and small businesses.

Frequently Asked Questions

How much subsidy does PM-KUSUM give for a solar pump?

The central subsidy is 30% of the benchmark cost or the tender cost, whichever is lower. It is 50% in the North Eastern states, Sikkim, Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman and Nicobar Islands. A State may add its own share.

Is PM-KUSUM still open in 2026?

The Ministry told the Lok Sabha on 29 July 2026 that the implementation timeline is extended till 31 March 2027 for all components. Whether your State is accepting applications depends on its implementing agency.

How do I apply for a PM-KUSUM solar pump?

Register on your State implementing agency’s PM-KUSUM portal, fill in the application, submit your land and ID documents, pay your beneficiary share, and wait for vendor allotment and installation. The national portal lists the agencies for each State.

Can I get a bank loan for my share?

Yes. The guidelines allow bank finance for the farmer’s contribution, and MNRE has said pump solarisation is included under the Agriculture Infrastructure Fund for subsidised loans. The lender sets the interest rate, security and approval.

What is the difference between Component B and Component C?

Component B supports new standalone solar pumps that replace diesel pumps in off-grid areas. Component C supports solarising a pump that is already connected to the grid, either for a single pump or through feeder level solarisation.

What is the largest pump covered by the subsidy?

Standalone pumps of up to 7.5 HP are covered. A larger pump is allowed, but the subsidy stays at the 7.5 HP level. A PIB statement says up to 15 HP is covered for individual farmers in the North Eastern states, hilly states and island Union Territories.

Does WeCredit sanction PM-KUSUM loans or subsidies?

No. WeCredit does not sanction government scheme loans or subsidies. We explain how schemes work. Confirm current terms with your State implementing agency, your bank and the official portal.