Ministry of New and Renewable Energy (MNRE)
PM-KUSUM 2026: solar pump subsidy for farmers, Phase 2
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Objective
PM KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) provides affordable solar pumps to farmers, reducing their dependence on diesel and unreliable grid electricity for irrigation. While giving them an income source by selling surplus solar power to the state grid.
Eligibility Criteria
- Individual farmers with agricultural land
- Group of farmers, Farmer Producer Organisations (FPOs), Panchayats, and Water User Associations
- Applicable to all states. Each state has its own application portal
- No minimum land size requirement for Component B (standalone pumps)
- Farmers must have an existing diesel pump or be setting up a new irrigation system
Benefits & Features
- 1Up to 50% subsidy from central government on solar pump cost
- 2Additional 30% subsidy from state government (total up to 90% subsidy in many states)
- 3Farmer pays only 10% of the total cost (in states with full subsidy stack)
- 4Annual income of ₹60,000 to 80,000 by selling surplus solar power to the grid
- 5Elimination of diesel cost. Average saving of ₹50,000 to 70,000/year
- 6Free electricity for irrigation during daylight hours
Required Documents
- Aadhaar card
- Land ownership documents (khata/patta/khasra-khatauni)
- Bank account passbook
- Existing electricity connection details (if any)
- Passport-size photograph
- Caste certificate (if applying for additional state subsidy)
- Mobile number linked to Aadhaar
How to Apply
Frequently Asked Questions
| How much subsidy does a small farmer actually get under PM-KUSUM Component B in 2026? | For a general farmer, the subsidy is 60 percent of the pump benchmark cost (30 percent central plus 30 percent state), with 40 percent as farmer share. For an SC/ST farmer or a small and marginal farmer in most states, the subsidy is 90 percent (30 percent central plus 30 percent state plus 30 percent additional state top-up) with 10 percent farmer share. For a 5 HP pump at Rs 2.85 lakh benchmark cost (Maharashtra), that works out to Rs 1.14 lakh for a general farmer and Rs 28,500 for an SC/ST farmer. |
| Can I sell surplus solar power back to the grid under PM-KUSUM? | Under Component B (standalone solar pumps), surplus generation is not sold back to the grid by default. Under Component A (grid-connected plants), all generated power is sold to the DISCOM at a Feed-in Tariff typically of Rs 3.10 to Rs 3.50 per unit. Under Component C1 (individual pump solarisation), net metering is available in most states and surplus generation is credited to the farmer's account, translating to Rs 5,000 to Rs 15,000 per year of supplementary income for a 5 HP installation. |
| What HP pump should I install for my land size? | A 2 HP pump suits up to 1 acre with shallow water table under 30 meters. A 3 HP pump suits 1 to 2 acres with water table up to 45 meters. A 5 HP pump suits 2 to 5 acres with water table up to 60 meters. A 7.5 HP pump suits 5 to 10 acres with water table up to 90 meters. A 10 HP pump suits 10 acres or more with water table over 90 meters. Confirm exact capacity with a bore well test and the state nodal agency's technical review. |
| Do I apply on the central pmkusum.mnre.gov.in portal or my state portal? | Apply on your state nodal agency portal. The central pmkusum.mnre.gov.in portal is a national dashboard for monitoring progress and does not accept individual farmer applications. Your state portal is Rajasthan RRECL, Maharashtra MEDA, UP UPNEDA, Haryana HAREDA, MP MPUVNL, Gujarat GEDA, AP APREDA, or Karnataka KREDL depending on where you live. See the portal directory in this page for direct URLs. |
| How long does PM-KUSUM solar pump installation take after approval? | State nodal agency review takes 15 to 45 days depending on the state. On sanction, an empanelled vendor is allocated (or you select from a list) and installation typically takes 45 to 90 days from vendor allocation. Total time from application to a working solar pump ranges from 60 days in fast states like Haryana to 135 days in slower states. State completion leaderboards (Haryana 69 percent, Maharashtra 39 percent) are a good proxy for how fast your state is moving in 2026. |
| What land ownership documents are required for PM-KUSUM? | State land record is required as proof of agricultural land ownership. Specific documents by state are 7/12 extract for Maharashtra, jamabandi for Punjab, khasra khatauni for Uttar Pradesh and Madhya Pradesh, patta for Tamil Nadu, RTC for Karnataka, ROR for Odisha, and equivalent land record documents in other states. Lease-based applications are permitted in some states if the lease has minimum 5 years remaining. Bore well availability certificate is also required to confirm water source. |
| What is the difference between PM-KUSUM Component C1 and C2? | C1 is individual pump solarisation where the farmer installs solar panels on their own grid-connected agricultural pump connection and can feed surplus to the grid via net metering. C2 is 11 kV feeder-level solarisation where the DISCOM or implementing agency installs a common solar plant that feeds multiple farmer pumps sitting on the same 11 kV agriculture feeder. C1 is farmer-driven and best for individual pump owners. C2 is DISCOM-driven and reaches farmers grouped on the same feeder without any individual application. |
| Has PM-KUSUM been extended beyond March 2026? | Yes. The MNRE memorandum of 28 March 2026 extended the Phase 1 completion deadline to 31 March 2027 for projects with a Power Purchase Agreement or Notice to Proceed issued on or before 31 December 2025. Union Budget 2026-27 also announced PM-KUSUM 2.0 as a fresh Phase 2 with Rs 50,000 crore outlay over FY 2026-27 to FY 2030-31, with the FY 2026-27 slice at Rs 5,000 crore. So the scheme runs through FY 2030-31 with existing sanctioned projects protected through the extended March 2027 deadline. |
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What PM-KUSUM is in 2026
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is the central solar-for-farmers scheme with three components: Component A funds grid-connected 500 kW to 2 MW solar plants on farmer-owned barren land, Component B subsidises standalone solar pumps for off-grid farmers replacing diesel pumps, and Component C solarises existing grid-connected agricultural pumps either individually (C1) or at the 11 kV feeder level (C2). The Ministry of New and Renewable Energy (MNRE) launched the scheme in 2019 with a Phase 1 target of 34.8 GW installed capacity.
As of 2026, PM-KUSUM has entered a redesigned Phase 2 window with materially expanded outlay. Union Budget 2026-27 raised the annual PM-KUSUM allocation to Rs 5,000 crore (up from Rs 3,400 crore in FY 2025-26) as part of a total Phase 2 outlay of Rs 50,000 crore that includes a new 10 GW agrivoltaics component. An MNRE memorandum dated 28 March 2026 formally extended the Phase 1 completion deadline to 31 March 2027 for projects with a Power Purchase Agreement (PPA) or Notice to Proceed (NTP) issued on or before 31 December 2025.
Three things have changed since most competitor pages were written and are the differentiation angles for this page. PM-KUSUM 2.0 and the Rs 5,000 crore FY 2026-27 allocation. The March 2027 extension. And the state-wise leaderboard where Haryana has completed 69 percent of its target while several major states remain below 15 percent.
Component A, B, and C explained
Component A funds decentralised solar plants of 500 kW to 2 MW capacity on farmer-owned barren, fallow, or cultivable land. The farmer either develops the plant themselves and sells power to the DISCOM at a Feed-in Tariff, or leases the land to a solar developer for a fixed annual rental of Rs 25,000 to Rs 40,000 per acre for 25 years. This unlocks income for farmers who cannot cultivate the land productively.
Component B is the standalone solar pump component for off-grid farmers currently using diesel pumps or lacking a pump entirely. Central subsidy is 30 percent, state government subsidy is 30 percent, and farmer contribution is 40 percent (or 10 percent farmer plus 30 percent bank loan). For northeastern states, hill states, and island union territories, the ratio is 50 percent central, 30 percent state, 20 percent farmer. Pump capacities range from 2 HP to 10 HP based on land size and water table depth.
Component C is the solarisation of existing grid-connected agri pumps. C1 covers individual pump solarisation where the farmer installs solar panels connected to their own pump connection and can feed surplus power to the grid. C2 covers 11 kV feeder-level solarisation where the DISCOM or an implementing agency installs a common solar plant that feeds multiple farmer pumps on the same 11 kV agriculture feeder. C1 is farmer-driven, C2 is feeder-driven, and most confusion in scheme reporting comes from mixing the two.
Under Component C, the subsidy design mirrors Component B, though the farmer's on-ground cost is materially lower because the pump already exists and only the panel and inverter set need to be added.
PM-KUSUM 2.0 and the Budget 2026-27 doubling
Union Budget 2026-27 announced PM-KUSUM 2.0 with a total Phase 2 outlay of Rs 50,000 crore across a 5-year window through FY 2030-31. The FY 2026-27 slice is Rs 5,000 crore, up from Rs 3,400 crore in FY 2025-26. The new elements in PM-KUSUM 2.0 that were not part of Phase 1 include a 10 GW agrivoltaics component that supports simultaneous solar power generation and crop cultivation on the same land, an aggregated procurement pool for solar pump manufacturers to bring down per-unit costs through volume orders, and a strengthened Component C2 feeder-level focus to solarise agriculture feeders in states with high subsidy-linked power consumption.
For a farmer considering enrolment, the practical implication is a longer 5-year policy runway and more predictable state matching funds. States that were delayed on releasing their 30 percent share during Phase 1 (Punjab and Karnataka in particular) have been given a fresh window with revised targets under Phase 2.
The 28 March 2026 extension: what changed
The MNRE memorandum of 28 March 2026 extended the Phase 1 completion deadline to 31 March 2027 for any project (Component A plant, Component B pump, or Component C installation) with a Power Purchase Agreement or Notice to Proceed issued on or before 31 December 2025. The extension applies automatically without any additional filing by the beneficiary.
Reason cited in the memorandum is financing delays at implementing state agencies and DISCOMs, which had left roughly Rs 3,500 crore of sanctioned Component B tenders stuck at various procurement stages. The extension gives the ecosystem 12 months of runway to complete these installations.
For farmers with an approved sanction letter from their state nodal agency but pending installation, this extension protects your subsidy claim. Confirm with your state nodal agency that your project is on the extended Phase 1 list. Newer applications submitted after 1 January 2026 are treated as Phase 2 and follow the redesigned tender and disbursement window.
Component B: HP-wise benchmark cost and farmer out-of-pocket
Component B is where most household-level farmer applications sit. Benchmark cost varies by HP capacity, which is set by land size and irrigation depth. The Maharashtra Energy Development Agency (MEDA) benchmark rates for FY 2026-27 are the most detailed publicly available reference.
| Pump HP | Benchmark cost (approx) | General farmer share (40 percent) | SC/ST farmer share (10 percent) |
|---|---|---|---|
| 2 HP | Rs 1.20 lakh | Rs 48,000 | Rs 12,000 |
| 3 HP | Rs 1.80 lakh | Rs 72,000 | Rs 18,000 |
| 5 HP | Rs 2.85 lakh | Rs 1.14 lakh | Rs 28,500 |
| 7.5 HP | Rs 3.80 lakh | Rs 1.52 lakh | Rs 38,000 |
| 10 HP | Rs 4.75 lakh | Rs 1.90 lakh | Rs 47,500 |
State-specific rates differ marginally based on local vendor pricing and any additional state subsidy. Rajasthan and Haryana benchmarks are typically 5 to 8 percent lower than Maharashtra. Uttar Pradesh benchmarks are typically 3 to 5 percent higher due to logistics.
The farmer share of 40 percent (or 10 percent for SC/ST/small and marginal farmers depending on state) can also be paid via a bank loan at 7 to 8 percent interest, with the state nodal agency facilitating the loan referral. The pump is installed by an empanelled vendor, and the state nodal agency releases the subsidy directly to the vendor after installation and DISCOM verification.
State-wise portals: apply where you actually apply
PM-KUSUM applications are handled at the state level, not the central pmkusum.mnre.gov.in portal. The central portal is a national dashboard for monitoring progress. Actual enrolment happens at the state nodal agency. Portal directory below covers the 8 states with the highest Component B intake.
| State | Nodal agency | Application portal |
|---|---|---|
| Rajasthan | RRECL | pmkusum.rajasthan.gov.in/RJ/landing.html |
| Maharashtra | MEDA | pmkusum.maharashtra.gov.in |
| Uttar Pradesh | UPNEDA | upnedakusumc2.in for C2, upneda.org.in for B |
| Haryana | HAREDA | hareda.gov.in |
| Madhya Pradesh | MPUVNL | mpuvnl.mp.gov.in |
| Gujarat | GEDA | geda.gujarat.gov.in |
| Andhra Pradesh | APREDA | apreda.gov.in |
| Karnataka | KREDL | kredl.karnataka.gov.in |
Applications for other states go through the respective state renewable energy agency. If your state is not on this list, search for your state nodal agency directly.
State completion leaderboard: where installations are moving fastest
Component B installation progress as of April 2026, aggregated from MNRE state dashboards, Mercom India reporting, and Lok Sabha written responses.
| State | Pumps sanctioned | Pumps installed | Completion rate |
|---|---|---|---|
| Haryana | 1,97,000 approx | 1,36,572 | 69 percent |
| Maharashtra | 5,00,000+ | 1,97,863 | 39 percent |
| Rajasthan | 3,00,000+ | 85,635 | Approx 28 percent |
| Uttar Pradesh | 2,50,000+ | 53,182 | Approx 21 percent |
| Jharkhand | 90,000+ | 21,522 | Approx 24 percent |
Total pumps installed nationally under Component B stood at 10.9 lakh out of 13.07 lakh sanctioned, per the MNRE April 2026 data snapshot. Total funds released across states reached Rs 3,749 crore, with Maharashtra receiving Rs 1,329 crore, Haryana Rs 884 crore, and Rajasthan Rs 822 crore.
Completion pace matters if you are timing your application. Haryana at 69 percent has near-capacity vendor bandwidth and short installation timelines. Rajasthan and Maharashtra with high sanctions but lower completion percentages have longer waiting periods for vendor allocation.
Documents required and land eligibility
Documents typically required at the state nodal agency application stage for Component B are Aadhaar card, land ownership document (7/12 extract for Maharashtra, jamabandi for Punjab, khasra khatauni for UP and MP, patta for TN, and equivalent state land record), farmer identity card or PM Kisan number, bank passbook copy of the account for subsidy disbursal, cancelled cheque, and a passport-size photograph.
Land eligibility for Component B requires proof of ownership or lease with agricultural water source. For Component A, minimum land area is typically 2 hectares (about 5 acres) that is barren, fallow, or currently unproductive but with grid connectivity within 5 km. For Component C, an existing grid-connected agricultural pump connection is required.
Bore well certification for Component B, showing water availability at a reasonable depth (usually below 60 meters for a 5 HP pump), is required in most states. This is issued by the state ground water department or a licensed drilling contractor.
Step-by-step application on your state portal
Log in to your state nodal agency portal listed above. Register with mobile number, Aadhaar, and land record number. Fill in the application form with pump capacity requested (based on land size and water table), current pump status (existing diesel, no pump, existing electric), and bank account for subsidy disbursement. Upload the documents listed above.
State nodal agency reviews the application within 15 to 45 days depending on state. On approval, you receive a sanction letter and an empanelled vendor is allocated (or you can choose from the empanelled list in some states). The vendor installs the pump with panels and inverter, typically 45 to 90 days from vendor allocation. State nodal agency verifies installation through a physical inspection or geo-tagged photograph and releases the subsidy directly to the vendor.
Farmer's own contribution (40 percent or 10 percent depending on category) is paid to the vendor either upfront or in agreed instalments. Bank loan arrangements are made separately with the state nodal agency facilitating referral.
Component A economics: farmer income from a 500 kW to 2 MW plant
Component A opens a materially different income stream compared to Component B and C. A 500 kW plant on 2 hectares generates approximately 8.5 to 9.5 lakh units per year in most Indian states, sold to the DISCOM at Rs 3.10 to Rs 3.50 per unit under the PPA. Gross annual revenue works out to roughly Rs 27 lakh to Rs 33 lakh. Operations and maintenance costs run at Rs 3 lakh to Rs 4 lakh per year including insurance, cleaning, and inverter service. Net annual income is Rs 23 lakh to Rs 29 lakh over the 25-year plant life.
If the farmer chooses the lease route instead of self-developing, land rental of Rs 25,000 to Rs 40,000 per acre per year gives a 5-acre landowner Rs 1.25 lakh to Rs 2 lakh per year for 25 years with no operating responsibility. Both routes materially exceed the typical earnings from cultivating barren or fallow land. For farmers holding land within 5 km of a DISCOM substation with adequate feeder capacity, Component A is worth serious consideration.
Application for Component A goes through the state nodal agency using a Request For Proposal (RFP) process. Farmers can apply individually or aggregate into a Farmer Producer Organisation (FPO) or cooperative. FPO-led applications typically get priority in tender allocation since the aggregated land parcels reduce implementation complexity for the DISCOM.
Phase 1 progress and where the scheme stands overall
Phase 1 of PM-KUSUM ran from 2019 through the extended deadline of 31 March 2027 (originally 31 March 2026 and extended by the MNRE memorandum). The 34.8 GW installed capacity target across all three components has fallen materially short. As of December 2025, total installed capacity stood at approximately 10.95 GW, or 31 percent of target. Component A installed about 720 MW, Component B about 4.4 GW-equivalent through 10.9 lakh pumps, and Component C about 5.83 GW-equivalent through feeder-level solarisation.
The largest gap sits in Component A where DISCOM PPA signing has been slower than anticipated in many states. Component B has performed better on absolute pump installations but is still below sanctioned capacity due to vendor bandwidth constraints. Component C1 has been slow because individual pump owners face awareness gaps and payment-timing concerns, while Component C2 has moved faster in states where DISCOMs are motivated by the agriculture subsidy relief that feeder solarisation provides.
PM-KUSUM 2.0 is designed to address these Phase 1 gaps. The 10 GW agrivoltaics component targets Component A land constraints. The aggregated procurement pool targets Component B vendor pricing pressure. The strengthened C2 focus targets DISCOM-driven feeder solarisation.
Financing options: bank loans and cooperative bank tie-ups
Farmer's own contribution of 40 percent (or 10 percent for SC/ST and small marginal farmers in most states) can be paid via bank loan referred through the state nodal agency. Interest rates in July 2026 are 7.0 to 8.5 percent per annum for a 5 to 7 year tenor, secured against the solar equipment. State Bank of India, Bank of Baroda, and Canara Bank have PM-KUSUM linked loan products at the lower end of this range.
Cooperative banks in agriculture-heavy states have also entered the space. Maharashtra State Cooperative Bank and the Rajasthan State Cooperative Bank offer PM-KUSUM linked term loans at slightly higher rates but with faster local branch approvals. For farmers already holding a Kisan Credit Card (KCC) at the same cooperative bank, the PM-KUSUM loan can often be sanctioned within a week using the existing KCC file.
Cost of ownership analysis over 25 years favours self-financing where possible. For a 5 HP pump with Rs 1.14 lakh farmer share (Maharashtra general farmer), diesel replacement savings alone recover the investment in 4 to 5 years. Bank loan at 7.5 percent stretches this to 6 to 7 years but keeps the cash flow neutral for the farmer.
Common rejection reasons at the state nodal agency stage
Land record mismatch is the most common rejection reason. If the Aadhaar-linked farmer name does not match the land record holder name, the application is rejected. Fix: update Aadhaar or land record to match, or route the application through the joint-holder if the land is co-owned.
Water source certification is the second reason. If the bore well certification is missing or shows water table beyond the pump specification, the application is rejected. Fix: get a fresh bore well test from the state ground water department or a licensed drilling contractor.
DISCOM feeder capacity is the third reason for Component A and C1 applications. If the local 11 kV or 33 kV feeder cannot accept the additional generation without upgrade, the application is deferred until feeder upgrade or moved to Component B route. Fix: work with the DISCOM technical committee to identify alternative feeder options.
Vendor empanelment status is the fourth reason. If the farmer proposes a specific vendor not on the state nodal agency empanelled list, the application is rejected. Fix: choose from the empanelled vendor list published by the state nodal agency.
PM-KUSUM versus other agri solar schemes
Several state governments run parallel or supplementary agri solar schemes that layer on top of PM-KUSUM. Karnataka's Surya Raitha scheme adds a state-level top-up on Component C1 solarisation. Andhra Pradesh's YSR Free Farmer Feeder scheme uses solar feeder power to supply free daytime agriculture power. Maharashtra's Mukhyamantri Saur Krishi Vahini Yojana 2.0 focuses on feeder-level solar plants matched to PM-KUSUM Component A. Punjab's Solar Water Pump scheme under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) provides a smaller pump subsidy for micro-irrigation setups.
Confirm stacking rules with the state nodal agency. Most state schemes cannot be layered on top of PM-KUSUM for the same pump or plant, but sequential enrolment (state scheme for one pump, PM-KUSUM for another) is usually permitted. This matters for farmers with multiple pumps across land holdings.
Selling surplus power to the DISCOM
Component B pumps operate as standalone systems by default, so surplus generation is not sold back to the grid. Component A plants sell all generated power to the DISCOM at a Feed-in Tariff negotiated during PPA signing, typically Rs 3.10 to Rs 3.50 per unit for utility-scale supply.
Component C1 individual pump solarisation includes a net-metering provision in most states. Surplus generation during hours when the pump is not running is fed back to the DISCOM and credited to the farmer's power account. In states with cash payout for net-metering surplus, this becomes a supplementary income stream of Rs 5,000 to Rs 15,000 per year for a 5 HP installation.
Timeline expectations by state
Typical time from application to a working solar pump varies sharply by state based on nodal agency processing speed, vendor bandwidth, and DISCOM cooperation. Ranges below are aggregated from vendor field reports and state annual reports through Q4 FY 2025-26.
| State | Nodal agency processing | Vendor allocation | Installation | Total time |
|---|---|---|---|---|
| Haryana | 15 to 20 days | 10 to 15 days | 30 to 40 days | 60 to 75 days |
| Rajasthan | 25 to 35 days | 20 to 30 days | 45 to 60 days | 90 to 125 days |
| Maharashtra | 30 to 45 days | 25 to 35 days | 60 to 75 days | 115 to 155 days |
| Uttar Pradesh | 30 to 40 days | 30 to 40 days | 60 to 90 days | 120 to 170 days |
| Madhya Pradesh | 25 to 35 days | 25 to 35 days | 45 to 60 days | 95 to 130 days |
| Karnataka | 40 to 60 days | 30 to 45 days | 60 to 75 days | 130 to 180 days |
If your state is faster than these ranges, that is a positive signal that vendor bandwidth is available. If it is slower, escalate to the state nodal agency after 45 days without a status update, or file a grievance at the MNRE PM-KUSUM portal grievance page.
Primary sources
- MNRE PM-KUSUM main page: https://mnre.gov.in/en/pradhan-mantri-kisan-urja-suraksha-evam-utthaan-mahabhiyaan-pm-kusum/
- National PM-KUSUM portal: https://pmkusum.mnre.gov.in
- Benchmark cost PDF: https://pmkusum.mnre.gov.in/pdf/Benchmark%20Cost%20(2023-24)%20(1).pdf
- Rajasthan portal: https://pmkusum.rajasthan.gov.in/RJ/landing.html
- Maharashtra portal: https://pmkusum.maharashtra.gov.in/index.html
- UPNEDA C2 portal: https://upnedakusumc2.in
- PIB progress release: https://pib.gov.in/PressReleasePage.aspx?PRID=1989815
- PRSIndia Budget 2026-27 analysis: https://prsindia.org/budgets/parliament/demand-for-grants-2026-27-analysis-power-and-new-renewable-energy