PM-KUSUM is the government's flagship scheme to solarize Indian agriculture — reducing electricity costs for farmers while generating clean energy. With up to 60% subsidy on solar pumps and the opportunity to earn from surplus power, this scheme is transforming farm economics across India.
Component A: Solar Power Plants on Agricultural Land
Farmers, FPOs, cooperatives, and panchayats can set up solar power plants of 500 KW to 2 MW capacity on barren/uncultivable agricultural land. Power is purchased by the local DISCOM at a tariff determined by the state regulator. The farmer earns steady rental income from the land while the power plant generates revenue.
- Capacity: 500 KW to 2 MW per plant
- Subsidy: No direct subsidy — revenue model based on power purchase agreement (PPA)
- Best for: Farmers with unused barren land near substations
- Revenue: ₹3-5 Lakh per MW per year as land lease + power sale revenue
Component B: Standalone Solar Agricultural Pumps
This is the most popular component — individual solar-powered irrigation pumps for farmers who don't have grid connectivity or face unreliable power supply.
| Pump Capacity | Total Cost (₹) | Central Subsidy (30%) | State Subsidy (30%) | Farmer Share (40%) |
|---|---|---|---|---|
| 3 HP | ₹2.5-3.5L | ₹75K-1.05L | ₹75K-1.05L | ₹1-1.4L |
| 5 HP | ₹3.5-5L | ₹1.05-1.5L | ₹1.05-1.5L | ₹1.4-2L |
| 7.5 HP | ₹5-7L | ₹1.5-2.1L | ₹1.5-2.1L | ₹2-2.8L |
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Component C: Solarisation of Grid-Connected Pumps
Farmers with existing grid-connected electric pumps can install solar panels to power their pumps and sell surplus electricity to the DISCOM. This creates a dual benefit: free irrigation + additional income from power sales.
- Subsidy: 30% Central + 30% State (farmer pays 40%, can avail bank loan for 30%)
- Capacity: Up to 10 HP (solar panel capacity = 2x pump capacity in kW)
- Surplus power: Fed to grid at feed-in tariff (₹3-4/unit in most states)
- Savings: Zero electricity bill for irrigation + ₹5,000-15,000/month from surplus power sale
Application Process
- Registration: Apply on the state-specific PM-KUSUM portal (varies by state DISCOM)
- Document Submission: Aadhaar, land documents, existing electricity connection details (for Component C)
- Technical Survey: DISCOM/empaneled agency surveys the site for solar feasibility
- Vendor Selection: Choose from state-empaneled solar pump suppliers (AgriMotion is empaneled in UP, MP)
- Installation: Solar panels + pump + controller installed within 60-90 days of approval
- Commissioning: DISCOM inspects and commissions the system
- Subsidy Credit: Central + State subsidy directly adjusts against the total cost
Solar + Cold Storage: The Perfect Combo
AgriMotion specializes in combining PM-KUSUM solar installations with cold storage projects. A solar-powered cold storage eliminates the single biggest operating cost — electricity (₹3-6 Lakh/year for a 100 MT unit). We design, install, and commission both the solar plant and the cold chain infrastructure as a single EPC project, maximizing subsidy benefits across PM-KUSUM, NHB, and AIF schemes.
