PM-KUSUM Scheme 2026: The Complete Guide to India’s Solar Revolution for Farmers

What Is the PM-KUSUM Scheme?

PM-KUSUM was launched by the Ministry of New and Renewable Energy (MNRE) on March 8, 2019, and scaled up nationally from 2020–21 onward. The scheme’s full form — Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan — roughly translates to “Prime Minister’s Farmer Energy Security and Upliftment Campaign”.

The core idea is simple: instead of farmers depending on costly diesel gensets or an overburdened electricity grid to run irrigation pumps, PM-KUSUM helps them install solar panels either to power their own pumps directly or to generate extra electricity they can sell back to the grid for additional income.

The scheme sits at the intersection of three national priorities:

• Energy security for farmers — daytime, reliable power for irrigation
• Reduced subsidy burden on DISCOMs — less free/subsidized grid power consumed for agriculture
• India’s renewable energy targets — contributing towards the country’s non-fossil-fuel capacity goals

As of 2026, the overall target remains 34,800 MW of solar capacity addition, backed by Central Financial Assistance of approximately ₹34,422 crore, according to official MNRE scheme documentation.

PM-KUSUM Components Explained (A, B, C)

PM-KUSUM is structured into three distinct components, each targeting a different point in the farm power ecosystem.

Component A — Decentralized Grid-Connected Solar Power Plants

Farmers, cooperatives, panchayats, Farmer Producer Organizations (FPOs), or Water User Associations can set up small solar power plants (typically 500 kW to 2 MW) on their own land — barren, uncultivable, or partially cultivable — and sell the generated power to the local DISCOM under a Power Purchase Agreement (PPA). The target under this component is 10,000 MW. If a landowner cannot arrange the required capital, they can lease land to a developer or DISCOM and earn lease rent instead.

Component B — Standalone Solar Agricultural Pumps

This component replaces diesel pumps with standalone solar-powered pumps (up to 7.5 HP), particularly useful in areas without grid connectivity. The target is 14 lakh (1.4 million) standalone solar pumps. These pumps run independently of the grid, giving farmers reliable daytime irrigation power without recurring diesel costs.

Component C —Solarization of Existing Grid-Connected Agricultural Pumps

Farmers who already have a grid-connected pump can add solar panels (up to twice the pump’s capacity in kW) to power it. Surplus electricity generated beyond irrigation needs is sold to the DISCOM, creating a new income stream. The target here is 35 lakh (3.5 million) pumps, including large-scale Feeder Level Solarization (FLS) projects that solarise an entire agricultural feeder rather than pump-by-pump.

 

Component	Focus	Target	Typical Beneficiary
Component A	Grid-connected solar power plants (500 kW–2 MW)	10,000 MW	Farmers, FPOs, cooperatives, panchayats
Component B	Standalone solar pumps (off-grid)	14 lakh pumps	Individual farmers without grid access
Component C	Solarisation of existing grid pumps + feeder-level solarisation	35 lakh pumps	Farmers with existing grid-connected pumps

The scheme also permits inter-transfer of quantities between Component B and Component C, giving states flexibility to reallocate targets based on regional demand.

Whichever component your project falls under, Intellisolar’s monitoring platform is built to support all three from single standalone pumps to multi-megawatt Component A plants.

Subsidy Structure: Who Pays What

PM-KUSUM uses a shared cost-financing model:

• Central Financial Assistance (CFA): 30% of the benchmark cost or tender cost, whichever is lower
• State subsidy: At least 30% (varies by state)
• Farmer contribution: Remaining amount, of which up to 30% can be financed through a bank loan meaning the farmer often pays only around 10% upfront
• Special category states (North-Eastern states, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, Andaman & Nicobar Islands): CFA rises to 50% of the benchmark/tender cost

For context on real-world costs before subsidies: a 3 HP solar pump has typically ranged around ₹1.2–1.5 lakh, while a 10 HP pump can cost ₹5–6 lakh, with typical loan repayment tenures extending up to 10 years.

Eligibility Criteria for Farmers

While exact documentation requirements vary slightly by state implementing agency, the broad eligibility framework across components includes:

• Individual farmers with cultivable land (Component B & C)
• Groups of farmers, cooperatives, panchayats, FPOs, and Water User Associations (primarily Component A)
• Farmers must have valid land ownership or lease documents
• For Component C, the farmer must already have a functional grid-connected agricultural pump with a valid electricity connection
• Land for Component A should generally be barren, uncultivable, or underutilized.
• KYC documents, bank account details (linked for direct benefit transfer), and Aadhaar are typically required during application

Because implementation is state-specific, farmers should confirm exact eligibility and documentation with their State Implementing Agency (SIA) or the state renewable energy development agency.

How to Apply for PM-KUSUM Online.

1. Visit the National Portal for PM-KUSUM at pmkusum.mnre.gov.in
2. Select your state and the relevant component (A, B, or C)
3. Register with Aadhaar, land documents, and bank details
4. Choose an empaneled vendor from the state’s approved list (for Component B/C pumps)
5. Pay the farmer’s contribution share
6. Track application and installation status through the portal or state agency
7. For queries, MNRE’s toll-free helpline is 1800-180-3333

Applications and vendor empanelment processes differ by state, so it’s worth cross-checking with your state nodal agency’s dedicated PM-KUSUM webpage before applying.

 

PM-KUSUM 2026 Update: Deadline Extension & PM-KUSUM 2.0

Several important developments have shaped PM-KUSUM in 2026:

• Deadline extension: The scheme was originally slated to conclude by March 31, 2026. Following representations from states and developers about financing delays, MNRE issued a March 28, 2026, memorandum extending completion timelines. For Component A and Component C (Feeder Level Solarization), financial closure was extended to September 30, 2026, with commissioning deadlines pushed further and for eligible projects (where PPAs or Notices to Proceed were issued on or before December 31, 2025), the overall completion deadline was extended to March 31, 2027. For Component B and individual pump solarization under Component C, the commissioning deadline was set at September 30, 2026. MNRE has indicated further extensions will only be considered case-by-case.

 

• PM-KUSUM 2.0 in the pipeline: As of mid-2026, MNRE has not yet formally notified PM-KUSUM 2.0, but strong signals point to its arrival. The Union Budget 2026–27 (presented February 1, 2026) raised the annual KUSUM allocation significantly, and government officials, including the Union Minister for New and Renewable Energy have referenced a total scheme outlay in the range of ₹50,000 crore, along with a proposed 10 GW agrivoltaics component and integration of Battery Energy Storage Systems (BESS) to store daytime solar power for evening use.

 

• Rising state activity: States such as Rajasthan, Bihar, Maharashtra, and Madhya Pradesh have accelerated reviews and rollout in 2026, with some states adding top-up subsidies on top of central assistance.

Because these details are evolving, always verify current deadlines and PM-KUSUM 2.0 guidelines on the official MNRE PM-KUSUM page before making financial commitments.

 

Why PM-KUSUM Is a Game-Changer for Farmers

• Reduces electricity and diesel expenses significantly — solar pumps eliminate recurring diesel costs and reduce grid dependency
• Creates an additional income stream — surplus power sold to DISCOMs turns farmland into a small power-generation asset
• Promotes sustainable, eco-friendly farming — lower emissions and reduced groundwater over-extraction when paired with efficient irrigation
• Supports India’s renewable energy targets — decentralized solar capacity contributes directly to national non-fossil fuel goals
• Improves energy reliability — daytime power availability reduces dependence on an often-overstretched agricultural feeder grid
  
  

Real Implementation Challenges on the Ground

Despite strong policy intent, PM-KUSUM projects on the ground routinely run into operational friction:

• Frequent pump and inverter failures, especially in dusty, high-temperature rural environments
• Data reporting delays between installation sites and state/central portals
• Network connectivity problems in remote agricultural areas, disrupting real-time data flow
• Difficulty monitoring water discharge under Component C, which is critical for verifying actual usage and preventing over-extraction
• Risk of subsidy rejection or clawback due to non-compliance with MNRE reporting and performance standards

These aren’t minor inconveniences  for developers and SIAs, unresolved compliance gaps can delay CFA disbursement or trigger penalties. For farmers, equipment downtime directly erodes the irrigation and income benefits the scheme promises. This is precisely the gap IntelliSolar was built to close.

 

Why Remote Monitoring Systems (RMS) Are Now Essential

This is where the scheme’s success increasingly depends on technology rather than policy alone. A robust Remote Monitoring System (RMS) ike the platform built by Intellisolar bridges the gap between installed hardware in remote fields and the oversight bodies MNRE, state agencies, and DISCOMs that require continuous compliance data.

A good monitoring system the kind Intellisolar delivers, provides the following:

• Real-time tracking of generation, consumption, and equipment health
• Automatic reporting to MNRE and state portals, removing manual data-entry lag
• Instant fault and downtime alerts, so pump or inverter failures are caught within hours, not weeks
• Performance Ratio (PR) tracking to ensure installations are generating at expected efficiency and flagging underperformance early
• Audit-ready compliance records, reducing the risk of subsidy disputes or rejection

In short: monitoring converts PM-KUSUM from a one-time installation subsidy into a continuously verifiable, high-performing energy asset.

Key Features to Look for in a PM-KUSUM Monitoring System

If you’re a developer, EPC, or SIA evaluating monitoring solutions for PM-KUSUM projects including Intellisolar prioritize systems with the following:

1. Edge computing for offline data recording — so data isn’t lost during the frequent connectivity outages common in rural India; readings are stored locally and synced once connectivity resumes
2. Water flow monitoring for solar pumps — essential for Component B/C compliance and for verifying sustainable groundwater usage
3. Weather sensor integration — irradiance, temperature, and wind data help distinguish genuine equipment faults from weather-driven performance dips
4. Automatic MNRE portal data submission — direct, API-based reporting reduces manual errors and reporting delays
5. Rugged hardware suitable for harsh rural conditions — dust, heat, humidity, and voltage fluctuations require industrial-grade enclosures and components, not consumer-grade IoT devices

Solutions built around these five pillars — the same pillars Intellisolar’s RMS is engineered on directly address the failure points listed above: pump/inverter downtime, reporting delays, connectivity gaps, discharge monitoring, and compliance risk.

How Intellisolar Solves PM-KUSUM’s Compliance & Uptime Challenges

IntelliSolar builds remote monitoring systems purpose-designed for the operating conditions and compliance demands of PM-KUSUM projects. Here’s how the platform maps directly to the challenges covered in this guide:

PM-KUSUM Challenge	How IntelliSolar Addresses It
Frequent pump/inverter failures	Continuous health monitoring with instant fault alerts, so field teams respond in hours, not weeks
Data reporting delays	Automated, scheduled data sync to state and MNRE portals — no manual entry
Rural network connectivity gaps	Built-in edge computing stores readings locally and syncs automatically once connectivity returns
Water discharge tracking (Component C)	Integrated water flow sensors give auditable, real-time discharge records
Subsidy rejection risk	Audit-ready compliance logs and PR tracking, reducing disputes during CFA disbursement checks
Harsh rural conditions	Industrial-grade, rugged hardware rated for dust, heat, humidity, and voltage fluctuation

For EPCs, SIAs, DISCOMs, and individual farmer groups managing PM-KUSUM Component A, B, or C assets, IntelliSolar’s RMS is designed to plug directly into existing project workflows turning scattered field installations into a single, real-time, compliance-ready dashboard.

Want to see how IntelliSolar can protect your PM-KUSUM subsidy and uptime? Get in touch with the Intellisolar team to request a demo tailored to your component type and project scale.

 

Frequently Asked Questions (FAQ)

Q1. What is the full form of PM-KUSUM?
PM-KUSUM stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan.

Q2. What are the three components of PM-KUSUM?
Component A (decentralized grid-connected solar power plants), Component B (standalone solar agricultural pumps), and Component C (solarisation of existing grid-connected agricultural pumps, including feeder-level solarisation).

Q3. How much subsidy do farmers get under PM-KUSUM?
Typically 30% Central Financial Assistance and at least 30% state subsidy, with the remaining amount payable by the farmer — up to 30% of which can be financed via a bank loan. In special category states (North-East, Himalayan states, island territories), central assistance rises to 50%.

Q4. What is the PM-KUSUM deadline in 2026?
Following a March 2026 MNRE extension, eligible projects (with PPAs/Notices to Proceed issued by December 31, 2025) now have until March 31, 2027 to complete, while several component-specific commissioning deadlines were set at September 30, 2026.

Q5. What is PM-KUSUM 2.0?
PM-KUSUM 2.0 is an upgraded version of the scheme under discussion by MNRE, expected to include Battery Energy Storage Systems (BESS), an agrivoltaics component, and a significantly larger budget outlay. As of mid-2026, it has not been formally notified with detailed guidelines.

Q6. Why is remote monitoring important for PM-KUSUM projects?
Because CFA disbursement and long-term subsidy compliance depend on verifiable performance data generation output, performance ratio, water discharge, and uptime. Remote monitoring systems automate this reporting and catch equipment failures early, protecting both farmer income and subsidy eligibility.

Q7. How do I apply for PM-KUSUM?
Applications are made through the National Portal for PM-KUSUM (pmkusum.mnre.gov.in) or your respective state’s renewable energy nodal agency, with vendor selection from state empaneled lists for Component B and C.

Q8. How does IntelliSolar help with PM-KUSUM compliance?
IntelliSolar provides a remote monitoring system with edge computing, water flow monitoring, weather sensor integration, and automated MNRE portal reporting built specifically to withstand rural field conditions and keep PM-KUSUM projects audit-ready and CFA-compliant.

 

Final Takeaway

PM-KUSUM has already reshaped how millions of Indian farmers think about irrigation power and rural income. But as the scheme scales towards its 34,800 MW target and evolves into PM-KUSUM 2.0, the difference between a subsidy that’s merely disbursed and one that delivers lasting value comes down to monitoring and compliance infrastructure. Farmers, EPCs, and state agencies that invest in reliable, rugged, real-time monitoring systems like those built by Intellisolar will be the ones who actually capture the full economic and environmental promise of solar-powered agriculture.

Ready to make your PM-KUSUM project fully compliant and downtime-proof?
Talk to IntelliSolar about deploying a monitoring solution built for Component A, B, and C projects.

This article is for general informational purposes. Scheme guidelines, subsidy percentages, and deadlines are subject to change. Always verify current details on the official MNRE PM-KUSUM portal (pmkusum.mnre.gov.in) or with your State Implementing Agency before applying.