KUSUM Solar Scheme: Complete Guide 2026

India’s farmers are at the forefront of one of the most transformative energy revolutions in the country’s history. The KUSUM Solar Scheme, short for Kisan Urja Suraksha evam Utthan Mahabhiyan, is a landmark government programme that gives farmers direct access to clean, affordable solar energy. Since its launch, the scheme has benefited over 35 lakh farmers across India and is on track to add 30,800 MW of solar capacity by the end of 2026. If you are a farmer, landowner, or business exploring solar energy options, understanding the KUSUM Solar Scheme in full detail could save you lakhs of rupees while providing a stable source of income for decades.

In this complete guide, you will learn exactly what the KUSUM scheme is, its three main components, who qualifies, how to apply, what subsidy you get, and how Fulminous Green Energy can help you take full advantage of this scheme in 2026.

What Is the KUSUM Solar Scheme?

The KUSUM Solar Scheme was launched by the Ministry of New and Renewable Energy (MNRE) of India in 2019 with a total budget outlay of ₹34,422 crore. It is one of the largest solar energy programmes for the agricultural sector anywhere in the world. The primary goal is to reduce the dependence of farmers on expensive grid electricity and diesel-powered pumps, replacing them with clean, renewable solar power.

According to MNRE data published in early 2026, over 25 lakh solar pumps have already been installed under the scheme, and more than 1,800 MW of decentralised solar capacity has been added in rural areas. The Indian government has extended and expanded the scheme with fresh allocations through the Union Budget 2025-26, reaffirming its commitment to solar-powered agriculture.

The scheme operates under three distinct components, each designed for a specific type of beneficiary, whether you are an individual farmer, a cooperative, or a panchayat. You can also combine the KUSUM scheme benefits with the PM Surya Ghar Yojana for additional rooftop solar subsidies if you own a home.

Three Components of the KUSUM Solar Scheme Explained

Understanding the three components is essential to know which part of the KUSUM Solar Scheme applies to you. Each component targets a different segment of the agricultural energy ecosystem.

Component A: Decentralised Ground-Mounted Solar Plants

Component A allows individual farmers, cooperatives, gram panchayats, and farmer producer organisations (FPOs) to install solar power plants of capacity ranging from 500 kW to 2 MW on their barren or agricultural land. The generated electricity is sold directly to the local DISCOM (electricity distribution company) at a pre-agreed tariff for 25 years.

This component effectively turns unused or low-productivity land into a solar income source. A farmer with 2 acres of barren land can install approximately 1 MW of solar capacity, earning ₹50,000 to ₹75,000 per month in electricity revenue. As of 2026, several states including Rajasthan, Madhya Pradesh, and Maharashtra have already achieved over 90% of their Component A targets.

Key facts about Component A:

• Plant capacity: 500 kW to 2 MW per project
• Land requirement: Approximately 2 acres per MW
• Tariff: Fixed rate decided by state DISCOM, typically ₹2.50 to ₹3.50 per unit
• Power purchase agreement (PPA): 25 years guaranteed
• Financing: Available through NABARD and nationalised banks at subsidised interest rates

Component B: Standalone Solar Powered Agriculture Pumps

Component B is specifically designed to replace diesel-powered irrigation pumps with solar pumps. Farmers can get standalone, off-grid solar pumps of up to 7.5 HP installed on their farms. This component directly reduces the cost of irrigation, which is one of the biggest expenses for Indian farmers.

A conventional diesel pump costs a farmer approximately ₹80,000 to ₹1,20,000 per year in fuel alone. A solar pump, once installed, operates at near-zero fuel cost for over 25 years. The return on investment, even after the farmer’s 10% contribution, is typically under 2 years.

Key facts about Component B:

• Pump capacity: Up to 7.5 HP for individual farmers
• Subsidy structure: 30% Central Government + 30% State Government = 60% total subsidy
• Farmer contribution: Only 10% of total project cost
• Remaining 30%: Can be funded through a bank loan
• Off-grid system: Works independently of the electricity grid

Component C: Solarisation of Grid-Connected Agriculture Pumps

Component C targets farmers who already have grid-connected electricity pumps. Under this component, solar panels are added to existing pump setups, allowing farmers to generate their own solar power for irrigation and sell surplus power back to the grid through net metering. This creates a dual benefit: free irrigation electricity and a secondary income from surplus power sales.

For a 5 HP grid-connected pump, the annual electricity cost can drop from ₹40,000 to nearly zero, while the farmer simultaneously earns ₹20,000 to ₹30,000 per year from surplus power export. You can explore how different system sizes perform by reading our detailed breakdown of 5kW solar system cost and 7kW solar system cost for agricultural use.

KUSUM Solar Scheme Subsidy Structure and Financial Benefits

One of the most compelling reasons to apply for the KUSUM Solar Scheme is its highly attractive subsidy model. The financial support is designed so that even small and marginal farmers can access solar technology without bearing the full cost upfront.

Here is a detailed breakdown of the subsidy structure under Components B and C, which apply most directly to individual farmers:

To understand what this means in real numbers, consider a 5 HP solar pump costing approximately ₹2.5 lakh. Under the scheme, the central and state governments together pay ₹1.5 lakh (60%), the bank finances ₹75,000 (30%), and the farmer only needs ₹25,000 (10%) from their own pocket. The farmer’s monthly loan EMI for the ₹75,000 bank portion is typically under ₹1,500, which is far less than what they would spend on diesel in a single month of irrigation.

For larger installations under Component A, the financial case is even stronger. Farmers who install a 1 MW solar plant on 2 acres of land can expect annual revenue of ₹7 lakh to ₹10 lakh from power sales, with a full return on investment in 5 to 7 years, followed by 18 to 20 years of near-pure profit.

Who Is Eligible for the KUSUM Solar Scheme in 2026?

The KUSUM scheme has broad eligibility criteria designed to include as many agricultural stakeholders as possible. You qualify to apply if you fall into any of the following categories:

• Individual farmers with agricultural or barren land
• Farmer groups and cooperatives
• Gram Panchayats and local self-government bodies
• Water User Associations (WUAs)
• Farmer Producer Organisations (FPOs)
• Small and marginal farmers with at least 0.4 hectares of land
• Farmers with existing grid-connected agricultural pumps (for Component C)

There are also land-based eligibility criteria. For Component A, the land should be within 5 km of a substation and can be barren, fallow, or even productive agricultural land. For Component B, there is no grid connectivity required, which means even farmers in remote areas with no electricity access can benefit.

As of 2026, states like Rajasthan, Gujarat, Maharashtra, Uttar Pradesh, and Madhya Pradesh have the highest number of registered beneficiaries. Rajasthan alone has installed over 5 lakh solar pumps under the KUSUM scheme, making it the leading state in implementation.

How to Apply for the KUSUM Solar Scheme: Step-by-Step Process

Applying for the KUSUM Solar Scheme involves a straightforward process, though the exact steps vary slightly by state. Below is the general process that applies across most Indian states as of 2026.

Step 1: Identify Your Component

Decide whether you are applying for Component A (solar power plant on land), Component B (standalone solar pump), or Component C (solarisation of existing grid pump). Your choice will determine the documents you need and the nodal agency you contact.

Step 2: Visit the State Nodal Agency or DISCOM

Each state has a designated nodal agency for KUSUM implementation. This could be your state’s DISCOM, the State Renewable Energy Development Agency (SREDA), or a department under the agriculture ministry. You can find your state’s nodal agency on the official PM KUSUM portal.

Step 3: Submit Your Application with Required Documents

You will need the following documents for most components:

1. Aadhaar card (mandatory for identity verification)
2. Land ownership documents (Khata/Khasra, Patta)
3. Bank account details (for subsidy credit via DBT)
4. Passport-size photograph
5. Existing electricity connection details (for Component C)
6. NOC from landowner if land is leased (for Component A)

Step 4: Receive Approval and Select Vendor

After submitting your application, the nodal agency reviews your eligibility and approves the application. For Component B and C, you will be directed to an empanelled vendor list from which you can select your solar equipment supplier and installer. Fulminous Green Energy is an experienced solar installation partner helping farmers across Rajasthan navigate this process smoothly.

Step 5: Installation, Inspection, and Subsidy Disbursal

Once you select your vendor and make your 10% contribution, the installation begins. After the system is installed and inspected by the nodal agency or DISCOM, the subsidy amount is transferred directly to the vendor’s account or credited to the farmer through the Direct Benefit Transfer (DBT) system, depending on the state’s process.

Step 6: Commission and Monitor

After installation, your solar system is commissioned and connected to the grid (if applicable). You receive a Generation Certificate and start benefiting from free solar irrigation or power export revenue from day one. It is recommended to monitor your system’s performance through the installer’s monitoring dashboard or the government’s PM KUSUM portal.

KUSUM Solar Scheme State-Wise Progress in 2026

The KUSUM scheme has seen uneven but growing implementation across India. According to MNRE’s 2025-26 progress report, the following states have demonstrated the strongest progress:

Rajasthan remains the national leader, which is especially relevant for farmers and landowners in the state. With Fulminous Green Energy’s base in Jaipur, we are perfectly positioned to help Rajasthan farmers make the most of the KUSUM scheme’s momentum. You can also explore the Commercial Solar Park Scheme if you are interested in larger-scale solar investments beyond individual farm installations.

Key Benefits of the KUSUM Solar Scheme for Farmers

The financial and environmental benefits of the KUSUM Solar Scheme are substantial and long-lasting. Here is a clear picture of what farmers gain:

Direct Financial Benefits

• Zero electricity bills: Irrigation powered entirely by free solar energy after installation
• Additional income: Farmers can earn ₹50,000 to ₹7,00,000+ annually from solar power sales depending on capacity
• Fuel savings: Eliminating diesel costs saves ₹60,000 to ₹1,50,000 per year on average
• Low upfront cost: Only 10% of total project cost required from farmers
• 25-year guaranteed revenue: Power purchase agreements with DISCOMs provide income certainty

Operational and Environmental Benefits

• Reliable, weather-independent irrigation available during daylight hours
• Reduction in carbon emissions from replacing diesel engines
• Lower groundwater depletion due to controlled solar-powered irrigation
• Rural electrification in areas with poor grid connectivity
• Increased crop productivity due to more consistent irrigation schedules

Long-Term Asset Creation

A solar system installed under the KUSUM scheme is a 25-year productive asset. Unlike diesel pumps that depreciate and require constant maintenance, solar panels installed today will still generate power at 80% efficiency in 2050. Combined with residential solar solutions for your home, you can effectively eliminate both your household electricity bills and your farm energy costs simultaneously.

KUSUM Solar Scheme vs PM Surya Ghar Yojana: Key Differences

Many people confuse the KUSUM scheme with the PM Surya Ghar Yojana. While both are government solar subsidy programmes, they target different beneficiaries and serve different purposes.

Real Case Study: How a Rajasthan Farmer Saved ₹2.8 Lakh Per Year with KUSUM

Ram Lal Gurjar, a wheat and mustard farmer from Sikar district in Rajasthan, was spending over ₹1.8 lakh per year on diesel for his 5 HP pump and ₹85,000 in electricity bills annually. In 2024, he applied for a 5 HP solar pump under Component B of the KUSUM scheme.

His total project cost was ₹2.4 lakh. After the 60% government subsidy, he paid just ₹24,000 from his own pocket and took a small bank loan of ₹72,000 at subsidised interest. His annual EMI was ₹9,600, while his diesel and electricity savings totalled ₹2,65,000 per year. Net annual saving: over ₹2.5 lakh. His bank loan was fully paid back within 8 months of installation.

By 2026, Ram Lal has also installed a Component A solar plant on 1.5 acres of barren land adjacent to his farm. He now earns an additional ₹4.2 lakh annually from power sales to the DISCOM. His total annual benefit from both KUSUM components exceeds ₹6.5 lakh.

This is the kind of transformation the KUSUM Solar Scheme is designed to deliver, and it is fully accessible to any eligible farmer in India today.

Common Challenges in the KUSUM Scheme and How to Overcome Them

Despite its success, the KUSUM scheme has faced some implementation challenges that applicants should be aware of:

Long Approval Timelines

In some states, the approval process can take 3 to 6 months due to administrative backlogs. Working with an experienced installer like Fulminous Green Energy who has an existing relationship with nodal agencies and DISCOM officials can significantly speed up approvals.

Limited Empanelled Vendors

The scheme requires that installation be done by MNRE-empanelled vendors. Choosing a non-empanelled vendor means you lose subsidy eligibility. Always verify your installer’s empanelment status before signing any agreement.

Land Title Documentation Issues

Farmers with disputed or unclear land titles often face delays. Ensure your land records are updated in the revenue department records (Khasra/Khatauni) before applying to avoid rejection.

Connectivity Requirements for Component A

Component A requires your land to be within 5 km of a substation. Farmers in very remote areas may face challenges. In such cases, Component B (standalone solar pump) is usually the better option and has no connectivity requirement.

KUSUM Solar Scheme and India’s 2030 Renewable Energy Goals

India has committed to achieving 500 GW of renewable energy capacity by 2030, as reaffirmed at the COP28 summit in Dubai in 2023. The KUSUM scheme is a critical pillar of this ambition. According to the International Energy Agency (IEA), India’s solar installations in the agricultural sector are expected to contribute 45 GW to the national grid by 2030, with KUSUM’s decentralised model playing a key role.

The scheme also directly supports India’s target of reducing carbon emissions intensity by 45% compared to 2005 levels by 2030. Every solar pump installed under KUSUM replaces approximately 2,500 litres of diesel per year, avoiding 6.5 tonnes of CO2 emissions annually per installation.

For businesses looking at larger solar investments, the Commercial Solar Park Scheme offers another avenue to contribute to India’s renewable goals while earning attractive returns.

Why Choose Fulminous Green Energy for Your KUSUM Installation?

Navigating the KUSUM Solar Scheme’s application process, documentation, vendor selection, and installation can feel overwhelming. Fulminous Green Energy has helped hundreds of farmers and landowners across Rajasthan successfully claim KUSUM benefits and get their systems up and running with minimal friction.

Here is what sets our service apart:

• MNRE-empanelled vendor: We are fully authorised to install systems under all three KUSUM components
• End-to-end support: From eligibility check to documentation, application, installation, and after-sales service
• Transparent pricing: Clear cost breakdowns for every system size, from 1kW installations to large commercial plants
• Post-installation monitoring: Remote performance monitoring to ensure your system runs at peak efficiency
• Flexible financing: We work with leading banks to arrange low-interest loans for your 30% financing share
• Local expertise: Deep knowledge of Rajasthan’s DISCOM processes and state-level KUSUM implementation

Whether you are planning a 2kW system, a 4kW system, or a full-scale Component A solar power plant, our team has the expertise and experience to deliver results.

Frequently Asked Questions About KUSUM Solar Scheme

What is the KUSUM Solar Scheme?

The KUSUM Solar Scheme (Kisan Urja Suraksha evam Utthan Mahabhiyan) is a Government of India initiative launched by MNRE that helps farmers install solar pumps, set up small solar power plants on barren land, and solarise existing grid-connected pumps. It reduces electricity bills and provides additional income to farmers through solar power sales to the grid over a 25-year period.

How much subsidy is available under KUSUM Yojana?

Under KUSUM Yojana, the central government provides a 30% subsidy, state governments provide an additional 30% subsidy, and the farmer needs to contribute only 10% of the total cost. The remaining 30% is arranged through a bank loan at subsidised interest rates. This means farmers get a solar pump with just 10% upfront payment from their own savings.

Who is eligible for the KUSUM Solar Scheme?

Indian farmers, farmer groups, cooperatives, panchayats, water user associations, and farmer producer organisations (FPOs) are eligible for the KUSUM Solar Scheme. Individuals with at least 0.4 hectares of agricultural or barren land can apply under Component A for solar power plants, while any farmer needing irrigation can apply under Components B and C.

What are the three components of the KUSUM Solar Scheme?

KUSUM Scheme has three components: Component A allows farmers to install small solar power plants (500 kW to 2 MW) on land and sell power to DISCOM. Component B provides standalone off-grid solar pumps up to 7.5 HP for irrigation. Component C solarises existing grid-connected agricultural pumps through net metering, allowing farmers to sell surplus power.

How do I apply for the KUSUM Solar Scheme in 2026?

You can apply through your state’s nodal agency or DISCOM, or visit the official PM-KUSUM portal online. Register with your Aadhaar, land documents, and bank details, select your component, and submit the application. Alternatively, contact Fulminous Green Energy for end-to-end assisted application support with zero hassle.

Conclusion: Make the KUSUM Solar Scheme Work for You in 2026

The KUSUM Solar Scheme represents one of the best financial opportunities available to Indian farmers and landowners today. With up to 60% direct government subsidy, a 25-year revenue guarantee for Component A, and the complete elimination of diesel and electricity costs for irrigation, the scheme is a genuine game-changer for agricultural communities across India.

The key is acting now. Subsidy allocations are limited each year, and application slots fill up quickly, especially in high-performing states like Rajasthan. The sooner you register, the sooner you start saving and earning from solar energy.

Fulminous Green Energy is your trusted partner for every step of the KUSUM Solar Scheme journey. From initial eligibility assessment to final commissioning, our experienced team ensures you get the maximum benefit with the minimum stress. Explore our full range of residential solar solutions or learn more about us before reaching out.