PM-KUSUM Component A Explained
PM-KUSUM Component A Explained: How Farmers Can Earn by Feeding Power to the Grid
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a flagship programme to incentivise solar adoption in the agricultural sector. Component A specifically allows farmers, farmer groups and institutions to set up grid-connected solar power plants (typically up to 2 MW) on barren or fallow land and sell electricity to DISCOMs under a PPA — creating a new revenue stream for rural owners.
Who can participate (Eligibility)
- Individual farmers, farmer producer organisations (FPOs), cooperatives, panchayats and other legal entities as defined by scheme guidelines.
- Availability of land suitable for installing ground-mounted solar PV (fallow/barren/non-arable land is preferred).
- Ability to enter into a PPA with the procuring DISCOM or aggregator (state rules vary — check local implementing agency).
How Component A works — Step by step
- Project identification: Farmer/farmer group identifies suitable land and contacts a vendor/EPC for preliminary survey.
- Survey & feasibility: Vendor conducts site survey (irradiance, grid proximity, land documents).
- Approval & selection: State implementing agency issues guidelines; projects may need to be selected through an aggregator or tender depending on state policy.
- Financing & subsidies: The project may receive central/state subsidies and/or bank/NBFC loans. Exact subsidy levels depend on state and implementation model.
- PPA & grid connectivity: A standard PPA is signed with the DISCOM/aggregator — this defines tariff, billing and evacuation arrangements.
- Installation & commissioning: EPC installs the plant, completes testing and hands over for commercial operation.
- Operation & revenue: Generated power is injected into the grid and the farmer/farmer group receives payment as per PPA terms (feed-in / tariff / aggregator model).
Key benefits for farmers
- New income source: Land that was previously unused can generate steady revenue through sale of electricity.
- Energy transition participation: Farmers become part of India’s renewable energy ecosystem.
- Employment & local skills: Construction and O&M generate local jobs.
Common questions & practical tips
| Max project size (typical) | Up to 2 MW (state rules may vary) |
| Land type | Fallow, barren, non-agricultural land preferred; must comply with state land rules |
| Revenue model | PPA with DISCOM or aggregator; tariff as per state/DISCOM |
| Subsidy & finance | Central/state subsidies may apply; commercial loans and NBFC finance common |
Challenges & how to mitigate them
- Grid evacuation & DISCOM readiness: Engage early with the procuring DISCOM and secure grid-connect permission.
- Land clearances: Ensure land titles, non-agricultural conversion (if required) and environmental compliances are in order.
- Finance complexity: Prepare subsidy calculations and bankable project documents to speed up loan approvals.
Actionable checklist for farmers
- Identify 0.5–2 acres of suitable land (depending on required capacity).
- Contact 2–3 verified SolSetu vendors/EPCs for feasibility and sample economics.
- Check with state implementing agency / DISCOM contact for PPA and selection process.
- Prepare land documents and farmer group registration (if applicable).
- Explore finance options — banks, NBFCs or aggregator models; ask vendors for subsidy calculations.
How SolSetu helps
On SolSetu you can search for verified vendors
Ready to start? If you are a farmer or farmer group, contact our team or request a PM-KUSUM vendor. Vendors — list your PM-KUSUM services and tag your profile with “PM-KUSUM Component A”. Disclaimer: Scheme structure, subsidy levels and implementation steps can vary by state and over time. Always confirm current guidelines with the state implementing agency and your local DISCOM before signing agreements.
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