PM-KUSUM Explained: How Farmers & EPCs Can Benefit | SolSetu
PM-KUSUM: What Farmers, EPCs & Vendors Must Know (Components A, B & C)
New Delhi — November 17, 2025 — The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) programme aims to accelerate solar adoption in agriculture by supporting decentralized solar power plants, standalone solar pumps and solarisation of grid-connected pumps. This article explains Components A, B and C, recent updates, available subsidies and practical next steps for farmers and solar vendors.
Quick summary — three Components
- Component A: Decentralized ground/stilt-mounted grid-connected solar plants (plant size up to 2 MW). Enables farmers / entrepreneurs / cooperatives to set up small grid-connected projects and sell to DISCOMs under PPA.
- Component B: Standalone solar agriculture pumps — subsidised solar pumps to replace diesel pumps and reduce farmer operational costs.
- Component C: Solarisation of grid-connected agriculture pumps and feeder-level solarisation to reduce stress on rural feeders and enable cleaner irrigation supply.
Latest policy & implementation highlights (what changed in 2025)
MNRE and state implementing agencies continue to refine implementation and subsidy flows. The central PM-KUSUM target remains large (tens of thousands of pumps and several gigawatts under Components A/B/C), and states are running tenders and incentive programs to accelerate uptake. Some states (for example Tamil Nadu) have recently moved to procure solar power from farmer-owned plants and announced tariffs for power purchases — a practical path for farmer income generation through Component-A projects.
- Central financial support varies by component and beneficiary type; combined central + state support plus concessional loans often reduce farmer upfront cost significantly.
- Many states offer top-up subsidies or easier loan schemes for FPOs, cooperatives and panchayats — which can make projects financially viable for small farmers.
Why this matters for EPCs & vendors
- Higher demand for off-grid pumps and grid-connected small projects (≤2 MW) creates a pipeline of procurement and installation opportunities.
- Vendors who assist farmers with paperwork, state approvals, and PPA/DISCOM interfacing win repeat business and larger aggregated orders (through FPOs/cooperatives).
- Local state tenders and DISCOM PPAs (including recent district / state purchase plans) are practical routes to monetise Component-A projects.
How farmers & FPOs should approach PM-KUSUM
- Check eligibility and state implementing agency (SIA) guidelines for your state — state portals list sanctioned capacities and application windows.
- Consider joining or forming an FPO/co-op to access bulk procurement and bigger subsidies/credit lines.
- Ask vendors for a full cost breakdown and an explanation of subsidies, loan options and expected payback with local tariffs and cropping patterns.
Action checklist for SolSetu vendors (quick wins)
- Prepare PM-KUSUM ready proposals (component-wise) including subsidy computation and sample PPA templates.
- Train sales staff to explain feeder-level solarisation benefits and how IPS (Individual Pump Solarisation) vs FLS (Feeder Level Solarisation) differs.
- List PM-KUSUM-ready services on SolSetu and invite leads through targeted content and case studies.
