Madhya Pradesh has made steady progress under the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme with the distribution of Power Purchase Agreements (PPAs) for grid-connected solar power projects across the state.

The PPAs have been issued primarily under PM-KUSUM Component-A, which allows farmers, farmer-producer organizations, and rural entrepreneurs to set up decentralized solar power plants ranging from 500 kW to 2 MW on barren or cultivable land and sell electricity to the local distribution companies (DISCOMs).

Boost to Farmer Income and Decentralized Solar

With the signing of PPAs, project developers and farmers gain long-term revenue visibility, enabling them to secure project financing and proceed with plant construction. The electricity generated from these solar plants is procured by Madhya Pradesh DISCOMs at tariffs determined by the Madhya Pradesh Electricity Regulatory Commission (MPERC).

This initiative supports dual objectives — enhancing farmers’ income through clean energy generation while strengthening decentralized renewable energy capacity close to demand centers.

Key Features of PM-KUSUM Component-A in Madhya Pradesh

• Grid-connected solar power plants ranging from 500 kW to 2 MW
• Long-term PPAs signed with state DISCOMs
• Regulated feed-in tariffs as approved by MPERC
• Opportunity for farmers to lease land or become power producers

State-Level Renewable Energy Momentum

Madhya Pradesh is among the leading states implementing PM-KUSUM at scale, leveraging its high solar potential and strong policy framework. The PPA distribution marks a crucial step toward project execution, grid integration, and timely capacity addition under the national renewable energy mission.

Further phases of PPA allocation and project commissioning are expected to accelerate solar adoption in rural areas while contributing to India’s clean energy transition.