PM Kusum Scheme: Solar Yojana for Farmers & Entrepreneurs

The Government of India has been taking substantial steps to invest in renewable energy and assist farmers with sustainable interventions. One of these initiatives, for instance, is the Pradhan Mantri Kisan Urja Suraksha Eevam Utthaan Mahabhiyan (PM Kusum Scheme), intended to empower farmers and rural entrepreneurs by decreasing electricity and diesel reliance while incorporating the deployment of solar energy.

With grants, loans and low barriers of entry, the PM Kusum Scheme is opening doors for farmers to reduce their energy expenditure, increase productivity and ultimately contribute to India's clean energy agenda.

What is the PM Kusum Scheme?

The PM Kusum Scheme was launched by the Ministry of New and Renewable Energy (MNRE) to encourage the use of solar energy in agriculture and rural entrepreneurship. Its primary objective is to provide farmers with access to reliable, cost-effective and environmentally friendly energy for irrigation and farming operations.

The scheme also allows rural entrepreneurs and cooperatives to set up decentralised solar power plants, ensuring that energy security becomes a shared goal across communities.

Key Features of the Kusum Scheme

The scheme has many attractive features for farmers and entrepreneurs:

• Subsidised solar pumps: Farmers can receive financial assistance to install solar irrigation pumps.
• Decentralised solar plants: The development of solar plants with a capacity of up to 2 MW on barren/desolate land.
• Grid connectivity: The ability to sell surplus power generated back to the grid as additional income.
• Target capacity: The aim is to total nearly 30.8 GW of solar capacity added by 2026.
• Government subsidy: Potential subsidy of up to 60% meaning farmers only have to pay a small portion of the cost.

These features explain why the PM Kusum Yojana combines both financial assistance and sustainable development in an innovative way.

Eligibility Criteria for PM Kusum Yojana

The scheme is designed for a wide audience. Those eligible to apply include:

• Individual farmers.
• Groups of farmers.
• Rural entrepreneurs.
• Panchayats and cooperative societies.
• Water user associations.

Key conditions:

• Applicants must own or lease agricultural land.
• Solar pumps or plants must be used for farming or rural enterprise purposes.
• Applicants should provide required identity and land ownership documents.

This inclusive structure ensures that the benefits of the Kusum Yojana reach both individuals and communities.

Also Read: MSME Small Business Loan for Women Entrepreneurs

How to Apply for PM Kusum Scheme Online

The government has streamlined the application process to make it simple and transparent. Here is a step-by-step guide:

1. Visit the official MNRE Kusum Scheme portal.
2. Register using Aadhaar number and mobile OTP verification.
3. Fill in details such as land ownership, irrigation requirements and project preference.
4. Upload documents such as identity proof, land records and photographs.
5. Submit the application online and note the reference number for tracking.

Farmers and entrepreneurs can also visit state nodal agencies for additional support with the application process.

Components and Phases of the Kusum Scheme

The PM Kusum Yojana is divided into three major components:

1. Component A: Setting up decentralised renewable energy power plants (up to 2 MW capacity each).
2. Component B: Installation of stand-alone solar-powered agricultural pumps.
3. Component C: Solarisation of existing grid-connected agricultural pumps.

Phases: The scheme has been rolled out in phases, with targets spread over multiple years to ensure smooth implementation and capacity building.

This structured approach allows for scalability, ensuring that both farmers and the energy grid benefit from the transformation.

Benefits of PM Kusum Scheme for Farmers and Rural Entrepreneurs

The PM Kusum Scheme offers wide-ranging benefits, such as:

• Lower Electricity Bills: Farmers can reduce dependence on costly grid power.
• Additional Income: Surplus solar energy can be sold back to the grid.
• Environmental Sustainability: Reduction in diesel usage lowers carbon emissions.
• Improved Irrigation: Reliable solar pumps enhance productivity.
• Community Empowerment: Encourages rural entrepreneurship and cooperative projects.

These benefits highlight how the scheme addresses both economic and environmental concerns, making it a holistic solution.

Subsidy and Financial Assistance under Kusum Yojana

One of the most attractive aspects of the Kusum Scheme is its subsidy structure:

This means that farmers only need to invest a small portion, making the scheme highly affordable. To plan this effectively, tools like the Godrej Capital EMI calculator can help estimate the upfront contribution, potential loan requirements, and repayment options, making the scheme even more accessible and transparent.

Also Read: Government Schemes for Women-led Businesses/MSMEs in India

Common Challenges & Solutions in PM Kusum Scheme Implementation

Even though Kusum Yojana is a game-changer, applicants can face some barriers:

• Documentation Delays: Correct land and identity documents are required.
• Grid Connectivity: In remote areas, grid connections may take longer.
• Awareness Gaps: There are still many farmers who do not know the benefits.

Solutions:

• State agencies and financial institutions are conducting awareness campaigns.
• Digital portals and help lines have been set up to resolve concerns.
• Support for women farmers and rural entrepreneurs guarantees inclusion.

Success Stories of Kusum Scheme Beneficiaries

A wide range of farmers and rural groups have already enjoyed benefits:

• Maharashtra: Farmers in Satara district have reported considerable savings after replacing diesel pumps with solar pumps.

• Rajasthan: Rural entrepreneurs have installed solar plants on wasteland , producing power and a new income source.

• Haryana: Women farmers, through self-help groups, have implemented solar pumps , which have decreased costs and increased productivity.

These examples are evidencing the scheme's ability to foster economic empowerment coupled with environmental sustainability.

Also Read: Mudra Loan: Government Scheme for Business Loans

Updates and latest news on the PM Kusum Scheme

• The government has extended deadlines for rollout in multiple states to facilitate uptake.
• The subsidy payment has been streamlined to a Direct Benefit Transfer (DBT) payment.
• Additional allocation has been given in the Union Budget to help further scale the scheme in 2025 and beyond.

Staying in touch with these updates is important for those farmers and entrepreneurs intending to apply.

Final Thoughts

The PM Kusum Scheme is an initiative for empowering the sustainable rural economy. It is providing farmers and entrepreneurs with solar energy solutions that will lower their costs, increase their self-reliance and contribute to India's renewable energy targets.

If you are planning to get a loan for your agriculture business under the PM Kusum Scheme, keeping up to date and preparing the paperwork are the first steps to seizing this transformational opportunity.

FAQs

Q.1. Who is eligible for the PM Kusum Scheme?

A. Individual farmers, groups, cooperatives, panchayats and rural entrepreneurs.

Q.2. What documents are required to apply online?

A. Identity proof, Aadhaar card, land ownership papers and photographs.

Q.3. How much subsidy is provided?

A. Up to 60% combined central and state subsidy, with low farmer contribution.

Q.4. Can women farmers apply independently?

A. Yes, women farmers and self-help groups are encouraged to apply.

Q.5. How long does approval take?

A. It varies by state nodal agency; however, it usually takes 1–3 months.

Q.6. Where can I check application status?

A. You can check it on the MNRE Kusum Scheme official portal by entering your reference number.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com.