PM-KUSUM: 35 GW of solar capacity for Indian farmers
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), launched March 2019, is India's largest agricultural solarisation programme. Target by 2026: 34.8 GW of capacity through three components — A (2 MW grid-connected solar plants on barren land), B (off-grid stand-alone solar pumps), C (grid-connected solarisation of existing electric pumps). As of FY2024-25, 4.8 lakh solar pumps installed under Component-B, 76,000 grid-connected pumps under Component-C, total programme installed ~5.5 GW. Goal: 17.5 lakh stand-alone solar pumps by 2026.
The financing stack — and farmer's 10%
Component-B (off-grid) and Component-C (grid-tied) work the same way: 30% Central financial assistance + 30% State subsidy + 30% bank loan + 10% farmer equity = 60% grant + 30% concessional loan + 10% own funds. For SC/ST/women and NE/UT farmers the stack shifts upward — 50% Central + 30% State = 80% grant + 20% bank loan, zero farmer cash needed.
Capex benchmarks 2024-25 (MNRE)
- 3 HP DC submersible: ₹2,30,000-2,60,000
- 5 HP DC submersible: ₹3,05,000-3,50,000
- 7.5 HP DC submersible: ₹4,40,000-5,00,000
- 10 HP DC submersible: ₹5,55,000-6,30,000
- AC pump (surface): 5-10% premium for inverter
Per-HP solar pump capex falls roughly with size — 5 HP is ₹61,000/HP, 10 HP is ₹55,000/HP. MNRE publishes annual benchmarks; deviations beyond 5% require justification in DPR.
Worked example: 5 HP solar pump in Rajasthan Component-B
- Capex (MNRE benchmark): ₹3,05,000
- Central subsidy (30%): ₹91,500
- State subsidy (30%): ₹91,500
- Bank loan (30%): ₹91,500 @ 7% × 7 yrs = ₹1,378/month EMI
- Farmer equity (10%): ₹30,500 upfront
- Diesel-pump baseline: 5 HP × 6 hrs × 200 days × 2.5 L/HP-hr × ₹95/L = ₹1,42,500/yr
- Conservative diesel offset: ₹45,000/yr (assume 30% pump use was free solar daylight; 70% formerly diesel)
- Net capex (subsidy adjusted): ₹1,22,000
- Annual saving: ₹45,000
- Payback on net capex: 2.7 years
- Lifetime ROI 25 years: 822%
Component-C: turn your pump into a profit centre
Component-C solarises an EXISTING grid-connected electric pump. The solar PV array generates daytime power: it offsets the pump's own consumption and exports the surplus to the discom via a net-meter. Feed-in tariffs vary by state — ₹2.50-3.50/kWh. A 5 HP solar plant generates ~6,500-7,500 kWh/year at Indian insolation (4.5-5 kWh/kWp/day). With 30% self-consumption and 70% export at ₹3.50/kWh, annual export revenue = 4,800 × 3.5 = ₹16,800/year on top of zero electricity bill.
Andhra Pradesh, Gujarat, Maharashtra, Karnataka, Tamil Nadu have already procured feed-in tariff contracts. State discom (UPNEDA, PEDA, GEDA) handles approvals; bank (mostly NABARD-refinanced PSB) handles loan; SECI / state EESL handles installation.
Diesel-pump baseline — calculating the offset realistically
Many DPRs over-state diesel offset by assuming 365-day pumping. Realistic Indian farm pumping is 150-250 days/year, depending on kharif-rabi cropping pattern. 5 HP diesel pump consumes ~2-2.5 L/hr at full load; 6 hours/day for 200 days = 2,400-3,000 L diesel; at ₹95/L = ₹2.3-2.85 lakh/year theoretical. But many smallholders run diesel only when grid fails (3-4 hours/day for 50-80 days/year), so actual diesel offset is ₹40,000-80,000/year — substantially less than DPR projection. Use your actual diesel bills for the calculator's input, not theoretical.
Component-C surplus economics across states
- Andhra Pradesh: feed-in ₹3.13/kWh, net-metering active
- Gujarat: ₹3.20-3.50/kWh through Suryashakti Kisan Yojana
- Maharashtra: ₹3.30/kWh, Mukhyamantri Saur Krishi Vahini
- Karnataka: ₹3.00/kWh under Suryashakti scheme
- Punjab: pending — Punjab Solar Power Policy 2024 expected to finalise
- UP: ₹3.13/kWh, UPNEDA-coordinated
Maintenance and panel-life realities
Solar pumps have 25-year panel warranty (linear degradation ~0.5%/year), 5-year inverter / pump-controller warranty, 5-year submersible motor warranty. Maintenance cost is minimal: ₹2,000-4,000/year for panel cleaning (5-8 times/year) and occasional controller-fuse replacement. Pump replacement at 8-10 years adds ~₹40,000-70,000 to lifecycle cost — factor this into long-term ROI.
How to use this calculator
Enter pump HP, MNRE-benchmark capex, your eligible total subsidy %, conservative diesel offset (use your actual diesel bills, not theoretical), and Component-C surplus export estimate if applicable. The widget returns net capex, annual saving, payback in years, and 25-year lifetime ROI. Bank DPRs require payback < 5 years and lifetime ROI > 300% for KUSUM-eligibility.
Sources
MNRE PM-KUSUM Operational Guidelines, revised 2024; MNRE Solar Pump Benchmark Capex Notification FY 2024-25; SECI tender data for KUSUM Component-A and -C 2024; state discom feed-in tariff orders 2024 (APERC, MERC, GERC, KERC, UPNEDA); CRISIL PM-KUSUM Programme Review 2023.