UPSC Margin
NotesTestsDaily CACSAT
UPSC Margin

Analytical concept notes, daily current affairs, and mock tests for serious UPSC aspirants.

Learn

  • Notes
  • Daily Current Affairs
  • Mock Tests
  • CSAT
  • Strategy Guide

Resources

  • About
  • Pricing
  • Blog
  • Contact
  • RSS Feed

Support

  • Help & FAQ
  • Privacy Policy
  • Terms of Use
  • Telegram Community

© 2026 UPSC Margin. All rights reserved.

Operated by Satyam Raj · hello@upscmargin.com

Back to Notes
PolityFree till Sep 9

PM-KUSUM: Solar Energy for Farmers

July 19, 2026

TOPIC CLASSIFICATION

Subject: Governance | Topic: Renewable Energy & Agriculture Sub-topic: PM-KUSUM Scheme — Solar pumps, grid-connected solar, farmer energy security Prelims Focus: Three components of PM-KUSUM, target capacity, implementing agency, subsidy pattern Mains Focus: Impact on farmer income, groundwater sustainability, energy security, implementation challenges

EXAMINER REASONING

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a unique scheme linking agriculture, energy, and environment. UPSC tests its three-component structure in Prelims and its role in achieving India's 500 GW renewable target, reducing groundwater over-extraction, and augmenting farmer income in Mains.

Core Concept

PM-KUSUM was launched in 2019 by the Ministry of New and Renewable Energy (MNRE) to promote solar energy adoption among farmers. The scheme aims to add solar capacity of 30.8 GW by 2027 and provide energy security to farmers.

Three Components

ComponentDescriptionTarget
Component AGrid-connected renewable power plants (0.5–2 MW) on barren/fallow land10 GW
Component BStandalone solar agriculture pumps (individual farmers)20 lakh pumps
Component CGrid-connected solar pumps (individual/community) — feed surplus to grid15 lakh pumps

Financial Structure

  • Central subsidy: 30% of benchmark cost (or ₹30,000 per hp for pumps)
  • State subsidy: 30% (varies by state)
  • Farmer contribution: Remaining 40% (can be availed via bank loan)
  • ₹34,422 crore (Central share: ₹19,300 crore)

Read Next

More in Polity

Delimitation Commission: Process, Issues, and Impact on Federalism

Governor: Powers, Discretion, and Controversies

AMRUT: Urban Infrastructure and Water Supply

Total outlay:

Key Facts

  • Nodal Ministry: Ministry of New and Renewable Energy (MNRE).
  • Implementing agency: State Nodal Agencies (SNAs) for renewable energy.
  • Eligibility: Individual farmers, groups, panchayats, FPOs for Component A; individual farmers for B and C.
  • Water conservation: Solar pumps incentivise micro-irrigation (drip/sprinkler) under PMKSY.
  • Grid stability: Component C allows farmers to sell surplus power to DISCOMs at feed-in tariff.
  • Current status: As of 2025, ~4.5 lakh solar pumps installed (~12% of target).
  • Issue: Slow off-take due to high farmer upfront cost, DISCOM reluctance for net metering.

PYQ Table

YearQuestionMarks
2022"Discuss the potential of PM-KUSUM scheme in transforming Indian agriculture."15
2021Which of the following components of PM-KUSUM relates to grid-connected solar pumps? (Prelims)2
2020"Solar energy can reduce both carbon footprint and farmer distress." Analyse in context of PM-KUSUM.12
2019The PM-KUSUM scheme aims at — (Prelims)2

Statement Elimination Guide

  1. "PM-KUSUM covers all types of agricultural pumps including diesel." → False. It promotes solar pumps only — not diesel or electric pumps.
  2. "Component A is for individual farmers only." → False. Allows groups, panchayats, and FPOs to set up grid-connected solar plants on barren land.
  3. "PM-KUSUM is implemented by Ministry of Agriculture." → False. Nodal ministry is MNRE.
  4. "Farmers can sell surplus power to DISCOMs under Component C." → True. Component C enables net metering and feed-in tariff.

Current Affairs Hook

  • 2025: MNRE revises PM-KUSUM targets; Component C made more attractive with higher tariff.
  • 2024: 100% central funding for Component A on barren land in aspirational districts.
  • 2023: PM-KUSUM integrated with Kisan Credit Card (KCC) for affordable farmer loans.
  • 2022: Rooftop solar under Component A allowed on canal tops and wastelands.
  • 2021: Scheme extended until 2026; additional ₹10,000 crore allocated for solar pump manufacturing PLI.
  • 2020: COVID delayed installations; 2-year extension granted.

Interlinkages

  • Energy: Contributes to India's 500 GW RE target by 2030 (National Solar Mission).
  • Agriculture: Reduces reliance on subsidised diesel/electricity for irrigation.
  • Environment: Replaces diesel pumps — reduces CO₂ emissions (~25 MT/year when fully implemented).
  • Water: Groundwater over-extraction remains a concern — solar pumps can worsen it if unregulated.
  • Fiscal: Reduces subsidy burden on electricity (agriculture power subsidy ~₹1.5 lakh crore annually).
  • Manufacturing: Domestic solar cell manufacturing (PLI scheme) supports Component A.

Common Mistakes

  • Assuming PM-KUSUM covers all farmers automatically — only voluntary opt-in.
  • Confusing Components B (standalone) and C (grid-connected) — key distinction for Prelims.
  • Mixing PM-KUSUM with Rooftop Solar Programme (Phase II) — both under MNRE but different schemes.
  • Missing that solar pumps can worsen groundwater depletion without water-use regulation.
  • Thinking subsidy is 50% Central only — it is 30% Central + 30% State = 60% total.

Revision Snapshot

ComponentTargetSubsidy PatternKey Feature
A10 GW grid-connected30% Centre + 30% StateBarren/fallow land, 0.5–2 MW
B20 lakh standalone pumps30% + 30%No grid connection
C15 lakh grid-connected pumps30% + 30%Net metering, sell surplus

Source Notes

  • MNRE – PM-KUSUM Scheme Operational Guidelines (2024)
  • PIB – Monthly Renewable Energy Achievement Reports
  • Ministry of Power – Report on Feeder Separation for Solar Pumps (2023)
  • CEEW – Evaluation of PM-KUSUM Implementation (2024)
  • Economic Survey 2024–25, Chapter on Energy