PM-KUSUM / पीएम-कुसुम — the scheme that put solar pumps on Indian farms and let farmers sell power to the grid — stopped accepting new applications when its first phase closed on 31 March 2026. A successor, PM-KUSUM 2.0, is being drafted around a proposed outlay of about ₹51,000 crore, but as of early November 2026 it has not gone to the Union Cabinet. This article sets out what the old scheme paid for, how much of its target it actually met, which deadlines still bind farmers holding a sanction letter, and what the next phase is expected to look like.
What PM-KUSUM Was / पीएम-कुसुम क्या था
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was launched in 2019 by the Ministry of New and Renewable Energy (MNRE) with a single broad aim: take diesel out of farm irrigation and put solar power in its place, while giving farmers a second income from land that was not producing much. The first phase ran with a central outlay of ₹34,422 crore and an overall target of adding about 34,800 MW of solar capacity through three separate components, according to reporting by Down To Earth in December 2025.
It was never a cash transfer scheme. Money moved as capital subsidy on hardware — a pump, a panel, a feeder plant — delivered through state implementing agencies rather than directly to bank accounts, which is why the quality of implementation varied so sharply from state to state.
The Three Components, and Who They Suited / तीन घटक और किसके लिए उपयुक्त
Component A was for farmers who wanted to generate and sell power, not consume it. Individual farmers, groups, cooperatives, panchayats and Farmer Producer Organisations could set up a solar plant of 500 kW to 2 MW on barren or fallow land and sell the output to the local DISCOM at a feed-in tariff fixed by the State Electricity Regulatory Commission. DISCOMs earned a performance-based incentive of ₹0.40 per unit purchased or ₹6.6 lakh per MW installed, whichever was lower, for five years.
Component B was the one most farmers know: a standalone solar pump of up to 7.5 HP for off-grid areas with no reliable electricity, either as a new installation or to replace an existing diesel pump. New pumps were not allowed in dark or black groundwater zones, though an existing diesel pump could still be converted there if the farmer used micro-irrigation. Pumps larger than 7.5 HP were permitted, but the subsidy stayed capped at the 7.5 HP rate.
Component C came in two forms. Individual Pump Solarisation (IPS) let a farmer with an existing grid-connected pump add solar panels of up to twice the pump’s capacity in kW, use the power for irrigation and sell the surplus. Feeder Level Solarisation (FLS) worked at the level of an entire agricultural feeder: the state or DISCOM installed a solar plant to serve every pump on that feeder, with farmers getting daytime power free or at a tariff fixed by the state. FLS carried central support of 30% of the installation cost, capped at ₹1.05 crore per MW, on 25-year CAPEX or RESCO projects.
How the Subsidy Was Split / सब्सिडी का बँटवारा
For Components B and C, the central financial assistance was 30% of the MNRE benchmark cost or the tender-discovered cost, whichever was lower. The state government had to contribute at least 30%, and the farmer bore the remaining 40% or less. In the North-Eastern states, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and the Andaman & Nicobar Islands the central share rose to 50%, the state gave at least 30% and the farmer’s share fell to 20% or less.
Two details mattered more than the headline percentages. First, the benchmark cost is fixed by MNRE every year, so the rupee value of “30%” changes with each revision. Second, the farmer’s share could be bank-financed, which meant an upfront payment of roughly 10% of the system cost with the rest as a loan — the route most small farmers actually took. A Kisan Credit Card or a term loan from the local cooperative bank was the usual instrument.
What Phase 1 Actually Delivered / पहले चरण का वास्तविक प्रदर्शन
The record is uneven, and the gap between what was sanctioned and what was commissioned is the story. As of February 2026, a total of 12,164 MW of capacity had been installed under the scheme, according to The Indian Express. Component A, the decentralised plant component, had installed about 2,400 MW against a target of 10,000 MW. Component B had installed roughly 1.19 lakh standalone pumps by the close of the phase — close to 90% of the target the Centre for Science and Environment measured it against — while MNRE’s own scheme portal recorded 13,07,190 pumps sanctioned, against a revised component target of 14 lakh. Component C’s progress varied widely by state and by whether the state chose IPS or FLS.
| Component | What it funds | Target | Progress at close of Phase 1 |
|---|---|---|---|
| A | Decentralised solar plants, 500 kW–2 MW, power sold to DISCOM | 10,000 MW | ~2,400 MW installed |
| B | Standalone solar pumps up to 7.5 HP | 14 lakh pumps (revised from 17.5 lakh) | 13,07,190 sanctioned; ~1.19 lakh installed |
| C | Solarisation of grid-connected pumps (IPS) and feeders (FLS) | Part of the ~34,800 MW total | Uneven across states |
Read together, those numbers say something practical: the hardware that a single farmer could buy and use — a pump on his own field — moved fastest, while the components that needed land aggregation, DISCOM agreements and long-term power purchase contracts stalled. The Ministry has since acknowledged the financing bottleneck openly, asking states in March 2026 to coordinate with banks and financial institutions to speed up financial closure.
Deadlines That Still Apply / अब भी लागू समय-सीमाएँ
MNRE’s office memorandum of 28 March 2026 closed the scheme to new applicants but kept a window open for projects already in the pipeline. Only projects whose power purchase agreements or notices to proceed were issued on or before 31 December 2025 were allowed to continue. For Component B and Component C (IPS), commissioning had to be completed by 30 September 2026. For Component A and Component C (FLS), financial closure was extended to 30 September 2026 and commissioning to 31 March 2027. Any further extension is being considered only case by case.
If you are holding a sanction letter from your state implementing agency and your pump was not commissioned by 30 September 2026, the correct step is to approach that agency directly — the DISCOM, agriculture department, minor irrigation department or the department your state has designated — rather than a private vendor promising an extension. Vendors cannot extend an MNRE timeline.
What PM-KUSUM 2.0 Is Proposed to Do / पीएम-कुसुम 2.0 में क्या प्रस्तावित है
Every figure in this section is a proposal, not an entitlement. As reported by Mint in September 2026, the Cabinet is expected to consider an outlay of about ₹51,000 crore — roughly ₹35,000 crore for new projects and ₹16,000 crore to clear existing liabilities — covering about 10 GW of agri-photovoltaic installations, solar pumps and battery energy storage. Component A would get about ₹4,500 crore, Components B and C together about ₹26,000 crore, and a dedicated ₹4,500 crore is proposed for battery storage.
The design shifts in three ways. Component C is to be concentrated on feeder-level solarisation rather than individual pumps. Subsidy is proposed to be released on commissioning instead of being linked to electricity generated, which removes a long-standing complaint from developers. And Component A is to be replaced by an agrivoltaics programme — solar mounted high enough for tractors to pass underneath — with the government aiming to neutralise the 25–30% extra cost of elevated structures so that the tariff matches ordinary ground-mounted solar. MNRE Secretary Santosh Kumar Sarangi has put the agrivoltaics ambition at about 5 GW over three to four years, and said the scheme would be announced once that component is finalised.
Two further intentions have been stated publicly by Renewable Energy Minister Pralhad Joshi and by the Secretary: the next phase will be aligned with agriculture ministry programmes so that solar pump users are nudged towards efficient irrigation and more remunerative crops, and it will be aimed at small and marginal farmers, FPOs, cooperatives and panchayats, with land ownership staying with the farmer. As of 3 November 2026 the proposal was still being revised before going to the Prime Minister, so no eligibility rule, subsidy rate or application window under PM-KUSUM 2.0 can be treated as final.
What a Farmer Should Do Now / किसान अब क्या करें
First, verify your own status. If you applied under the old scheme, ask your state implementing agency in writing whether your pump was sanctioned, whether a notice to proceed was issued before 31 December 2025, and what your commissioning status is. Keep the sanction letter and the payment receipts.
Second, treat any offer of a “PM-KUSUM subsidy” for a fresh application as unverified until MNRE notifies the next phase. The scheme is closed to new applicants, and the ministry’s own portal is the place to check a state agency or vendor claim.
Third, the irrigation efficiency case for a solar pump does not depend on PM-KUSUM continuing. A solar pump paired with drip or sprinkler uses less water per hectare, and micro-irrigation support under the Per Drop More Crop component of PMKSY and lending through the Micro Irrigation Fund remain available independently. Doing both together also improves your case under the next phase, which is explicitly meant to favour farmers who irrigate efficiently.
Fourth, look at what your state already runs. State solar programmes exist outside PM-KUSUM — Himachal Pradesh’s HIMURJA solar programme is one example — and machinery or equipment subsidies under SMAM can part-fund the pump-and-panel package where a state has notified it. For the coming rabi season, plan the irrigation source around what is already sanctioned rather than what is still proposed.
Finally, keep your documents current. The next phase will be applied for through state portals, and mismatches in land records, Aadhaar seeding and bank account details are the most common reason an application fails at the first stage. The government helplines and apps listed for agriculture are the quickest way to confirm which agency handles solar pumps in your state.
Key Takeaways / मुख्य बातें
- PM-KUSUM’s first phase closed on 31 March 2026 and is not accepting new applications; only projects with agreements or notices to proceed issued by 31 December 2025 could be completed.
- Phase 1 promised about 34,800 MW against a ₹34,422 crore outlay, but installed 12,164 MW by February 2026; Component A reached roughly 2,400 MW of its 10,000 MW target.
- Component B delivered the most visible result for individual farmers, with about 1.19 lakh standalone pumps installed and 13.07 lakh sanctioned.
- PM-KUSUM 2.0 is proposed at about ₹51,000 crore with agrivoltaics replacing Component A, feeder-level solarisation and battery storage — but nothing is final until the Cabinet approves it.
- Until the next phase is notified, the useful moves are to confirm your sanction status, combine any solar pump with micro-irrigation support, and check state-level solar and machinery schemes.
Sources / स्रोत
- MNRE, PM-KUSUM scheme guidelines — pmkusum.mnre.gov.in/assets/pdf/KUSUMguidelines.pdf
- National Portal for PM-KUSUM, MNRE — pmkusum.mnre.gov.in
- PIB, PM-KUSUM factsheet and press release dated 6 August 2024 — pib.gov.in
- MNRE office memorandum on extension of timelines, 28 March 2026, as reported by Renewable Watch, 31 March 2026
- The Indian Express, “Centre may add battery storage under revamped PM-KUSUM 2.0”, 30 March 2026
- Mint, “Centre plans ₹51,000 crore push to shift agricultural power use to solar”, 19 September 2026
- Moneycontrol, “Govt likely to announce PM-KUSUM 2.0 once agrivoltaics component is finalised”, 21 October 2026
- Down To Earth, “Revamping PM-KUSUM: Focus on Farmers, Financing, and Agrivoltaics”, 28 October 2026, citing Centre for Science and Environment data
- The Economic Times, interview with MNRE Secretary Santosh Kumar Sarangi, 18 October 2026
- NDTV Profit, “PM-KUSUM 2.0 In The Works, Minister Joshi Says Revamp Will Address Implementation Hurdles”, 3 November 2026
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