The PM-KUSUM Yojana allows inter-se transfer of quantities between Component-B and Component-C. All three components of the PM KUSUM Yojana scheme aim to add Solar capacity of about 34,800 MW by March 2026 with the total Central Financial support of ₹ 34,422 crore. Under PM KUSUM Solar Yojana the government will provide a 60% subsidy to the farmers, and 30% of the cost will be given by the government in the form of a loan. Farmers will only have to pay 10% of the total cost of the project.

The PM KUSUM Yojana has the following components:

Component A:

Setting up of 10,000 MW of Decentralized Ground/Stilt-Mounted Connected Solar or other Renewable Energy based Power Plants by the farmers on their land.

Component B:

Installation of 14 Lakh Stand-alone Solar Agriculture Pumps.

Component C:

Solarization of 35 Lakh Grid Connected Agriculture Pumps including Feeder Level Solarization.

The major components of PM KUSUM Yojana 2025 :

• 1. Solar Pump Distribution : Solar pumps are provided to farmers under the scheme.

• 2. Solar Power Plant : There is a provision to set up solar power plants on farmers' land.

• 3. Grid-connected Solar Projects : Farmers can sell excess solar power to the grid.

• 4. Modernization of Existing Pumps : Old pumps will be replaced with solar pumps, which will save electricity.

Let’s look into the details of PM KUSUM Solar Yojana and how to apply for it.

Component A: Setting up of Renewable Energy Power Plants (REPP)

Establishment of 10,000 MW of decentralized ground/stilt-mounted grid-connected solar or other renewable energy-based power plants on agricultural land.

• Eligibility : Individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organisations (FPOs), and Water User Associations (WUAs). If these entities cannot arrange the required equity, they can opt for developers or local DISCOMs.

• Solar Power Purchase : DISCOMs will purchase the generated solar power at a feed-in-tariff (FiT) determined by the respective State Electricity Regulatory Commission (SERC).

The solar power plants are set to be operational until 2026.

Financial Assistance Under PM KUSUM Yojana for Component A

• Purchase of Solar Power : DISCOMs will buy the solar power at a FiT approved by the SERC.

• Performance-Based Incentive (PBI) : DISCOMs are eligible for PBI of ₹0.40 per unit of purchased power or ₹6.6 lakh per MW installed (whichever is less) for five years post Commercial Operation Date (COD).

• Equity Options : Farmers can choose to develop REPP with a developer or through DISCOM if they are unable to arrange equity. In such cases, the landowner receives lease rent as per the mutual agreement.

• PBI Claims : Implementing agencies must submit claims for projects completed at least one year after COD, along with necessary documents like Joint Metering Reports and receipts of lease rent (if applicable).

Component B: Installation of Standalone Solar Agriculture Pumps

This is to support individual farmers in installing standalone solar agriculture pumps in off-grid areas (where the grid supply is unavailable).

Financial Assistance Under PM KUSUM Yojana for Component B

• CFA Subsidy

• 30%of the benchmark or tender cost (whichever is lower) is provided by the Central Financial Assistance (CFA).

• State Governmentwill provide at least a 30% subsidy.

• Farmer Contribution:The remaining up to 40% of the cost is to be paid by the farmer. A bank loan can cover up to 30% of the farmer's share, requiring an initial payment of only 10%.

• Special Subsidy for North Eastern States, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Ladakh, Lakshadweep, and Andaman & Nicobar Islands

• 50% CFA on the benchmark or tender cost (whichever is lower).

• State Government will provide at least 30% subsidy, and the remaining 20% is to be paid by the farmer.

Component C: Solarization of Grid-Connected Agriculture Pumps

This component supports the Solarization of existing grid-connected agriculture pumps. The aim is the Solarization of 35 lakh grid-connected agricultural pumps, with the added benefit that excess solar power can be sold to DISCOMs.

• Eligibility : Individual farmers with grid-connected agriculture pumps.

• Solar PV Capacity : Farmers can install solar PV capacity up to two times the capacity of the pump.

Financial Assistance Under PM KUSUM Yojana for Component C (Individual Pump Solarization)

• CFA Subsidy under PM KUSUM Yojana

• 30% of the benchmark or tender cost (whichever is lower) will be provided as CFA.

• State Government will provide at least a 30% subsidy.

• The remaining 40% will be paid by the farmer, with bank financing available to cover 30% of the cost, requiring only a 10% initial payment by the farmer.

• Special Subsidy for North Eastern States, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Ladakh, Lakshadweep, and Andaman & Nicobar Islands

• 50% CFA on the benchmark or tender cost (whichever is lower).

• State Government will provide at least a 30% subsidy, and the farmer will need to cover the remaining 20%.

Component D: Feeder Level Solarization (FLS)

This aims for the solarization of agriculture feeders instead of individual solar pumps.

• Eligibility :

  States can solarise the feeders, and farmers benefit from reliable daytime power for irrigation, either free of cost or at a tariff fixed by the state.

Financial Assistance Under PM KUSUM Yojana for Component C (Feeder Level Solarization)

• CFA Subsidy
• 30%

  CFA on the cost of installing the solar power plant (up to ₹1.05 Cr/MW) will be provided.

• Special Subsidy under PM KUSUM Yojana for North Eastern States, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Ladakh, Lakshadweep, and Andaman & Nicobar Islands is 50% CFA (up to ₹1.75 Cr/MW).

• Implementation Mode
• CAPEX Mode
• Advance CFA :

  Up to 40% of the total eligible CFA is released after completing the tendering process and signing agreements.

• nal Payment :

  Balance CFA is paid after successful commissioning of the plant and power supply to the agriculture feeder.

• RESCO Mode
• No advance CFA:

  CFA is released after successful commissioning and declaration of the COD of the solar power plant.

PM KUSUM Solar Yojana Benefits

Under the PM KUSUM Yojana, farmers are provided with the following benefits:

• 1. The farmers will receive a subsidy ranging from 30% to 90% for installing solar pumps.

• 2. The installation of solar pumps reduces reliance on diesel and other traditional energy sources.

• 3. Solar-powered pumps decrease electricity consumption, which helps lower the farmers' expenses.

• 4. Farmers can earn extra income by selling surplus solar energy back to the grid.

• 5. Through PM KUSUM Solar Yojana, farmers contribute to environmental protection by utilizing green energy.

• 6. Lower electricity costs improve the farmers' economic conditions, increasing their overall income.

What are the steps for applying for PM KUSUM Solar Yojana?

For Online Application of PM KUSUM Solar Yojana:

• 1. Visit the official PM KUSUM Yojana website.

• 2. Select your state and click on the “Registration” option.

• 3. Fill in the required information, such as name, address, Aadhaar number, etc.

• 4. Upload all the necessary documents and submit the application.

• 5. After submission, you will receive a registration number. Keep it safe for future reference.

For Offline Application of PM KUSUM Yojana:

• 1. Go to the nearest Agriculture Department office.

• 2. Obtain the application form from the office and fill in the required information.

• 3. Attach all necessary documents as specified in the form.

• 4. Submit the completed form along with the documents.

• 5. Receive a receipt and keep it safe for future reference.

PM KUSUM Yojana MP: Component A Scheme Information

• 1. Under Component A of the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Maha Abhiyan (PM KUSUM Yojana MP), farmers can set up decentralized ground/stilt-mounted grid-connected solar plants on less fertile or barren land within a 5 km radius of selected power sub-stations. The electricity generated can be sold to the state government, ensuring additional income for the farmers.

• 2. The scheme allows farmers to install plants ranging from 500 kW to 2 MW, either on their own or through developers/investors.

• 3. M.P. Energy Development Corporation selects solar energy producers by direct online registration based on the ceiling tariff determined by the M.P. Electricity Regulatory Commission at the identified sub-stations.

• 4. The selected solar producer can sell the generated energy to the M.P. Power Management Company under a 25-year Power Purchase Agreement (PPA).

• 5. Interested farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organizations (FPOs), Water User Associations (WUAs), and developers can apply to set up plants on land within 5 km of the identified power substations.

• 6. Applications are accepted on a first-come, first-serve basis until the capacity target approved by the Government of India is met. Once the target is reached, no further applications will be accepted.

• 5. Although efforts have been made to ensure the accuracy of substation information and available RE Injectable Capacity, any discrepancies will be resolved by the concerned DISCOMs (East, West, and Central) and M.P. Urja Vikas Nigam Ltd., whose decision will be final.

PM KUSUM Yojana UP: KUSUM Component C-1 Scheme

The KUSUM Component C-1 Scheme Portal has been developed by UPNEDA to promote the solarization of on-grid connected agricultural pumps in Uttar Pradesh. This initiative under PM KUSUM Solar Yojana aims to attract more investment in the solar energy sector and encourage the installation of Solar PV systems for agricultural use.

Farmers and beneficiaries interested in solarizing their on-grid connected agricultural pumps in Uttar Pradesh can register on the PM KUSUM Yojana portal. Once registered, their request will be forwarded to UPNEDA for further processing. Applicants can track the status of their application throughout the process.

Additionally, both applicants and UPNEDA have the ability to raise and respond to queries related to the application, as well as lodge and address grievances related to the solarization of agricultural pumps.

Subsidy Details under PM KUSUM Yojana UP:

• The State Government offers a 70% subsidy for farmers from Scheduled Tribe, Vantangia, and Musahar castes, in addition to the central government subsidy.

• Other farmers will receive an additional 60% subsidy from the state government.

• The beneficiary will be required to pay the remaining 10% of the cost.

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