The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme is a flagship initiative launched by the Government of India in March 2019. Spearheaded by the Ministry of New and Renewable Energy (MNRE), the scheme aims to provide energy and water security to farmers, enhance their income, de-dieselize the farm sector, and reduce environmental pollution.
Table of Contents
What is PM-KUSUM?
PM-KUSUM scheme stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. It is a flagship scheme launched by the Government of India in 2019, spearheaded by the Ministry of New and Renewable Energy (MNRE).
The primary aim of the scheme is to empower farmers by enabling them to generate their own electricity through solar power, reduce reliance on costly diesel for irrigation, and earn extra income by selling surplus power to the grid. It also supports India’s broader vision of clean energy transition and rural upliftment.
Objectives of PM-KUSUM Scheme
- Energy Security for Farmers: Ensure reliable power supply for irrigation.
- De-dieselization: Replace diesel-powered pumps with solar alternatives.
- Income Enhancement: Enable farmers to earn additional income by selling surplus solar power to the grid.
- Environmental Sustainability: Promote the use of renewable energy to reduce carbon emissions.
PM-KUSUM Components
| Component | Description |
|---|---|
| Component A | Installation of decentralized, grid-connected renewable energy power plants (REPP) up to 2 MW capacity on barren or fallow lands. The power generated is purchased by DISCOMs at a pre-fixed tariff. |
| Component B | Deployment of standalone solar-powered agricultural pumps up to 7.5 HP capacity in off-grid areas. This component aims to replace existing diesel pumps, reducing fuel dependency. |
| Component C | Solarization of existing grid-connected agricultural pumps. Farmers can use solar energy for irrigation and sell excess power to DISCOMs, creating an additional revenue stream. |
PM-KUSUM in Gujarat: A State-Specific Snapshot
In Gujarat, the PM-KUSUM Scheme is being spearheaded by the Gujarat Energy Development Agency (GEDA), which acts as the State Nodal Agency (SNA). GEDA is entrusted with the critical role of planning, coordinating, and monitoring the implementation of the PM-KUSUM Scheme across the state. It ensures that eligible farmers, landowners, and investors can access the benefits of the PM-KUSUM Scheme smoothly and efficiently.
Allocations and Progress Under the PM-KUSUM Scheme
Gujarat has emerged as a frontrunner in implementing the PM-KUSUM Scheme, thanks to proactive state policies and structured project execution. The latest allocations under the PM-KUSUM Scheme in Gujarat include:
- Component A: 500 MW of decentralized solar power capacity has been sanctioned under the PM-KUSUM Scheme, allowing private landowners and investors to set up ground-mounted solar plants.
- Component B: 8,082 standalone solar pumps have been approved under the PM-KUSUM Scheme for off-grid agricultural use, aimed at replacing diesel pumps.
- Component C: 7,000 existing grid-connected pumps have been targeted for solarization under the PM-KUSUM Scheme, enabling farmers to use clean power and export excess energy.
These achievements mark Gujarat’s robust commitment to realizing the full potential of the PM-KUSUM Scheme and accelerating rural energy transformation.
Financial Assistance Under PM-KUSUM Scheme
A key reason for the growing popularity of the PM-KUSUM Scheme in Gujarat is its farmer-friendly financial structure. The cost-sharing model under the PM-KUSUM Scheme is designed to be inclusive and accessible:
- Farmer’s Contribution: The farmer’s out-of-pocket expense is limited to just 10%, making the PM-KUSUM Scheme financially viable for even small and marginal farmers.
- Subsidy: Up to 60% of the total project cost is provided as a subsidy jointly by the Central and State Governments under the PM-KUSUM Scheme.
- Bank Loan: 30% of the project cost can be availed through institutional financing.
Component A – The Real Investment Opportunity
Under Component A, individual landowners or investors can set up decentralized ground-mounted solar power plants (0.5 MW to 2 MW capacity) and sell electricity to DISCOMs under a 25-year Power Purchase Agreement (PPA).
Why Gujarat?
Gujarat has been proactive in implementing Component A of the PM-KUSUM scheme. The state has been allocated 500 MW capacity under this component, encouraging the development of decentralized solar power plants. The Gujarat Energy Development Agency (GEDA) serves as the State Nodal Agency, facilitating the implementation and coordination of the scheme across the state.
Key Investment Highlights
| Parameter | Details |
|---|---|
| Capacity | 0.5 MW – 2 MW per project |
| Land Requirement | 4–5 acres per MW |
| PPA Tenure | 25 years (with DISCOM) |
| Tariff | ₹3.00 – ₹3.25/unit (as per GERC orders) |
| Revenue | ₹65–70 Lakhs per MW annually |
| IRR | 12–14% (approx.) |
| Payback Period | 6–7 years |
Benefits of PM-KUSUM Projects in Gujarat
The PM-KUSUM Scheme has unlocked immense potential in Gujarat by blending solar energy adoption with agricultural growth. Whether you’re a farmer, landowner, or solar investor, Gujarat offers a unique landscape where the PM-KUSUM Scheme brings financial, environmental, and social benefits.
Reliable Daytime Power Supply
Traditionally, farmers in Gujarat faced challenges with erratic power supply, often receiving electricity for irrigation during nighttime hours. The PM-KUSUM scheme addresses this by providing solar-powered pumps, ensuring consistent daytime electricity for irrigation. This shift enhances agricultural productivity and allows farmers to manage their irrigation schedules more effectively.
Significant Cost Savings
By replacing diesel-powered pumps with solar alternatives, farmers reduce their dependence on expensive fossil fuels. For instance, in Banaskantha district, farmers like Bachhubhai have eliminated monthly electricity bills of around ₹10,000 by switching to solar pumps.
Enhanced Income Opportunities
Under Component A of the PM-KUSUM scheme, farmers can install grid-connected solar power plants on their barren or fallow land. The electricity generated can be sold to DISCOMs at pre-determined tariffs, providing an additional and stable income stream.
Environmental Sustainability
The adoption of solar energy reduces greenhouse gas emissions and promotes cleaner agricultural practices. By decreasing reliance on diesel and conventional electricity, the scheme contributes to environmental conservation and aligns with global efforts to combat climate change.
Government Subsidies and Financial Support
The PM-KUSUM scheme offers substantial financial assistance to farmers:
- 60% subsidy provided by the central and state governments.
- 30% of the cost can be financed through bank loans.
- 10% contribution from the farmer.
This financial structure makes the adoption of solar technology more accessible and affordable for farmers.
Job Creation and Rural Development
The implementation of solar projects under the PM-KUSUM scheme stimulates local economies by creating employment opportunities in installation, maintenance, and operation of solar infrastructure. This contributes to the overall development of rural areas in Gujarat.
Project Development Process (Gujarat)
Eligibility Assessment
- Who Can Apply: Individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organizations (FPOs), and Water User Associations (WUAs).
- Project Types: Depending on the component:
- Component A: Installation of decentralized, grid-connected renewable energy power plants up to 2 MW capacity.
- Component B: Installation of standalone solar pumps in off-grid areas.
- Component C: Solarization of existing grid-connected agricultural pumps.
Land Identification and Registration
- Land Requirements: For Component A, identify suitable land within a 5 km radius of a 33/11 kV substation to minimize transmission losses.
- Registration: Register the land on the designated state agency portal, providing necessary ownership documents.
Feasibility Study and Joint Inspection
- Assessment: GEDA and DISCOM officials conduct a joint survey to assess land suitability and grid connectivity.
- Technical Evaluation: Ensure the land meets technical and logistical requirements for solar project development.
Application Submission
- Portal: Submit the application through GEDA’s renewable energy portal.
- Documentation: Include Detailed Project Report (DPR), financial model, land documents, and feasibility reports.
- Fees: Pay the requisite registration fee as specified by GEDA.
Power Purchase Agreement (PPA)
- Approval: Upon project approval, sign a PPA with the local DISCOM at a tariff determined by the Gujarat Electricity Regulatory Commission (GERC).
- Duration: The PPA typically spans 25 years, ensuring a stable revenue stream.
Financial Closure and Subsidy Application
- Financing: Secure financing for the project, considering:
- Central Financial Assistance (CFA): Up to 30% of the benchmark cost.
- State Government Subsidy: 30%.
- Remaining 40%: To be arranged by the developer or through bank loans.
Project Implementation
- Procurement: Procure equipment and commence construction as per the approved DPR.
- Compliance: Ensure adherence to technical standards and timelines stipulated by GEDA and MNRE.
Commissioning and Monitoring
- Inspection: After installation, the project undergoes inspection by GEDA and DISCOM.
- Operation: Upon successful commissioning, begin power generation and supply to the grid.
- Reporting: Regularly submit generation data to GEDA for monitoring and compliance.
Business Models Available
| Feature | CAPEX Model | RESCO Model |
|---|---|---|
| Ownership | Beneficiary | RESCO Developer |
| Upfront Investment | High | Low to None |
| Revenue Source | Sale of electricity to DISCOM | Lease rent from RESCO |
| Control Over Asset | Full | Limited |
| Maintenance | Owner’s Responsibility | RESCO’s Responsibility |
| Risk | Higher (due to capital investment) | Lower (outsourced to RESCO) |
Financial Snapshot (Sample 1 MW Project)
| Parameter | Details (2025 Estimates) |
|---|---|
| Plant Size | 1 MW (AC) |
| Land Required | 4 to 5 Acres |
| CAPEX (Project Cost) | ₹3.75 – ₹4.25 Crore (All-inclusive) |
| Tariff (GERC Approved) | ₹3.00 – ₹3.25/kWh (Fixed for 25 years) |
| Annual Generation | 14.5 – 16.2 lakh kWh |
| Annual Gross Revenue | ₹43 – ₹52.6 Lakh |
| O&M Cost (Annual) | ₹6 – ₹8 Lakh |
| PPA Tenure | 25 Years (with DISCOM) |
| IRR (Post-tax) | 12% – 14% |
| Payback Period | 6 – 7 Years |
| Project Lifespan | 25+ Years |
Why Choose Soleos as Your EPC Partner?
1. Ready-to-Build (RTB) Projects with Grid Tie-Up
Soleos offers Ready-to-Build (RTB) projects with:
- Land identified and cleared
- Feasibility checks completed
- DISCOM approvals and transformer capacity securedLinkedIn
This ensures faster Power Purchase Agreement (PPA) signing and quicker returns on investment.
2. End-to-End Execution Expertise
From land acquisition and design to commissioning and Operation & Maintenance (O&M), Soleos manages it all:
- Feasibility reports & Detailed Project Reports (DPRs)
- PPA application & DISCOM liaisons
- Top-quality procurement (Tier-1 modules, inverters)
- In-house engineering & quality control
Soleos doesn’t just build plants—they build confidence.
3. Fast Execution, Zero Delays
With more than 450 MW+ delivered, Soleos is known for:
- Speed: Projects commissioned within 6–9 months
- Accuracy: Adherence to budgets, timelines, and compliance
- Support: Dedicated project managers and field teams in Gujarat
4. Proven Financial Performance
Soleos’ plants deliver:
- Up to 16 lakh units/year per MW
- Best-in-class Performance Ratio (PR > 80%)
- Long-term Internal Rate of Return (IRR) of 12–14%, thanks to optimized design and execution.
5. Focus on Innovation & Sustainability
Soleos is among India’s few EPCs offering:
- Agrivoltaic designs to maximize land use
- Solar carports, trackers, and hybrid integrations
- Smart monitoring tools and predictive maintenance
6. Transparent, Trustworthy, Committed
Soleos operates with zero hidden charges and offers:
- Bank loan assistance and subsidy filing support
- 15–25 year O&M options with generation guarantees
PM-KUSUM vs Rooftop vs Open Access – What to Choose?
| Feature | PM-KUSUM | Rooftop Solar | Open Access Solar |
|---|---|---|---|
| Target Users | Farmers, Landowners | Homes, MSMEs, Institutions | C&I Consumers (1 MW+) |
| Installation Site | Ground-mounted (rural) | On rooftops | Remote solar farms |
| Ownership Model | Developer / Farmer | User-owned or RESCO | Third-party or Group Captive |
| Government Subsidy | Yes (up to 30%) | Yes (up to 60%) | No |
| Tariff Structure | Fixed PPA (₹3–₹3.25/kWh) | Net metering (savings) | PPA (₹3–₹4/unit typical) |
| Investment Size | ₹3.8–₹4.2 Cr/MW | ₹40K–₹80K/kW | ₹3.5–₹4 Cr/MW |
| Regulatory Complexity | Medium | Low | High |
| Best For | Passive income from land | Reducing grid bills | Large-scale energy savings |
Top Locations in Gujarat for PM-KUSUM Projects
Under Component C of the PM-KUSUM scheme, Gujarat has awarded a total of 479 MW of solar projects across 170 locations. These projects aim to solarize 11 kV agricultural feeders, providing reliable and sustainable power to farmers.
Some of the key districts and areas where significant PM-KUSUM projects have been initiated include:
- Banaskantha District: Notably, Danta Taluka has been highlighted for its proactive adoption of the scheme, leading to enhanced irrigation facilities and reduced reliance on diesel pumps.
- Surendranagar District: WAA Solar Ltd. is developing ground-mounted solar power plants totaling approximately 15 MW, contributing to the region’s renewable energy capacity.
- Kutch District: The Kutch Salt & Allied Industries have been allocated 18.6 MW of capacity, reflecting the district’s potential for large-scale solar projects.
Other districts such as Rajkot, Bhavnagar, and Jamnagar are also witnessing the development of PM-KUSUM projects, facilitated by developers like Onix Renewable, Indian Infrastructure and Project India, and GreenBloom Energy.
Role of DISCOMs and Developers
The successful implementation of PM-KUSUM projects in Gujarat is attributed to the collaborative efforts of state DISCOMs and private developers:
- Paschim Gujarat Vij Company Ltd. (PGVCL): PGVCL has been instrumental in allocating projects and signing Power Purchase Agreements (PPAs) with developers for feeder-level solarization.
- Onix Renewable Ltd.: Secured 187 MW across 60 locations, making it one of the largest contributors to the scheme in the state.
- WAA Solar Ltd.: Developing approximately 15 MW of solar projects in multiple locations, enhancing the state’s renewable energy footprint.
Frequently Asked Questions (FAQs)
1. What is the PM-KUSUM Scheme?
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is a government scheme to promote solar energy in agriculture by enabling installation of solar pumps and grid-connected solar plants on farmland.
2. Who is eligible to apply under PM-KUSUM in Gujarat?
Eligible applicants include:
- Individual farmers or landowners
- Farmer Producer Organizations (FPOs)
- Cooperatives and Panchayats
- Private developers (under lease/PPP models)
3. What is Component A of the PM-KUSUM Scheme?
Component A allows the installation of 0.5 MW to 2 MW decentralized, grid-connected solar plants on barren or cultivable land, with power sold to the local DISCOM through a long-term PPA.
4. How much land is required for a 1 MW solar plant?
Typically, 4–5 acres of flat, unshaded land is required for setting up a 1 MW ground-mounted solar power plant.
5. What are the financial benefits under PM-KUSUM in Gujarat?
Eligible projects can receive:
- Subsidy up to 30% of benchmark cost
- Bank loan of up to 60%
- Long-term PPAs with fixed tariff (₹3.00–₹3.25/kWh)
- Potential to earn ₹40–₹50 lakh/year per MW
6. What is the payback period for a PM-KUSUM solar plant?
On average, the payback period is 6–7 years, depending on capital cost, generation, and tariff rate.
7. Can I lease my land to a developer under this scheme?
Yes. Landowners can lease their land to EPCs or developers under lease models and earn ₹1–2 lakh/acre/year as rental income.
8. Which locations in Gujarat are best for PM-KUSUM projects?
Top districts include Banaskantha, Surendranagar, Kutch, Bhavnagar, Rajkot, and Jamnagar, based on solar irradiance, DISCOM approvals, and land availability.
9. What is the duration of the PPA under PM-KUSUM?
Typically, the Power Purchase Agreement (PPA) is signed for 25 years with the state DISCOM.
10. How do I apply for the PM-KUSUM scheme in Gujarat?
Applications can be submitted through the GEDA portal or in partnership with a registered EPC like Soleos, who can assist with DPR, feasibility, approvals, and execution.
Conclusion
Gujarat’s proactive implementation of the PM-KUSUM scheme has significantly advanced the state’s renewable energy landscape, particularly in the agricultural sector. By facilitating the installation of solar pumps and grid-connected solar plants, the scheme empowers farmers with reliable, cost-effective, and sustainable energy solutions. This not only enhances irrigation efficiency but also provides an avenue for additional income through surplus energy sales.
Ready to Harness Solar Energy for Your Farm?
If you’re a farmer or landowner in Gujarat, now is the opportune time to leverage the benefits of the PM-KUSUM scheme. For detailed information and application procedures, visit the Gujarat Energy Development Agency (GEDA) official website. Additionally, you can explore the National PM-KUSUM Portal for comprehensive insights and updates.
