PM-KUSUM Scheme: Component A, B and C Explained

PM-KUSUM is often discussed as a single scheme, but it actually comprises three distinct components — A, B, and C — each addressing a different aspect of bringing solar energy to India's agricultural sector. Understanding what each component actually offers helps farmers identify which one is genuinely relevant to their specific situation.

Component A: Ground-Mounted Solar Power Plants

Component A is designed for farmers or farmer groups (including cooperatives, panchayats, and farmer producer organisations) with access to unused or barren land who want to set up a small ground-mounted solar power plant, typically ranging from 500 kW to 2 MW in capacity. Rather than using the power for irrigation directly, the generated electricity is sold to the local DISCOM under a long-term power purchase agreement (commonly 25 years), providing the landowner a steady, predictable income stream from land that might otherwise be generating little to no productive value.

This component is particularly attractive for farmers with marginal, less fertile land unsuitable for regular cultivation — rather than leaving such land unused, converting it into a solar power generation asset can transform it into a reliable long-term income source, essentially functioning similarly to leasing land for a stable, government-backed revenue arrangement rather than farming it directly.

Component B and Component C: Solar for Irrigation

Component B focuses specifically on standalone solar-powered irrigation pumps for farmers who don't currently have a grid electricity connection to their pump. Subsidised pump capacities under this component typically range from 1 HP to 7.5 HP, sized to suit individual farmer needs based on borewell depth, water table, and cultivated area. This component has proven particularly valuable for farmers in areas with limited or unreliable grid infrastructure, providing a path to reliable daytime irrigation without dependency on either diesel fuel or an electricity grid connection that may be difficult or slow to obtain.

Component C takes a different approach for farmers who already have a grid-connected irrigation pump: rather than replacing the existing setup, it supports "solarising" the connection by adding solar panels that work alongside the existing grid connection. This reduces the farmer's grid electricity consumption and cost for pumping, while also enabling surplus solar power (generated when the pump isn't drawing full capacity) to be sold back to the DISCOM through feed-in metering — creating a modest additional income opportunity on top of the primary benefit of reduced irrigation electricity costs.

A useful way to think about the distinction between B and C: Component B is for farmers starting from scratch on solar-powered irrigation (no existing grid pump connection), while Component C is specifically an upgrade path for farmers who already have a working grid-connected pump and want to add solar to reduce costs and potentially generate some income, without disrupting their existing setup entirely.

All three components share the scheme's overarching goals: reducing farmers' dependency on diesel fuel and unreliable grid power, providing new income opportunities from otherwise underutilised land or excess solar generation, and supporting India's broader renewable energy targets by bringing clean power generation into the agricultural sector at scale. Subsidy support across all three components typically combines central and state government contributions, with the specific percentage split and any additional state-level incentives varying somewhat by state, so it's worth checking current specifics with your state's renewable energy nodal agency or a PM-KUSUM empanelled installer.

What Is the PM-KUSUM Scheme?

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is the central government's flagship scheme to bring solar energy to India's farmers. Its core idea is simple: help farmers install solar power — either to run their irrigation pumps directly off solar energy or to set up small solar power plants on unused farmland — while cutting their dependence on diesel and unreliable grid electricity.

The scheme has three components. Component A lets farmers or farmer groups set up small (500 kW to 2 MW) solar power plants on barren or unused land and sell that power to the local DISCOM under a long-term power purchase agreement, turning unused land into a steady 25-year income stream. Component B provides subsidised standalone solar-powered agricultural pumps (typically up to 7.5 HP) for farmers who don't yet have a grid electricity connection for irrigation. Component C helps farmers who already have grid-connected pumps solarise them, allowing surplus solar power to be sold back to the DISCOM through net/feed-in metering.

Subsidy support under PM-KUSUM typically covers 30% from the central government and up to 30% from the state government (this varies by state), with the farmer contributing the remaining amount — a bank loan can usually cover a large part of that farmer contribution too, keeping the upfront cash outlay manageable.

Cost and Payback Period

The cost of a rooftop solar system in India varies with system size, panel and inverter brand, roof type, and installation complexity, but as a rough benchmark, a good-quality on-grid residential system typically costs between ₹50,000 and ₹65,000 per kW before subsidy, using Tier-1, DCR-compliant components. After applying the government subsidy under PM Surya Ghar (up to ₹78,000 for a 3 kW system), the net out-of-pocket cost drops meaningfully.

Payback period — the time it takes for your electricity bill savings to equal your net investment — usually works out to between 3 and 6 years for most residential and commercial systems in India, depending on your local electricity tariff, how much of your solar generation you self-consume versus export, and how well the system is sized to your actual usage pattern. After the payback period, the electricity generated is essentially free for the remaining 18–22 years of the panel's rated life, making solar one of the few home investments that pays for itself and then keeps paying dividends.

Documents and Application Process

Applying for solar subsidy in India, whether under PM Surya Ghar for residential rooftops or PM-KUSUM for agricultural applications, generally requires a similar set of documents: proof of identity (Aadhaar card), proof of address, a recent electricity bill showing your consumer/connection number, proof of property ownership or a no-objection certificate if you're a tenant, and bank account details (for the subsidy to be credited directly).

The typical process starts with online registration on the relevant government portal, followed by selecting your state, DISCOM, and an empanelled installer. The installer conducts a site survey, submits a technical feasibility report to the DISCOM, and — once approved — carries out the installation. After installation, the DISCOM inspects the site and installs the net meter, following which the subsidy amount is disbursed directly to the applicant's registered bank account, typically within 30 to 45 days of the net meter going live.

How to Choose the Right Solar Installer

The quality of your solar installation depends heavily on who installs it, not just what equipment you buy. When evaluating an EPC (Engineering, Procurement and Construction) company, start by checking whether they're empanelled with your state's renewable energy agency and DISCOM — this is a mandatory requirement to be eligible for government subsidy under schemes like PM Surya Ghar and PM-KUSUM.

Ask to see examples of their completed installations in your area, and if possible, speak to a couple of their past customers about the after-sales experience — how they handled warranty claims, whether the system's actual output matched what was promised, and how quickly they responded to service requests. A trustworthy installer will always conduct a proper site visit before quoting, checking your roof's shading, orientation, structural strength, and your actual electricity consumption pattern, rather than quoting a one-size-fits-all package over the phone.

Finally, insist on a clear, itemised quotation that separately lists the panel brand and wattage, inverter brand and capacity, mounting structure type, cabling and balance-of-system components, and installation charges — along with the warranty terms for each component (panels typically carry a 25-year performance warranty, inverters 5–10 years). Avoid installers who are vague about brands or bundle everything into a single opaque number.

Why Solar Makes Sense in India

India receives an average of 300 sunny days a year and among the highest solar irradiance levels in the world, which is precisely why the country has made solar power a cornerstone of its energy policy. For homeowners and businesses, this translates into a straightforward proposition: install a solar system once, and it keeps generating free electricity from sunlight for the next 25 years or more, dramatically cutting down what you pay to the grid.

Rising electricity tariffs, frequent hikes by state electricity boards, and the volatility of diesel prices for backup power have made solar an increasingly obvious financial decision, not just an environmental one. Combined with central and state government subsidies, the payback period on a typical residential or commercial rooftop solar system in India today ranges between 3 to 6 years, after which the electricity generated is effectively free for the remaining life of the system.

Beyond the financial case, solar also insulates households and businesses from unplanned power cuts, voltage fluctuations, and the uncertainty of grid supply in many semi-urban and rural parts of the country — a benefit that's often just as valuable as the money saved.

Maintenance and Lifespan

One of solar power's biggest practical advantages is how little maintenance it needs. With no moving parts, solar panels typically require nothing more than periodic cleaning to remove dust, bird droppings, and pollen that can reduce output — in most parts of India, cleaning once every 2–4 weeks (more frequently during dry, dusty months, less during and after the monsoon) is enough to keep output close to optimal.

Panels themselves are extremely durable, typically carrying a 25-year performance warranty guaranteeing they'll still produce at least 80–85% of their original rated output after a quarter century — degradation of roughly 0.5–0.8% per year is normal and expected. Inverters have a shorter lifespan than panels, typically needing replacement once every 10–15 years, so it's worth factoring this into your long-term cost calculations. Beyond cleaning and an occasional visual inspection for loose wiring or physical damage, a well-installed solar system needs very little hands-on attention to keep delivering reliable output year after year.

Common Myths, Busted

A persistent myth is that solar panels don't work on cloudy or rainy days — in reality, panels still generate electricity from diffused sunlight on overcast days, just at a reduced output (typically 10–25% of peak capacity), and India's overall annual sunshine is more than enough to make solar worthwhile even accounting for the monsoon months. Another common misconception is that solar panels require constant maintenance or frequent replacement — as covered above, the reality is closer to occasional cleaning with a 25-year usable life.

Many people also believe solar is only viable for large houses or businesses with big roofs, but modern high-efficiency panels mean even a modest 1–2 kW system on a small rooftop can meaningfully cut a household's electricity bill. Finally, there's a widespread assumption that solar installation is prohibitively expensive — while the upfront cost is real, government subsidy schemes, falling equipment prices, and financing options available through most installers have brought solar within reach of a much wider range of households than most people assume.

Frequently Asked Questions

Which component is right for a farmer with no current pump or grid connection who wants to irrigate their land?

Component B is the direct fit for this scenario — a standalone solar pump specifically designed for farmers without an existing grid electricity connection for irrigation.

Can a single farmer benefit from more than one component simultaneously?

It's possible in principle — for instance, a farmer could pursue Component A on a separate unused parcel of land while also solarising an existing irrigation pump under Component C on their cultivated land — though this depends on individual circumstances and is worth discussing directly with your installer or state nodal agency.

Is Component A only for individual farmers, or can groups apply together?

Component A specifically supports both individual farmers and farmer groups, cooperatives, panchayats, and similar collective entities, recognising that larger ground-mounted solar plants (up to 2 MW) often suit collective or institutional applicants better than individual smallholders.

How long is the power purchase agreement under Component A typically valid for?

Component A power purchase agreements with the DISCOM are typically structured for the long term, commonly around 25 years, aligning with the expected operational lifespan of the solar installation itself.

Do all three components require the same documentation for application?

There's overlap in core documentation (identity, land records, bank details) but specific requirements differ by component given their different scope — Component A applications, for instance, involve additional documentation related to the power purchase agreement and land use, while B and C focus more on pump and connection-specific documentation.

Final Thoughts

PM-KUSUM's three-component structure reflects a thoughtful recognition that farmers' solar energy needs vary significantly — from unused land generating income, to irrigation for farmers without grid access, to upgrading existing pump connections. Understanding which component genuinely matches your specific situation is the first step toward making the scheme work for your farm.