Solar Pump for Your Farm: How PM-KUSUM Works and What You Pay

For many farms, the pump is the biggest running cost. A diesel pump needs fuel every time you irrigate. A grid pump needs power that may not come when the crop needs water. A solar pump runs on sunlight, so once it is installed the fuel is free. The government's PM-KUSUM scheme pays part of the cost. This guide explains how it works, what a farmer pays, and how to apply. It uses the Government of India's own statements.

What PM-KUSUM is

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was approved in 2019 to give farmers energy and water security and to move farms away from diesel. It has three components:

Component	What it is	Who it is for
A	Small solar power plants of up to 2 MW on barren or fallow land, selling power to the distribution company	Landowners, cooperatives, panchayats and farmer producer organisations
B	Standalone solar pumps	Farmers who irrigate with diesel or have no power supply, and groups such as water user associations
C	Solarising existing grid-connected pumps, and solarising whole feeders	Farmers with an electricity connection for their pump

For most farm families, Component B and the pump part of Component C are the ones that matter. Feeder solarisation and Component A are done at a larger scale, so this guide does not cover them in detail.

What the government pays

For Component B, and for pump solarisation under Component C, the Central Government gives a Central Financial Assistance (CFA) of 30% of the benchmark cost set by the Ministry of New and Renewable Energy (MNRE), or the price found in the tender, whichever is lower. In the North Eastern States, Sikkim, Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and the Andaman and Nicobar Islands, the CFA is 50%.

The rest depends on whether your state also gives a subsidy:

• With a State share. The government's description says the state can give at least 30%, and the farmer pays the balance. The scheme's original design was 30% Central, 30% State and 40% the farmer.
• Without a State share. The scheme can also run without it. In that case the Central subsidy stays at 30% and the farmer pays the remaining 70%.

An illustration, using made-up numbers. These are not real pump prices. Suppose the benchmark or tender price of a pump is ₹2,00,000:

	Central 30%	State 30%	You pay
State gives a share	₹60,000	₹60,000	₹80,000
State gives no share	₹60,000	none	₹1,40,000

The real benchmark depends on the pump size and the year, and your state decides which model it follows. So ask your state's implementing department for the exact amounts.

The subsidy covers pumps up to 15 HP for individual farmers in the North Eastern States, hilly states and island territories, and for each farmer in cluster or community irrigation projects in areas with a high water table in all states.

How to apply

PM-KUSUM is run through the State Governments' designated departments, so you apply in your state, not directly to the central ministry.

1. Find your state's nodal department. It is usually the agriculture, energy or renewable energy department. The MNRE's national portal has links to state portals.
2. Ask whether your area is open. The scheme is demand driven and each state runs its own process, so ask how and when to apply.
3. Use approved vendors only. The national portal publishes a state-wise vendor list and rate card. Check the vendor and the price there before you pay.
4. Plan your share. If you need a loan, the government says the scheme is included in the RBI's priority sector lending guidelines to make loans easier to get. Use our loan EMI calculator to see the monthly cost of a loan, and ask your bank for the rate and charges in writing. Our Kisan Credit Card guide explains short-term farm loans, but a pump is a long-term purchase, so ask the bank which loan fits.
5. Pay by bank transfer and keep every receipt, the warranty and the delivery papers.

Before you decide

• Check your water. A pump is only useful if the well, borewell or pond can give enough water.
• Compare the cost. Work out what you spend each year on diesel or electricity for the pump, and how long your share would take to pay back.
• Look at the full price. The subsidy is a share of the benchmark or tender price. If a vendor quotes more, you pay the difference.
• Ask about repair and service. Find out who services the pump and for how long it is covered.
• Do not pay an agent. The scheme has an official portal and a toll-free number.

What we could not confirm

• Whether the scheme is open for new applications in your state today. The December 2025 government statement says the scheme was extended until 31 March 2026. We found a report of a Lok Sabha reply of 29 July 2026 extending it to 31 March 2027, but we could not open that document, so please confirm with your state department.
• The current benchmark cost for your pump size. MNRE sets it each year, and tender prices vary by state.
• Whether your state gives its own 30%. This depends on the state.
• Loan rates and terms for solar pumps at your bank.
• How many pumps your state can sanction in a year. The scheme is demand driven, and we found no state-wise numbers for 2026.

Protect yourself from scams

The MNRE's national portal warns that fake websites are cheating people in the name of PM-KUSUM. It names sites such as kusumyojanaonline.in.net, pmkisankusumyojana.co.in, onlinekusamyojana.org.in and pmkisankusumyojana.com, and says there are many similar ones. The Ministry asks people to visit mnre.gov.in or the official portal pmkusum.mnre.gov.in, or to call the toll-free number 1800-180-3333.

• Never pay a "registration fee" to a website or an agent.
• Never share your OTP, Aadhaar number or bank PIN with someone offering a "free solar pump".
• Pay a vendor only after checking the vendor on your state's official list.

Where to read next

• Kisan Credit Card step by step
• Leaving the moneylender: how a farm family can move to cheaper bank credit
• Loans and subsidies for dairy, goat and poultry farming
• All central government schemes

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This is general information, not financial advice. Subsidies, benchmark costs and rules change and differ by state. Confirm the current terms with your state's nodal department before you pay for a pump.