The Government of India offers a great opportunity for Indian farmers to receive up to 80% subsidy to convert their diesel or electric pumps to solar-powered pumps under PM Kusum Yojana.
This scheme allows farmers to use barren land or farmland (with certain conditions) to set up a distributed grid-connected solar project of up to 2 MW and two solar projects up to Discom which can be sold.
This initiative is known as the PM KUSUM Solar Pump Yojana and is one of the largest programs in the world to provide farmers with clean energy.
The program is valued at over Rs 350,000 and aims to solarize agricultural pumps and offer 10 GW decentralized solar projects to farmers.
KUSUM Solar Pump Yojana was approved by the Cabinet Committee on Economic Affairs (CCEA) on February 19, 2019.
The approval of the Cabinet Committee on Economic Affairs was accorded. Which was done under the chairmanship of Prime Minister Shri Narendra Modi.
Administrative approval was granted on 8 March 2019. KUSUM Implementation Guidelines were published on July 22, 2019.
The scheme has been expanded with the budget for 2020-21 approved by the Finance Ministry, due to its successful pilots and positive response.
The goal of the Kusum Solar Scheme is to construct a grid-connected ground-based solar power plant (up to 2 MW) with a total capacity of 10 GW.
The Kusum Solar Scheme aims to build a ground-based solar power plant (up to 2 MW) with a maximum capacity of 10 GW that is grid-connected.
The plan consists of three parts:
- Component A aims to install 2 million independent solar pumps,
- Component B aims to install 1.5 million solar agricultural pumps that are connected to the grid.
- Component C seeks to facilitate the development of 30.80 GW of extra solar capacity through all the modules of the KUSUM scheme put together.
- Eligibility: Individual farmers, farmers groups, cooperative societies, panchayats, farmer’s produces organizations (FPOs), and water users associations (WUAs) within 5 km of the nearest substation can install solar projects on their land or rent land to developers.
- Subsidy and more information: The power generated will be purchased by local electricity distribution companies (utilities) at a bid price for 25 years.
- The Ministry of New and Renewable Energy (MNRE) will provide a purchase-based incentive of Rs. 6.6 lakh per MW per year or 40 paise per unit of power generated, whichever is less, for five years.
- Eligibility: Individual farmers, water user associations, and community/group irrigation systems across India can replace their existing off-grid diesel farm pumps with standalone solar pumps up to 7.5 HP.
- Subsidy and more information: Farmers only need to invest 40% of the cost of solar pumps up to 7.5 HP, while the remaining 60% will be provided in the form of a subsidy from the Central and State governments.
- Farmers in North Eastern States, Hilly States/Union Territories, and Island Union Territories need to invest only 20% of the cost, with the remaining 80% provided by the Central and State governments in the form of a subsidy.
- Eligibility: As part of the PM-KUSUM program, the state gives up to 80% subsidy to farmers for installing solar power up to 7.5 HP on their existing grid-connected agriculture pumps or supplying large-scale solar power to a dedicated 11 KV agriculture feeder.
- Subsidy and more information: Farmers have to invest only 40% of the cost of solar pumps up to 7.5 HP, while the remaining 60% will be provided by the Central and State governments.
- Farmers from North Eastern States, Hilly States/Union Territories, and Island Union Territories only need to invest 20% of the cost, with the remaining 80% provided by the Central and State governments in the form of a subsidy