Complete Guide for PM Kusum Yojna

The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) Yojana is a government initiative designed to promote the use of solar energy in agriculture. It provides subsidies to farmers to install solar pumps and grid-connected solar power plants, thereby reducing dependency on conventional electricity and diesel.

Key Highlights of the Scheme:

• Promotes Renewable Energy: Encourages the adoption of solar energy to meet agricultural power needs.
• Empowers Farmers: Reduces electricity costs and provides opportunities to earn from surplus energy.
• Focus on Rural Areas: Aims to improve energy access in remote regions.
• Environmental Sustainability: Reduces carbon emissions and promotes green energy practices.

Pro Tip: Farmers can significantly cut operational costs by switching to solar-powered pumps under this scheme.

Key objectives of the scheme

The PM KUSUM Yojana is built around specific objectives aimed at transforming rural energy use. These include:

• Reducing pollution by replacing diesel pumps with solar-powered alternatives.
• Making solar energy more accessible and affordable for farmers.
• Enhancing rural energy security and reducing dependency on traditional grid electricity.
• Promoting income generation by enabling farmers to sell surplus solar energy to the grid.
• Supporting India’s commitment to achieving renewable energy targets.

The PM KUSUM Yojana is divided into three components to address different energy needs in agriculture:

Component A: Grid-Connected Solar Power Plants

This component focuses on setting up small solar power plants (up to 2 MW capacity) on barren or unused lands. Farmers can generate income by selling surplus power to the grid.

• Benefit: Provides an additional revenue stream for farmers.
• Purpose: Utilises unused land for renewable energy production.

Component B: Standalone Solar Agricultural Pumps

Under this component, farmers can install standalone solar pumps for irrigation. These pumps are especially beneficial in areas with limited or no grid connectivity.

• Utility: Ideal for remote regions where electricity access is minimal.
• Suitability: Reduces dependency on diesel pumps, cutting operational costs.

Component C: Solarisation of Grid-Connected Pumps

This component involves the solarisation of existing grid-connected pumps. Farmers can use solar energy for irrigation and sell any surplus electricity to the grid.

• Cost-Effectiveness: Reduces electricity bills.
• Benefit: Encourages dual-use of solar energy for irrigation and income generation.

Applying for the PM KUSUM Yojana is a straightforward process. Follow these steps to get started:

1. Visit the Official Portal: Go to the official PM KUSUM Yojana website or check your state’s renewable energy department portal.
2. Register Online: Create an account by providing your mobile number and email ID.
3. Fill in Application Details: Enter details like your name, land ownership information, and the component you wish to apply for.
4. Upload Documents: Submit necessary documents, including identity proof, land ownership proof, and bank account details.
5. Verification Process: Authorities will verify your application and documents.
6. Approval and Subsidy Allocation: Upon approval, you will receive a subsidy allocation letter.
7. Installation: Coordinate with approved vendors to install the solar equipment.

Pro Tip: Keep all documents handy to avoid delays during the verification process.

Required documents for application

Ensure you have the following documents ready when applying for the PM KUSUM Yojana:

• Aadhar card or other identity proof.
• Land ownership documents.
• Bank account details (for subsidy transfer).
• Passport-sized photographs.
• Proof of agricultural activity (if required).

Benefits of the PM KUSUM Scheme for farmers

The PM KUSUM Yojana offers numerous benefits to farmers, including:

• Reduced Costs: Lower electricity and diesel expenses.
• Income Generation: Earn by selling surplus solar energy to the grid.
• Energy Independence: Reliable and uninterrupted power supply for irrigation.
• Environmental Benefits: Reduction in carbon emissions.
• Utilisation of Barren Land: Converts unused land into a source of income.

Implementation challenges and solutions

While the PM KUSUM Yojana has immense potential, it faces certain challenges:

Challenges:

• Infrastructure Gaps: Lack of adequate infrastructure in remote areas.
• High Initial Costs: Despite subsidies, upfront costs can be a deterrent.
• Limited Awareness: Many farmers are unaware of the scheme and its benefits.

Solutions:

• Government Initiatives: Increased focus on building rural infrastructure.
• Financial Support: Encouraging banks to provide low-interest loans.
• Awareness Campaigns: Conducting workshops and campaigns to educate farmers.

Comparison with other farmer schemes (PM-KISAN)

The PM KUSUM Yojana and PM-KISAN are both farmer-focused schemes but differ in their objectives and benefits.

Financial analysis, subsidy, and ROI

Subsidy Structure

The PM KUSUM Yojana offers a well-structured subsidy model to ensure affordability:

• Central Government Contribution: 30% of the project cost.
• State Government Contribution: 30% of the project cost.
• Bank Loan: Farmers can avail of loans for 30% of the project cost.
• Farmer’s Contribution: Only 10% of the total cost.

Pro Tip: Use the subsidy calculator available on the official portal to estimate your financial contribution.

Return on Investment (ROI) and Payback Period

Farmers can recover their investment within 4–5 years, depending on the component chosen. The income from selling surplus solar energy to the grid further enhances ROI, making it a financially viable option.