Components, Targets & Criteria

Financial Assistance available

The Scheme is demand driven and open for all farmers of the country for implementation as per the scheme guidelines.

Component A: Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants on barren/fallow/pasture/marshy/ cultivable land of farmers. Such plants can be installed by individual farmer, Solar Power Developer, Cooperatives, Panchayats and Farmers Producer Organisations.

Component B: Installation of 14 Lakh Stand-alone Solar Pumps in off-grid areas.

Component C: Solarisation of 35 Lakh Grid Connected Agriculture Pumps through (i) Individual Pump Solarisation and (ii) Feeder Level Solarisation.

The beneficiaries under Component-B and Component-C could be individual farmer, Water User Associations, Primary Agriculture Credit Societies and Communities/Cluster Based Irrigation Systems.

Procurement Based Incentive (PBI) to the DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar/ other renewable power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI payable to DISCOMs is Rs. 33 Lakh per MW.

For Component-B and individual pump solarisation under Component-C:

CFA of 30% of the benchmark cost issued by MNRE or the prices of the systems discovered in the tender, whichever is lower is provided. However, in North Eastern States including Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost issued by MNRE or the prices of the systems discovered in the tender, whichever is lower, is provided.

In addition, the respective state/UT has to provide at least 30% financial support. Balance cost is to be contributed by beneficiary. Component B and Component C (IPS) of PM KUSUM scheme can also be implemented without State share of 30%. The Central Financial Assistance will continue to remain 30% and rest 70% will be borne by the farmer.

For agriculture feeder solarization, CFA of Rs 1.05 Crore per MW is provided. There is no mandatory requirement of financial support from participating State/UT. The feeder solarisation can be implemented in CAPEX or RESCO mode.