PM Kusum Yojana: What are the Benefits to Farmers?
The PM Kusum Yojana in Solar is a thoughtfully designed and executed scheme offering many benefits to farmers. Starting with lower irrigation costs as the most important benefit to the subsidies and promoting a renewable energy reliance.
- A lower irrigation cost is a direct advantage, which saves farmers’ money. Use of solar pumps ensures a reliable power supply even in the remote areas. The dependency on diesel or grid electricity will reduce and remote areas will get consistent electricity supply too.
- As per Component A, farmers can earn extra money by selling surplus solar power back to the grid through electricity distribution companies. This creates a steady source of additional income. They can also make productive use of barren or unused land by installing solar power plants, which helps them earn without affecting regular farming activities. This implies generating power while also continuing to operate agriculture.
- Low-cost installation would result in reducing pollution and carbon emissions, as farmers shift to clean and renewable solar energy. The government’s subsidies cover 60% of the cost, while farmers can avail a 30% loan through banks. So, farmers will only pay 10% of the total cost.
- A 60% subsidy and 30% availability on loan through strong government backing. It means solar installation is now affordable, and only need to contribute 10% of the project cost. Lastly, the scheme promotes eco-friendly farming by using clean, renewable solar energy, which helps reduce pollution and carbon emissions.
Overall, the PM Kusum Scheme not only reduces costs but also improves energy access, supports green practices, and opens up new sources of income for farmers.
Overview of PM Kusum Scheme: Structure and Financial Support
The PM Kusum Yojana is divided into three main components:
- Component A : Installation of grid-connected solar power plants (up to 2 MW) with a total target of 10 GW.
- Component B : Deployment of 1.75 million standalone solar pumps.
- Component C : Solarization of 1 million existing grid-connected agricultural pumps.
Together, these components aim to add 30.80 GW of solar capacity. The scheme allows farmers, panchayats, and cooperatives to apply. The cost is divided among the government, banks, and farmers, making it affordable and easy to implement.
| Contributor | Contribution | Details |
| Central & State Governments | 60% | Given as a direct subsidy to reduce the upfront cost for farmers. |
| Banks | 30% | Offered as a loan to be repaid over time at low interest rates. |
| Farmers | 10% | Only a small part of the total cost is paid by the farmer. |
PM Kusum Scheme: Quick Facts
1. The object of PM Kusum Yojana is to provide financial assistance to farmers by using solar power for irrigation and electricity needs. The indirect advantage is to reduce dependency on diesel and grid power.
2. Its 3 main components :
- Component A: Setting up small solar power plants
- Component B: Giving farmers solar-powered water pumps that work on their own
- Component C: Adding solar panels to the water pumps that are already connected to electricity lines.
3. A subsidy of 60% is provided to the farmers from the central and state governments; even loans from banks are available at 30% low-interest rate.
With the aim of turning sunlight into savings, the PM Kusum Yojana in Solar helps farmers use solar energy for farming.Irrigation costs are reduced, and the need for diesel is minimized, paving the way for reliable and sustainable farming.