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PM-KUSUM Scheme Success: How Solar Power is Boosting Incomes for 20 Lakh+ Farmers

The PM-KUSUM scheme is proving to be a major success for farmers across India. Over 20 lakh farmers have already benefited by setting up solar power infrastructure on their land. The program helps them save on diesel costs and earn extra income through land leasing. With government funding for the scheme increasing each year, its positive impact continues to grow.

Key Points: PM-KUSUM Scheme Benefits Over 20 Lakh Farmers with Solar Power

  • Over 20.42 lakh farmers have benefited from the demand-driven PM-KUSUM scheme
  • Funding has steadily increased, with Rs 2,031.5 crore released in H1 2025-26
  • Farmers can earn up to Rs 80,000 per hectare annually by leasing land for solar plants
  • Replacing diesel pumps with solar saves farmers at least Rs 60,000 per year in fuel costs
2 min read

PM-KUSUM scheme boosts incomes of over 20.42 lakh farmers: Minister

Over 20.42 lakh farmers have increased their incomes through the PM-KUSUM scheme by installing solar plants and pumps, with government funding rising yearly.

"The farmers can lease their land for installation of solar power plants and can earn up to Rs 80,000/ha/year. - Minister Shripad Yesso Naik"

New Delhi, Dec 16

Over 20.42 lakh farmers have benefited through the PM-KUSUM scheme that enables them to set up solar power plants and irrigation pumps on their land, Parliament was informed on Tuesday.

In a written reply to a question in the Rajya Sabha, Minister of State for New and Renewable Energy, Shripad Yesso Naik, informed Rajya Sabha that the PM-KUSUM is a demand-driven scheme. The capacities and funds are allocated based on demand received and progress shown by states and UTs.

The minister tabled figures in the Upper House which show that the funds released over the last three years have shown a steady increase, reflecting the success of the scheme. During the first half of the current financial year (2025-26), a sum of Rs 2,031.5 crore has already been released under the PM-KUSUM scheme, compared with Rs 2,564.14 crore in 2024-25. The amount has gone up from Rs 996.33 crore released under the scheme in 2023-24.

The government launched the PM-KUSUM scheme in March 2019, which was scaled up in January 2024 to provide energy and water security to farmers, enhance their income, de-dieselize the farm sector, and reduce environmental pollution. The scheme has three components -- A, B and C.

The minister explained that under Component A, farmers are enabled to adopt solar energy, becoming Urjadata along with Annadata and increase their incomes. The farmers can lease their land for installation of solar power plants and can earn up to Rs 80,000/ha/year. For the plants commissioned under Component A, the median average income is Rs 4.5 lakh/MW per month.

Under Component B, the existing diesel pumps are replaced with solar pumps. Assuming consumption of 4.6 litres per day (for 5 HP pumps) and with current diesel cost of around Rs 87/litre, the farmer can achieve the breakeven in less than a year. This results in savings for farmers of at least Rs 60,000/year in diesel cost.

Under Component C, farmers can earn Rs 25000/acre/year by leasing the land for installation of solar projects, the minister added.

- IANS

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Reader Comments

P
Priya S
Good to see the numbers. 20 lakh+ farmers is a significant reach. However, the article doesn't mention the challenges. In my village in Tamil Nadu, many small farmers find the initial paperwork and bank guarantees daunting. The scheme needs better on-ground support and awareness camps. The intent is great, execution needs work.
R
Rohit P
Becoming an 'Urjadata' is a powerful concept! 💡 Earning Rs 80,000/ha/year by leasing barren land for solar plants is a game-changer for farmers with non-productive fields. This is real 'Atmanirbhar Bharat' in the agriculture sector. Hope the scaled-up version reaches every district soon.
M
Michael C
As someone working in renewable energy, I'm impressed by the scale. The financials look solid – breakeven in less than a year for solar pumps is excellent. The steady increase in fund allocation shows sustained political will. A win for farmers, energy security, and the environment. 👍
S
Shreya B
The income figures are promising, but what about maintenance? Solar panels need cleaning and inverters can fail. Is there a provision for affordable repair services or warranties? Without that, the long-term savings might not materialize for farmers. The scheme must think beyond just installation.
K
Karthik V
Reducing diesel use in farming is crucial for our air quality. Every solar pump is a step towards cleaner air, especially in northern states. The dual benefit of extra income and pollution reduction makes this a model scheme. Hope they expand Component C aggressively.

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