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Quick Answer: PM-KUSUM provides up to 60% subsidy on solar pumps for Tamil Nadu farmers. A 5HP solar pump costs ₹3.5 lakh, with farmer paying only ₹1.4 lakh after subsidy. Under Component A, farmers can earn ₹60,000/acre/year by leasing barren land for solar plants. Apply through TEDA.
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme has been one of the most transformative government programs for Indian agriculture — and Tamil Nadu's farmers are among its biggest beneficiaries. In 2026, the scheme continues to offer three powerful pathways for farmers to earn income from solar energy, access subsidized solar pumps, and permanently eliminate diesel pumping costs.
This guide covers every detail of PM-KUSUM as it applies to Tamil Nadu farmers: the three components, eligibility, application process, earnings potential, and district-specific implementation status.
PM-KUSUM Scheme Overview
Launched by the Ministry of New and Renewable Energy (MNRE), PM-KUSUM has three distinct components, each targeting a different aspect of agricultural solar adoption:
| Component | Description | Central Subsidy | State Subsidy | Farmer Share |
|---|---|---|---|---|
| Component A | 500 kW–2 MW solar plants on barren/fallow land | Developer-driven | Land lease to farmer | Land only |
| Component B | Standalone solar pumps (1 HP–10 HP) | 30% | 30% | 40% |
| Component C | Solarization of existing grid-connected pumps | 30% | 30% | 40% |
The combined target under PM-KUSUM is 30.8 GW of solar capacity by 2026, with Tamil Nadu allocated a significant share across all three components.
Component A: Solar Power Plants on Agricultural Land
How It Works
Under Component A, a solar developer sets up a power plant (500 kW to 2 MW capacity) on a farmer's barren, fallow, or marshy land. The power generated is sold to the local DISCOM (TANGEDCO in Tamil Nadu) at a fixed tariff under a 25-year Power Purchase Agreement.
The farmer's role: Lease your land and earn a fixed annual income. You don't invest a single rupee.
Earnings Potential: ₹60,000 per Acre per Year
The lease rental paid to farmers varies by district and developer, but the typical range in Tamil Nadu is:
| Land Type | Annual Lease per Acre | 25-Year Total Income per Acre |
|---|---|---|
| Barren/wasteland | ₹40,000–₹50,000 | ₹10,00,000–₹12,50,000 |
| Fallow agricultural land | ₹50,000–₹60,000 | ₹12,50,000–₹15,00,000 |
| Land near substation (premium) | ₹60,000–₹75,000 | ₹15,00,000–₹18,75,000 |
For a farmer with 5 acres of fallow land, this translates to ₹3,00,000 per year in guaranteed lease income — without any cultivation effort, input costs, or weather risk.
Key Requirements for Component A
- Minimum land: 2 acres (for a 500 kW plant; 1 MW requires approximately 4–5 acres)
- Land type: Barren, fallow, marshy, or agricultural land (cultivable land is also eligible)
- Proximity: Land should ideally be within 5 km of a 33 kV or 110 kV TANGEDCO substation
- Land documents: Clear title deed (patta) in the farmer's name
- No encumbrance: Land should be free of legal disputes or mortgage issues
Agrivoltaics: Farming Under Solar Panels
An exciting development under Component A is agrivoltaics — growing shade-tolerant crops underneath elevated solar panels. This allows farmers to earn both the solar lease income and crop income from the same land.
Crops suitable for agrivoltaics in Tamil Nadu include:
- Turmeric
- Ginger
- Leafy vegetables (spinach, amaranth)
- Mushroom cultivation
- Medicinal herbs
Some pilot projects in Erode and Salem districts have demonstrated that agrivoltaic systems can provide ₹60,000 from solar lease + ₹20,000–₹30,000 from crop sales per acre, for a combined income of ₹80,000–₹90,000 per acre.
Component B: Standalone Solar Pumps with 60% Subsidy
Overview
Component B provides standalone (off-grid) solar water pumps to farmers at a 60% subsidy (30% central + 30% state). These pumps are ideal for farms without grid electricity or those currently using diesel pump sets.
Cost and Subsidy for Each Pump Size
| Pump Capacity | Total Cost | Central Subsidy (30%) | State Subsidy (30%) | Farmer Share (40%) |
|---|---|---|---|---|
| 1 HP (DC submersible) | ₹1,14,000 | ₹34,200 | ₹34,200 | ₹45,600 |
| 2 HP (DC submersible) | ₹1,58,000 | ₹47,400 | ₹47,400 | ₹63,200 |
| 3 HP (DC submersible) | ₹2,15,000 | ₹64,500 | ₹64,500 | ₹86,000 |
| 5 HP (AC submersible) | ₹3,40,000 | ₹1,02,000 | ₹1,02,000 | ₹1,36,000 |
| 7.5 HP (AC submersible) | ₹4,70,000 | ₹1,41,000 | ₹1,41,000 | ₹1,88,000 |
| 10 HP (AC submersible) | ₹6,10,000 | ₹1,83,000 | ₹1,83,000 | ₹2,44,000 |
Prices are benchmark costs set by MNRE for 2025-26. Actual costs may vary by vendor.
Crop-Specific Pump Sizing Guide
Choosing the right pump size depends on your crop, irrigation method, land area, and water table depth.
| Crop | Irrigation Type | Water Requirement (litres/acre/day) | Recommended Pump (up to 5 acres) | Bore Depth |
|---|---|---|---|---|
| Paddy (rice) | Flood irrigation | 40,000–60,000 | 5 HP–7.5 HP | Up to 150 ft |
| Coconut | Drip irrigation | 8,000–12,000 | 3 HP–5 HP | Up to 200 ft |
| Sugarcane | Drip/furrow | 25,000–35,000 | 5 HP–7.5 HP | Up to 150 ft |
| Banana | Drip irrigation | 15,000–20,000 | 3 HP–5 HP | Up to 200 ft |
| Vegetables (mixed) | Drip/sprinkler | 10,000–18,000 | 3 HP–5 HP | Up to 150 ft |
| Groundnut | Sprinkler | 6,000–10,000 | 2 HP–3 HP | Up to 100 ft |
| Cotton | Drip irrigation | 8,000–15,000 | 3 HP–5 HP | Up to 150 ft |
| Turmeric | Drip/sprinkler | 8,000–12,000 | 2 HP–3 HP | Up to 100 ft |
| Millets (ragi, bajra) | Rain-fed + supplementary | 3,000–6,000 | 1 HP–2 HP | Up to 80 ft |
Water Yield Calculations
A solar pump's effective daily operation is approximately 6–7 hours (peak sunshine hours in Tamil Nadu). Here's the water output:
| Pump Size | Flow Rate (litres/hour) | Daily Output (6 hrs) | Monthly Output |
|---|---|---|---|
| 1 HP | 2,500–3,500 | 15,000–21,000 | 4,50,000–6,30,000 |
| 2 HP | 4,000–6,000 | 24,000–36,000 | 7,20,000–10,80,000 |
| 3 HP | 6,000–9,000 | 36,000–54,000 | 10,80,000–16,20,000 |
| 5 HP | 10,000–15,000 | 60,000–90,000 | 18,00,000–27,00,000 |
| 7.5 HP | 15,000–22,000 | 90,000–1,32,000 | 27,00,000–39,60,000 |
| 10 HP | 20,000–30,000 | 1,20,000–1,80,000 | 36,00,000–54,00,000 |
Flow rates depend on total dynamic head (water table depth + delivery height + friction losses). Deeper bore wells will have lower flow rates.
Component C: Solarization of Existing Grid-Connected Pumps
Overview
Component C targets farmers who already have grid-connected electric pump sets. Under this component, a solar system is installed to run the existing pump, with excess power fed back to TANGEDCO for additional income.
How It Works
- A rooftop or ground-mounted solar system (sized 2x the pump capacity) is installed at the farmer's location
- Solar power runs the pump during the day
- Excess solar power is exported to TANGEDCO grid
- TANGEDCO pays the farmer for exported power at a feed-in tariff of ₹3.00–₹3.50/kWh
Earnings from Component C
| Existing Pump | Solar System Installed | Annual Solar Generation | Self-Consumption (Pump) | Exported to Grid | Annual Feed-in Income |
|---|---|---|---|---|---|
| 3 HP | 6 kW | 9,000 kWh | 3,500 kWh | 5,500 kWh | ₹17,500 |
| 5 HP | 10 kW | 15,000 kWh | 5,500 kWh | 9,500 kWh | ₹30,000 |
| 7.5 HP | 15 kW | 22,500 kWh | 8,000 kWh | 14,500 kWh | ₹46,000 |
| 10 HP | 20 kW | 30,000 kWh | 11,000 kWh | 19,000 kWh | ₹60,000 |
In addition to feed-in income, farmers save on their EB bills since the pump now runs primarily on solar power.
Tamil Nadu-Specific Implementation by TEDA
The Tamil Nadu Energy Development Agency (TEDA) is the state nodal agency for PM-KUSUM implementation. Here's the current status:
Component-Wise Progress in Tamil Nadu (as of March 2026)
| Component | Sanctioned Capacity | Commissioned | Under Implementation |
|---|---|---|---|
| Component A | 750 MW | 320 MW | 280 MW |
| Component B | 1,50,000 pumps | 87,000 pumps | 35,000 pumps |
| Component C | 1,25,000 pumps | 52,000 pumps | 28,000 pumps |
Districts with Maximum Adoption
| District | Primary Component | Key Crops | Installations |
|---|---|---|---|
| Erode | B & C | Turmeric, coconut, sugarcane | 12,500+ |
| Thanjavur | B & C | Paddy, banana | 11,200+ |
| Madurai | A & B | Vegetables, cotton, jasmine | 10,800+ |
| Salem | A & B | Tapioca, mango, paddy | 9,500+ |
| Tirunelveli | B & C | Paddy, banana, coconut | 8,700+ |
| Dindigul | B & C | Vegetables, pulses | 7,200+ |
| Villupuram | A & B | Groundnut, paddy, sugarcane | 6,800+ |
| Cuddalore | B & C | Paddy, sugarcane | 6,100+ |
Application Process in Tamil Nadu
For Component A (Land Leasing)
- Expression of Interest: Register on the MNRE PM-KUSUM portal (pmkusum.mnre.gov.in) or TEDA's website
- Land documents: Upload patta, chitta, adangal, and encumbrance certificate
- Developer matching: TEDA or MNRE matches your land with a registered solar developer
- Agreement: Sign a 25-year land lease agreement with the developer
- Installation: Developer handles all installation, grid connection, and TANGEDCO approvals
- Income: Annual lease payments begin once the plant is commissioned
Timeline: 3–6 months from application to first lease payment
For Component B (Solar Pumps)
- Apply online: Visit pmkusum.mnre.gov.in and select Component B
- Choose vendor: Select an MNRE-empanelled solar pump supplier
- Pay farmer share: Deposit 40% of the benchmark cost
- Site preparation: Prepare borewell and pump installation site
- Installation: Vendor installs the solar pump system
- Inspection: TEDA inspector verifies the installation
- Subsidy release: 60% subsidy is credited directly to the vendor
Timeline: 4–8 weeks from application to installation
For Component C (Solarization)
- Eligibility check: Must have an existing TANGEDCO agricultural connection
- Apply through TANGEDCO: Submit application at your local TANGEDCO section office or online
- Technical feasibility: TANGEDCO assesses your connection for solar integration
- Vendor selection: Choose from TEDA-empanelled solar installers
- Pay farmer share: 40% of the system cost
- Installation and commissioning: Including net metering/feed-in meter
- Start earning: Excess power income credited to your TANGEDCO account
Timeline: 6–12 weeks from application
Documents Required (All Components)
- Aadhaar card
- Land patta (ownership document)
- Chitta and adangal (land revenue records)
- Bank account details (for subsidy/income credit)
- Existing EB connection details (for Component C)
- Passport-size photograph
- Mobile number linked to Aadhaar
Diesel Cost Elimination: The Hidden Savings
For farmers currently using diesel pump sets, the switch to solar is transformative:
Diesel vs Solar Pump Running Cost Comparison
| Parameter | Diesel Pump (5 HP) | Solar Pump (5 HP) |
|---|---|---|
| Fuel cost per hour | ₹80–₹100 (1 litre diesel) | ₹0 |
| Daily running (6 hours) | ₹480–₹600 | ₹0 |
| Monthly cost (25 days) | ₹12,000–₹15,000 | ₹0 |
| Annual fuel cost | ₹1,44,000–₹1,80,000 | ₹0 |
| Maintenance per year | ₹15,000–₹25,000 | ₹3,000–₹5,000 |
| 10-year running cost | ₹15,90,000–₹20,50,000 | ₹30,000–₹50,000 |
A farmer replacing a diesel pump with a 5 HP solar pump (at ₹1,36,000 after 60% subsidy) recovers the investment in less than 12 months through diesel savings alone.
Real Farmer Examples
Murugan, Erode District — Component B Beneficiary
Murugan owns 4 acres of turmeric and coconut farmland in Gobichettipalayam taluk. He was spending ₹14,000/month on diesel for his 5 HP pump set.
- Solar pump installed: 5 HP AC submersible
- Farmer share paid: ₹1,36,000
- Annual diesel savings: ₹1,68,000
- Payback period: 10 months
- Additional benefit: Consistent water supply improved turmeric yield by 15%
"I used to worry about diesel prices every season. Now the pump runs silently from sunrise, and I haven't spent a rupee on fuel in 18 months."
Lakshmi, Thanjavur District — Component A Beneficiary
Lakshmi inherited 6 acres of fallow land that had not been cultivated for 8 years. Under Component A, a 1.5 MW solar plant was set up on her land.
- Land leased: 6 acres
- Annual lease income: ₹3,60,000 (₹60,000/acre)
- Investment by farmer: ₹0
- 25-year projected income: ₹90,00,000
- Additional: She continues to live in her farmhouse on the same property
"This land was earning nothing. Now it earns ₹30,000 every month. My children's education is secured."
Selvam, Madurai District — Component C Beneficiary
Selvam has a 7.5 HP grid-connected pump for his 8-acre banana and paddy farm. He opted for Component C solarization.
- Solar system installed: 15 kW
- Farmer share paid: ₹1,88,000
- Annual EB bill savings: ₹24,000
- Annual feed-in income (excess power): ₹46,000
- Total annual benefit: ₹70,000
- Payback period: 2.7 years
"My EB bill has become zero, and TANGEDCO now pays me for the extra power. It's like having a second crop that never fails."
Frequently Asked Questions
Q: Can I apply for multiple components simultaneously? Multiple components can be applied for simultaneously. You can lease land under Component A and install a solar pump under Component B on different parcels of land.
Q: Is there a deadline for PM-KUSUM applications? The scheme has been extended through March 2026 with discussions ongoing for further extension. Apply as early as possible as funds are allocated on a first-come, first-served basis.
Q: What happens if the solar pump fails? All solar pumps installed under PM-KUSUM come with a mandatory 5-year comprehensive warranty from the vendor. TEDA maintains a grievance redressal system for post-installation issues.
Q: Can tenant farmers apply? For Component B, tenant farmers can apply with a No Objection Certificate (NOC) from the landowner. Component A requires land ownership.
How Tristar Energy Helps
Tristar Energy is an MNRE-empanelled and TEDA-approved solar installer for PM-KUSUM Components B and C in Tamil Nadu. We handle:
- Application assistance: Complete documentation and online submission
- Technical assessment: Borewell analysis, pump sizing, and solar system design
- Installation: End-to-end installation with TEDA inspection support
- After-sales service: 5-year warranty with dedicated service support across Tamil Nadu
Apply for PM-KUSUM with Tristar's assistance or calculate your solar pump savings.
Conclusion
PM-KUSUM is not just a subsidy scheme — it's a pathway to energy independence for Tamil Nadu's farming community. Whether you have fallow land that can earn lease income, need a diesel-free pump for irrigation, or want to turn your existing EB connection into a revenue source, there is a component designed for you.
The numbers speak for themselves: ₹60,000/acre/year from land leasing, 60% subsidy on solar pumps, and complete elimination of diesel costs. The only requirement is taking the first step.
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