On This Page
Quick Answer: PM-KUSUM gives Tamil Nadu farmers a 60% subsidy (30% central + 30% state) on standalone solar pumps up to 7.5 HP, with the farmer paying the remaining 40%. Under Component A, leasing barren or fallow land to a solar developer earns roughly ₹30,000–₹40,000 per acre per year in Tamil Nadu, with ₹60,000 reached only on premium parcels next to a substation. TEDA is the state nodal agency; Component B farmer registration runs through the Agricultural Engineering Department at pmkusum.tn.gov.in. Component B and individual Component C pumps must be commissioned by 30 September 2026.
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme offers Indian farmers three routes into solar: lease land to a developer, buy a subsidised standalone pump, or solarise an existing grid-connected pump. Tamil Nadu participates in all three.
This guide covers PM-KUSUM as it applies to Tamil Nadu farmers — the three components, eligibility, subsidy structure, application process and realistic earnings. Every figure below is sourced, and where a number is a market estimate rather than a notified rate we say so. The scheme is also deadline-driven right now, which is the single most important thing on this page.
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 | Central assistance flows to the developer/DISCOM side, not to the farmer | — | No investment; farmer contributes land and earns lease rent |
| Component B | Standalone solar pumps, up to 7.5 HP | 30% | 30% | 40% |
| Component C | Solarization of existing grid-connected pumps, up to 7.5 HP | 30% | 30% | 40% |
The subsidy applies to the benchmark cost or the tender-discovered cost, whichever is lower. In Tamil Nadu — a general-category state — the split is 30% central, 30% state, 40% farmer. The higher 50% central assistance applies only to North-Eastern states, hill states/UTs and island UTs, not to Tamil Nadu (TN PM-KUSUM portal).
The scheme's national target is 34,800 MW of solar capacity: 10,000 MW under Component A, 14 lakh standalone pumps under Component B and 35 lakh grid-connected pumps under Component C, backed by ₹34,422 crore in central financial support (MNRE).
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: What the Lease Actually Pays
Lease rent is negotiated between the farmer and the developer — it is not a rate fixed by MNRE or TEDA, so treat every figure below as a market estimate, not an entitlement.
Reported average lease income for PM-KUSUM Component A land in Tamil Nadu is around ₹30,000 per acre per year, within an observed range of roughly ₹25,000–₹60,000 depending on location, land quality and distance to a substation (Component A landowner data).
| Land Type | Realistic Annual Lease per Acre | 25-Year Total per Acre (nominal) |
|---|---|---|
| Barren/wasteland, ordinary location | ₹25,000–₹30,000 | ₹6,25,000–₹7,50,000 |
| Fallow agricultural land | ₹30,000–₹40,000 | ₹7,50,000–₹10,00,000 |
| Land adjoining a substation (premium, uncommon) | ₹45,000–₹60,000 | ₹11,25,000–₹15,00,000 |
For a farmer with 5 acres of fallow land, that is ₹1,50,000–₹2,00,000 per year in lease income at typical rates — without cultivation effort, input costs or weather risk, but also without the ₹3 lakh figures circulating in scheme marketing. If a developer quotes you ₹60,000 an acre, ask what makes your parcel premium before you count on it.
Escalation clauses matter as much as the headline rate: most 25-year leases carry a fixed annual escalation, and whether that is 2% or 5% changes the lifetime total more than a few thousand rupees on the opening rent.
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
Agrivoltaics is still at the pilot stage in India, and lease terms that permit cultivation under the array are negotiated case by case — a developer is not obliged to allow it. Where it works, the farmer stacks crop income on top of lease rent rather than choosing between them. Note that the central government is preparing PM-KUSUM 2.0 with a proposed 10 GW agri-PV component specifically designed around farming under panels, so terms in this space are likely to change (PM-KUSUM 2.0 proposal).
Component B: Standalone Solar Pumps with 60% Subsidy
Overview
Component B provides standalone (off-grid) solar water pumps up to 7.5 HP to farmers at a 60% subsidy (30% central + 30% state), for farms where grid supply is not available. The 7.5 HP ceiling is set in the scheme guidelines — larger pumps are not covered (TN PM-KUSUM portal).
Cost and Subsidy for Each Pump Size
Subsidy is calculated on the benchmark cost or the tender-discovered cost, whichever is lower. Benchmark costs are revised by MNRE and state tenders regularly come in below them, so the figures below are indicative market ranges — ask TEDA or your empanelled vendor for the rate applying to the current tender before you budget.
| Pump Capacity | Indicative Total Cost | Central + State Subsidy (60%) | Farmer Share (40%) |
|---|---|---|---|
| 1 HP (DC submersible) | ₹1,00,000–₹1,20,000 | ₹60,000–₹72,000 | ₹40,000–₹48,000 |
| 2 HP (DC submersible) | ₹1,40,000–₹1,60,000 | ₹84,000–₹96,000 | ₹56,000–₹64,000 |
| 3 HP (DC submersible) | ₹1,80,000–₹2,15,000 | ₹1,08,000–₹1,29,000 | ₹72,000–₹86,000 |
| 5 HP (AC submersible) | ₹2,50,000–₹3,00,000 | ₹1,50,000–₹1,80,000 | ₹1,00,000–₹1,20,000 |
| 7.5 HP (AC submersible) | ₹3,80,000–₹4,40,000 | ₹2,28,000–₹2,64,000 | ₹1,52,000–₹1,76,000 |
Indicative installed costs for Tamil Nadu, not notified benchmark rates. Pumps above 7.5 HP are outside Component B.
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 |
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 up to 7.5 HP. A solar system is installed to run the existing pump, with excess power fed back to TANGEDCO for additional income. The permitted solar capacity is up to twice the pump capacity in kW (TN PM-KUSUM portal).
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 the rate determined by TNERC for this category — confirm the current rate with TANGEDCO before modelling income, as it is revised by regulatory order and not fixed by the scheme
Earnings from Component C
| Existing Pump | Solar System Installed | Annual Solar Generation | Self-Consumption (Pump) | Exported to Grid | Indicative Feed-in Income at ₹3.00/kWh |
|---|---|---|---|---|---|
| 3 HP | 6 kW | 9,000 kWh | 3,500 kWh | 5,500 kWh | ₹16,500 |
| 5 HP | 10 kW | 15,000 kWh | 5,500 kWh | 9,500 kWh | ₹28,500 |
| 7.5 HP | 15 kW | 22,500 kWh | 8,000 kWh | 14,500 kWh | ₹43,500 |
Export income is modelled at ₹3.00/kWh purely to illustrate the arithmetic. The applicable rate is set by TNERC order — verify before relying on these figures. Component C covers pumps up to 7.5 HP.
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, with TANGEDCO as the sole DISCOM. MNRE has extended the completion deadline to 31 March 2027 for projects whose PPA or letter of intent was issued on or before 31 December 2025; the subsidy structure is unchanged at 30% central financial assistance plus a minimum 30% state subsidy.
TEDA also disburses the residential rooftop top-up under G.O. (Ms) No. 102. That is a separate scheme on a separate portal, for domestic service connections only — it does not apply to agricultural pump connections, and PM-KUSUM benefits do not apply to a home rooftop system.
Who Does What in Tamil Nadu
| Role | Agency |
|---|---|
| State nodal agency for PM-KUSUM | TEDA (Tamil Nadu Energy Development Agency) |
| Component B farmer registration and application flow | Agricultural Engineering Department, Tamil Nadu (pmkusum.tn.gov.in) |
| Grid side — feasibility, net/feed-in metering, export settlement | TANGEDCO, the state's sole DISCOM |
National Progress: Where the Scheme Actually Stands
We do not publish state-wise commissioning figures unless MNRE or TEDA has released them. What is on record nationally, as of 30 April 2026:
| Component | Sanctioned | Installed |
|---|---|---|
| Component A | 10,000 MW | 1,202.28 MW |
| Component B (standalone pumps) | 13,07,190 pumps | 10,90,815 pumps |
| Component C — individual pump solarisation | 55,392 pumps | 15,183 pumps |
| Component C — feeder level solarisation | 35,36,602 | 15,71,826 |
Source: PM-KUSUM progress review.
Read that table before you plan around Component A or individual Component C solarisation. Component B is the component that has actually delivered at scale — it is past 83% of its sanctioned target. Component A sits at roughly 12% of target and individual pump solarisation at 27%, held back by financing delays, land aggregation and slow state-level rollout. Tamil Nadu is among the states with the larger pump targets under Components B and C, but if a vendor quotes you district-level installation counts, ask which MNRE or TEDA publication they come from.
The Deadlines That Matter Right Now
This is the most time-sensitive part of the scheme:
| Milestone | Deadline |
|---|---|
| Component B and Component C individual pump solarisation — commissioning | 30 September 2026 |
| Component A and Component C feeder level solarisation — financial closure | 30 September 2026 |
| Component A and Component C feeder level solarisation — commissioning | 31 March 2027 |
MNRE's memorandum of 28 March 2026 extended Phase 1 completion to 31 March 2027, but only for projects whose PPA or letter of intent was issued on or before 31 December 2025 (MNRE timeline extension).
If you are a farmer wanting a subsidised pump, the operative date is 30 September 2026 — and that is a commissioning deadline, not an application deadline. Working backwards through allocation, vendor selection, borewell readiness and installation, an application started close to that date is unlikely to land.
Application Process in Tamil Nadu
For Component A (Land Leasing)
- Expression of Interest: Register on the national PM-KUSUM portal or through TEDA
- 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: Register at the Tamil Nadu portal pmkusum.tn.gov.in — Component B farmer registration in Tamil Nadu runs through the Agricultural Engineering Department, with TEDA as nodal agency. The national portal carries scheme-level information
- Choose vendor: Select a TEDA-empanelled solar pump supplier from the current tender
- 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 (about 1 litre diesel) | ₹0 |
| Daily running (6 hours) | ₹480–₹600 | ₹0 |
| Monthly cost during an irrigation month (25 days) | ₹12,000–₹15,000 | ₹0 |
| Annual fuel cost, 6 irrigation months | ₹72,000–₹90,000 | ₹0 |
| Annual fuel cost, near year-round irrigation | ₹1,20,000–₹1,80,000 | ₹0 |
| Maintenance per year | ₹15,000–₹25,000 | ₹3,000–₹5,000 |
Diesel savings depend entirely on how many months you actually irrigate. A paddy or banana farm running most of the year saves far more than a rain-fed millet plot, and the payback figures below move accordingly.
A farmer replacing a diesel pump with a 5 HP solar pump (roughly ₹1,00,000–₹1,20,000 after the 60% subsidy) recovers that outlay in about 8–16 months on a year-round irrigation pattern, or roughly 1.5–2 years on a six-month irrigation cycle, through diesel savings alone.
Worked Scenarios
These are illustrative models built from the indicative costs above, not case studies of named customers. Your own numbers will differ with irrigation hours, water table depth, tender rate and tariff.
Scenario 1: Replacing a diesel pump (Component B)
A 4-acre turmeric and coconut holding in the Erode belt, currently running a 5 HP diesel pump for about nine months a year at roughly ₹11,000 a month during irrigation months.
- Solar pump: 5 HP AC submersible
- Farmer share (40%): ₹1,00,000–₹1,20,000
- Diesel cost avoided: roughly ₹99,000 a year
- Payback: about 12–15 months
- Secondary benefit: irrigation no longer rationed by diesel price, which is where most of the yield gain comes from
Scenario 2: Leasing fallow land (Component A)
6 acres of long-fallow land within 5 km of a substation, leased to a developer.
- Lease income at the Tamil Nadu average of ₹30,000/acre: ₹1,80,000 a year
- At a premium substation-adjacent rate of ₹45,000/acre: ₹2,70,000 a year
- Farmer investment: ₹0
- What to check before signing: the escalation clause, the restoration obligation at end of term, and whether the developer has an executed PPA — Component A projects nationally are at about 12% of target, and an unfunded project pays no rent
Scenario 3: Solarising an existing EB pump (Component C)
A 7.5 HP grid-connected pump on an 8-acre banana and paddy farm, solarised with a 15 kW system.
- Farmer share (40%): ₹1,52,000–₹1,76,000
- EB bill savings: varies with your agricultural tariff category
- Export income: roughly ₹43,500 a year modelled at ₹3.00/kWh — the actual rate is set by TNERC order
- Payback: about 3–4 years on export income alone, faster once EB savings are counted
Frequently Asked Questions
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.
Is there a deadline for PM-KUSUM applications?
Yes, and it is close. Component B and individual Component C pump solarisation must be commissioned by 30 September 2026. Component A and Component C feeder level solarisation have financial closure by 30 September 2026 and commissioning by 31 March 2027. MNRE's 28 March 2026 memorandum extended Phase 1 completion to 31 March 2027 only for projects whose PPA or letter of intent was issued on or before 31 December 2025. These are commissioning deadlines, not application deadlines — allow for allocation, vendor selection and installation time.
What is the largest solar pump I can get under PM-KUSUM?
7.5 HP. Both Component B (standalone) and Component C (solarisation of an existing grid-connected pump) cap at 7.5 HP under the scheme guidelines. Larger pumps can be installed but not with PM-KUSUM subsidy.
How much will the state top-up my subsidy in Tamil Nadu?
30%, on top of 30% central assistance, leaving a 40% farmer share. Tamil Nadu is a general-category state — the 50% central assistance applies only to North-Eastern states, hill states/UTs and island UTs. Subsidy is computed on the benchmark cost or tender cost, whichever is lower.
What happens if the solar pump fails?
PM-KUSUM pumps are supplied with a multi-year comprehensive warranty and maintenance obligation on the vendor — confirm the exact warranty term in the tender documents for your allocation, as it is set tender by tender. TEDA handles post-installation grievances.
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 realistic numbers still make the case: ₹30,000–₹40,000 per acre per year from land leasing, a 60% subsidy on pumps up to 7.5 HP, and diesel costs gone entirely. What has changed is the clock — Component B and individual Component C pumps must be commissioned by 30 September 2026.
Contact Tristar Energy to start your PM-KUSUM application
Sources & Verification
- MNRE — PM-KUSUM scheme page: component targets (10,000 MW / 14 lakh / 35 lakh), 34,800 MW total, ₹34,422 crore central support, CFA structure
- Tamil Nadu PM-KUSUM portal FAQ: 7.5 HP ceiling for Components B and C, 30/30/40 split for general-category states, solar capacity up to twice pump capacity, eligibility, 5 km substation rule
- National PM-KUSUM portal: scheme documents and state implementing agencies
- Tamil Nadu Agricultural Engineering Department — Component B implementing agency: state registration route for standalone pumps
- PM-KUSUM progress review: national installed-versus-sanctioned figures as of 30 April 2026
- MNRE timeline extension memorandum, 28 March 2026: revised commissioning and financial closure deadlines
- PM-KUSUM 2.0 proposal: proposed 10 GW agri-PV component
- Component A lease income data: observed Tamil Nadu lease rates
Costs, lease rents and export tariffs in this guide are market estimates or illustrative models, not notified rates — benchmark costs are revised by MNRE, tender rates are discovered per tender, and export tariffs are set by TNERC order. Confirm the current figures with TEDA, the Agricultural Engineering Department or TANGEDCO before committing money.
Last verified: 22 September 2026.
Ready to Go Solar?
Get a personalized solar quote based on your electricity consumption and roof area.
Related Articles
Solar Installation Dharmapuri | PM-KUSUM 2026
Everything you need to know about going solar in Dharmapuri district — Tamil Nadu's mango capital. Agricultural pumping under PM-KUSUM, sericulture processing, cold storage for vegetables, off-grid solutions for rural areas, and TANGEDCO Dharmapuri circle details for India's most promising agricultural solar market.
Solar Installation Guide | Erode Areas 2026
Complete solar guide for Erode district — Perundurai SIPCOT industrial solar, Gobichettipalayam turmeric farming, Sathyamangalam eco-tourism off-grid, textile market commercial solar, and PM-KUSUM for delta agriculture.
Solar Installation Pollachi | PM-KUSUM & Agri 2026
Everything about going solar in Pollachi — coconut oil mill solar, dairy and poultry cold chain, Valparai tea estate off-grid systems, PM-KUSUM for coconut irrigation, and TANGEDCO Coimbatore circle procedures.