KUSUM Scheme: Empowering Farmers with Rooftop Solar

The PM KUSUM scheme has been a game-changer for India's agricultural sector. By enabling farmers to install solar pumps and ground-mounted solar plants, KUSUM is reducing diesel dependency and creating new income streams for rural communities.

What is PM KUSUM?

The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) is a flagship scheme of the Government of India launched in 2019. It aims to add 30.8 GW of solar capacity through three components:

• Component A: 10 GW of decentralised ground-mounted solar plants (up to 2 MW each) on barren or uncultivated land, with power sold to DISCOMs at predetermined tariffs.
• Component B: 20 lakh standalone solar-powered agriculture pumps replacing diesel pumps.
• Component C: Solarisation of 15 lakh grid-connected agriculture pumps.

Benefits for Farmers

PM KUSUM creates multiple income streams for farmers:

• Direct Income: Under Component A, farmers lease their land to solar developers and earn rental income of ₹15,000–30,000 per acre per year.
• Fuel Savings: Replacing diesel pumps with solar pumps eliminates fuel costs that can run to ₹50,000–1,50,000 per year per pump.
• Surplus Power Revenue: Farmers who solarise their grid-connected pumps can sell surplus power to the DISCOM, generating additional cash flows.

Ultravibrant's KUSUM Track Record

Ultravibrant has been among the most active KUSUM Component A developers in Rajasthan, with 26+ MWp of KUSUM projects commissioned and a further 16+ MWp in active execution. Our experience navigating the regulatory, land acquisition, and grid connectivity requirements of KUSUM projects gives us a distinct advantage in this segment.

Key learnings from our KUSUM portfolio:

• Community engagement and transparent land agreements are essential for smooth project development.
• Grid connectivity timelines drive project schedules more than any other factor — early engagement with the DISCOM is critical.
• Module quality and structural design must be optimised for the harsh conditions of Rajasthan's desert climate.

The Road Ahead

KUSUM remains a compelling opportunity for developers who can navigate its complexities. The government has periodically extended the scheme and revised tariffs, reflecting its strategic importance. With millions of diesel pumps still to be replaced and vast areas of barren land available for ground-mounted plants, the KUSUM pipeline for experienced developers like Ultravibrant remains robust.