PM-KUSUM Component C Explained: What Farmers and Solar Businesses Need to Know in 2026

PM-KUSUM Component C Explained: What Farmers and Solar Businesses Need to Know in 2026

PM-KUSUM Component C Explained: What Farmers and Solar Businesses Need to Know in 2026
Explore PM-KUSUM Component C 2026, including IPS and FLS, subsidy, eligibility, application process, benefits and opportunities for farmers and solar businesses.

If you already have an electric pump running off the grid, you do not need a new one to switch to solar. That is the idea behind PM-KUSUM Component C: instead of handing out fresh standalone pumps, it puts solar behind the pumps and the power lines that are already standing in the field.

It runs on two tracks. Individual Pump Solarisation (IPS) puts a solar system on one farmer's pump. Feeder Level Solarisation (FLS) puts a solar plant on the feeder line itself, so every pump drawing from that line runs on solar. One is a decision you make for your own farm; the other is a project a state and a developer take on together.

Below: what each route actually does, who qualifies, how much subsidy reaches you, how to apply, and how to tell which of the two you are looking at.

Key Takeaways

  • PM-KUSUM Component C focuses on solarising existing grid-connected agricultural pumps and agriculture feeders.
  • Two routes: IPS for a single pump, FLS for an entire feeder line.
  • Under IPS, farmers use solar power for irrigation and may sell surplus electricity to the DISCOM as per applicable arrangements.
  • FLS enables solar power generation at the feeder level to supply electricity to agricultural consumers.
  • The subsidy, eligibility, implementation and application process differ between IPS and FLS.

What Is PM-KUSUM Component C?

Component C is designed to solarise grid-connected agricultural pumps and agriculture feeders. Unlike Component B, which focuses on standalone solar irrigation pumps, Component C works with existing grid-connected agricultural infrastructure.

Under IPS, individual grid-connected agricultural pumps feature solar PV systems. Farmers use the generated solar power for irrigation and supply excess electricity to the DISCOM under applicable arrangements.

FLS works a level up. A dedicated solar plant is built to feed one agriculture feeder, and the farms on that feeder take their power from it. Either the DISCOM pays for the plant and owns it (CAPEX) or a developer funds and runs it and sells the power (RESCO) - which is why FLS is a business opportunity and not only a subsidy.

Together, these two routes make Component C a key part of PM-KUSUM's approach to integrating solar energy into India's agricultural power system.

PM-KUSUM Other Components: PM-KUSUM Component A, PM-KUSUM Component B

From Grid Power to Solar: How IPS and FLS Work

The two routes look very different on the ground. Here is each one, step by step.

Individual Pump Solarisation (IPS)

Under IPS, the farmer's existing grid-connected agricultural pump is fitted with a solar PV system. The solar system generates electricity for irrigation during the day, while the pump remains connected to the grid. The solar capacity is generally allowed up to two times the pump capacity in kW. When the solar system generates more electricity than the farmer uses for irrigation, the surplus power is supplied to the DISCOM under the applicable state arrangement. The grid connection is still there for cloudy days and night-time use.

Feeder Level Solarisation (FLS)

Under FLS, the focus shifts from individual pumps to an entire agriculture feeder. The state or the DISCOM picks a feeder, and a solar plant is built and wired into the network to cover the farms on that line. The plant runs either on CAPEX, where the DISCOM pays for it and owns it, or on RESCO, where a developer funds and operates it and sells the power to the DISCOM on a long-term contract.

In simple terms, IPS solarises the pump, while FLS solarises the power supply serving multiple agricultural connections. The state implementing agencies and DISCOMs play an important role in identifying beneficiaries, feeders, technical requirements and project implementation.

IPS VS FLS: The Differences at a Glance

Feature Individual Pump Solarisation (IPS) Feeder Level Solarisation (FLS)
What is solarised? Individual grid-connected agricultural pumps Entire agriculture feeders
Primary focus Solar power for individual irrigation pumps Solar power supply for agricultural consumers connected to a feeder
Implementation Solar PV system installed with the existing pump Solar power plant developed for the identified feeder
Power use Farmer uses solar power for irrigation; surplus may be supplied to DISCOM Solar generation supplies the agriculture feeder
Eligible participants Farmers and other eligible beneficiaries under the scheme DISCOMs and eligible developers/implementing entities
Implementation model Pump-level solarisation CAPEX or RESCO model
Grid connection Existing grid-connected pump remains connected to the grid Solar plant is integrated with the identified feeder/grid system
Project scale Based on the individual pump capacity Based on the agricultural load of the feeder

The key difference is the level at which solarisation takes place. IPS works at the individual pump level, while FLS works at the feeder level and serves multiple agricultural connections through the same solar power system.

Who Can Apply for Solarisation?

Individual Pump Solarisation (IPS)

If you farm with a grid-connected pump, you are the main audience for IPS. Groups can apply too - Water User Associations, Farmer Producer Organisations and similar bodies - though what each state accepts does vary.

The existing agricultural pump must meet the technical and eligibility requirements prescribed by the concerned state implementing agency and DISCOM. The solar PV system is then installed to operate the pump using solar-generated electricity.

Feeder Level Solarisation (FLS)

FLS is not something a farmer applies for. State agencies and DISCOMs choose the feeders they want solarised, and a plant is then built to cover that feeder's demand.

FLS also provides participation opportunities through CAPEX and RESCO implementation models, bringing eligible renewable-energy developers and other project entities into the implementation process.

One caution that applies to both routes: PM-KUSUM runs through state agencies, so the eligibility rules, feeder criteria and forms you will face are your state's, not one national set. Check the current state guideline or tender before you count on any figure here.

How Much of the Cost Is Actually Covered

Particular Individual Pump Solarisation (IPS) Feeder Level Solarisation (FLS)
Central Financial Assistance (CFA) 30% of benchmark/tender cost, whichever is lower 30% of benchmark cost
CFA in specified special-category regions 50% of benchmark/tender cost, whichever is lower 50% of benchmark cost
Maximum CFA for FLS ₹1.05 crore/MW
Maximum CFA in special-category regions ₹1.75 crore/MW
State Government subsidy At least 30% As per applicable implementation framework
Farmer contribution Remaining amount after CFA and State subsidy
Solar capacity Up to 2 times the pump capacity in kW Based on the agricultural load of the identified feeder
Surplus electricity Supplied to DISCOM at the applicable rate Used to meet the feeder's agricultural power requirement
Implementation model Individual pump solarisation CAPEX or RESCO

How to Apply: Step by Step

For Individual Pump Solarisation (IPS)

  1. Check whether your state is running IPS, and find the agency handling it.
  2. Submit the application through the prescribed state portal or agency.
  3. Provide details of the existing grid-connected agricultural pump and required documents.
  4. The agency and the DISCOM check your eligibility and whether the site works technically.
  5. After approval, the solar PV system is installed through the designated vendor.
  6. The system is inspected, connected and commissioned - and you are running on solar.

For Feeder Level Solarisation (FLS)

  1. The state/DISCOM identifies suitable agriculture feeders for solarisation.
  2. The implementing agency prepares the technical and project requirements.
  3. Developers or eligible entities participate through the applicable tender; CAPEX or RESCO process.
  4. The selected project entity develops the solar power plant.
  5. The plant is connected to the relevant electricity network after testing and approval.
  6. The solarised feeder begins supplying renewable power to connected agricultural consumers.

Where to Check Before You Apply

What you want to do Official source
Check PM-KUSUM Component C details MNRE – PM-KUSUM
Check Component C status, state-wise data and scheme information National PM-KUSUM Portal
Find implementing agencies and application information MNRE – PM-KUSUM “How to Apply” information
Check state-level PM-KUSUM implementation National PM-KUSUM Portal
Check Maharashtra PM-KUSUM implementation MSEDCL – PM-KUSUM Solar Energy Portal
Check Haryana PM-KUSUM implementation HAREDA – PM-KUSUM Information

One thing to keep in mind: procedures, agencies, documents and tender terms are set state by state. Always go by the latest notification or tender from your own state agency or DISCOM rather than by any general guide, this one included.

What Farmers Save and What Developers Earn

Individual Pump Solarisation (IPS)

The gain from IPS is simple: you stop waiting on the grid for irrigation power, and you run the pump on your own generation through the day. Selling the surplus is a second and smaller benefit - it goes to the DISCOM at your state's rate.

Area IPS Opportunity
Primary use Powering agricultural irrigation pumps
Electricity benefit Solar power for irrigation
Surplus power Supplied to DISCOM at the applicable rate
Farmer benefit Reduced dependence on conventional grid electricity
Solar capacity Up to two times the pump capacity in kW
Main investment consideration Farmer's share of the system cost after applicable subsidy

Feeder Level Solarisation (FLS)

FLS is a different kind of opportunity - project-sized rather than farm-sized. Plants are built to supply whole feeders, and developers come in through CAPEX or RESCO.

Area FLS Opportunity
Primary use Supplying renewable power to agriculture feeders
Project scale Based on the agricultural load of the selected feeder
Implementation models CAPEX or RESCO
Participants DISCOMs, developers and eligible project entities
Revenue structure Governed by the project, tender and power-supply arrangement
Main investment consideration Solar plant development, financing and project execution costs

What an FLS project actually returns comes down to the tariff you win, your cost of finance, how much the plant generates and what the contract says. All of that is set project by project, which is why no general number is worth quoting here.

What You Will Need to Have Ready

Requirement / Document IPS FLS
Existing grid-connected agricultural pump
Eligible farmer / beneficiary details
Pump and electricity-connection details
Technical feasibility assessment
Suitable feeder identification
Solar project site/land details As applicable
DISCOM/grid connectivity requirements
Project proposal / technical documents
Tender / EOI documents
State implementing agency approval
Metering and commissioning requirements

Treat the table as a list to prepare against, not a final one - the exact paperwork is fixed by your state agency, your DISCOM and the tender you apply under.

FAQs

1. Can a farmer take a loan for Component C?

A. Yes. The subsidies cover most of the cost, and the balance you are left paying can be financed by a bank or an institutional lender like any other farm asset - subject to that lender's own eligibility and documentation rules.

2. What is net metering under Component C?

A. Net metering means your meter runs both ways. The pump uses solar first, draws from the grid when solar is not enough, and pushes the excess back when it makes more than you need. At the end of the billing cycle the two are set off against each other, on terms your state government or the SERC decides.

3. What is the RESCO model under Component C?

A. RESCO means the developer, not the DISCOM, puts up the money. A Renewable Energy Service Company builds and owns the feeder-level plant, signs a Power Purchase Agreement with the DISCOM, and earns by selling it that power - usually over a 25-year term under Component C.

4. How long is an FLS project period?

A. 25 years. The plant is sized to the agricultural load of the chosen feeder and can be built on CAPEX or RESCO, with the finer conditions set by the tender and the state.

5. Can a feeder be solarised if agriculture feeders are not separated?

A. Yes - a mixed feeder can still be solarised. And if a state would rather separate its agriculture feeders first, it can finance that through NABARD, PFC or REC, with further support available under the Revamped Distribution Sector Scheme.

Conclusion

Component C is the part of PM-KUSUM built around pumps that already run on grid power. If you are a farmer with one of them, IPS is your route. If you build power projects, FLS is where the work is.

Either way, the details that decide it - subsidy share, eligibility, model, timelines - sit with your state. So the last thing to do before committing anything is to read your state agency's or DISCOM's current notification.

Explore relevant solar, renewable-energy and agricultural-equipment franchise opportunities on Franchise India and discover business opportunities in India's growing clean-energy sector.

Read more: Solar Water Pump Business in India (2026)

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