PM-KUSUM Solar Pump Subsidy: Status in 2026 and Alternatives

PM-KUSUM, the central scheme that subsidised solar irrigation pumps for farmers, is not accepting new applications nationally as of October 2026. Union Minister Pralhad Joshi said in August 2026 that "PM Kusum 1 has been completed" and the scheme is closed, while a successor, PM-KUSUM 2.0, is still awaiting Union Cabinet approval. If you want a solar pump now, the realistic options are your state's own scheme, a bank loan, or, for farmer groups, the Agriculture Infrastructure Fund; this guide explains each and how to avoid the fake "PM-KUSUM registration" sites that keep appearing.

All information below is as of 24 October 2026.

What happened to PM-KUSUM

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was launched by the Ministry of New and Renewable Energy (MNRE) in 2019 and ran until March 2026, with a central outlay of about ₹34,422 crore.

Projects already sanctioned: according to reports on an MNRE office memorandum of 28 March 2026, projects whose agreements or notices to proceed were issued by 31 December 2025 can be completed by 31 March 2027, and some state regulators have extended deadlines to match. Secondary sources differ on the exact date for standalone pumps, so if you paid your share and are waiting for installation, ask your state agency for the deadline that applies to you.

What phase 1 achieved

As of July 2026, government data shared by the minister showed:

• 13.07 lakh standalone solar pumps sanctioned and 11.69 lakh installed.
• 1,986.3 MW of farmer-owned grid-connected solar plants installed under Component A, against 10,000 MW sanctioned.
• 16,259 grid-connected pumps solarised individually out of 55,392 sanctioned, and 16,54,044 pumps solarised through feeder-level projects.

How the PM-KUSUM subsidy worked

PM-KUSUM 2.0 is expected to keep a broadly similar structure, so it is worth knowing how phase 1 was built.

For Component B outside special-category areas, the usual split was 30% central, at least 30% state, and up to 40% from the farmer, of which banks could lend up to 30% so that the farmer paid about 10% upfront. Pumps larger than 7.5 HP could be installed, but support was capped at the 7.5 HP level.

Worked example (illustrative)

Assume a 5 HP standalone pump with a benchmark cost of ₹2,50,000. Actual benchmark and tender prices vary by state and year.

If a farmer financed ₹75,000 of the share with a 5-year loan at an assumed 9%, the EMI would be about ₹1,557. You can test other rates in the EMI calculator. Some states added extra subsidy so farmers paid even less.

The minister also said in August 2026 that the GST cut on renewable energy equipment from 12% to 5% makes a 5 HP solar pump about ₹17,500 cheaper.

What to use instead in 2026

1. Your state's own solar pump scheme

Several states have run their own solar pump programmes alongside or on top of PM-KUSUM, often through the state renewable energy agency or the electricity distribution company. Check your state agriculture department or nodal agency website, or ask at the block agriculture office. Terms differ widely, so read the official state notification before paying anything.

2. Register interest for PM-KUSUM 2.0 through official channels only

Officials have said the next phase will be aligned with farm schemes and include a dedicated agrivoltaics component, where crops grow under raised solar panels. Subsidy rates, eligibility and dates are not final until Cabinet approval. When it opens, applications will be announced by MNRE and your state nodal agency. Until then, any site claiming "PM-KUSUM 2.0 registration open, pay ₹X" is a red flag.

3. Agriculture Infrastructure Fund for farmer groups and FPOs

The Agriculture Infrastructure Fund lists standalone solar pumps, pump solarisation and farmer-owned solar plants among eligible assets in convergence with PM-KUSUM, and allows solarisation of any eligible farm infrastructure. It gives 3% interest subvention on loans up to ₹2 crore, with lending capped at 9%. It has mostly been used by SHGs, FPOs, co-operatives and water user groups.

4. A bank loan for a solar pump

Banks finance solar pumps as agricultural term loans, sometimes inside a Kisan Credit Card limit as investment credit. These are at the bank's normal agricultural rate, not the 4% crop loan rate. Get the dealer's quotation, check the pump is from an MNRE-listed manufacturer, and compare the EMI against your diesel or electricity savings.

Eligibility under phase 1 (for reference)

• Component A: individual farmers, groups of farmers, co-operatives, panchayats, FPOs and water user associations, usually on land within about 5 km of a substation.
• Component B: individual farmers, water user associations and community or cluster-based irrigation systems, mainly in areas without grid supply.
• Component C: farmers with an existing grid-connected agricultural pump.
• Typical documents: Aadhaar, land records, bank account details, photograph and, for B, a declaration about grid connection or diesel pump replacement.

Beware of fake PM-KUSUM websites and agents

MNRE has issued public advisories, including in 2019, 2020 and 2021, about fake websites copying the PM-KUSUM name that collect "registration fees" and personal data. The advisories named sites such as kusum-yojana.co.in and kusumyojanaonline.com, and warned that WhatsApp messages were being used too. Rules to follow:

• The official national website is pmkusum.mnre.gov.in. State agencies run applications on their own government (.gov.in or .nic.in) sites.
• Do not pay a registration fee to any private site, WhatsApp number or "agent".
• Do not share OTPs, bank details or Aadhaar on unofficial links.
• If you have paid a fraudster, report it at cybercrime.gov.in or call 1930 at once. See how to spot investment scams for common patterns.

How to complain

1. Sanctioned pump not installed, or poor service: write to your state nodal agency, quoting your application number and payment receipt.
2. Vendor not honouring the 5-year maintenance that phase 1 tenders generally required: complain to the state agency that empanelled the vendor.
3. No response: escalate to MNRE through its website or the central grievance portal (pgportal.gov.in).
4. Bank loan issues: bank grievance officer, then the RBI Integrated Ombudsman at cms.rbi.org.in after 30 days.

Key takeaways

• PM-KUSUM phase 1 is closed to new applicants as of October 2026; already-sanctioned projects are being completed.
• PM-KUSUM 2.0 is planned, with agrivoltaics, but awaits Union Cabinet approval and its terms are not final.
• Phase 1 paid 30% central support (50% in special areas) on solar pumps up to 7.5 HP, with states adding at least 30%.
• Alternatives now: state schemes, a bank loan, or the Agriculture Infrastructure Fund for farmer groups.
• Never pay a "registration fee" to a PM-KUSUM website or agent; use pmkusum.mnre.gov.in and your state agency.