Reduce costs and boost productivity with AI Solar’s farm solar solutions under the PM-KUSUM Scheme. Start your free consultation today!
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Start with a free expert consultation from AI Solar and discover how the PM-KUSUM Scheme can help you reduce electricity costs, enhance efficiency, and achieve energy independence for your farm.
Connect with us today and take the first step toward sustainable farming with solar power!
What is PM-KUSUM?
The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme, launched by the Ministry of New and Renewable Energy (MNRE) in 2019, promotes the use of renewable energy in the agricultural sector. It aims to provide energy security to farmers while helping India achieve its goal of 40% electric power generation from non-fossil-fuel sources by 2030.
Key Components of the PM-KUSUM Scheme
Component A: Decentralized Grid-Connected Power Plants
Establish solar or renewable energy plants ranging from 500 kW to 2 MW.
Enables farmers to generate and sell surplus solar power to the grid for additional income.
Component B: Standalone Solar Agriculture Pumps
Installation of solar pumps up to 7.5 HP, replacing traditional diesel pumps.
Helps reduce fuel costs and lowers environmental impact.
Component C: Solarization of Grid-Connected Pumps
Integrate solar energy with existing grid-connected pumps.
Reduces electricity bills and ensures reliable, uninterrupted irrigation power.
Eligibility Criteria
Eligible entities include:
Individual farmers
Self Help Groups (SHGs)
Joint Liability Groups (JLGs)
Cooperatives
Panchayats
Farmer Producer Organizations (FPOs)
Water User Associations (WUAs)
Financial Assistance under PM-KUSUM
Loan Structure:
Component A: 70% loan, 30% borrower contribution.
Components B & C: 30% loan, 10% borrower contribution, and 60% government subsidy.
Competitive interest rates with flexible repayment terms ranging from 7 to 15 years.
Security & Insurance:
Loans secured through asset hypothecation, land mortgage, and Power Purchase Agreement (PPA).
Comprehensive insurance coverage for financed solar assets.
Implementation & Due Diligence
All projects undergo strict due diligence and are implemented in line with MNRE guidelines. The scheme falls under Priority Sector: Agriculture – Farm Credit, supporting sustainable agricultural growth through renewable energy adoption.
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