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PM KUSUM Scheme in Telangana — Solar for Farmers 2026 Guide
Updated May 2026 | By Sri Ishaan Solar Team
Telangana farmers can now power their irrigation pumps with sunlight — and slash diesel and electricity costs permanently. Here is everything you need to know about PM KUSUM in Telangana, including the three components, eligibility, how to apply, and realistic costs after subsidy.
What Is PM KUSUM?
PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Uttham Mahabhiyan) is a central government scheme launched in 2019 to bring renewable energy directly to Indian farmers. It is implemented by the Ministry of New and Renewable Energy (MNRE) with state-level execution handled by agencies like TGREDCO in Telangana.
The scheme has three distinct components, each serving a different purpose:
The Three Components of PM KUSUM
Component A — Decentralised Solar Plants on Barren/Agricultural Land
Under Component A, individual farmers, farmer cooperatives, panchayats, or water user associations can install solar power plants of 500 kW to 2 MW on their barren or agricultural land. The generated power is sold to the local DISCOM at a fixed tariff through a 25-year Power Purchase Agreement (PPA).
- Farmers earn a steady passive income from power generation
- Land below the panels can still be used for farming (agro-voltaic model)
- Central financial assistance reduces project cost
- Best suited for farmers with significant fallow or semi-arid land
Component B — Solarisation of Existing Grid-Connected Pumps
This is the most relevant component for most Telangana farmers who already have grid-connected electric pumps. Under Component B, the existing pump is connected to a dedicated rooftop or ground-mounted solar array. The solar power is consumed by the pump first; surplus power is exported to the grid and the farmer is credited.
- No change to existing pump or motor infrastructure
- Reduces electricity bills dramatically (free daytime pumping)
- Surplus power earns you credit with the DISCOM
- Implemented through TSSPDCL and TSNPDCL depending on your district
Component C — Solarisation of Standalone Non-Grid Pumps
Component C targets farmers who do not have a grid connection and use diesel pumps or standalone electric pumps. The diesel pump is replaced with a solar-powered pump. This eliminates fuel costs entirely.
- Central government subsidy: 30% of benchmark cost
- State government subsidy: approximately 30% (varies by state)
- Farmer's share: approximately 40% (can be financed through bank loan)
- No electricity connection required — fully standalone operation
PM KUSUM Eligibility in Telangana
- Individual farmers with agricultural land
- Farmer groups, cooperatives, and Farmer Producer Organisations (FPOs)
- Gram Panchayats with agricultural water bodies
- Water User Associations (WUAs)
- Must have a valid Aadhaar-linked bank account
- For Component A: minimum land holding as required by TGREDCO (typically 1-2 acres per 500 kW)
Solar Pump Sizes and Farmer Cost Estimate (After Subsidy)
| Pump Capacity | Best For | Farmer Share (est.) |
|---|---|---|
| 3 HP | Small plots, kitchen garden, 0.5–1 acre | ₹50,000–₹70,000 |
| 5 HP | Medium farm, 2–3 acres | ₹70,000–₹1,00,000 |
| 7.5 HP | Larger farm, 4–6 acres | ₹1,00,000–₹1,30,000 |
| 10 HP | Large farm or shared pump, 8+ acres | ₹1,30,000–₹1,80,000 |
Note: Farmer share is approximately 40% of benchmark cost after central + state subsidies. Actual amounts depend on TGREDCO's current benchmark rates. Bank financing for the farmer share is available through NABARD and cooperative banks at subsidised interest.
What PM KUSUM Covers vs. What It Does Not
| Covered Under PM KUSUM | NOT Covered |
|---|---|
| Solar panels, mounting structure | Borewell drilling or deepening |
| Solar pump motor and controller | Residential or home electricity needs |
| Installation and civil work | Drip irrigation or sprinkler systems |
| 5-year AMC in many state schemes | Grid connection charges (separate) |
Important: PM KUSUM and PM Surya Ghar (Muft Bijli Yojana) are completely separate schemes. PM Surya Ghar is for residential rooftop solar and is not available for agricultural pump connections. Do not combine or confuse the two.
How to Apply for PM KUSUM in Telangana
- Visit the TGREDCO portal at tgredco.telangana.gov.in or the nearest DISCOM office (TSSPDCL or TSNPDCL).
- Fill the PM KUSUM application form specifying the component (A, B, or C) you are applying for.
- Submit documents: land ownership / patta, Aadhaar card, bank passbook, recent electricity bill (for Component B), and a passport-size photograph.
- A TGREDCO-empanelled vendor (like Sri Ishaan Solar) will conduct a site survey to determine the right pump size and solar array configuration.
- Upon approval, the vendor installs the system. Subsidy is disbursed directly to the vendor; you pay only your 40% share.
Sri Ishaan Solar assists farmers across Hyderabad and Telangana with PM KUSUM applications, site surveys, system design, and installation. We handle the paperwork so you can focus on farming.
WhatsApp for Free AssessmentFrequently Asked Questions
Is PM KUSUM the same as PM Surya Ghar?
No. PM KUSUM is specifically for farmers — covering agricultural solar pumps and small solar plants on barren or agricultural land. PM Surya Ghar (Muft Bijli Yojana) is for residential rooftop solar. The subsidies, eligibility, and implementing agencies are completely different. Do not apply to one expecting the benefits of the other.
Can I sell excess power from Component A?
Yes. Under Component A, your solar plant sells power to the DISCOM at a fixed tariff under a 25-year Power Purchase Agreement. This gives you a reliable secondary income. The land beneath the solar panels can continue to be used for shade-tolerant crops in an agro-voltaic arrangement.
Do I need a borewell to apply?
You should have an existing water source — borewell, open well, canal, or pond. The solar pump replaces or supplements your existing pumping mechanism. The scheme does not fund borewell drilling; only the solar pump system and installation are covered.
How much will I pay after subsidies?
Approximately 40% of the benchmark cost. For a 3 HP pump this is roughly ₹50,000–₹70,000; for a 7.5 HP pump it is roughly ₹1,00,000–₹1,30,000. You can finance this through NABARD-linked cooperative banks or Kisan Credit Card at subsidised rates.
How do I apply for PM KUSUM in Telangana?
Apply through TGREDCO at tgredco.telangana.gov.in or visit your nearest DISCOM office (TSSPDCL in south Telangana, TSNPDCL in north Telangana). You can also contact an empanelled installer like Sri Ishaan Solar who will guide you through the full process including documentation and site survey.