Schemes for Installation and Use of Solar Energy Systems in Rural and Urban areas

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)


(a) Component-A: 10 GW Installation of Renewable power plants (incl. solar) up to 2 MW capacity on barren/agriculture land.

(b) Component-B: Installation of 17.5 lakh standalone solar pumps up to 7.5 HP capacity each for irrigation purpose

(c) Component-C: Solarization of 10 lakh existing agricultural pumps up to 7.5 HP capacity each.

Benefits Available

For Component-A, DISCOM would be eligible to get PBI @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the COD

For Component-B and C, CFA (Central financial assistance) of 30% of the benchmark cost or the tender cost of standalone pump or solarization of the existing pump, whichever is lower, will be provided. However, in North-Eastern states including Sikkim; states of Himachal Pradesh and Uttarakhand; UTs of Jammu & Kashmir and Ladakh; and island UTs of Lakshadweep and A&N, CFA of 50% of the benchmark cost or the tender cost, whichever is lower will be provided. The State Government will also provide subsidy up to 30% or higher.

Off-grid Solar PV Schemes


a) Solar Street Lights / Power packs under off-grid Ph-III programme

b) Solar Study lamps under off-grid Ph-III programme

c) Solar Study lamps under 70 lakh Solar Study lamps scheme

d) Solar Street light under AJAY scheme

Benefits Available

CFA up to 30% and 90% of the project cost for general category and special category States respectively. CFA up to 85% of the lamp cost. Student contribution Rs 100/- per lamp and balance to be paid as CFA. CFA up to 75% of the project cost.

Grid Connected Rooftop Solar PV Power Projects in the residential sector under Ph-II


4000 MW

Benefits Available

Central Financial Assistance will be as under

(i) Residential sector (maximum up to 3 kW capacity ) – 40 % of the benchmark cost

(ii) Residential sector (above 3 kW capacity and up to 10 kW capacity) – 40 % up to 3 KW Plus 20% for RTS system above 3 kW and up to 10 kW

(iii) Group Housing Societies/Residential Welfare Associations (GHS/RWA) etc. for common facilities up to 500 kWp (@ 10 kWp per house), with the upper limit being inclusive of individual rooftop plants already installed by individual residents in that GHS/RWA at the time of installation of RTS for common activity.

Source of data – LS questions

Author Profile

Mritunjay Sharma
Mritunjay Sharma
Mritunjay Sharma finished his B.Sc (H) from Kirori Mal College, Delhi University in Chemistry. After that he went to England to study Masters in Polymer Material Science and Engineering from University of Manchester and consequently finished his PhD in Nuclear and Materials Chemistry from University of Manchester

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