PM KUSUM Yojana: Govt is Offering 90% Discount on Solar Pumps; Earn in Lakhs and Get These Benefits

Government has been encouraging farmers towards using Solar Energy by initiating different schemes. If you also want to start profitable agri- business related to solar energy, then you can think of joining the central government's PM Kusum Yojana.

Aiming to double farmers' income by 2022, the central government has started many schemes for farmers. PM Kusum Yojana was first launched in the year 2019, after which the Finance Minister Nirmala Sitharaman has expanded the scheme in the budget 2020.

Under this scheme, farmers get solar panels on subsidy, from which they can make electricity and sell it to department. By using electricity as needed, they can earn additional income by selling the rest. Under this scheme, 20 lakh farmers will be helped to install solar pumps. Moreover, around 15 lakh farmers will be provided funds to install grid connected solar pumps. The government has announced to spend 34,422 crore rupees on this plan, says reports.

Solar Pump – a Source of Income

Electric or diesel powered irrigation pumps will be converted into solar energy powered pumps through this scheme. Electricity generated from solar panels will be used first in their irrigation work. Apart from that, the electricity which will be left extra, can sell to 25 years to the Electricity Distribution Company (DISCOM). Another advantage of this is that solar energy will also relieve the expenses of diesel and electricity and reduce pollution.

Get 90% Discount on Solar Pump

As per new rules, farmers have to pay only 10% of the amount to install solar panels on their land. Central and state governments give 60 per cent subsidy to the farmers in the bank account. There is a provision for equal contribution from the Center and the states. At the same time, there is a provision of 30 percent loan from the bank. Farmers can easily fill this loan with their income.

How to Apply for solar pump yojana?

For the application under PM Kusum scheme, registration has to be done by visiting the official website https://mnre.gov.in/. For setting up a solar plant, the land should be within 5 km radius of the power sub-station. Farmers can get the solar plant leased to themselves or to the developer.

Subsidy Structure of Solar Scheme

Under the scheme, the farmer will get subsidy on new and improved solar-powered pumps. The farmers will have to spend only 10% of the total expenditure to acquire an install a solar pump and 60% cost will be handled by govt and the remaining 30% will be taken care of by the bank as credit.

Central Government - 60% of the total cost as Subsidy

Banks - 30% of the total cost as Loans to Farmers

Farmers - 10% of the Total Cost

Eligibility for PM Kusum Yojana 2020

Applicants should be a farmer and should have a valid Aadhaar Card on his name. Farmers must also hold a valid bank account.

Important Documents for Solar Pump Yojana 2020

Aadhaar Card

Bank Account