PM-KUSUM for Indian solar EPCs: the agri-solar execution playbook

PM-KUSUM is the largest agriculture-solar programme in India, and for an EPC it is a different business from rooftop. There is no walk-in customer. You win work by getting empanelled with a state nodal agency and bidding into tenders. This guide explains PM-KUSUM from the EPC's side: the components, empanelment, the economics, compliance, the states, and how the money flows.

What PM-KUSUM means for an EPC

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a central scheme from the Ministry of New and Renewable Energy (MNRE) that brings solar power to farms. It funds solar plants on farmland, standalone solar pumps, and the solarising of existing electric pumps. The aim is cheaper, cleaner irrigation and extra income for farmers.

For you, the EPC, PM-KUSUM is a tender business. Each state runs the scheme through a state nodal agency (SNA) and its DISCOMs. You register, get empanelled, and bid for packages of pumps or plants. Win the bid, and you supply, install, test and maintain the systems for years. The farmer is the beneficiary, but the SNA and the tender are your customer.

Why the EPC carries this, not the farmer

Most PM-KUSUM content online speaks to farmers chasing a subsidy. Your reality is different. You read the tender, build the cost sheet, post the earnest money and performance guarantee, source compliant modules and pumps, manage farmer documents, and survive a long payment cycle. That is an operational and financial load — and the part of agri-solar most likely to erode a thin margin.

Components A, B and C explained

PM-KUSUM works through three components, plus a feeder track often counted separately. Know which one a tender belongs to before you bid, because the cost base, the customer and the risk are completely different.

Component A — ground-mounted plants

Component A funds small solar plants, typically 0.5 to 2 MW, built on a farmer's or a developer's land near a substation. The plant sells power to the DISCOM at a fixed tariff. This is a land-and-tariff play, closer to open access than to pump work. Read the Component A developer guide and the tariff economics before you commit.

Component B — standalone solar pumps

Component B funds off-grid solar pumps for farmers with no electricity connection. Pumps are sized by horsepower (HP), and tenders are usually large volumes of pumps. This is the highest-volume EPC opportunity and the natural fit for a pump-focused installer. Start with the Component B EPC guide and the pump-sizing guide.

Component C — solarising existing pumps

Component C solarises pumps that already run on grid power. C1 fits a solar system to an individual pump; C2 solarises a whole agricultural feeder so many pumps run on solar. See the feeder solarisation guide and our explainer on what feeder solarisation is. Not sure which to chase? Compare Component B vs C.

Empanelment and tenders

You cannot bid for PM-KUSUM until you are empanelled with the state nodal agency. Empanelment is the gate, and it is state-specific. The SNA issues a tender or an empanelment notice with eligibility criteria — turnover, experience, technical staff and net worth — and you qualify by submitting documents and the earnest money deposit (EMD).

The path in

The route runs the same way in most states: register with the SNA, submit the empanelment application with company and financial documents, qualify on the eligibility criteria, then bid for tender packages as they are released. Our empanelment process guide walks through each step, and the state nodal agency directory lists who runs the scheme where.

What the tender asks for

A PM-KUSUM tender asks for a defined document set: company registration, audited accounts, experience certificates, the EMD, and the signed bid forms. After you win, you post a performance bank guarantee (PBG) and accept the model agreement. Keep a tender document checklist ready, because a missing certificate can disqualify an otherwise winning bid.

Where the margin really is

The PM-KUSUM margin sits in the gap between the discovered bid price and your true delivered cost. That cost is more than the pump and modules — it includes balance of system, transport to scattered farm sites, the PBG, and five years of O&M. EPCs that bid on hardware alone and forget service or working capital lose money on volume.

Build the cost sheet first

Before you bid, model every line: pump and controller, DCR modules, structure, cable and balance of system, logistics, EMD and PBG cost, GST treatment, and the O&M reserve. Our bid economics guide and the bid cost-sheet template show how to do this line by line, and the cost-by-HP benchmark gives a starting point. Treat every number as an estimate to confirm against the live tender.

CAPEX or RESCO?

For Component A especially, decide how you carry the project. Under CAPEX you own and sell power; under a RESCO model a developer funds it and you execute. The choice changes your capital, your risk and your return. Read RESCO vs CAPEX before you sign, and run the numbers with the subsidy and farmer-cost calculator.

DCR, ALMM and quality

PM-KUSUM supplies must meet domestic-content (DCR) and ALMM rules, and the hardware must clear quality inspection. The DCR and ALMM requirements decide which modules and cells you can use, and they change with each MNRE order — getting this wrong can void a claim or get you blacklisted.

Read the DCR and ALMM compliance guide and the MNRE technical specification before you order. The quality-inspection and blacklisting guide covers what an inspector checks and how to stay off the blacklist. Treat the ALMM List-II and domestic-cell timelines as volatile and confirm them against the latest MNRE memorandum.

Why PM-KUSUM varies by state

PM-KUSUM is a central scheme delivered by each state, so the practical rules differ everywhere. Each state nodal agency sets its own subsidy top-up, tender design, benchmark cost, timelines and payment terms. Haryana, Maharashtra and Rajasthan all run the scheme differently — a plan that works in one state will not match another line for line.

That is why this hub carries a dedicated guide for each major state, from Maharashtra and Haryana to Rajasthan and beyond. If you work across states, start with the multi-state operations guide and the state subsidy-stacking map.

The deadlines to track

PM-KUSUM runs on hard deadlines, and missing one can cost you the LoA or trigger a penalty. Letters of award, financial-closure dates, commissioning windows and the periodic revision of benchmark costs all have dates attached, and the scheme has been extended several times.

Keep the moving dates in view with our deadlines and timeline tracker, watch the benchmark-cost revisions that change your maths, and follow the SERC relaxations tracker. Always confirm any extension or cutoff against the latest MNRE office memorandum before you rely on it.

Executing the job and getting paid

Winning the bid is the start. Execution means farmer documentation, site survey, delivery to scattered villages, installation, commissioning and the acceptance test — then the long wait for payment. The central financial assistance is usually released after commissioning and verification, while the state and farmer shares follow their own schedules.

Plan for the gap. EPCs commonly fund weeks to months of working capital, so the subsidy-claim process and the DISCOM PPA and payment security matter as much as the install. After commissioning, the five-year O&M obligation begins — budget for it, because a defaulted O&M can encash your PBG.

The complete PM-KUSUM hub

This pillar is the overview. The full topic is broken into focused guides below — each written for the EPC, grouped into clusters. Start with the components, empanelment, the economics, and your state.

How SuryaHub runs PM-KUSUM end to end

SuryaHub is the operating system for solar EPCs. It tracks a PM-KUSUM pipeline from tender and empanelment through procurement, installation and the five-year O&M, with farmer documents and the subsidy-claim workflow in one place. The tender, empanelment and claim steps live in the government-workflow module, alongside project management for the rest of the job.

SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and any performance figures are early estimates, not guarantees. The scheme facts on this page come from government sources and should always be confirmed against the current MNRE or state order before you quote a farmer or commit to a tender.

Related guides

Frequently asked questions

Sources & references

The facts on this page — the component definitions, the empanelment path and the compliance rules — come from MNRE scheme guidelines and state tenders. PM-KUSUM slabs, benchmark costs and deadlines change with each order, so always confirm the current figures with the state nodal agency before quoting a farmer or bidding.

• Ministry of New & Renewable Energy (MNRE) ↗

  The PM-KUSUM scheme guidelines, benchmark costs and component definitions.

• PM-KUSUM National Portal ↗

  The official scheme dashboard, state allocations and progress.

• SECI ↗

  Central tenders and the model documents used across many states.