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PM-KUSUM hub · Component C-2 income

PM-KUSUM Component C-2 net metering: how farmers earn from surplus solar

How a solarised pump exports surplus power, how export credit works by state, and how EPCs pitch the extra income honestly — as a range, never a guaranteed return.

By the SuryaHub team Updated 19 June 2026 12 min read
TL;DR for EPCs
  • C-2 solarises a single farmer pump that can export surplus power.
  • The farmer earns by selling unused solar units to the DISCOM.
  • Income depends on plant size, pump use and the state export-credit rate.
  • Always pitch income as a range, never a guaranteed return.
  • Credit rate and capacity multiplier — verify with the state SERC order.

The surplus-income story is the strongest reason a farmer says yes to C-2. Done right, it is a genuine, repeatable pitch. Done wrong — with inflated numbers — it burns your brand. This guide shows how the money works and how to pitch it cleanly.

What PM-KUSUM Component C-2 net metering is

PM-KUSUM Component C-2 net metering lets a farmer with a solarised grid-connected pump export surplus solar power to the DISCOM and earn credit for it. The pump runs on solar by day, and the power the farmer does not use flows back to the grid through a net meter.

This is what separates a solarised pump from a plain off-grid one. In Component B, an off-grid pump has nowhere to send spare power. In Component C-2, the grid connection turns that spare power into income. The rules that decide how much come from the state SERC order, so they vary across India.

How farmers earn from surplus power

Farmers earn from a C-2 solar pump by exporting unused solar units to the DISCOM and getting net-metering credit or payment for them. There are two parts to the benefit.

  • Saved grid cost — the pump runs on free solar instead of grid power in daylight.
  • Surplus credit — extra solar units exported to the grid earn a credit or payment.

The mix between the two depends on how much the pump runs. A pump used heavily in irrigation season exports less; an idle pump exports more. That is why a realistic income figure has to start from the farmer's actual run pattern, not a best case.

How export credit works

Export credit is the rate the DISCOM gives for each surplus unit, and it is set by the state SERC. There are three common settlement types, and which one applies changes the value of every exported unit.

Net metering, net billing and banking

Under net metering, exported units offset imported units at the retail rate. Under net billing, exports are bought at a separate, often lower, rate. Under banking, surplus units are carried forward and settled periodically. The net-metering hub explains these mechanisms in depth. For C-2, confirm which one the state applies before you model income.

A worked income example (illustrative)

The drivers below decide a farmer's surplus income. We show them as a checklist rather than a single number, because every value moves by state and site. Use this to build an honest range.

Plant capacity vs pump load
A larger plant exports more surplus, within the tender cap
Set by tender / SERC (verify)
State export-credit rate
The rate the DISCOM credits for surplus units
Per SERC order (verify)
Settlement type
Net metering, net billing or banking
Differs by state (verify)
Pump run hours
More self-use leaves less to export
Site-specific
Seasonality
Irrigation seasons change export volume
Site-specific

All rates, multipliers and settlement rules are estimates — verify against the current state SERC order and the live tender.

To turn this into a number for a farmer, plug their site values into our farmer cost calculator and pair it with the local SERC rate. Always present the result as a range with an estimate label.

Why C-2 income differs by state

C-2 income differs by state because each State Electricity Regulatory Commission sets its own net-metering rules, settlement type and credit rate. Two farmers with identical pumps in different states can earn very different amounts.

The capacity multiplier — how much plant you can install above the pump's load — also varies by tender and SERC order, and it directly caps how much surplus a farmer can export. Confirm the current C-2 export-credit treatment and capacity multiplier against the relevant state SERC order and the live tender before you pitch any income.

How EPCs pitch C-2 income

The C-2 pitch is strongest when it is concrete and local. Lead with the two benefits the farmer feels: a lower power bill and a credit for surplus. Then show a state-specific range.

Build a simple, local number

Use the farmer's real pump rating and run hours, the local SERC export rate, and a realistic export share. Show the saved grid cost and the surplus credit separately, so the farmer sees where each rupee comes from. A clear, modest range converts better than a flashy headline number that the farmer's neighbour later disproves.

Pitching it honestly

EPCs should pitch C-2 income using realistic numbers presented as a range, never a guaranteed return. This is not just ethics — it is brand protection. Inflated promises create complaints, refunds and bad word of mouth in tight rural networks.

  • Label every figure an estimate to verify with the DISCOM and SERC order.
  • Show a range, with a low case for heavy pump use and a high case for light use.
  • Separate savings from surplus, so the farmer understands both parts.
  • Never promise a fixed monthly cheque — credit depends on actual export.

Risks to flag to the farmer

A few risks can shrink C-2 income, and naming them upfront builds trust.

  • Rule changes — a new SERC order can change the credit rate over time.
  • Net-meter delays — surplus only earns once the net meter is installed and sealed.
  • Heavy irrigation seasons — high self-use leaves little surplus to export.
  • Settlement caps — some states cap or reset carried-forward credit each year.

How SuryaHub helps EPCs sell C-2 right

A clean C-2 pitch needs a fast, honest quote and a job that actually reaches net metering. SuryaHub builds the surplus-income range into a solar quotation, runs the net-metering and DISCOM steps so the meter is installed, and tracks the job to handover. SuryaHub is pre-revenue; the only real pilots are Suryantra Energy and RGESPL, and every income figure here is an estimate to verify with the SERC order.

Quote C-2 income honestly

See how SuryaHub builds a state-specific surplus range into every quote.

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Frequently asked questions

What is PM-KUSUM Component C-2 net metering?+

PM-KUSUM Component C-2 net metering lets a farmer with a solarised grid-connected pump export surplus solar power to the DISCOM and get credit for it. The pump runs on solar by day, and unused power flows to the grid. The export-credit rate and settlement rule are set by the state SERC order, so verify the current terms.

How do farmers earn money from a C-2 solar pump?+

Farmers earn from a C-2 solar pump by exporting the solar power they do not use to the DISCOM and receiving net-metering credit or payment for it. The income depends on plant size, how much the pump uses, and the state export-credit rate. Treat any earnings figure as an estimate to confirm with the SERC order.

How much can a farmer earn from PM-KUSUM C-2 surplus power?+

The earnings from PM-KUSUM C-2 surplus power vary widely by plant size, pump use, season and the state export-credit rate, so no single figure applies nationally. EPCs should model income from the local SERC rate and realistic export volume, present it as a range, and label it an estimate to verify, never a guaranteed return.

Does C-2 export credit differ by state?+

Yes, C-2 export credit differs by state because each State Electricity Regulatory Commission sets its own net-metering rules, settlement type and credit rate. The capacity multiplier allowed above pump load also varies. Always confirm the current C-2 export-credit treatment against the relevant state SERC order and the live tender before you pitch income.

How should EPCs pitch C-2 income to farmers?+

EPCs should pitch C-2 income to farmers using realistic, state-specific numbers presented as a range, never a guaranteed return. Show the saved grid cost plus the surplus credit, label every figure an estimate to verify with the DISCOM, and base it on the current SERC rate. Honest ranges build trust and protect your brand.

Is C-2 net metering the same as feeder solarisation?+

No, C-2 net metering is not the same as feeder solarisation. C-2 here refers to individual pump solarisation where a single farmer exports surplus power, while feeder-level solarisation builds one larger plant for a whole feeder. PM-KUSUM uses Component C labels differently across orders, so confirm the exact scope in the tender.

Sources & references

The surplus-sale provision, settlement types and export-credit rates come from MNRE and the state SERC orders. Treat all rates and multipliers as estimates and confirm the current rule with the DISCOM and SERC before you pitch income.

Written by the SuryaHub team · reviewed against MNRE, PM-KUSUM portal & SERC sources · updated 19 June 2026.

Method: The surplus-income drivers are taken from the government sources above and re-checked every 30 days. All export rates, multipliers and settlement rules are estimates to confirm with the DISCOM, the state SERC order and the live tender. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.

Change log: 19 Jun 2026 — first published.

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