- PM-KUSUM is tender-driven for EPCs — empanel first, then bid.
- The scheme is run by MNRE and delivered by each state nodal agency.
- Bidding ties up cash: EMD at bid, PBG after award, plus retention.
- Subsidy comes after commissioning; payment can lag — plan working capital.
- Every slab, cost, tariff and deadline here is an estimate — verify with your SNA / the live tender / the latest MNRE order.
This FAQ hub answers the questions small and mid-size solar EPCs ask most about PM-KUSUM. We keep it honest: PM-KUSUM is a competitive, tender-led business, not a subsidy you walk in and claim. Every number below moves with policy, so we flag what you must confirm before you commit.
How PM-KUSUM works for an EPC
PM-KUSUM works for an EPC as a tender-driven business, not a walk-in subsidy. MNRE owns the scheme centrally, and each state nodal agency (SNA) and DISCOM delivers it on the ground. You register, get empanelled, then bid for the tenders they float. The subsidy is real, but it is attached to work you win — not a form you submit.
Who runs PM-KUSUM?
MNRE sets the rules and the central financial assistance (CFA). The SNA — for example MEDA in Maharashtra or RRECL in Rajasthan — runs the tenders and disburses the subsidy. The DISCOM signs the power purchase agreement for Component A and C2 and pays for exported power. You deal with all three.
What does an EPC actually sell?
You sell installed, commissioned and maintained solar assets: ground-mounted plants (Component A), off-grid pumps (Component B), or solarised grid pumps (Component C). Each has its own bid economics, content rules and O&M tail. Read our scheme overview for the full map.
Empanelment and eligibility
Empanelment is the first gate — you must be on the SNA's approved-vendor list before you can bid. Each state runs its own empanelment, with its own forms, turnover and experience tests, and its own validity period. There is no single national vendor list for PM-KUSUM.
Do I empanel once for all of India?
No. PM-KUSUM empanelment is per-state, run by each SNA. A multi-state EPC empanels separately in each state it wants to work in. Our empanelment process guide walks through the steps, and the state nodal agencies directory lists who to approach.
What eligibility do most states ask for?
Most states ask for a registered firm, GST, past solar or EPC experience, minimum turnover, and technical staff. Some ask for prior pump or plant installations. The exact thresholds vary by state and tender, so read each tender document carefully and verify the current criteria with the SNA.
Tenders, EMD and PBG
Tenders are how EPCs reach PM-KUSUM work, and they lock up real money through EMD and PBG. You submit an earnest-money deposit (EMD) with the bid and, if you win, a performance bank guarantee (PBG) after award. Many tenders use the L1 (lowest-evaluated bidder) framework.
How much is the EMD and PBG?
EMD and PBG percentages are set per tender, not nationally. EMD is a small percentage of the bid value, refunded if you do not win; PBG is a larger percentage held for the warranty or O&M period. Treat any figure you see as an estimate and verify the exact percentages and validity in the live tender. Our EMD and PBG financials guide models the cash impact.
What is the L1 framework?
L1 means the lowest-evaluated technically-qualified bidder wins. You first clear the technical criteria, then the lowest price wins the package. Some Component C tenders use a discount on a ceiling cost instead. Read each tender's evaluation clause carefully, because the method changes what a winning bid looks like.
Subsidy and the funding split
PM-KUSUM funding is broadly central financial assistance + state share + farmer share, with the split varying by component, state and category. There is no single national subsidy percentage that applies everywhere. Special-category and North-Eastern states often get a higher central share.
What share does the farmer pay?
In Component B and C1, the farmer typically pays a share of the cost while the centre and state fund the rest. The exact percentage is set by the scheme and the state and is revised periodically, so verify the current slab with the SNA and the latest MNRE order. Our subsidy structure guide breaks it down.
Can a state add extra subsidy?
Yes, some states top up the central and state share to cut the farmer's cost further, and the stacking rules differ by state. See our state subsidy stacking map for how the layers combine. Always confirm the current top-up with the state nodal agency before you quote.
Components A, B and C — quick answers
PM-KUSUM has three components, and each is a different EPC business. Component A is decentralised ground-mounted plants selling power to the DISCOM. Component B is standalone off-grid pumps. Component C solarises existing grid-connected pumps — C1 for individual pumps, C2 at the feeder level.
Which component should a new EPC start with?
Many new EPCs start with Component B or C1 pump work because the unit size is small and the learning curve is gentler than a multi-megawatt Component A plant. Component A needs land, grid-connectivity approvals and far more capital. Match the component to your capital and crew.
What sizes are common?
Common pump sizes are 3, 5, 7.5 and 10 HP, in AC or DC. Component A plants are typically in the 0.5–2 MW range on farmer or barren land. These are scheme norms; the exact sizes allowed in a given tender are set by the state — verify against the live tender.
Payment and cash flow
PM-KUSUM payment is usually slower than the tender timeline suggests, so cash flow is the biggest operational risk. The subsidy is released after commissioning and acceptance, and DISCOM dues for exported power can lag. Plan working capital for several months, not weeks.
What delays payment most?
The common delays are incomplete claim documents, joint-inspection backlogs, DISCOM liquidity, and missing geo-tagged or acceptance-test evidence. Clean documentation speeds release. Our payment timeline FAQ covers the honest ranges, and the DISCOM PPA and payment security guide covers Component A revenue.
DCR, ALMM and quality
Most PM-KUSUM supplies must meet domestic-content (DCR) and ALMM rules plus MNRE technical specifications, and these rules are volatile. The Component-C LoA cutoff, the post-1 June 2026 ALMM List-II direction and the domestic-cell mandate have all shifted and been litigated. Confirm the current requirement against the latest MNRE office memorandum before you buy.
What about the pump controller?
PM-KUSUM pumps use a universal solar pump controller (USPC) so a single controller works across pump types. Modules, pumps and the controller must meet MNRE specs and the approved lists. See our DCR and ALMM compliance guide for the moving parts and how to source safely.
O&M and the five-year tail
PM-KUSUM work carries a long O&M obligation — commonly about five years — and your PBG usually covers it. The asset must keep performing, or the SNA can call the guarantee. Price the O&M and spares into your bid, not as an afterthought.
What does the O&M cover?
O&M usually covers breakdowns, preventive maintenance, spares and performance, with response-time clauses. For pumps it means parts, controllers and repeat farm visits across a wide area. Our 5-year AMC and O&M guide and the why solar pumps fail guide cover the field reality.
Quick-answer matrix
Here are the five questions EPCs ask first, with the short answer and the catch. Use it as a fast gut-check before you read the detailed guides.
Source: SuryaHub reading of MNRE PM-KUSUM guidelines and state tenders. Figures and rules are estimates — verify with the SNA / live tender / latest MNRE order.
How SuryaHub helps EPCs run PM-KUSUM work
SuryaHub is the operating system for solar EPCs, and PM-KUSUM is one of the hardest workloads to run cleanly. SuryaHub keeps your empanelments, tender deadlines, EMD and PBG dates, and the government and DISCOM steps in one place, and tracks each job from bid to subsidy claim so nothing that gates your money slips. SuryaHub is pre-revenue; the only real pilots are Suryantra Energy and RGESPL, and every scheme figure here is a published estimate, not a guarantee.
Run every PM-KUSUM bid and job in one place
See how SuryaHub tracks tenders, PBGs, O&M and subsidy claims.
Related guides
Frequently asked questions
How does PM-KUSUM work for an EPC?+
PM-KUSUM works for an EPC as a tender-driven business, not a walk-in subsidy. You register with the state nodal agency, get empanelled, then bid for tenders the agency or DISCOM floats. Winning needs an EMD at bid and a PBG after award. All slabs and timelines are estimates — verify with the SNA and the live tender.
Is PM-KUSUM a subsidy I can just apply for?+
No. For an EPC, PM-KUSUM is not a subsidy you can just apply for. The central financial assistance flows to projects won through competitive tenders run by each state nodal agency and DISCOM. Farmers apply for pumps; EPCs win the work by bidding. Confirm the current process with your state nodal agency.
Who pays the EPC under PM-KUSUM, and when?+
Under PM-KUSUM, the state nodal agency releases the central and state subsidy, usually after commissioning and acceptance, while the DISCOM pays for exported power in Component A and C2. Payment timing varies a lot by state. Treat any timeline as an estimate and verify the SLA against the live tender or order.
What are EMD and PBG in a PM-KUSUM tender?+
In a PM-KUSUM tender, EMD is the earnest-money deposit you submit with the bid, and PBG is the performance bank guarantee you submit after award. Both lock up working capital and the PBG usually covers the warranty or O&M period. Exact percentages and validity are set per tender — verify the current figures with the live tender.
What is the difference between Component A, B and C?+
PM-KUSUM Component A is decentralised ground-mounted plants selling power to the DISCOM. Component B is standalone off-grid solar pumps for farmers without a grid connection. Component C solarises existing grid-connected pumps, with C1 for individual pumps and C2 for feeder-level solarisation. Sizes and tariffs vary by state — verify with the state nodal agency.
How long does PM-KUSUM payment take?+
PM-KUSUM payment timing is state-specific and often slower than the tender suggests. The subsidy is usually released after commissioning and acceptance, and DISCOM dues for exported power can lag. Plan working capital for several months and verify the payment SLA against the relevant order, because timelines here are estimates, not guarantees.
Do PM-KUSUM supplies have to be DCR or ALMM compliant?+
Yes — most PM-KUSUM supplies must meet domestic content and ALMM rules plus MNRE technical specifications, and pumps use a universal solar pump controller. These rules are volatile and have been litigated, so the exact list and cutoff dates change. Confirm the current requirement against the latest MNRE office memorandum before you buy.
Sources & references
The answers here are read from primary government sources. PM-KUSUM slabs, costs, tariffs, percentages and deadlines are set by MNRE and each state and revised periodically — always confirm the current figure with your state nodal agency, the live tender, or the latest MNRE order before you bid.
- Ministry of New & Renewable Energy (MNRE) ↗
PM-KUSUM scheme guidelines, benchmark costs and amendments.
- PM-KUSUM National Portal ↗
Scheme dashboard, component rules and state progress.
- SECI ↗
Model tender documents and central procurement references.
Written by the SuryaHub team · reviewed against MNRE, PM-KUSUM National Portal & SNA sources · updated 19 June 2026.
Method: Answers are read from the government sources above and re-checked every 30 days. All slabs, costs, tariffs, percentages and deadlines are estimates to verify with the SNA / live tender / latest MNRE order. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.