PM-KUSUM subsidy & farmer-cost calculator

The first question a farmer asks is "what will it cost me?" If your answer is wrong, the deal stalls or you lose money. This guide gives you the method, a worksheet and a worked example so you can quote the net payable confidently — while flagging that every subsidy number moves and must be verified.

Note: this page is farmer-facing in its output, but it is written for EPC and business-development staff who quote PM-KUSUM jobs. It is not a self-service homeowner tool.

What this subsidy calculator does

This subsidy and farmer-cost calculator is a method and worksheet, not a live software tool — it shows how to turn a base pump cost into the net amount a farmer pays after central and state subsidy. You start from the benchmark or L1 cost, subtract the subsidies, and land on the farmer share.

Treat every percentage and rupee figure on this page as an illustrative estimate only. The central financial assistance share, the state top-up, the benchmark cost and the GST treatment are set by MNRE and each state and revised periodically. Confirm each value against the state nodal agency, the live tender and the latest MNRE order before you put a price in front of a farmer.

How the PM-KUSUM subsidy stacks

The PM-KUSUM subsidy stacks in layers: a central share, a state share, and the farmer's balance. Understanding the layers is the whole calculation.

Stacking structure shown is illustrative. Central CFA, state share and special-category top-up percentages are estimates — verify with MNRE and the state nodal agency.

The inputs you need to quote

You need four inputs before you can quote a farmer: the HP slab, the base cost, the central share, and the state share. The first two come from the tender; the last two come from the scheme rules.

1. The HP slab and base cost

The HP slab fixes the base cost — usually the MNRE benchmark cost or the winning L1 price for that slab. This is the figure all the percentages apply to, so get it from the live tender, not from memory.

2. The central financial assistance (CFA) share

The central share is the slice MNRE funds. It is a percentage of the base cost and can be higher for special-category and north-eastern states. Confirm the current share against the latest MNRE order.

3. The state share

The state share is the top-up the state adds from its own budget. It varies widely — some states are generous, others minimal — so this is the input that changes most between states. Confirm it with the state nodal agency.

4. The category and GST treatment

The farmer's category (general, SC/ST, special-category state) can change the share, and the GST treatment may add cost on top. Both belong in the quote.

The calculation method

The method is one subtraction with a GST step. Work it in order so the farmer sees a clear number.

• Step 1 — Base cost: read the benchmark or L1 cost for the HP slab from the tender.
• Step 2 — Central subsidy: base cost × central CFA share.
• Step 3 — State subsidy: base cost × state share.
• Step 4 — Farmer share: base cost − central subsidy − state subsidy.
• Step 5 — GST: add GST on the taxable portion if the tender places it on the farmer.

The output is the net payable — what the farmer funds, often through a bank loan. See our farmer financing guide for how that share is funded.

The net-payable worksheet

Use this worked example as your worksheet. Replace the illustrative figures with the verified numbers from your tender and state. The arrows show subtractions.

All amounts and percentages above are illustrative estimates for a 5 HP example only — verify the benchmark cost, central CFA and state share against the SNA, live tender and latest MNRE order.

A worked example

Here is the method run end to end. The numbers are illustrative — your state and tender will differ.

Case: a 5 HP standalone solar pump with an illustrative base cost of ₹3,50,000. Suppose the central CFA share is 30% and the state share is 30% (both estimates to verify). The central subsidy is ₹1,05,000 and the state subsidy is ₹1,05,000, totalling ₹2,10,000. The farmer share before GST is ₹3,50,000 − ₹2,10,000 = ₹1,40,000. If the tender places GST on the farmer, add it to that figure.

Change any one input and the answer moves. A state with a smaller top-up, or a special-category state with a larger central share, gives a different net payable. That is why the worksheet, not a fixed number, is the safe way to quote — and why you confirm each percentage at the time of the bid.

Where GST fits

GST sits on the taxable portion of the supply and can change who pays what. A solar pump install is often treated as a composite supply, with a split between the goods and service portions that affects the effective rate. Whether the farmer or the developer bears it depends on the tender.

Do not guess the rate. Read our GST 70:30 rule guide, check the tender's tax clause, and confirm the current rate with a tax adviser before you finalise the farmer's net payable.

Quoting mistakes to avoid

A wrong farmer quote loses trust or loses money. Avoid these.

• Using last year's percentages — central and state shares are revised; pull the current figures.
• Quoting the benchmark, not the L1 — if the tender is won at L1, that price, not the benchmark, drives the share.
• Forgetting GST — leaving GST out of the quote causes a nasty surprise at billing.
• Ignoring category — SC/ST and special-category cases can change the share the farmer pays.
• Promising a national number — there is no single all-India farmer share; it is always state-specific.

How SuryaHub helps you quote farmers accurately

SuryaHub keeps the moving parts current so your quotes do not drift. It stores the subsidy shares and benchmark cost by state and HP, applies them in the quotation engine, and produces a clean net-payable quote with GST handled — which you can carry into the subsidy-claim workflow later. SuryaHub is pre-revenue; the only real pilots are Suryantra Energy and RGESPL, and every subsidy figure here is a scheme-level estimate, not a guarantee.

Related guides

Frequently asked questions

Sources & references

The funding pattern, central shares and benchmark costs come from primary government sources. Confirm the current figures with the state nodal agency, the live tender and the latest MNRE order before you quote.

• Ministry of New & Renewable Energy (MNRE) ↗

  PM-KUSUM scheme guidelines, central financial assistance shares and benchmark costs.

• PM-KUSUM National Portal ↗

  State pump-cost data, beneficiary counts and the component-wise funding pattern.

• SECI ↗

  Model tender documents showing how the farmer share and benchmark cost are stated.