- PM-KUSUM = agri solar, won by tender, bigger tickets, heavy working capital.
- PM Surya Ghar = household rooftop, won by demand, smaller jobs, lighter cash.
- KUSUM ties up EMD, PBG and ~5-year O&M; rooftop frees that cash for volume.
- Small local EPC? Start rooftop. Strong balance sheet in farm country? Bid KUSUM.
- Many EPCs run both to smooth cash between tender wins and rooftop demand.
- All subsidy and deadline figures here are estimates — verify with MNRE before you bid.
This is an EPC's decision, not a homeowner's. You are choosing where to point your sales team, your cash and your installers. PM-KUSUM and PM Surya Ghar are both MNRE schemes, but they reach you in opposite ways — one is a tender you must win, the other is demand you must capture. This guide compares them on the things that decide profit.
What each scheme actually is
The two schemes solve different problems for different people, so they reach an EPC through different doors. Get this clear first and the rest of the call gets easier.
PM-KUSUM — agri solar via tenders
PM-KUSUM is MNRE's farm-solar scheme. It runs through state nodal agencies (SNAs) and DISCOMs, and it is tender-driven. You get empanelled, then bid in competitive tenders, post EMD and PBG, and often carry around five years of O&M. It has three components, covered in our components A, B and C guide.
PM Surya Ghar — rooftop for households
PM Surya Ghar is MNRE's rooftop-for-households scheme. The homeowner applies on the National Portal and picks an empanelled vendor — that vendor is you. Subsidy is a fixed slab paid to the homeowner, with a PBG per DISCOM. It is demand-led, not tender-led. Read the full picture on the PM Surya Ghar hub.
Who the customer is
The customer decides how you sell, and the two schemes have very different customers. This is the single biggest difference for your business.
KUSUM: the farmer, reached through the SNA
In PM-KUSUM your end user is the farmer, but you do not sell to the farmer directly. The SNA and DISCOM stand between you, and they run the tender. You win the right to serve farmers by ranking lowest on a clean, compliant bid.
Surya Ghar: the homeowner, reached through the portal
In PM Surya Ghar your end user is the homeowner, and you reach them almost directly. They search, they apply, and they choose a vendor from a list. Your job is to be visible, trusted and quick — a marketing and service game, not a bidding game.
How you win work: tender vs demand
PM-KUSUM work is won by tender; PM Surya Ghar work is won by demand. That one line shapes your whole operation.
The tender model (KUSUM)
You get on the empanelment list, watch for tenders, and submit a two-part bid with EMD. Win and you get a block of work — but the price is set by the lowest evaluated bid, so your margin is decided in the bid room. See the empanelment process and the bid economics for the full flow.
The demand model (Surya Ghar)
You register as a vendor, then earn jobs one at a time as homeowners pick you. There is no EMD and no L1 race. Instead you compete on leads, reviews, speed and price on the open market. Your pipeline is only as strong as your marketing.
Money in and working capital
The biggest hidden difference is working capital. KUSUM locks your cash; Surya Ghar frees it. This alone can decide which scheme your business can afford.
Where the subsidy money comes from
In PM-KUSUM the funding is split between a central CFA, a state share and a farmer share, and the split varies by component and state. In PM Surya Ghar the homeowner gets a fixed subsidy slab on the rooftop system. Both numbers move — the PM-KUSUM CFA percentage and the PM Surya Ghar disbursal terms are estimates here, so verify against MNRE pages for both schemes at publish.
What ties up your cash
KUSUM ties up money in EMD, PBG and roughly five years of O&M, so every tender parks working capital for a long time. Our EMD and PBG guide covers this in detail. Surya Ghar is lighter — a PBG per DISCOM and a faster job cycle, so cash turns over quicker and you can fund volume instead of locking it in guarantees.
Components and ticket size
KUSUM is one scheme with three components and bigger tickets; Surya Ghar is one product sold in volume. The shape of the work is different.
KUSUM components and ticket
- Component A — ground-mounted plants of 0.5–2 MW that sell power to the DISCOM.
- Component B — standalone off-grid solar pumps, sized by horsepower.
- Component C — solarising grid-connected ag pumps: C1 individual, C2 by feeder.
Tickets are large — a pump tender in bulk or a megawatt-scale plant. One win can be a big chunk of your year, but you carry it for years too. The RESCO vs CAPEX model changes how much you fund.
Surya Ghar ticket
Surya Ghar is a single product — a grid-tied residential rooftop, usually 1–10 kW. Each ticket is small, so the business is built on volume: more homes, faster installs, steady service. You win on throughput, not on one big contract.
Which suits a small local EPC
A small local EPC with tight cash usually fits PM Surya Ghar first. Rooftop jobs are smaller and faster, with no large EMD and no five-year O&M lock-up.
You can start with a handful of homes in your own town, build reviews, and grow on cash flow rather than guarantees. PM-KUSUM is harder to enter cold, because the eligibility clauses, EMD and O&M demand a balance sheet a young firm may not have yet. Many EPCs build rooftop first, then graduate into KUSUM tenders once they can carry the working capital.
Which suits a marketing-heavy installer
A marketing-heavy installer with strong lead generation usually wins big with PM Surya Ghar. The demand model rewards exactly what they are good at.
If you can generate homeowner leads, close fast and keep ratings high, rooftop volume scales with your marketing spend. There is no bid room capping your price — you compete in the open market. KUSUM rewards a different strength: a clean bid process and deep working capital. So a marketing shop leans rooftop, while a tender-disciplined, cash-strong firm leans KUSUM.
Can you do both?
Yes — and many EPCs run both schemes on purpose. They serve different customers, so together they smooth your cash flow and spread your risk.
KUSUM gives big, lumpy tender wins; Surya Ghar gives steady rooftop demand. Run together, a slow tender season is cushioned by rooftop volume, and a thin rooftop month is balanced by a tender block. The catch is complexity: each scheme has its own empanelment, documents, subsidy flow and deadlines, so you need one system to run both without dropping a claim or a date. The PSG decision guide walks the same call from the rooftop side.
Deadlines and subsidy — always verify
Both schemes change their subsidy structures and deadlines, so never bid on a number from a guide alone. Treat every figure here as an estimate.
The PM-KUSUM CFA percentage and the PM Surya Ghar disbursal terms in this article are estimates. Before you commit cash, verify against MNRE pages for both schemes at publish — tender windows, empanelment dates, subsidy slabs and CFA splits all move, and a stale number can wreck a bid. Check the live portals every time.
PM-KUSUM vs PM Surya Ghar: the comparison matrix
Here is the whole decision in one view. Read down the dimension that matters most to your business — usually working capital or how you win work.
How SuryaHub helps you run both
The schemes pull in opposite directions, so running both by hand gets messy fast. SuryaHub is a multi-scheme operating system that runs PM-KUSUM and PM Surya Ghar in one place — tracking each empanelment, document, subsidy claim and deadline through government-workflow tracking on the SuryaHub platform. So a tender deadline and a rooftop subsidy claim never fall through the gap between two models. SuryaHub is pre-revenue; its only real pilots are Suryantra Energy and RGESPL, and the figures here are scheme estimates, not guarantees.
Run KUSUM and Surya Ghar in one place
See how SuryaHub tracks both schemes' empanelments, claims and deadlines.
Related guides
Frequently asked questions
What is the difference between PM-KUSUM and PM Surya Ghar?+
PM-KUSUM is an agri-solar scheme for farmers, run through state nodal agencies and DISCOMs, where an EPC wins work by competitive tender. PM Surya Ghar is a rooftop scheme for households, where the homeowner applies on a national portal and picks an empanelled vendor. KUSUM is tender-led; Surya Ghar is demand-led.
Which scheme should a small local EPC bid for?+
A small local EPC with limited working capital usually fits PM Surya Ghar better, because rooftop jobs are smaller, the cycle is faster, and there is no large EMD or long O&M lock-up. PM-KUSUM suits EPCs that can carry EMD, PBG and roughly five years of O&M, and that work in rural or agricultural districts. Many start with rooftop and add KUSUM later.
Is PM-KUSUM more profitable than PM Surya Ghar for an EPC?+
Neither is simply more profitable. PM-KUSUM has bigger tickets but ties up cash in EMD, PBG and long O&M, and the price is set by competitive tender. PM Surya Ghar has smaller tickets won in volume, with lighter working capital and a marketing-driven pipeline. Margins depend on your costs, your district and how well you run each model.
How does an EPC win work under each scheme?+
Under PM-KUSUM you first get empanelled with the state nodal agency, then win competitive tenders, usually at the lowest evaluated price. Under PM Surya Ghar you register as an empanelled vendor with the DISCOM, and homeowners on the National Portal choose you. So KUSUM is won by bidding and Surya Ghar by demand and reputation.
Can a solar EPC run both PM-KUSUM and PM Surya Ghar?+
Yes, and many EPCs do. The schemes serve different customers, so running both spreads risk and smooths cash flow between tender wins and rooftop demand. The challenge is that each has its own empanelment, documents, subsidy flow and deadlines, so you need a system to track both without errors.
How do the subsidies differ between PM-KUSUM and PM Surya Ghar?+
In PM-KUSUM the funding is split between a central financial assistance share, a state share and a farmer share, and the split varies by component and state. In PM Surya Ghar the homeowner gets a fixed subsidy slab on a residential rooftop. Both subsidy structures change, so verify the current PM-KUSUM CFA percentage and the PM Surya Ghar disbursal terms against the MNRE pages for both schemes at publish.
How does SuryaHub help an EPC run both schemes?+
SuryaHub is a multi-scheme operating system that runs PM-KUSUM and PM Surya Ghar in one place, tracking each empanelment, document, subsidy claim and deadline so nothing slips between the two models. SuryaHub is pre-revenue, with Suryantra Energy and RGESPL as its only real pilots, and all subsidy and deadline figures here are estimates to verify with MNRE.
Sources & references
Scheme purpose, customer, win model and funding come from the PM-KUSUM and PM Surya Ghar portals and MNRE guidelines. Subsidy slabs, CFA splits and deadlines change — verify against MNRE pages for both schemes before you bid.
- PM-KUSUM National Portal ↗
Scheme components, state links and implementation dashboard.
- PM Surya Ghar National Portal ↗
Rooftop subsidy slabs, vendor registration and application flow.
- Ministry of New & Renewable Energy (MNRE) ↗
Guidelines and current rules for both schemes.
Written by the SuryaHub team · reviewed against PM-KUSUM portal, PM Surya Ghar portal & MNRE sources · updated 19 June 2026.
Method: The comparison is built from the PM-KUSUM and PM Surya Ghar portals and MNRE guidelines and re-checked every 30 days. PM-KUSUM CFA percentages and PM Surya Ghar disbursal terms are estimates to verify against MNRE pages for both schemes at publish. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.