January 23, 2021
New-Launches

PM KUSUM Yojana: Govt is Offering 90% Discount on Solar Pumps

Aiming to double farmers’ income by 2022, the central government has started many schemes for farmers.

By implementing various projects, the government has allowed farmers to use solar energy. If you want to start a successful agri-business linked to solar energy, then you can consider joining PM Kusum Yojana of the central government.

PM Kusum Yojana was first launched in the year 2019, after which the Finance Minister Nirmala Sitharaman has expanded the scheme in the budget 2020.

Under this arrangement, farmers get subsidized solar panels from which they can generate energy and sell it to the department. By using energy as needed, by selling the remainder, they can earn additional income. It would enable 20 lakh farmers to install solar pumps under this program.

In addition, some 15 lakh farmers will be provided with funds to install solar pumps linked to the grid. The state has declared that it will invest 34,422 crore rupees on this initiative, reports suggest.

Get 90% Discount on Solar Pump

Farmers have to pay just 10 percent of the price to install solar panels on their property, as per new regulations. Central and state governments grant the farmers in the bank account a 60 percent subsidy. The Core and the States have a requirement for an equitable donation. Around the same time, there is a 30 percent bank loan clause. This loan can be filled conveniently by farmers with their money.

Solar Pump – a Source of Income

Electric or diesel powered irrigation pumps will be converted into solar energy powered pumps through this scheme. Electricity generated from solar panels will be used first in their irrigation work. Apart from that, the electricity which will be left extra, can sell to 25 years to the Electricity Distribution Company (DISCOM). Another advantage of this is that solar energy will also relieve the expenses of diesel and electricity and reduce pollution.

How to Apply for solar pump yojana?

Registration must be completed for the application under the PM Kusum scheme by accessing the official website https://mnre.gov.in/. The property should be within a 5 km range of the power substation to set up a solar farm. Farmers will let themselves or the developer lease the solar plant.

Eligibility for PM Kusum Yojana 2020

Applicants should be a farmer and should have a valid Aadhaar Card on his name. Farmers must also hold a valid bank account.

Important Documents for Solar Pump Yojana 2020

  • Aadhaar Card
  • Bank Account

Subsidy Structure of Solar Scheme

Under the scheme, the farmer will get subsidy on new and improved solar-powered pumps. The farmers will have to spend only 10% of the total expenditure to acquire an install a solar pump and 60% cost will be handled by govt and the remaining 30% will be taken care of by the bank as credit.

  • Central Government – 60% of the total cost as Subsidy
  • Banks – 30% of the total cost as Loans to Farmers
  • Farmers – 10% of the Total Cost

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