In a major boost to farmers' income, the Central Government has introduced the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, enabling farmers to generate substantial and stable earnings by setting up solar power plants on barren or uncultivable land.
The scheme aims to double farmers' income while promoting renewable energy and reducing carbon emissions. Under PM-KUSUM, farmers can install solar power plants ranging from 0.5 MW to 2 MW on their private land and sell the generated electricity directly to DISCOMs at a fixed tariff for up to 25 years.
For a 0.5 MW (500 kW) solar plant, the estimated investment is around ₹1.50 crore. Banks provide loan assistance of up to 70 percent of the project cost, making it accessible even for small and marginal farmers.
A 0.5 MW plant can generate approximately 7.5 to 8 lakh units of electricity annually. At a government-approved tariff of about ₹3.13 per unit, farmers can earn ₹22-25 lakh per year. After deducting bank loan EMIs and maintenance costs, the net annual income is estimated between ₹15 lakh and ₹20 lakh.
The scheme has received an encouraging response in Telangana, particularly in the undivided Nalgonda district, where nearly 750 applications have already been submitted. However, eligibility is limited to farmers whose land lies within 5 kilometers of an electricity substation, as per grid connectivity norms.
Many farmers leave non-cultivable land unused due to low agricultural returns. PM-KUSUM offers a viable alternative by converting such land into solar energy hubs, providing a steady monthly income without market risks. Since electricity is purchased directly by DISCOMs, farmers do not face marketing or price fluctuation issues.
Farmers can establish these solar plants individually or collectively through Farmer Producer Organizations (FPOs). According to TGREDCO district manager Santosh, the government is coordinating with banks to ensure easy loan approvals based on farmers' CIBIL scores.
The PM-KUSUM scheme is a key component of India's broader goal to reduce carbon emissions by 2047 and increase renewable energy capacity. Officials have urged farmers with suitable land near substations to take advantage of this scheme, calling it a game-changing opportunity for rural economic empowerment.