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Part of Solar in a Drought Year: pumps, cleaning and crops.

PM-KUSUM Solar Pump Subsidy in 2026: Is It Open, and What Should You Do Now?

PM-KUSUM Phase 1 is closed to new applications and PM-KUSUM 2.0 has been announced but not yet notified. What that means for farmers in drought-hit states, what the solar pump subsidy actually was, and how to be ready on day one.

PM-KUSUM is the central government’s scheme for solar power on farms. Its best-known part, Component B, subsidised standalone solar water pumps for farmers without a reliable grid connection. With the 2026 monsoon ending about 12.6% below normal, the first deficient monsoon since 2015, and drought declared across large parts of Karnataka, Maharashtra, Andhra Pradesh, Telangana and Rajasthan, many farmers are searching for it again. The short answer as of 3 November 2026: Phase 1 is closed to new applications, and PM-KUSUM 2.0 has been announced but not yet notified. This guide explains what that means, what the subsidy really looked like, what to prepare now so you can apply on day one, and how to avoid the fake “KUSUM registration” websites that appear whenever demand rises.

Where the scheme stands (November 2026)

  • Phase 1 is closed to new applicants. On 7 August 2026 the Union Minister for New and Renewable Energy, Pralhad Joshi, said: “PM Kusum 1 has been completed. That scheme is closed and very shortly we may come up with the PM Kusum 2.” (ANI report)
  • Projects already sanctioned are being finished. MNRE has given time extensions so that approved projects can be completed; reports put the outer limit at 31 March 2027. These extensions are for finishing existing work. They do not reopen applications.
  • PM-KUSUM 2.0 is not yet approved. As of late October 2026, reports said it had not yet gone to the Union Cabinet. Features mentioned in the press, such as a large agrivoltaics (solar-over-crops) component, are expectations until the scheme is notified.
  • Phase 1 was large. The Minister reported 13.07 lakh standalone solar pumps sanctioned and 11.69 lakh installed.

What the Phase 1 subsidy actually was

Phase 1 is the best guide to what 2.0 may look like. Under Component B as last amended:

  • Central subsidy (CFA): 30% of the benchmark cost or the tender cost, whichever is lower. It was 50% in the North-Eastern states, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and the Andaman & Nicobar Islands.
  • State subsidy: originally a fixed 30%, but optional since a November 2023 MNRE order. Where the state paid 30%, the farmer paid about 40% (20% in the special-category states). Where it did not, the farmer paid 70% (50%).
  • Pump size: the central subsidy was capped at the amount for a 7.5 HP pump. A bigger pump was allowed, but the subsidy stayed at the 7.5 HP level. In the special-category states, pumps up to 15 HP were eligible for a limited share of installations.
  • The farmer’s share could be partly financed by a bank loan.

So the “60% subsidy” figure that circulates on WhatsApp and installer websites was only true where the state paid its share. Whether PM-KUSUM 2.0 keeps these percentages will only be known when it is notified.

Equipment rules that will very likely carry over

  • Made-in-India (DCR) modules. Wherever the central government pays a subsidy, MNRE requires solar modules made with Indian cells (Domestic Content Requirement) and listed on the ALMM, as in PM Surya Ghar. Expect the same in 2.0. Our guide to DCR vs non-DCR panels explains how to check a module.
  • Pump controller, monitoring and maintenance. Phase 1 pump tenders called for an MPPT pump controller, a remote monitoring unit and a five-year maintenance contract from the vendor. We could not read the current technical specification itself, so installers should go by the state tender document, not a summary (including this one).

What farmers can do now

  1. Measure your water source. Note the summer water level, the borewell depth and diameter, and the yield if you know it. The right pump depends on the total lift (depth to water plus the height you deliver to) and how much water you need each day, not on what a neighbour bought.
  2. Get your papers to match. Land record in your name (7/12 extract, khatauni, jamabandi or your state’s equivalent), Aadhaar, and a bank account in the same name with your mobile linked. Name mismatches between these are a common cause of delays in any direct-benefit subsidy, so fix them now.
  3. Plan for drip or sprinkler irrigation. A solar pump runs only in daylight. Micro-irrigation makes each litre go further, which can mean a smaller pump and a smaller share of the cost for you.
  4. Know your state agency. In Phase 1, applications went through the state implementing agency: usually the state renewable energy agency, sometimes the agriculture or horticulture department or the electricity distribution company. Find yours in our state nodal agency list. Some states have also run their own solar pump schemes, so ask whether one is open.
  5. Do not pay anyone to “register” in advance. There is nothing to register for until PM-KUSUM 2.0 is notified.

Beware fake KUSUM websites

MNRE has repeatedly warned about fake websites that use the PM-KUSUM name to collect “registration fees”. The official national portal is pmkusum.mnre.gov.in, and genuine government sites end in .gov.in or .nic.in. Never pay into a personal bank account or UPI ID, and treat any site or WhatsApp link that asks for money before approval as fake until proven otherwise. Our solar scams handbook covers the common patterns.

For EPCs and installers

  • No new Component B tenders under Phase 1. Current work is completing sanctioned orders. If you hold Phase 1 orders, get the completion date that applies to you from the state agency in writing.
  • Prepare for 2.0 now. DCR module supply is shared with PM Surya Ghar demand and tightens when both schemes peak. Keep empanelment documents, pump and controller model approvals and test reports current.
  • Arid sites need a cleaning plan that does not depend on groundwater. Dust cuts output, and water for washing is scarce in drought districts. See our guide to cleaning panels with little or no water.

Frequently asked questions

Can I still apply for PM-KUSUM in 2026?

Not for a new standalone pump under Phase 1. As of 3 November 2026 the national scheme is between phases. Check with your state agency whether a state-funded scheme is open.

When will PM-KUSUM 2.0 start?

No date has been announced. The Minister said in August 2026 that it may come “very shortly”, but as of late October it had not yet gone to the Cabinet. We will update this guide when it is notified.

Is the subsidy 60% or 90%?

In Phase 1, the central government paid 30% (50% in special-category states). The state could add 30%, but since November 2023 it did not have to. Claims of 90% usually count a bank loan as if it were a subsidy. A loan still has to be repaid.

Does a drought declaration in my district change anything?

Not under PM-KUSUM itself, as far as we can find. Drought relief is a separate process run by the state, so ask your district agriculture office what relief applies to you.

We last checked this guide on 3 November 2026. Scheme status changes quickly while a new phase is pending, so confirm the current position on pmkusum.mnre.gov.in or with your state agency before you pay or sign anything.

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