PM KUSUM Component-C Feeder Level Solarization: 2026 Subsidy, Farmer Income & Grid Feed-in
Founder & Renewable Energy Engineer
⚡ What is PM KUSUM Component-C (FLS)? Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) enables Feeder Level Solarization (FLS). Instead of putting individual solar pumps on every well, rural agricultural 11 kV feeders are solarized via dedicated 1 MW to 5 MW solar plants, providing reliable daytime electricity to farmers and allowing solar developers/farmers to sell surplus solar power back to the DISCOM.
1. Why Feeder Level Solarization (FLS) Changed Rural Agriculture
For decades, Indian farmers received erratic agricultural power supply in the dead of the night (often 11 PM to 4 AM), forcing farmers to venture into dark fields, risk snake bites, and suffer frequent motor burnouts due to low voltage. In addition, state DISCOMs incurred staggering cross-subsidy losses running agricultural feeders on subsidized tariffs (₹1.50/unit or free power).
Under PM KUSUM Component-C, agricultural feeders are separated from rural domestic feeders (DDUGJY / Revamped Distribution Sector Scheme - RDSS). Dedicated solar power plants are installed at the 33/11 kV substation level, generating 100% clean solar energy directly during peak sunlight hours (8:00 AM to 5:00 PM).
2. Financial Subsidy Architecture under Component-C
| Funding Agency | Subsidy / Contribution Share | Cap / Details |
|---|---|---|
| Central Government (MNRE CFA) | 30% of Capex (₹1.05 Cr / MW) | Direct Central Financial Assistance |
| State Government Subsidy | 30% of Capex | State Nodal Energy Agency (e.g. MEDA, RREC, UPNEDA) |
| NABARD / PFC / REC Low-Interest Loan | 30% to 35% | Concessional loan for RESCO developers / Gram Panchayats |
| Developer / Farmer Equity | 5% to 10% | Minimal upfront equity contribution |
3. Individual Solar Pump Solarization vs Feeder Level Solarization
| Parameter | Individual Pump Solarization (IPS) | Feeder Level Solarization (FLS) |
|---|---|---|
| System Setup | Solar panels & VFD on farmer's individual farm | Single 1 MW – 3 MW plant at 33/11kV Substation |
| Capital Cost per Pump | High (~₹2.50 – ₹3.50 Lakhs per pump) | Low (Scale economies: ~₹1.10 Lakh per pump) |
| Maintenance & Security | Farmer responsibility (theft & glass damage risk) | Utility / EPC Developer 25-Year O&M Contract |
| Power Quality | Variable according to local clouds | Stable 415V 3-Phase Grid-Synchronized Power |
| Farmer Income Mechanism | Export via Net Meter | Lease Rent (₹30,000 - ₹50,000/acre/yr) or Equity Share |
4. Step-by-Step Implementation & Farmer Land Leasing
- Feeder Selection: State DISCOM identifies agricultural feeders with high technical losses and dedicated irrigation loads.
- Tender & Developer Allocation: RESCO model tenders are floated by state nodal agencies (e.g. MSEDCL Solar Agriculture Feeder Scheme, KUSUM Portal).
- Land Leasing by Farmers: Farmers with barren, uncultivable land within a 5 km radius of the 33/11 kV substation lease their land to the solar developer at ₹30,000 to ₹50,000 per acre per year with a 3% to 5% annual escalation for 25 years.
- Commissioning & Grid Synchronisation: The plant feeds solar power directly into the 11kV bus bar, providing 8 hours of uninterrupted 3-phase daytime power to all connected irrigation pumps.
💰 Economic Win-Win: Farmers gain daytime irrigation freedom and assured land rental income, while DISCOMs save over ₹3.50 per unit in avoided long-distance transmission power purchase costs.
Written by Deepak Chopade
Founder & Renewable Energy Engineer at SolarCalculators.in, researching MNRE PM Surya Ghar subsidy regulations, industrial C&I solar models, and renewable engineering across India.