Under this component, solar or other renewable energy based power plants of capacity 500 kW to 2 MW can be installed on barren or uncultivable agriculture land mainly. Agriculture land is also permitted under this scheme provided that solar plants are installed in slit fashion (i.e. raised structure for installation of solar panels) and with adequate spacing between panel rows for ensuring that farming activity is not affected.

Individual farmers/ group of farmers/ cooperatives/panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA). Land on which the project is proposed to be installed should be within 5 km from the nearest electricity sub-station.

Power generated will be purchased by the local electricity distribution companies (Discoms).

Yes, Farmers can lease out their land for the project under PM-KUSUSM-A ?

No, there is no such financial support, incentive or subsidy provided to the project developer or owner and power generated from solar plants will be purchased by the Distribution companies (DISCOMs) at tariffs determined by the respective State Electricity Regulatory Commissions (SERCs).

The RBI has included this Component under priority sector lending and therefore Banks will provide loan at competitive rates and on soft terms. The following financing options are available to farmers:

1. They can take loan directly from bank and pay EMI from the revenue generated from sale of power to DISCOMs. The balance revenue will be the farmer’s income.

2. DISCOMs may take loans on behalf of farmers by signing a tripartite agreement between the farmer, the bank and the DISCOM. The DISCOM will directly pay EMI from revenue generated from sale of solar power and transfer the balance amount to the farmer’s account.

3. Public or private solar power developer/EPC contractor may also take loans on behalf of farmers by signing quadripartite agreement between the EPC contractor, the farmer, the bank and the DISCOM. The DISCOM will directly pay EMI from revenue generated from sale of solar power and transfer the balance amount to the farmer and the EPC contractor in the agreed ratio.

After the loan is repaid, the total revenue from sale of solar power will constitute the farmer’s income.

1MW plant need around 2 hectare of land. The solar power plants will be preferably installed within five km radius of the notified sub-stations in order to avoid high cost of transmission lines and losses. DISCOMs will notify sub-station wise surplus capacity upto which generation from solar power plants can be added.

No, since Govt is not providing any financial assitance or subsidy for PM KUSUM-A, there is no restriction of DCR Modules in PM KUSUM-A.