PM KUSUM Component A: Decentralized Solar Power Generation
Under Component A of the PM-KUSUM scheme, the Ministry of New and Renewable Energy empowers agricultural landowners to transform uncultivated, fallow, or pasture land into lucrative renewable power generation hubs. Under this component, small decentralized power plants between 500 kW (0.5 MW) and 2,000 kW (2 MW) are erected on farmer land within a 5-kilometer radius of existing 33/11 kV distribution substations.
Electricity generated is purchased directly by the local state power distribution company (DISCOM) under a legally binding 25-year Power Purchase Agreement (PPA). The State Electricity Regulatory Commission (SERC) determines the Feed-in-Tariff, creating an inflation-immune, guaranteed monthly income stream for agrarian families.
Land Requirement and Project Economics Matrix
| Plant Capacity | Estimated Land | Turnkey Capex | Annual Generation | PPA Revenue (@ ₹3.15) | Estimated Payback |
|---|---|---|---|---|---|
| 500 kW (0.5 MW) | 2.0 to 2.5 Acres | ₹2.00 Crore | 8,32,000 Units | ₹26.2 Lakh / year | ~8.5 Years |
| 1,000 kW (1.0 MW) | 4.0 to 5.0 Acres | ₹4.00 Crore | 16,64,000 Units | ₹52.4 Lakh / year | ~8.3 Years |
| 2,000 kW (2.0 MW) | 8.0 to 10.0 Acres | ₹8.00 Crore | 33,28,000 Units | ₹1.05 Crore / year | ~8.1 Years |
Frequently Asked Questions (FAQs)
Can a farmer lease their land if they lack capital to build the plant?
Yes. If a farmer does not have the capital to invest, they can lease their land to private renewable developers under Component A, earning pre-agreed annual lease rent (typically ₹25,000 to ₹50,000 per acre per year) with periodic escalation.
Who bears the cost of the transmission line to the substation?
The 11 kV transmission line from the solar plant to the 33/11 kV substation is constructed by the project developer / farmer. To minimize transmission loss and line capex, plants must be sited within 5 km of the substation.