PM-KUSUM Component-A: Decentralized Ground-Mounted Solar Plants

PM-KUSUM Component-A:Decentralized Ground-Mounted Solar Plants

Reviewed: August 2026

    

PM-KUSUM Component-A enables individual farmers, cooperatives, farmer producer organizations (FPOs), and independent solar power developers to set up 500 kW to 2 MW grid-connected solar power plants on barren or agricultural land. Power generated is evacuated directly into local 33/11 kV substations and purchased by state distribution companies (like MSEDCL) under 25-year Power Purchase Agreements (PPAs) at pre-notified or competitively discovered tariffs.

0.5 - 2 MW
Standard Plant Capacity
33/11 kV
Substation Injection
25 Years
Guaranteed PPA Term
₹30k - 50k
Farmer Lease / Acre / Yr
10,000 MW
National Scheme Cap

    

Developer leased agricultural solar plant under Component A
INDEPENDENT DEVELOPER

Developer funds plant; farmer earns steady annual land lease.

An independent developer leases land from the farmer for 25 years, funds 100% of the EPC capital expenditure, and sells electricity to MSEDCL. The farmer receives assured index-linked lease income without capital risk.

BEST SUITED FOR

Agricultural landholders seeking predictable risk-free annual cash flow.

01 — ZERO INVESTMENT

Landowner provides land without capital risk

02 — 25-YR LEASE

Legally registered long-term lease with escalation clauses

03 — EPC RISK

Developer assumes all grid connectivity and yield obligations

    

Component-A plants require compliant balance-of-system engineering to guarantee continuous grid off-take.

01EVACUATION LINE

Dedicated 11 kV Transmission

Construction of a dedicated 11 kV overhead line from the solar plant switchyard to the nearest DISCOM substation bay.

02ALMM MONO PERC

Approved Solar Modules

High-efficiency mono-crystalline or bifacial solar modules conforming strictly to MNRE ALMM certified guidelines.

03REMOTE SCADA

Real-Time Feeder Telemetry

Continuous generation telemetry linked to SLDC/DISCOM monitoring protocols for reactive power and grid stability.

ParameterFarmer Self-OwnershipDeveloper Lease RouteJoint Venture SPV
Capital Investment100% funded by farmer (Equity + Debt)100% funded by commercial developerShared equity split (typically 26:74)
Landowner RevenueFull PPA tariff revenue (₹2.90 - ₹3.15/u)Guaranteed annual land lease (₹30k - ₹50k/acre)Land lease + proportional profit dividends
O&M ResponsibilityFarmer contracts EPC maintenanceDeveloper manages all operationsChirayu Power turnkey O&M management
Debt FinancingBank loan under Priority Sector LendingCorporate project debt via SIDBI / IREDAStructured SPV project finance

Frequently Asked Questions

In a solar rooftop system, solar panels are installed on the roof of any residential, commercial, institutional, or industrial building. This can be of three primary types: (i) Grid Connected Solar Rooftop System (without battery storage), (ii) Solar Rooftop System with battery storage facility (Off-Grid), and (iii) Hybrid Solar Rooftop System (Grid Connected along with Battery Storage backup).
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