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.

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.
Agricultural landholders seeking predictable risk-free annual cash flow.
Landowner provides land without capital risk
Legally registered long-term lease with escalation clauses
Developer assumes all grid connectivity and yield obligations
Component-A plants require compliant balance-of-system engineering to guarantee continuous grid off-take.
Dedicated 11 kV Transmission
Construction of a dedicated 11 kV overhead line from the solar plant switchyard to the nearest DISCOM substation bay.
Approved Solar Modules
High-efficiency mono-crystalline or bifacial solar modules conforming strictly to MNRE ALMM certified guidelines.
Real-Time Feeder Telemetry
Continuous generation telemetry linked to SLDC/DISCOM monitoring protocols for reactive power and grid stability.
| Parameter | Farmer Self-Ownership | Developer Lease Route | Joint Venture SPV |
|---|---|---|---|
| Capital Investment | 100% funded by farmer (Equity + Debt) | 100% funded by commercial developer | Shared equity split (typically 26:74) |
| Landowner Revenue | Full PPA tariff revenue (₹2.90 - ₹3.15/u) | Guaranteed annual land lease (₹30k - ₹50k/acre) | Land lease + proportional profit dividends |
| O&M Responsibility | Farmer contracts EPC maintenance | Developer manages all operations | Chirayu Power turnkey O&M management |
| Debt Financing | Bank loan under Priority Sector Lending | Corporate project debt via SIDBI / IREDA | Structured SPV project finance |