You know what’s funny? Most people talk about solar like it’s all rooftop panels and residential subsidies. Meanwhile, farmers are actually getting rich from KUSUM. That’s the real story nobody’s paying attention to. Over 20 lakh farmers are collecting cheques every month, and the money flowing through this scheme is just getting started. If you’re running an installation business or sitting on agricultural land, this changes everything.
Here’s the practical situation. A farmer owns 5 hectares that don’t produce much. Barren land, rocky terrain, whatever. Under PM-KUSUM, that land becomes a cash flow. Up to ₹80,000 per hectare annually. Five hectares means ₹4 lakhs per year. Nothing crazy, but money that shows up without any work involved.
The power plants built on that land already pull in about ₹4.5 lakh per MW every month. That income sits locked in for 25 years through government contracts. So when a farmer signs up, they’re not gambling on market rates. It’s government guaranteed.
This is actually happening right now. Walk through rural Maharashtra or Gujarat, and you’ll see solar plants running on farmland. Farmers are getting monthly lease payments. No subsidy games. No bureaucratic nonsense. Just straightforward money flow.
When the best solar installation company in India talks about Component A projects, they’re talking about building power plants on this land. The developer puts up ₹1.2 crores per MW (30% of the total cost), banks lend another 30%, and the farmer provides land plus gets their lease income. The installation company handles everything else.
Here’s where it gets interesting for solar businesses. Three different revenue streams exist.
First is equipment. Panels, inverters, wiring, mounting frames, controllers. The government says these have to be made in India, so companies source locally and mark up the supply. That’s baseline revenue.
Second is the actual work. You’re building a power plant from zero. Ground survey, site design, land prep, structure mounting, electrical wiring, and grid connection work. The best solar installation company in India running a ₹500 kW to 2 MW project is looking at ₹2-8 crores per site. With 34,800 MW waiting to be built, you can do dozens of these projects. That’s real money.
Third is maintenance contracts. Once the plant runs, somebody has to maintain it for 25 years. Annual service costs about 1-2% of what you spent building it. A ₹4 crore plant means ₹40-80 lakhs every year in maintenance revenue. For the next 25 years. That’s the kind of recurring income that keeps a company stable.
This part’s simple. Farmers pump water using diesel. Costs ₹60,000 annually in fuel. Under Component B, you replace that diesel pump with a solar pump. The pump pays for itself within one year from fuel savings.
The government covers 30%, the state covers another 30%, the banks lend 30%, farmer pays 10%. A ₹3.25 lakh pump costs the farmer ₹32,500. They save ₹60,000 immediately. It’s not complicated salesmanship.
The best solar installation company in India supplies the equipment and installs these pumps. The per-pump installation fee might be ₹10,000-20,000. Across 20 lakh target pumps, that’s a massive volume. States that move fast on these installations are already absorbing thousands of units.
Component C is where existing farmers who already have grid connections get involved. They solarise their current pump, generate extra power beyond their needs, and sell that surplus back to the power company. Free irrigation plus extra income.
Feeder-level solarisation is the more intelligent version. Instead of upgrading individual pumps, the government funds a single larger plant that supplies multiple pumps through the same feeder line. Less maintenance headache. Better efficiency. Farmers get ₹25,000 per acre for land use. The company running it sells power to the distribution company.
For the best solar installation company in India, feeder-level projects are bigger contracts than individual pump work. You’re building full power plants worth several crores per project.
Not all states are equal in implementation. Maharashtra, Gujarat, Rajasthan, and Haryana are running fast. Regulatory stuff is clearer there. DISCOMs coordinate better. Farmers understand the scheme. Installation companies already active in these states are absorbing projects while others are still trying to figure things out.
Rajasthan and Gujarat have actual solar manufacturing bases. Projects move faster. Haryana has policies that attract projects. Maharashtra layers KUSUM on top of other solar incentives. If your company isn’t established in at least one of these states, you’re going to struggle getting projects.
This part doesn’t get talked about enough. Cooperatives, farmer-producer organisations, and water associations. These groups aren’t just buying equipment. They’re building power companies.
An FPO with 200 farmers can apply for Component A as a collective, build solar plants on shared land, and distribute lease income among members. Suddenly, that cooperative is generating ₹50+ lakhs annually. Some are managing multiple plants across their region, becoming basically mini utilities.
For installation companies, partnering with strong agri-organisations is like having a pre-built customer pipeline. These groups have land, have farmers ready to participate, and have collective financing ability. The best solar installation company in India that builds relationships with top cooperatives and FPOs essentially has an ongoing project flow.
Banks are throwing money at these projects. RBI’s priority sector lending rules support agricultural solar. A farmer applying for a Component B pump gets 30% bank financing at agricultural rates. Component A plants get similar treatment. Money isn’t the bottleneck.
This matters for installation companies because customers can actually afford projects. Customer base expands. More people say yes to installations. Projects happen faster.
₹34,422 crore committed. 20+ lakh farmers are already in the system as of December 2025. States are clearing ₹2,000+ crores annually. We’re maybe halfway through by count. Maharashtra alone pushes thousands of new installations every month.
An installation company doing 50-100 KUSUM projects annually in one state makes ₹10-20 crores. Bigger operations across multiple states could do significantly more. These aren’t tiny contracts anymore.
KUSUM stopped being a farmer subsidy thing years ago. It’s a ₹34,000 crore market that’s basically halfway through. Farmers get lease income. Companies get installation and maintenance contracts. Agri-businesses become energy companies. This is where solar should be going, not chasing residential rooftop saturation.
Neutron Solar brings a rare mix of regulatory mastery, technical depth, and sector-wise customisation to solar power development. Its team designs tailored PV solutions for manufacturing, logistics, agriculture, and IT parks, ensuring projects match actual load profiles and site realities. With strong technology partnerships and disciplined O&M, each plant is engineered for reliability, compliance, and long-term value creation.