How Maharashtra Farmers Can Sell Solar Power to DISCOMs
- TheGreen Bein
- Sep 27
- 4 min read
Updated: Oct 6
In Maharashtra, many farmers wonder: can my farmland generate more than just crops? The answer is yes! Under the PM-KUSUM scheme’s Component A / C, you can deploy solar plants on unused or marginal land and sell the surplus power to the electricity distribution company (DISCOM). Here’s how it works, step by step, in a way that’s practical for farmers.
Understanding PM-KUSUM: Empowering Farmers
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is a central government scheme designed to help farmers adopt solar energy for irrigation and monetize excess generation. Ministry of New and Renewable Energy+1
Components of PM-KUSUM
Component A: Farmers or group entities can set up grid-connected solar power plants (typically up to 2 MW) on barren, fallow, or non-cultivable land. The solar power generated is fed to the grid and purchased by the DISCOM at a state-determined tariff. Ministry of New and Renewable Energy+1
Component C (Individual Pump Solarization / Feeder Level Solarization): If you already have a grid-connected agricultural pump, you can solarize it. Any surplus power not used for irrigation can be sold to the DISCOM. Ministry of New and Renewable Energy+1
In Maharashtra specifically, farmers have successfully implemented this by setting up solar plants on unused patches of their own land or marginal land, selling surplus to MSEDCL or the designated DISCOM. Tata Power
Benefits of Selling Solar Power
Additional Income
Farmers can earn extra income by selling excess power. Not only do you save on your electricity bills, but you also have the opportunity to generate revenue.
Government Support
The government offers Central Financial Assistance (CFA) and state subsidies (30% or more) to reduce your upfront costs. Ministry of New and Renewable Energy+1
Guaranteed Purchase
DISCOMs are mandated to buy your solar power under a Power Purchase Agreement (PPA) at tariffs set by the Maharashtra state electricity regulator or as per scheme guidelines. MSEDCL+1
Long-Term Revenue
You can secure a PPA for 25 years in many cases under scheme guidelines. Press Information Bureau+1
Utilizing Unproductive Land
Barren or uncultivable land can generate value without disrupting farming in arable areas. Press Information Bureau+1
Steps to Supply Solar Power: A Roadmap
Check Land Eligibility
Use fallow, barren, degraded, or marginal lands. Avoid prime cropping land. The panel height can allow crops underneath in some cases (agrivoltaics). Press Information Bureau+1
Survey Proximity to Grid/Substations
To reduce transmission loss and cost, solar plants should preferably be installed within ~5 km of substations or feeders. DISCOMs will notify “substation surplus capacity” where injection is allowed. Press Information Bureau+1
Apply via Scheme/DISCOM/Nodal Agency
When DISCOM (or state implementing agency) issues tenders, submit your bid or application. Be ready with land title, technical design, and financial capacity.
Sign PPA & Interconnect Agreements
Once selected, you sign a Power Purchase Agreement (often 25 years) with defined tariff and conditions. Also, sign the grid interconnection/injection agreement with DISCOM.
Install the Solar Plant/Equipment
Either you as a farmer install or lease land to a developer who builds and operates. Use certified solar modules, inverters, safety equipment, etc.
Commission & Begin Supply
After testing and grid synchronization, you start supplying power; DISCOM meters injection and pays according to PPA.
Operation & Maintenance & Compliance
Ensure uptime, maintenance (cleaning, inverter checks), and compliance with scheme rules (reporting, audits) for revenue continuity.
Example Scenario: Simple Numbers
Imagine you own 2 acres of unused land and set up a 500 kW solar plant under Component A. Suppose your plant generates 800,000 kWh in a year. Out of this, part may be consumed locally (if connected) and surplus is fed into the grid.
If the DISCOM tariff is ₹6 per kWh, and assume 90% utilization after losses, your net sale = ~720,000 × ₹6 = ₹4,320,000/year revenue (before O&M and financing). After subsidy, your costs reduce further. Over 25 years, this becomes a substantial income for your land.
Risks to Consider
Tariff Risk & Revision: The tariff fixed in the scheme or state order must remain stable over the PPA term.
Connectivity & Grid Issues: Transmission or grid constraints may prevent injection or require upgrade costs.
Land Disputes or Title Issues: Ensure clear land title with no encumbrances.
O&M and Downtime: Poor maintenance can reduce revenue.
Scheme Timelines/Delays: Government release of funds and approvals may get delayed.
Getting Started: Farmer Checklist
Visit your DISCOM/state nodal agency announcements for PM-KUSUM tenders under Component A/C.
Engage with a developer or consultant to survey your land and grid proximity.
Prepare land documents, technical plant layout, and financial plans.
Apply during the tender window.
Upon selection, sign the PPA and begin execution.
Frequently Asked Questions
Who Can Apply for PM-KUSUM Component A in Maharashtra?
Any individual farmer, group of farmers, cooperative, or farmer-producer company owning barren or fallow land can apply.
What Size of Solar Plant is Allowed?
Up to 2 MW per applicant (minimum 500 kW is typical), depending on substation capacity and DISCOM tender.
Do I Need to Own the Land?
Yes, you must show clear ownership or a long-term lease with legal proof and no disputes.
How Long is the Power Purchase Agreement (PPA)?
Generally 25 years with the Maharashtra DISCOM (MSEDCL) or as specified in the tender.
What Tariff Will I Receive for Selling Power?
The tariff is fixed by the Maharashtra Electricity Regulatory Commission (MERC) or as discovered in the tender—recent bids have been around ₹3.0–₹4.5 per kWh.
Is There Any Government Subsidy?
Yes. Central Financial Assistance covers up to 30% of the project cost, with possible additional state support for certain categories.
Can I Grow Crops Under the Solar Panels?
Yes. Agri-voltaics is encouraged—install panels on elevated structures and continue low-height cropping or grazing.
What Documents Are Required?
Land ownership papers, Aadhaar, PAN, recent electricity bills, and a basic technical proposal are common requirements.
Who Maintains the Plant After Commissioning?
Either you (if self-owned) or the developer/installer under an O&M contract. Regular cleaning and inverter checks are essential.
How and When Will I Get Paid?
DISCOM installs a bi-directional meter and pays monthly for the net energy exported as per the PPA terms, directly to your bank account.
Conclusion
For Maharashtra farmers, the PM-KUSUM scheme offers a unique opportunity: How Maharashtra Farmers Can Sell Solar Power to DISCOMs. With the right site, clear documents, and trusted partners, you can earn for decades. The Green Bein can assist farmers in Maharashtra by evaluating their land, helping in bid submission, connecting to developers, and ensuring the plant is commissioned under best practices. Let’s make your land work for you!
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