How Much Land is Required for PM Kusum Project? Complete Guide (2026)

PM Kusum Yojana has been undoubtedly one of the solarpowerful door openers for the farmers and landowners in India to earn long term, consistentincome from solar energy. #Apply for #PMKUSUM Component A (Solar Pumps) If you are thinking of applying under PM Kusum Component A, one of the first and foremost queries would be:  'How much land is required for PM Kusum Scheme?”
In this detailed guide, learn everything you want to know about land requirement, location restrictions, types of land, project size, and potential earnings—in a straightforward, practical approach.

PM Kusum Land Requirement (Component A)

Investment in small renewable energy projects like distributed solar PV systems installed on the land of farmers, and the power so generated is sold to the DISCOMs at a fixed tariff, in Component A of PM-KUSUM Scheme.

✅ Standard Land Requirement:

• 1 MW Solar Plant: Approximately 4 to 5 acres of land
• 0.5 MW Solar Plant: Approximately 2 to 2.5 acres of land

So, for a full 1MW project you need at least 4 acres of clean ground that you can work with. The specific requirement may be a little different based on the panel efficiency, mounting system and layout design.

Minimum and Maximum Project Capacity

PM Kusum Component A allows projects within a specific capacity range:

• Minimum Capacity: 500 kW (0.5 MW)
• Maximum Capacity: 2 MW

📊 Based on Land Size:

• 2–3 acres: Suitable for 0.5 MW
• 4–5 acres: Suitable for 1 MW
• 8–10 acres: Suitable for up to 2 MW

If you own more land, you have the option to split it into various projects (in accordance with the policy guidelines).

Location Requirement (Key Approval Factor)

The size of the land is not enough - the location of the land matters a lot in whether or not your application will be approved.

📍 Mandatory Condition:

• Your land must be within 5 KM radius of a 33/11 kV substation

Why this is important:

• Reduces transmission cost
• Ensures easy grid connectivity
• Increases chances of faster approval

Which Type of Land is Suitable?

The most attractive feature of PM Kusum is it allows flexibility in use of land. You may Use:

• Barren land
• Fallow (unused) land
• Agricultural land
• Pasture land
• Semi-arid or low-yield land

Options for Landowners

If you have suitable land, you can choose between two main approaches:

1. Set Up Your Own Solar Plant

• Requires higher investment
• Offers higher long-term returns
• You become an independent power producer

2. Lease Your Land to a Solar Developer

• No investment required
• Fixed yearly rent
• Minimal risk

👉 It is also the most favoured option among farmers who require stable income without having to work on the project.

Lease Duration and Income Potential

• Lease Period: Typically, 25–27 years
• Income Type: Fixed annual rent
• Increment: Some agreements include yearly rent increase

The exact rental income depends on:

• Location of land
• Demand in that area
• Distance from substation

This model transforms your land into a source of long-term passive income, even if it's lying fallow.

Factors That Improve Project Feasibility

These factors could increase the chances of approval, even if your land meets only the size and location requirements:

• Flat and level land (reduces installation cost)
• Clear land (fewer trees and obstacles)
• Proper road access
• No legal disputes or ownership issues
• Clear land titles and documentation

👉 Clean paperwork is just as important as land size.

Can Small Landowners Apply?

Yes, small landowners can also benefit from PM Kusum.
If you have:

• Minimum 2 acres, you can apply for a 0.5 MW project

If your land is smaller:

• Partner with nearby landowners
• Lease your land to developers
• Join cluster-based solar projects

This ensures that even farmers with limited land can participate in the scheme.

Benefits of Using Land for PM Kusum Project

• ✅ Fixed income for 25+ years
• ✅ No dependency on rainfall or crop yield
• ✅ Government-backed scheme
• ✅ Low risk (especially in lease model)
• ✅ Increases land value over time
• ✅ Eco-friendly and future-ready investment

It is one of the best ways to turn low-performing land into a high-income asset.

Quick Summary Table

Conclusion

The PM Kusum Scheme provides a win-win proposition to the farmers/landowners to make a stable and long-term income from solar. Knowing the land size (4–5 acres per MW), the location and the eligibility requirements is the first step towards success.
If your land qualifies, you are already a step ahead in this government programme. With guidance and foresight you can turn your land into steady income for 25 years.

Frequently Asked Questions (FAQs)