Under PM Kusum scheme

PM-KUSUM = Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Scheme

… Farmers with 2 acres or more can set up ground mounted solar PV plants on barren and uncultivable land with Own investment or on Lease basis for 500kW (2 acres) or for 1MW (4 acres) plant.

Investment & Income:

• Around Rs. 4Crore is required to install 1MW solar plant which will generate approximately 12 lakhs units per year. It can give a return of Rs 42 lakhs per year @ fixed upper unit rate of Rs 3.50 per unit. (6lakhs unit produced x Rs 3.50 unit rate).
• Around Rs 2 Crore is required to install 500kW & generate approximately 6 lakhs units yrly. It can give a return of Rs 21lakhs per year @ fixed upper unit rate of Rs 3.50 per unit. (6lakhs unit produced x Rs 3.50 unit rate)
• Unit purchase rate can be approx Rs 2 to Rs 3.50 in case of bidding but never above Rs 3.50 per unit
• Bank Loans are available for the project.

(i) Model 1: Farmers investment model.

Farmer invests the full amount and KSEBL purchases the entire solar energy from the farmer at a predetermined levelised tariff for 25 years….