Everyone wants to start a solar business in India right now. It looks like a gold mine. You have two main ways to enter. One is PM Surya Ghar for rooftops. The other is PM-KUSUM for solar pumps.
But listen carefully. These two are completely different games.
New people often think they can register online and start installing pumps tomorrow. You can’t. Rooftop solar is like opening a shop that sells to anyone. Solar pumps are government contract work. It is harder, but the volume is huge.
Here is exactly how you get into the solar pump game and how it is different from rooftop.
The Big Differences
Think of rooftop solar as an “Open” market. You register on the portal, find a customer, and do the work. Easy.
Solar pumps are a “Closed” market. You wait for the government to invite you. You cannot just join anytime. Also, you don’t pick your price. The government sets the price, and you have to agree to it.
Here is a simple comparison:
| Feature | PM Surya Ghar (Rooftop) | PM-KUSUM (Solar Pumps) |
| How You Join | Open Registration: You can usually register anytime on the website. | Tender Based: You must wait for the State Agency to release a tender. |
| The Price | You Decide: You set your price. The government just gives a subsidy. | Fixed Price: The government sets the lowest price. You must agree to work at that price. |
| Tech Rules | Basic electrical license and standard panels. | Strict Testing: You need a “Test Report” for the exact pump model from a big lab. |
| How Much Work | Unlimited (you find your own customers). | Fixed Quota: The state gives you a specific target (e.g., “Install 200 pumps”). |
How to Become a Vendor (The 7 Steps)
If you are serious about solar pumps, here is what you actually have to do.
1. Wait for the Tender. You can’t just log in and sign up. You have to watch the website of your state agency, like TANGEDCO or MSEDCL. They release a “Tender” or “RFP” maybe once a year. That is your only window to apply. You have to grab it when it opens.
2. You Need a Specific Test Report. This is where most people get stuck. You cannot just buy any pump from the market. You need a “Test Report” from a big lab like NISE. It has to be for the exact model you want to sell. If you don’t make pumps, you need to partner with a manufacturer who has this paper.
3. Put Your Money on the Table. You need cash to play this game. First, you pay an “Earnest Money Deposit” just to bid. If you win, you give a “Performance Bank Guarantee”. This is big money, maybe 10% to 20% of the project value. The bank locks this money for 5 years. You don’t touch it.
4. Match the Price. In the tender, everyone bids a price. The government picks the lowest one (they call it L1). Then they ask you a simple question. “Do you want to work at this lowest price?” You have to say yes. If you don’t match the price, you don’t get on the list.
5. They Will Check Your Office. Once you agree to the price, the officials come to visit. They check if you have a real office and a service center. They check your staff too. Your electricians need real certificates, like those from the Suryamitra training. Regular degrees often get rejected.
6. You get a List of Farmers. You don’t have to run around finding customers. The government gives you a list of farmers who already paid their share. They allocate a specific number of pumps to you. Your job is to go and install them.7. The Pump Must “Talk”. Every solar pump needs a special device called RMS. It uses a SIM card to send data to the government server. If the pump doesn’t send data, you don’t get your subsidy payment. It is that strict.
The Real Difficulties You Will Face
I looked at what experts and other vendors are saying. You need to know the hard parts, too.
- Payments take time. The paper says you get paid in 30 to 90 days. In reality, it often takes 4 to 6 months. You collect about 40% from the farmer, but the other 60% comes from the government. You need enough savings to survive the wait.
- Small mistakes reject you. If your GST or bank account is in your personal name, they reject you. Always use a company name.
- Service is tough. You are responsible for the pump for 5 years. If it breaks, you have to fix it within 2 or 3 days. If you don’t, they cut money from your bank guarantee.
- Tech issues. Sometimes the internet is bad at the farm. The pump can’t send data. Your payment gets stuck even if the pump works perfectly.
My Advice for You
If you are just starting, don’t try to bid alone. It takes too much money and paperwork. Find a big manufacturer who is already on the list. Ask to become their franchise partner or authorized installer for your district. You use their test reports and their brand. You do the work and learn the ropes. Once you have experience and capital, you apply for your own tender next year.