New Delhi, July 31: The government on Friday approved a dedicated scheme of Rs 5,070 crore to push development of floating solar projects along with storage set-ups in the country, aiming for a new capacity of around 5,000 MW.
Under the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), approved by the Union Cabinet chaired by Prime Minister Narendra Modi, Central Financial Assistance (CFA) of Rs 1 crore per MW will be provided for eligible floating solar photovoltaic projects after successful commissioning, an official statement said.
In addition, CFA of Rs 50 lakh will be given for undertaking feasibility studies, including bathymetry and hydrography assessments, environmental studies, and other preparatory activities.
The PM-SSY aims to develop 5,000 megawatts of floating solar photovoltaic projects with co-located energy storage systems having a minimum capacity of two hours, i.e., 10,000 MWh, the statement said.
The projects will be sanctioned during FY 2026-27 to FY 2030-31, with disbursement of financial support continuing up to FY 2032-33.
All states and union territories (UTs) will benefit through this scheme. The scheme would enhance the floating solar PV capacity in the country by 5,000 MW, which is presently around 700 MW only. These projects would provide an opportunity to gainfully utilise existing reservoirs & industrial ponds, and eliminate competition for scarce land resources.
The integration of an energy storage system will help strengthen grid reliability. The scheme would help reduce around 10 million tonnes of CO2 emissions annually. It would help generate approximately 16,000-17,000 full-time equivalent employment opportunities across the project value chain.
In a social media post, Minister for New and Renewable Energy (MNRE) Pralhad Joshi said that the Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), ushering in a new era of clean energy by harnessing the untapped potential of India’s reservoirs and water bodies.
“With a target of 5,000 MW of Floating Solar PV capacity, 10,000 MWh of Energy Storage Systems and an expected investment of Rs 28,500 crore, the scheme will strengthen India’s energy security, accelerate the clean energy transition and power the journey towards a self-reliant, sustainable #ViksitBharat,” he said.
He said the scheme has the potential to unlock 102 GW of floating solar capacity.
The statement said that the scheme would also promote domestic manufacturing of flotation systems as well as the entire value chain of the projects, like PV cells, modules, energy storage systems, etc., and support the vision of Aatmanirbhar Bharat.
PM Surya Sarovar Yojana will also help contribute to renewable energy capacity addition, support the achievement of national energy and climate objectives, and facilitate optimal utilisation of water resources while advancing the vision of Viksit Bharat.
MNRE Secretary Santosh Sarangi had earlier said that the ministry is looking at a scheme which will encourage the states to go for much larger-scale floating solar projects, which till now have not reached their desired potential. Under floating solar projects, solar panel systems are installed on water bodies, and they are more energy-efficient than land-based systems due to the cooling effect of water.
As per official data, India’s solar energy installed capacity increased from 2.82 GW in March 2014 to 150.26 GW in March 2026, registering an increase of 147.44 GW. Of this, the floating solar capacity stood around 700 MW.
Subrahmanyam Pulipaka, the CEO of industry body NSEFI, said that by unlocking the immense potential of floating solar across reservoirs and inland water bodies, the scheme will diversify India’s renewable energy portfolio, reduce pressure on scarce land resources, and ensure that clean solar power reaches every corner of the country.
“It also reinforces India’s vision of building a resilient, future-ready power system by integrating energy storage alongside renewable energy deployment from the outset,” he said. (PTI)
