The Union Cabinet has approved a ₹5,070 crore scheme to accelerate the development of floating solar power projects in India, targeting 5,000 MW of new capacity along with large-scale energy storage. The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) will support the development of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS). The projects will have a minimum storage capacity of two hours, equivalent to 10,000 MWh across the planned capacity.
Projects under the scheme will be sanctioned during FY 2026-27 to FY 2030-31, while disbursement of financial support will continue up to FY 2032-33, according to the government announcement.
Floating Solar gets a Major Push
The scheme comes after an assessment by the National Institute of Solar Energy (NISE) estimated India’s floating solar potential at approximately 102.18 GWp across reservoirs and other suitable inland water bodies.
Under PM-SSY, eligible floating solar projects will receive Central Financial Assistance of ₹1 crore per MW after successful commissioning. The scheme will also provide up to ₹50 lakh per project for feasibility studies and preparatory activities, including bathymetry and hydrography assessments, environmental studies and other work required to de-risk project development.
Using Water Bodies Instead of Scarce Land
One of the key features of floating solar is the ability to use existing reservoirs and industrial ponds for power generation, reducing the need to acquire or dedicate large areas of land for solar projects. The government said the scheme is expected to increase India’s floating solar capacity by 5,000 MW, compared with the country’s present capacity of around 700 MW. The integration of energy storage is also expected to support grid reliability, allowing the new renewable-energy capacity to be combined with storage systems.
16,000-17,000 Jobs Expected
The scheme could also create a sizeable employment opportunity across the floating-solar project value chain. The government estimates approximately 16,000-17,000 full-time equivalent employment opportunities, covering activities associated with project development, manufacturing, installation and related services. The initiative is also expected to support domestic manufacturing of floating systems and components across the wider value chain, including PV cells, modules and energy storage systems.
Potential Climate Impact
According to the government, PM-SSY could contribute to a reduction of around 10 million tonnes of CO₂ emissions annually, while adding renewable-energy capacity and promoting more efficient use of available water resources.
The scheme is expected to benefit all States and Union Territories and forms part of the government’s broader renewable-energy and energy-transition objectives.
Source: Press Information Bureau
