The union Cabinet on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a new scheme to promote floating solar power projects with integrated energy storage systems, with a total outlay of Rs 5,070 crore. The initiative aims to significantly expand India's renewable energy capacity by developing 5,000 MW of Floating Solar Photovoltaic (FSPV) projects across reservoirs and other suitable inland water bodies.Announcing the decision after the Cabinet meeting, union Information and Broadcasting Minister Ashwini Vaishnaw said the scheme would accelerate the deployment of floating solar technology while improving grid reliability through co-located energy storage systems.
"The union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) for the development of Floating Solar Photovoltaic Projects with Energy Storage Systems with a total outlay of Rs 5,070 crore," Vaishnaw said.
Under the scheme, 5,000 MW of floating solar capacity will be developed along with Energy Storage Systems (ESS) having a minimum storage capacity of two hours, equivalent to 10,000 MWh. The projects will be sanctioned between FY 2026-27 and FY 2030-31, while financial assistance will continue to be disbursed until FY 2032-33.
The Cabinet approval follows a recent assessment by the National Institute of Solar Energy (NISE), which estimated that India has a floating solar potential of approximately 102.18 GWp across reservoirs and other suitable inland water bodies.
To encourage project development, the Centre will provide Central Financial Assistance (CFA) of Rs 1 crore per MW for eligible floating solar projects after successful commissioning. Additionally, project developers will be eligible for up to Rs 50 lakh per project to undertake feasibility studies, including bathymetry and hydrography surveys, environmental assessments and other preparatory work required to de-risk project implementation, according to a statement here.
The government said the scheme would benefit all States and union Territories while expanding India's floating solar capacity from the current level of around 700 MW to 5,700 MW after completion of the approved projects.
According to the statement, floating solar installations will enable productive utilisation of existing reservoirs, dams and industrial ponds, reducing the need to acquire scarce land for renewable energy projects. The integration of battery storage systems will also improve grid stability by ensuring better management of intermittent solar power generation.
The government estimates that the scheme will reduce carbon dioxide emissions by around 10 million tonnes annually and generate approximately 16,000 to 17,000 full-time equivalent employment opportunities across manufacturing, construction, installation, operations and maintenance.
The Cabinet also said the programme would provide a major boost to domestic manufacturing by promoting the production of floatation systems, photovoltaic cells and modules, energy storage systems and other components required across the floating solar value chain, in line with the vision of Aatmanirbhar Bharat.
The government said the PM Surya Sarovar Yojana would contribute significantly to renewable energy capacity addition, support India's energy transition and climate commitments, enable optimal utilisation of water resources and strengthen the country's progress towards the goal of Viksit Bharat.