- The Union Cabinet approved the Pradhan Mantri Surya Sarovar Yojana scheme
- The scheme has a budget of Rs 5,070 crore for floating solar power expansion
- It aims to develop 5,000 MW of Floating Solar Photovoltaic projects
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a Rs 5,070-crore scheme aimed at significantly expanding India's floating solar power capacity with integrated battery energy storage systems.
The scheme targets the development of 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS) featuring a minimum storage capacity of two hours, equivalent to 10,000 MWh. The projects will be sanctioned between FY27 and FY31, while financial assistance under the scheme will continue to be disbursed until FY33.
The approval comes after the National Institute of Solar Energy (NISE) estimated that India has a floating solar potential of around 102.18 GWp across reservoirs and other suitable inland water bodies. Under the scheme, the government 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 CFA of 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 development.
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The government said the scheme will benefit all states and Union Territories by accelerating the deployment of floating solar projects. India's current floating solar capacity stands at around 700 MW, and the new scheme aims to increase it more than sevenfold by adding 5,000 MW.
The projects are expected to make productive use of existing reservoirs and industrial ponds, reducing the need for land acquisition while helping preserve scarce land resources. The integration of battery storage systems is also expected to improve grid stability and enable better integration of renewable energy.
According to the government, the scheme will reduce carbon dioxide emissions by around 10 million tonnes annually while generating approximately 16,000-17,000 full-time equivalent employment opportunities across the project value chain.
The initiative is also expected to provide a boost to domestic manufacturing by supporting the production of floatation systems, photovoltaic cells, solar modules and energy storage systems, in line with the government's Aatmanirbhar Bharat initiative.
The Cabinet said the PM Surya Sarovar Yojana will contribute to India's renewable energy capacity addition, help achieve national climate and clean energy goals, optimise the use of inland water resources and support the broader vision of Viksit Bharat.
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