The Union Cabinet on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore scheme aimed at developing 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS). The initiative is designed to expand renewable energy capacity while strengthening grid reliability.
The scheme was approved by the Union Cabinet chaired by Prime Minister Narendra Modi. According to an official release, the projects will include a minimum energy storage capacity of two hours, equivalent to 10,000 MWh.
PM Surya Sarovar Yojana to Develop 5,000 MW Floating Solar Capacity
Under the PM-SSY, floating solar projects will be developed across suitable reservoirs and other inland water bodies. The government said the scheme will increase India’s floating Solar PV capacity by 5,000 MW.
At present, the country has around 700 MW of floating solar capacity. The new scheme therefore represents a significant expansion of this form of renewable energy generation.
The projects will be sanctioned between FY 2026-27 and FY 2030-31. Financial support under the scheme will continue to be disbursed until FY 2032-33.
₹1 Crore Central Assistance Per MW
The Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW to eligible floating solar projects after successful commissioning, according to the government release.
The scheme will also provide financial assistance of up to ₹50 lakh per project for feasibility studies and preparatory work. This support can cover activities such as bathymetry and hydrography assessments, environmental studies and other requirements involved in preparing projects for development.
India Has 102.18 GWp Floating Solar Potential
The Cabinet approval follows an assessment by the National Institute of Solar Energy (NISE), which estimated that India has around 102.18 GWp of floating solar potential across reservoirs and other suitable inland water bodies.
The government intends to utilise this potential by promoting floating solar generation on existing water bodies. The approach could also help reduce pressure on land resources while expanding renewable energy infrastructure.
Energy Storage to Strengthen Grid Reliability
A key feature of the PM-SSY is the integration of Energy Storage Systems with floating solar projects. The scheme requires a minimum storage capacity of two hours, or 10,000 MWh across the planned 5,000 MW capacity.
The government said combining floating solar generation with energy storage will help improve grid reliability. The use of existing reservoirs and industrial ponds will also support renewable power generation without creating additional pressure on land availability.
Scheme to Benefit All States and Union Territories
According to the official release, all States and Union Territories will benefit from the PM Surya Sarovar Yojana. The scheme is intended to encourage the development of floating solar projects across suitable water bodies throughout the country.
Beyond renewable energy generation, the initiative is expected to support better utilisation of existing water resources while contributing to national energy and climate objectives.
Floating Solar Scheme Expected to Cut 10 Million Tonnes of CO2 Annually
The government expects the scheme to help reduce approximately 10 million tonnes of carbon dioxide emissions every year.
The initiative is also projected to generate around 16,000-17,000 full-time equivalent employment opportunities across the project value chain, adding an employment dimension to the renewable energy expansion.
Focus on Domestic Manufacturing and Aatmanirbhar Bharat
The PM-SSY is also expected to encourage domestic manufacturing of key components used in floating solar and energy storage projects. These include floatation systems, photovoltaic cells, modules and energy storage systems.
The government said this component of the scheme will support the vision of Aatmanirbhar Bharat by promoting domestic capabilities across the renewable energy project value chain.
PM-SSY Linked to Renewable Energy and Viksit Bharat Goals
The government said the scheme will contribute to renewable energy capacity addition while supporting national energy and climate objectives. It is also expected to facilitate the optimal utilisation of water resources through the development of floating solar installations.
With 5,000 MW of new floating solar capacity planned and energy storage built into the scheme, the initiative is positioned as part of the Centre’s wider effort to expand renewable power infrastructure while improving grid reliability.
The scheme also aligns with the government’s broader vision of Viksit Bharat, according to the official release.
Source: ANI, official government release
