Prime Minister Narendra Modi has said the newly approved Pradhan Mantri Surya Sarovar Yojana (PM-SSY) will significantly expand India’s clean energy capacity by harnessing the potential of reservoirs and inland water bodies while reducing carbon emissions and strengthening the country’s renewable energy infrastructure.
Sharing his remarks on X, the Prime Minister said the scheme would benefit every State and Union Territory by promoting the innovative use of water bodies for renewable energy generation.
₹5,070 Crore Scheme Approved
The Union Cabinet, chaired by Prime Minister Modi, has approved the Pradhan Mantri Surya Sarovar Yojana with a total outlay of ₹5,070 crore.
The scheme aims to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) projects integrated with Energy Storage Systems (ESS) across reservoirs and suitable inland water bodies.
Projects will be sanctioned between FY 2026–27 and FY 2030–31, while financial assistance will continue until FY 2032–33.
Floating Solar with Energy Storage
Under the scheme, every floating solar project will include a co-located energy storage system with a minimum storage capacity of two hours, resulting in a cumulative storage capacity of 10,000 MWh.
The integration of battery storage is expected to improve grid reliability by ensuring a more stable supply of renewable electricity.
Financial Support for States and Developers
To encourage project development, the Centre will provide:
- Central Financial Assistance (CFA) of ₹1 crore per MW for eligible floating solar projects after successful commissioning.
- Up to ₹50 lakh per project for feasibility studies, including bathymetric surveys, hydrographic assessments, environmental studies and other preparatory work required before project execution.
The scheme will be available to all States and Union Territories, enabling wider adoption of floating solar technology across the country.
Unlocking India’s Floating Solar Potential
The Cabinet approval follows an assessment by the National Institute of Solar Energy (NISE), which estimated India’s floating solar potential at approximately 102.18 GWp across reservoirs and other suitable inland water bodies.
India currently has around 700 MW of installed floating solar capacity. The PM Surya Sarovar Yojana is expected to increase this by 5,000 MW, significantly expanding the country’s floating solar footprint.
By utilising existing reservoirs and industrial water bodies, the scheme also reduces pressure on scarce land resources needed for large-scale renewable energy projects.
Climate and Employment Benefits
According to the government, the initiative is expected to:
- Reduce nearly 10 million tonnes of CO₂ emissions annually.
- Generate approximately 16,000–17,000 full-time equivalent employment opportunities across the project value chain.
- Promote domestic manufacturing of floating platforms, solar PV modules, energy storage systems and related equipment under the Aatmanirbhar Bharat initiative.
The scheme is also expected to contribute to India’s renewable energy targets, strengthen energy security and support the country’s long-term climate commitments.
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