The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore flagship scheme aimed at accelerating India’s clean energy transition through the large-scale deployment of Floating Solar Photovoltaic (FSPV) projects integrated with Energy Storage Systems (ESS).
The scheme seeks to develop 5,000 MW of floating solar capacity across reservoirs and inland water bodies, significantly expanding the country’s renewable energy portfolio while reducing dependence on land-based solar installations.
5,000 MW Floating Solar with Integrated Storage
Under the scheme, floating solar projects with a combined capacity of 5,000 MW will be developed between FY 2026–27 and FY 2030–31.
Each project will include a co-located Energy Storage System (ESS) with a minimum storage duration of two hours, resulting in a cumulative storage capacity of 10,000 MWh.
The integration of storage systems is expected to improve grid stability by enabling renewable power to be supplied even after sunset or during periods of low solar generation.
Unlocking India’s Floating Solar Potential
The approval follows a nationwide assessment conducted by the National Institute of Solar Energy (NISE), which estimated India’s floating solar potential at approximately 102.18 GWp across reservoirs, lakes 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, expanding the country’s floating solar ecosystem more than eightfold.
By utilising existing water bodies, the scheme also addresses land availability challenges while helping reduce water evaporation from reservoirs.
Financial Incentives for Project Development
To encourage investments and reduce project development risks, the government has introduced financial support under the scheme.
Eligible projects will receive:
- Central Financial Assistance (CFA) of ₹1 crore per MW after successful commissioning.
- Up to ₹50 lakh per project for feasibility studies, including bathymetric surveys, hydrographic mapping, environmental assessments and other preparatory activities.
The scheme will be open to all States and Union Territories, allowing regional utilities and developers to utilise suitable water bodies for clean energy generation.
Supporting Clean Energy and Domestic Manufacturing
The government expects the initiative to strengthen India’s renewable energy capacity while supporting domestic manufacturing across the floating solar value chain, including floatation systems, photovoltaic modules and battery energy storage technologies.
The scheme also aligns with the Aatmanirbhar Bharat initiative by promoting indigenous manufacturing and creating new opportunities for the renewable energy industry.
Climate and Economic Benefits
According to the government, the PM Surya Sarovar Yojana is expected to:
- Add 5,000 MW of floating solar capacity.
- Reduce nearly 10 million tonnes of CO₂ emissions annually.
- Create approximately 16,000–17,000 full-time equivalent employment opportunities.
- Improve utilisation of reservoirs and industrial water bodies without competing for agricultural or urban land.
The initiative is expected to play a key role in helping India achieve its renewable energy and climate goals while strengthening energy security and supporting sustainable infrastructure development.
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