The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a new scheme aimed at accelerating the deployment of floating solar power projects integrated with energy storage systems across India. The scheme has been approved with a total financial outlay of Rs. 5,070 crore and is expected to play a significant role in expanding the country’s renewable energy capacity while reducing dependence on land for solar installations.
Under the scheme, the government plans to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) projects along with co-located Energy Storage Systems (ESS) having a minimum storage capacity of 10,000 MWh, equivalent to two hours of storage. The projects will be sanctioned between FY 2026-27 and FY 2030-31, while the disbursement of financial assistance will continue until FY 2032-33.
The approval comes after a recent assessment by the National Institute of Solar Energy (NISE), which estimated that India has a floating solar potential of nearly 102.18 GWp across reservoirs and other suitable inland water bodies. This highlights the significant opportunity to expand renewable energy generation without putting additional pressure on land resources.
To encourage project development, the government will provide Central Financial Assistance (CFA) of Rs. 1 crore per MW for eligible floating solar projects after they are successfully commissioned. In addition, developers can receive up to Rs. 50 lakh per project for conducting feasibility studies, including bathymetry and hydrography surveys, environmental assessments, and other preparatory activities required to reduce project risks before construction begins.
The scheme will be implemented across all States and Union Territories, enabling them to utilize existing reservoirs, lakes, and industrial ponds for clean energy generation. India currently has only around 700 MW of floating solar capacity, and the addition of 5,000 MW under PM-SSY is expected to significantly strengthen this segment of the renewable energy sector.
The integration of energy storage systems with floating solar projects will improve grid reliability by enabling better management of renewable power generation. The government estimates that the scheme will help reduce approximately 10 million tonnes of carbon dioxide emissions annually, contributing to India’s climate commitments and clean energy goals.
Besides environmental benefits, the initiative is expected to create around 16,000 to 17,000 full-time equivalent employment opportunities across manufacturing, construction, installation, operations, and maintenance. It is also expected to boost domestic manufacturing of floating platforms, solar PV cells, modules, energy storage systems, and other components, supporting the government’s Aatmanirbhar Bharat initiative.
Overall, the Pradhan Mantri Surya Sarovar Yojana is expected to accelerate renewable energy capacity addition, improve the efficient use of water bodies, strengthen the power system through energy storage, and support India’s long-term vision of achieving sustainable development and a Viksit Bharat.
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