Cabinet
India’s solar revolution gets a big boost: Modi Cabinet clears Rs. 5,070 crore floating solar mega plan
The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a flagship scheme aimed at accelerating the development of Floating Solar Photovoltaic (FSPV) projects with Energy Storage Systems (ESS), with a total outlay of ₹5,070 crore.
The scheme envisages the development of 5,000 MW of floating solar power capacity, supported by co-located energy storage systems with a minimum storage capacity of 10,000 MWh, equivalent to two hours of storage.
According to an official government statement, projects will be sanctioned between FY 2026–27 and FY 2030–31, while financial assistance will continue to be disbursed until FY 2032–33.
The approval follows a recent 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.
Financial Assistance
Under the scheme, the Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible floating solar projects after their successful commissioning.
Additionally, project developers will be eligible for up to ₹50 lakh per project to undertake feasibility studies, including bathymetric and hydrographic surveys, environmental assessments and other preparatory activities aimed at reducing project risks.
Benefits Across India
The scheme will benefit all States and Union Territories by significantly expanding India's floating solar capacity from the current around 700 MW to 5,000 MW.
By utilising reservoirs, lakes and industrial ponds, the projects are expected to optimise the use of existing water bodies while reducing competition for scarce land resources.
The integration of energy storage systems will also enhance grid stability and improve the reliability of renewable power supply.
Environmental and Economic Impact
According to the government, the scheme is expected to reduce around 10 million tonnes of carbon dioxide (CO₂) emissions annually.
It is also projected to generate approximately 16,000–17,000 full-time equivalent jobs across the floating solar project value chain.
The initiative is expected to boost domestic manufacturing of floatation systems, photovoltaic cells, solar modules, energy storage systems and related equipment, further strengthening the Make in India and Atmanirbhar Bharat initiatives.
The government said the scheme will contribute significantly to India's renewable energy capacity, support national energy security and climate goals, promote efficient utilisation of water resources, and advance the country's vision of Viksit Bharat.
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