The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore scheme to accelerate the development of floating solar photovoltaic (FSPV) projects integrated with energy storage systems across the country.
The scheme aims to develop 5,000 MW of floating solar capacity along with 10,000 MWh of co-located energy storage, providing a minimum storage duration of two hours. 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 an assessment by the National Institute of Solar Energy (NISE), which estimated India’s floating solar potential at around 102.18 GWp across reservoirs and other suitable inland water bodies.
Under the scheme, the Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible floating solar projects after successful commissioning. In addition, project developers can receive up to ₹50 lakh per project for feasibility studies, including bathymetry and hydrography surveys, environmental assessments and other preparatory activities aimed at reducing project risks.
The government said the scheme will benefit all States and Union Territories while significantly expanding India’s floating solar capacity, which currently stands at around 700 MW. By utilising reservoirs and industrial ponds, the initiative is expected to reduce dependence on scarce land resources for renewable energy projects.
The integration of energy storage systems is expected to strengthen grid reliability by improving the availability and stability of renewable power.
The scheme is projected to reduce nearly 10 million tonnes of carbon dioxide emissions annually and generate around 16,000-17,000 full-time equivalent employment opportunities across the project value chain.
The initiative is also expected to boost domestic manufacturing of floating platforms, photovoltaic cells and modules, energy storage systems and other key components, supporting the government’s Aatmanirbhar Bharat initiative.
The government said the PM Surya Sarovar Yojana will contribute to India’s renewable energy capacity expansion, support national climate and energy goals, promote efficient utilisation of water bodies, and advance the vision of Viksit Bharat.
