Cabinet Clears Rs 5,070 Crore Floating Solar Scheme

• Cabinet approves PM-SSY with a total outlay of Rs 5,070 crore.
• Scheme targets 5,000 MW floating solar projects with 10,000 MWh storage.
• Government estimates projects could cut around 10 million tonnes of CO₂ emissions annually.
• Scheme expected to generate around 16,000–17,000 full-time equivalent jobs.

GG News Bureau
New Delhi, 31st July: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) with an outlay of Rs 5,070 crore to develop floating solar photovoltaic projects integrated with energy storage systems across the country.

Under the scheme, the government plans to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) capacity, accompanied by co-located Energy Storage Systems (ESS) with a minimum storage duration of two hours, translating into 10,000 MWh of storage capacity.

Projects under PM-SSY will be sanctioned between financial years 2026-27 and 2030-31, while disbursement of financial assistance will continue until FY 2032-33.

The scheme follows an assessment by the National Institute of Solar Energy, which estimated India’s floating solar potential at around 102.18 GWp across reservoirs and other suitable inland water bodies.

Under PM-SSY, the Centre will provide Central Financial Assistance of Rs 1 crore per MW to eligible floating solar projects after their successful commissioning.

Financial assistance of up to Rs 50 lakh per project will also be provided for feasibility studies, including bathymetry and hydrography assessments, environmental studies and other preparatory work aimed at reducing project-development risks.

The government said all states and Union Territories will be able to benefit from the scheme.

India currently has around 700 MW of floating solar capacity, and PM-SSY is expected to add another 5,000 MW. The projects will utilise existing reservoirs and industrial ponds, reducing the need for scarce land resources for large-scale solar installations.

The integration of energy storage systems with floating solar projects is expected to improve grid reliability while supporting the country’s transition towards cleaner energy.

According to the government, the scheme could help reduce around 10 million tonnes of carbon dioxide emissions annually and generate approximately 16,000 to 17,000 full-time equivalent employment opportunities across the project value chain.

PM-SSY is also expected to encourage domestic manufacturing of flotation systems, photovoltaic cells and modules, energy storage systems and other components, supporting the government’s Aatmanirbhar Bharat initiative.

The Centre said the scheme will contribute to India’s renewable energy capacity, help meet national energy and climate objectives and enable more productive utilisation of water resources.