PM Surya Sarovar Yojana approved with Rs 5,070 crore investment to promote floating solar power

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) for the development of Floating Solar Photovoltaic Projects along with Energy Storage Systems with a total outlay of Rs 5,070 crore.

The scheme envisages the development of 5,000 MW of Floating Solar Photovoltaic projects with co-located Energy Storage Systems having a minimum storage capacity of two hours, i.e. 10,000 MWh. The projects will be sanctioned during FY 2026-27 to FY 2030-31, with disbursement of financial support continuing up to FY 2032-33, according to a Cabinet communique.

The approval follows the recent assessment undertaken by the National Institute of Solar Energy (NISE), which has estimated a floating solar potential of approximately 102.18 GWp across reservoirs and other suitable inland water bodies in the country

Under the scheme, Central Financial Assistance (CFA) of Rs 1 crore per MW will be provided for eligible Floating Solar Photovoltaic projects after successful commissioning. In addition, CFA of up to Rs 50 lakh per project will be available for undertaking feasibility studies, including bathymetry and hydrography assessments, environmental studies, and other preparatory activities required for de-risking the project development.

All states and Union Territories will benefit through this scheme, which aims to enhance the floating Solar PV capacity in the country by 5,000 MW. The current capacity is only 700 MW. These projects would provide an opportunity to gainfully utilise existing reservoirs and industrial ponds, and eliminate competition for scarce land resources. The integration of an energy storage system will help strengthen grid reliability.

The scheme would help in the reduction of around 10 million tonnes of CO2 emissions annually. It would help in the generation of approximately 16,000–17,000 full-time equivalent employment opportunities across the project value chain. The scheme would also promote domestic manufacturing of floatation systems as well as the entire value chain of the projects, like PV cells, modules, energy storage systems, etc., and support the vision of Aatmanirbhar Bharat, the statement said,

The scheme will contribute to renewable energy capacity addition, support the achievement of national energy and climate objectives, and facilitate optimal utilisation of water resources while advancing the vision of Viksit Bharat, the communique added.