The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a dedicated INR 5,070 crore scheme to promote floating solar power projects with integrated energy storage systems across the country. The initiative aims to develop around 5,000 MW of new floating solar capacity by FY 2030-31 while making better use of reservoirs and industrial water bodies for renewable energy generation. 
Under the scheme, the government will provide Central Financial Assistance (CFA) of INR 1 crore per MW for eligible floating solar photovoltaic (PV) projects after they are successfully commissioned. In addition, financial support of INR 50 lakh will be available for feasibility studies, including bathymetry and hydrography assessments, environmental studies and other preparatory work required before project implementation. 
The scheme targets the development of 5,000 MW of floating solar PV projects with co-located energy storage systems offering a minimum storage duration of two hours, equivalent to 10,000 MWh of storage capacity. Projects will be sanctioned between FY 2026-27 and FY 2030-31, while financial assistance will continue to be disbursed until FY 2032-33. 
All states and Union Territories will be eligible to benefit from the programme. The government expects the scheme to increase India's floating solar capacity from the current level of around 700 MW to nearly 5,700 MW. By using reservoirs and industrial ponds, the initiative is expected to reduce the pressure on acquiring land for renewable energy projects while making productive use of existing water bodies. 
The integration of battery energy storage systems is also expected to improve grid stability and enable better management of renewable power generation. According to the government, the scheme could help reduce nearly 10 million tonnes of carbon dioxide emissions every year while creating around 16,000 to 17,000 full-time equivalent jobs across manufacturing, construction, installation and operations. 
Following the Cabinet approval, Union Minister for New and Renewable Energy Pralhad Joshi said the scheme marks a major step towards utilising India's reservoirs and water bodies for clean energy generation. He stated that with a target of 5,000 MW of floating solar capacity, 10,000 MWh of energy storage, and an expected overall investment of around INR 28,500 crore, the initiative is expected to strengthen India's energy security, accelerate the transition towards clean energy and support the country's long-term sustainability goals. 
The minister also said the programme has the potential to unlock nearly 102 GW of floating solar capacity across the country, highlighting the large untapped opportunity available in India's reservoirs and inland water bodies. 
According to the government, the scheme will also encourage domestic manufacturing across the floating solar ecosystem, including flotation systems, photovoltaic cells, solar modules and energy storage systems. This is expected to strengthen local manufacturing capabilities while supporting the country's broader objective of increasing self-reliance in the renewable energy sector. 
The programme is also expected to contribute to India's renewable energy capacity expansion, help achieve national climate commitments and improve the utilisation of water resources by combining clean energy generation with existing reservoirs. 
The Ministry of New and Renewable Energy (MNRE) has been working on a dedicated policy for large-scale floating solar projects for some time. MNRE Secretary Santosh Sarangi had earlier said that the ministry wanted to encourage states to develop larger floating solar projects, as the segment has not yet reached its full potential. Floating solar systems, where solar panels are installed on water bodies, are considered more energy-efficient than conventional ground-mounted plants because the cooling effect of water improves panel performance while reducing land requirements. 
Official data shows that India's installed solar power capacity has grown from 2.82 GW in March 2014 to 150.26 GW in March 2026, an increase of 147.44 GW. However, floating solar currently accounts for only around 700 MW, indicating significant scope for future expansion. 
Subrahmanyam Pulipaka, Chief Executive Officer of the National Solar Energy Federation of India (NSEFI), said the scheme is expected to diversify India's renewable energy mix by unlocking the potential of reservoirs and inland water bodies. He added that integrating energy storage with floating solar projects from the beginning would help build a more resilient power system while reducing dependence on limited land resources. 
Source PTI