The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore scheme to accelerate floating solar power generation across India. The initiative aims to develop 5,000 megawatts (MW) of floating solar photovoltaic (FSPV) projects with integrated energy storage systems, supporting the country's renewable energy expansion and clean electricity goals.

The scheme, approved by the Cabinet chaired by Prime Minister Narendra Modi, will be implemented between FY 2026-27 and FY 2030-31, with financial assistance continuing through FY 2032-33.

Scheme Targets 5,000 MW Floating Solar Capacity

Under PM-SSY, the government will support floating solar projects equipped with co-located energy storage systems offering a minimum storage capacity of 10,000 megawatt-hours (MWh), equivalent to at least two hours of energy storage.

The Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible projects after successful commissioning. An additional grant of up to ₹50 lakh per project will be available for feasibility studies, including bathymetric surveys, hydrography assessments, environmental studies, and other preparatory work aimed at reducing project risks.

Floating Solar Potential Drives Renewable Energy Expansion

The approval follows an assessment by the National Institute of Solar Energy (NISE), which estimated India's floating solar potential at around 102.18 gigawatts peak (GWp) across reservoirs and other suitable inland water bodies.

India currently has about 700 MW of floating solar capacity. The new scheme is expected to significantly expand this capacity while reducing pressure on scarce land resources by using existing reservoirs and industrial ponds.

The government estimates the projects could reduce nearly 10 million tonnes of carbon dioxide (CO₂) emissions annually and generate around 16,000 to 17,000 full-time equivalent jobs across manufacturing, construction, and operations.

Focus On Energy Storage And Domestic Manufacturing

The scheme also aims to strengthen grid reliability through integrated energy storage while supporting domestic manufacturing of floating platforms, solar modules, photovoltaic cells, and battery systems. Officials said the initiative aligns with India's renewable energy targets, climate commitments, and broader efforts to strengthen domestic clean energy manufacturing.