EFC clears central scheme for floating solar projects with BESS support

The Expenditure Finance Committee (EFC) under the Ministry of Finance has approved a central scheme to support floating solar projects integrated with Battery Energy Storage Systems (BESS), according to multiple media reports. However, variations have emerged regarding the approved financial outlay.

According to Zee Business, the EFC approved Rs 5,000 crore against the Ministry of New and Renewable Energy’s (MNRE) proposal of around Rs 6,500 crore. The Economic Times reported that the committee cleared Rs 5,500 crore against MNRE’s proposed Rs 6,700 crore. Power Peak Digest is awaiting official confirmation of the final approved amount.

The proposal will now be placed before the Union Cabinet for final approval. Detailed scheme guidelines and implementation structure are yet to be announced.

The proposed scheme aims to incentivise states and project developers to install floating solar panels on water bodies such as lakes, dams and reservoirs. It is also intended to reduce land requirements for utility-scale solar projects while integrating BESS to address the intermittency of solar generation and enable supply during peak demand hours.

In June 2025, the Ministry of Power approved a Viability Gap Funding (VGF) scheme for 30 GWh of BESS capacity, allocating Rs 5,400 crore from the Power System Development Fund (PSDF). According to data cited by the Ministry of Power, 35.8 GWh of BESS capacity is currently under construction in India, while over 58 GWh of BESS tenders were floated during 2025. 

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