Cabinet approves Rs 5,070 crore floating solar and storage scheme
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) with a total outlay of Rs 5,070 crore to support development of 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS) across India.
The planned 5,000 MW of floating solar capacity will be paired with ESS providing a minimum storage duration of two hours, translating into at least 10,000 MWh of storage capacity.
Projects under PM-SSY will be sanctioned between FY 2026-27 and FY 2030-31, while disbursement of financial support under the scheme will continue up to FY 2032-33.
The scheme is expected to mobilise investment of around Rs 28,500 crore and will use tariff-based competitive bidding for project development.
Financial support
Under PM-SSY, eligible FSPV projects will receive Central Financial Assistance (CFA) of Rs 1 crore per MW following successful commissioning.
The scheme will also provide CFA of up to Rs 50 lakh per project for feasibility studies and preparatory work intended to reduce project development risks. These activities include bathymetry and hydrography assessments, environmental studies and other preparatory requirements.
The scheme follows a recent assessment by the National Institute of Solar Energy (NISE), which estimated India’s floating solar potential at approximately 102.18 GWp across reservoirs and other suitable inland water bodies.
FSPV projects allow solar generation to be developed on existing reservoirs and industrial ponds, reducing the requirement for land. Such projects can also reduce water evaporation and panel soiling.
Expected impact
The scheme is intended to expand India’s floating solar ecosystem while supporting domestic manufacturing associated with project deployment.
According to the government, PM-SSY is expected to generate 16,000-17,000 employment opportunities and reduce nearly 10 million tonnes of COâ‚‚ emissions annually.
With 5,000 MW of FSPV capacity and at least 10,000 MWh of co-located storage targeted by FY 2030-31, the programme will add renewable generation while using storage to improve the availability and integration of solar power into the electricity system.
The featured photograph (source: NTPC) is for representation only.
