Centre Approves Rs. 5,070 Crore Floating Solar Scheme with Energy Storage

The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) with a total outlay of Rs. 5,070 crore for the development of 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS) having a minimum storage capacity of 10,000 MWh. Projects will be sanctioned during FY 2026-27 to FY 2030-31, with financial support disbursement continuing until FY 2032-33. Central Financial Assistance (CFA) of Rs. 1 crore per MW will be provided for eligible FSPV projects after commissioning, with an additional Rs. 50 lakh per project available for feasibility studies including bathymetry, hydrography, and environmental assessments. The scheme is based on an assessment by the National Institute of Solar Energy (NISE) estimating floating solar potential of approximately 102.18 GWp across reservoirs and inland water bodies in India. The initiative is expected to reduce around 10 million tonnes of CO₂ emissions annually, generate 16,000-17,000 full-time equivalent jobs, and promote domestic manufacturing of floatation systems, PV cells, modules, and energy storage systems. All States and Union Territories will benefit from the scheme, which aims to expand India's current floating solar capacity from approximately 700 MW to 5,700 MW while eliminating competition for scarce land resources.