Cabinet Approves ₹5,070-Crore PM Surya Sarovar Yojana to Develop 5,000 MW Floating Solar Capacity

New Delhi: In a major push to expand India’s renewable energy capacity and optimise the use of inland water bodies, the Union Cabinet on Wednesday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070-crore scheme to develop 5,000 MW of floating solar photovoltaic (FSPV) projects integrated with energy storage systems across the country.

Chaired by Prime Minister Narendra Modi, the Cabinet approved the centrally sponsored scheme to be implemented between FY 2026-27 and FY 2030-31, with financial assistance continuing till FY 2032-33. The projects will include co-located energy storage systems with a minimum storage capacity of 10,000 MWh, equivalent to two hours of storage.

The initiative comes after the National Institute of Solar Energy (NISE) estimated that India has a floating solar potential of around 102.18 GWp across reservoirs and other suitable inland water bodies.

Under the scheme, the Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible floating solar projects after successful commissioning. In addition, project developers can receive up to ₹50 lakh per project for feasibility studies, including bathymetry, hydrography, environmental assessments and other preparatory activities aimed at reducing project risks.

The government said the scheme would benefit all States and Union Territories while significantly increasing India’s floating solar capacity, which currently stands at around 700 MW.

According to the government, the projects will make productive use of reservoirs and industrial ponds without competing for scarce land resources. The integration of battery storage systems is also expected to improve grid stability and facilitate greater renewable energy integration.

The scheme is projected to reduce nearly 10 million tonnes of carbon dioxide emissions annually and generate around 16,000 to 17,000 full-time equivalent employment opportunities across the project value chain.

It is also expected to boost domestic manufacturing of floatation systems, solar photovoltaic cells and modules, energy storage systems and related equipment, supporting the government’s Aatmanirbhar Bharat initiative.

The Centre said the PM Surya Sarovar Yojana would contribute to India’s renewable energy expansion, help achieve national climate and energy goals, promote efficient utilisation of water resources and support the vision of Viksit Bharat.