The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana with a Rs 50.7 billion outlay to develop 5 GW of floating solar projects integrated with 10 GWh of energy storage. The scheme aims to expand floating solar deployment, strengthen grid stability and support domestic renewable energy manufacturing.
The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana, a national scheme to develop 5,000 MW of floating solar photovoltaic (PV) projects integrated with energy storage systems (ESS) across India. The scheme has a total outlay of Rs 50.7 billion and includes a minimum co-located storage capacity of 10,000 MWh, equivalent to two hours of storage for the planned floating solar capacity.
Projects will be sanctioned between FY 2026-27 and FY 2030-31, while financial support under the scheme will continue to be disbursed until FY 2032-33. The approval follows an 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.
Under the scheme, the government will provide central financial assistance of Rs 10 million per MW to eligible floating solar projects after successful commissioning. In addition, up to Rs 5 million per project will be available for feasibility studies covering bathymetry, hydrography, environmental assessments and other preparatory activities.
The scheme will be implemented across all states and union territories and is expected to increase India’s installed floating solar capacity from the current around 700 MW to 5,700 MW.
The programme aims to utilise reservoirs, lakes and industrial ponds for renewable power generation while reducing the need for land acquisition. By integrating energy storage with floating solar, the scheme is intended to improve grid stability and enhance the utilisation of renewable energy generation.
According to the government, the scheme could reduce around 10 million tonnes of carbon emissions annually, generate 16,000-17,000 full-time equivalent jobs, and support domestic manufacturing of floating solar systems, solar PV cells, modules and energy storage equipment.
The Pradhan Mantri Surya Sarovar Yojana represents one of India’s largest dedicated floating solar initiatives and is expected to strengthen the country’s renewable energy and energy storage ecosystem while expanding the use of inland water bodies for clean power generation.
