The Union Cabinet chaired by Prime Minister Narendra Modi has approved the 'Pradhan Mantri Surya Sarovar Yojana (PM-SSY)' with a total outlay of ₹5,070 crore for developing Floating Solar Photovoltaic (FSPV) Projects with Energy Storage Systems (ESS). The scheme envisages development of 5,000 MW of floating solar projects with co-located energy storage systems having a minimum storage capacity of two hours, equivalent to 10,000 MWh.
Projects will be sanctioned during FY 2026-27 to FY 2030-31, with financial support disbursement continuing up to FY 2032-33. The approval 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 suitable inland water bodies.
Under the scheme, Central Financial Assistance (CFA) of ₹1 crore per MW will be provided for eligible floating solar projects after successful commissioning. Additionally, CFA of up to ₹50 lakh per project will be available for feasibility studies, including bathymetry and hydrography assessments, environmental studies, and other preparatory activities required for de-risking project development.
The scheme will enhance India's floating solar capacity from the current 700 MW by an additional 5,000 MW, utilizing existing reservoirs and industrial ponds while eliminating competition for scarce land resources. The integration of energy storage systems will strengthen grid reliability, and the projects are expected to reduce approximately 10 million tonnes of CO₂ emissions annually. The scheme will generate approximately 16,000-17,000 full-time equivalent employment opportunities across the project value chain and promote domestic manufacturing of floatation systems, PV cells, modules, energy storage systems, and other components, supporting the Aatmanirbhar Bharat vision.