India's Solar Growth and New Floating Solar Scheme

The Indian government has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) on 31 July 2026, with an outlay of ₹5,070 crore to be implemented from FY 2026–27 to FY 2030–31. The scheme aims to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) projects co-located with Energy Storage Systems (ESS) having minimum storage capacity of two hours (10,000 MWh). This initiative will utilize existing reservoirs and industrial ponds, reducing pressure on land resources while helping states manage peak demand and improve grid reliability. The scheme is based on an assessment by the National Institute of Solar Energy (NISE) that estimates India's floating solar potential at about 102.18 GWp across reservoirs and suitable inland water bodies.

Solar Capacity Expansion and Achievements

India's solar capacity has expanded dramatically from approximately 3 GW in 2014 to 162.15 GW as of 30 June 2026, representing a fiftyfold increase. FY 2025–26 marked a milestone year with record additions of 44.61 GW of solar capacity, nearly double the 23.83 GW added in FY 2024–25. The country added 37 GW of solar capacity in 2025, surpassing the United States in annual additions and emerging as the world's second-largest solar growth market. Total non-fossil fuel capacity reached 283.46 GW, including 274.68 GW of renewable energy capacity, with the highest-ever annual addition of non-fossil fuel capacity recorded at 55.29 GW. On 29 July 2025, renewable energy sources met 51.5% of India's electricity demand, the highest monthly share recorded.

Policy Framework and Infrastructure Development

India's solar expansion is driven by a comprehensive policy framework including the National Solar Mission (2010), Solar Parks Scheme, Green Energy Corridor Programme, and competitive bidding mechanisms. The Solar Parks Scheme initially targeted 20 GW and was expanded to 40 GW in 2017, with 54 solar parks approved having combined sanctioned capacity of 39,188 MW as of February 2026. Major states hosting these parks include Rajasthan (10,726 MW), Gujarat (12,150 MW), Madhya Pradesh (4,208 MW), Andhra Pradesh (4,200 MW), and Karnataka (2,000 MW). The Green Energy Corridor Programme has enabled evacuation of 24,567.8 MW of renewable energy through strengthened transmission networks, with projects across ten states planned to support around 44 GW of renewable energy evacuation.

Manufacturing and Domestic Production Support

The Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules was launched in 2021 with initial outlay of ₹4,500 crore and expanded in 2022 with additional ₹19,500 crore. By October 2024, the scheme had attracted investments of around ₹35,000 crore and generated direct employment for about 10,000 people. Solar module manufacturing capacity increased from 2.3 GW in 2014 to about 172 GW as of 31 March 2026. The Approved List of Models and Manufacturers (ALMM) framework, introduced in 2019, ensures quality assurance for solar PV modules and cells used in government-supported projects.

Distributed Solar Programs for Households and Farmers

The PM Surya Ghar: Muft Bijli Yojana, launched on 13 February 2024 with outlay of ₹75,021 crore, has solarized over 43 lakh households as of June 2026 with ₹14,771.82 crore disbursed as Central Financial Assistance till December 2025. Over 7.7 lakh households received zero electricity bills as of 09 December 2025. The Pradhan Mantri-Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM), launched in 2019, has installed nearly 11.49 lakh off-grid solar pumps for agricultural use, covered more than 15.89 lakh agricultural pumps through feeder-level solarization, and commissioned around 1,726 MW of decentralised solar power capacity on farmers' land, benefiting over 21.77 lakh farmers. In FY 2025–26, distributed solar solutions contributed 16.3 GW (36% of total solar capacity added), with 7.6 GW from PM-KUSUM and 8.7 GW from rooftop solar.

International Cooperation and Climate Commitments

India co-founded the International Solar Alliance (ISA) with France at COP21 in Paris in 2015, which includes member countries such as Maldives, Greece, Germany, Italy, Bhutan, Luxembourg, and Argentina. The country proposed the One Sun One World One Grid (OSOWOG) vision in 2018, leading to the Green Grids Initiative–OSOWOG launched with the United Kingdom at COP26 in 2021, supported by Australia, France, United States, and ISA. India's Panchamrit goals announced at COP26 include 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070, reflected in updated Nationally Determined Contributions under the Paris Agreement. The Renewable Purchase Obligation (RPO) trajectory has been notified through 2029–30, with the target for 2026–27 set at 35.95%.

Environmental and Economic Impact

The PM-SSY scheme is expected to reduce around 10 million tonnes of CO₂ emissions annually and generate 16,000–17,000 full-time equivalent jobs while promoting domestic manufacturing of floatation systems, PV cells, modules and energy storage systems. Competitive bidding through e-Reverse Auction mechanism has driven solar tariffs down from around ₹18 per unit in 2010 to a record-low of ₹2.44 per unit achieved at Bhadla Solar Park auction in 2017. In 2025, the Levelised Cost of Electricity (LCOE) from utility-scale solar PV stood at USD 35 per MWh, well below the global average of USD 44 per MWh.