India's Solar Growth and New Floating Solar Scheme

The Indian government approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) on 31 July 2026, marking a significant expansion in the country's renewable energy infrastructure. 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). With an outlay of ₹5,070 crore, the scheme will be implemented from FY 2026–27 to FY 2030–31 across all States and Union Territories, utilizing existing reservoirs and industrial ponds to reduce pressure on land resources.

The National Institute of Solar Energy (NISE) assessment estimates India's floating solar potential at about 102.18 GWp across reservoirs and suitable inland water bodies. The 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. This will increase India's floating solar capacity from the current level of around 700 MW to 5,700 MW.

Record Solar Capacity Expansion

India's solar sector has demonstrated remarkable growth, expanding from approximately 3 GW installed capacity in 2014 to 162.15 GW as of 30 June 2026—a more than fiftyfold increase. FY 2025–26 marked a milestone year with record additions of 44.61 GW 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 so far.

Geographic Distribution and Major Projects

Solar deployment spans diverse geographies with Rajasthan, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, and Maharashtra accounting for significant shares of installed capacity. Large solar projects contribute 118.79 GW of installed capacity, including major facilities like Bhadla Solar Park in Rajasthan (2,245 MW capacity spread across 5,700 hectares), Pavagada Solar Park in Karnataka, and Rewa Ultra Mega Solar Park in Madhya Pradesh. Rooftop solar systems contribute 27.88 GW, while hybrid projects and off-grid systems make up the remaining capacity.

Policy Framework and Infrastructure Support

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 targeting 20 GW and expanded to 40 GW in 2017, has approved 54 solar parks with combined sanctioned capacity of 39,188 MW across states as of February 2026. Gujarat leads with 7 parks (12,150 MW capacity), followed by Rajasthan with 11 parks (10,726 MW capacity).

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.

Renewable Purchase Obligations (RPOs) provide long-term market certainty, with the target for 2026–27 set at 35.95 per cent, notified through 2029–30. Competitive bidding through e-Reverse Auction mechanism drove tariffs down from around ₹18 per unit in 2010 to a record-low of ₹2.44 per unit at Bhadla Solar Park in 2017. In 2025, the Levelised Cost of Electricity from utility-scale solar PV stood at USD 35 per MWh, below the global average of USD 44 per MWh.

Domestic Manufacturing Growth

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

Household and Agricultural Solar Initiatives

PM Surya Ghar: Muft Bijli Yojana, launched on 13 February 2024 with outlay of ₹75,021 crore, is the world's largest domestic rooftop solar programme. As of June 2026, over 43 lakh households were solarized 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, with the World Bank approving financing to scale up residential rooftop solar adoption.

Pradhan Mantri-Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM), launched in 2019, aims to add around 34,800 MW of solar capacity by 2026-27 with Central financial support of ₹34,422 crore. Achievements include nearly 11.49 lakh off-grid solar pumps installed, more than 15.89 lakh agricultural pumps covered through feeder-level solarisation, around 1,726 MW of decentralised solar power capacity commissioned on farmers' land, and over 21.77 lakh farmers benefited nationwide.

In FY 2025–26, distributed solar solutions contributed 16.3 GW (36% of total 44.61 GW solar capacity added), with 7.6 GW from PM-KUSUM and 8.7 GW from rooftop solar.

International Cooperation

India co-founded the International Solar Alliance (ISA) with France at COP21 in Paris in 2015, which includes member countries like Maldives, Greece, Germany, Italy, Bhutan, Luxembourg, and Argentina. The One Sun One World One Grid (OSOWOG) initiative, proposed by India in 2018, evolved into Green Grids Initiative–OSOWOG launched with the UK at COP26 in 2021, supported by Australia, France, the United States, and ISA. During its G20 Presidency, India helped build consensus on tripling global renewable energy capacity by 2030.