New Delhi, July 31: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM Surya Sarovar Yojana) with an outlay of ₹5,070 crore to develop 5,000 MW of floating solar power projects integrated with energy storage systems across the country.
PM Surya Sarovar Yojana to Boost Floating Solar Capacity
The scheme aims to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located energy storage systems offering a minimum storage capacity of 10,000 MWh. The projects will be sanctioned between FY 2026-27 and FY 2030-31, while financial assistance will continue until FY 2032-33.
According to the Cabinet, the National Institute of Solar Energy (NISE) has estimated India’s floating solar potential at 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, developers can receive up to ₹50 lakh per project for feasibility studies, including bathymetry, hydrography, environmental assessments, and other preparatory activities.
The government said the scheme will benefit all States and Union Territories by increasing the country’s floating solar capacity from the current 700 MW to 5,700 MW. It will also help utilise reservoirs and industrial ponds for clean energy generation without competing for scarce land resources.
The integrated energy storage systems are expected to improve grid reliability while supporting the expansion of renewable energy infrastructure.
The government estimates that the scheme will reduce around 10 million tonnes of carbon dioxide emissions annually and generate approximately 16,000 to 17,000 full-time equivalent jobs across the project value chain.
Officials said the initiative will also promote domestic manufacturing of floatation systems, photovoltaic cells, solar modules, and energy storage systems, supporting the Aatmanirbhar Bharat initiative.
The Cabinet said the PM Surya Sarovar Yojana will contribute to India’s renewable energy targets, strengthen energy security, optimise the use of inland water bodies, and support the vision of Viksit Bharat.
