Union Cabinet Clears ₹5,070 Crore PM Surya Sarovar Yojana for 5,000 MW Floating Solar Push
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) with a total financial outlay of ₹5,070 crore. The scheme envisages development of 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems, taking the country's floating solar capacity up from about 700 MW currently.
Projects under the scheme will carry a minimum energy storage capacity of two hours, equivalent to 10,000 MWh, to support grid reliability alongside intermittent solar generation. Projects will be sanctioned between FY 2026-27 and FY 2030-31, with financial support disbursed through FY 2032-33.
Under the scheme, developers will receive Central Financial Assistance of ₹1 crore per MW after successful commissioning, along with up to ₹50 lakh per project for feasibility studies covering bathymetry, hydrography, environmental assessments and other preparatory work. The scheme is open to all states and union territories and is intended to utilise existing reservoirs and industrial ponds, reducing competition for land.
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. The scheme is projected to cut carbon dioxide emissions by about 10 million tonnes annually and create 16,000-17,000 jobs, while supporting domestic manufacturing of floating solar components.