Cabinet approves ₹5,070 crore scheme for floating solar power projects

PM Surya Sarovar Yojana: Under the scheme, eligible projects will receive Central Financial Assistance (CFA) of ₹1 crore per MW after they are successfully commissioned

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a new ₹5,070-crore scheme aimed at expanding floating solar power projects across India.

 

India currently has around 700 MW of floating solar capacity. The scheme will support the development of 5,000 megawatts (MW) of floating solar photovoltaic (FSPV) capacity along with energy storage systems, helping the country increase clean energy generation without using additional land.

 

What is the PM Surya Sarovar Yojana?

 

The scheme will fund 5,000 MW of floating solar projects with co-located energy storage systems capable of storing electricity for at least two hours, or a combined storage capacity of 10,000 megawatt-hours (MWh).

   

Projects will be sanctioned between FY2026-27 and FY2030-31, while financial assistance will continue to be released until FY2032-33.

 

The decision follows an assessment by the National Institute of Solar Energy (NISE), which estimated that India's reservoirs and other inland water bodies have a floating solar potential of around 102.18 gigawatt-peak (GWp).

 

Financial support for developers

 

Under the scheme, eligible projects will receive Central Financial Assistance (CFA) of ₹1 crore per MW after they are successfully commissioned.

 

In addition, developers can receive up to ₹50 lakh per project to carry out preliminary studies needed before construction. These include bathymetry and hydrography surveys, environmental assessments and other technical studies that help reduce project risks.

 

The government said the scheme will benefit all states and Union Territories.

 

According to the government, the scheme is expected to:

• Reduce around 10 million tonnes of carbon dioxide emissions every year

• Create 16,000-17,000 full-time equivalent jobs across the project value chain

• Boost domestic manufacturing of floating platforms, solar cells, modules and battery storage systems

• Support the government's Aatmanirbhar Bharat initiative by strengthening local manufacturing

 

India becomes world's second-largest solar growth market

 

The Cabinet approval comes as India continues to expand its solar energy capacity at a record pace.

 

According to the Ministry of New & Renewable Energy, India overtook the United States in annual solar capacity additions in 2025, becoming the world's second-largest growth market after China.

 

India's solar sector has expanded rapidly over the past few years. After crossing 50 GW of installed solar capacity in 2022, the country added the next 50 GW within three years. It then added another 50 GW in just 14 months, between January 2025 and March 2026, taking total installed solar capacity to 154 GW by April 2026.

 

In FY26, India added 44.61 GW of new solar capacity, exceeding the government's target of 34 GW. The addition was also nearly double the previous annual record of 23.83 GW achieved in FY25.

 

Renewable energy target

 

India aims to install 500 GW of renewable energy capacity by 2030.

 

As of April 2026, about half of the country's total installed power capacity of 288 GW came from non-fossil fuel sources. This includes 56 GW of wind power, 51 GW of large hydropower, 8.8 GW of nuclear power, more than 11 GW of bioenergy and 5 GW of small hydropower.