The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore scheme designed to accelerate the deployment of floating solar photovoltaic (FSPV) projects integrated with energy storage systems (ESS) across India.
The programme will support the development of 5,000 MW of floating solar capacity alongside 10,000 MWh (10 GWh) of co-located battery energy storage, providing a minimum of two hours of storage for each project. Sanctions will be issued between FY 2026-27 and FY 2030-31, with financial support continuing until FY 2032-33.
The Cabinet’s approval follows a recent assessment by the National Institute of Solar Energy (NISE), which identified an estimated 102.18 GWp of floating solar potential across reservoirs and other suitable inland water bodies nationwide, highlighting a significant opportunity to expand renewable energy generation without increasing pressure on land resources.
Under the scheme, eligible projects will receive Central Financial Assistance (CFA) of ₹1 crore per MW after successful commissioning. Developers will also be eligible for up to ₹50 lakh per project to undertake feasibility studies, including bathymetric and hydrographic surveys, environmental assessments and other preparatory work required to de-risk project development.
The initiative is expected to benefit all States and Union Territories while substantially expanding India’s floating solar fleet, which currently stands at approximately 700 MW. By making productive use of reservoirs and industrial ponds, the scheme aims to unlock clean energy generation while preserving land for agriculture, industry and urban development.
The integration of battery energy storage is expected to improve grid flexibility and reliability by enabling renewable electricity to be supplied beyond daylight hours and supporting greater renewable energy penetration.
According to the government, the programme could reduce around 10 million tonnes of carbon dioxide emissions each year while generating an estimated 16,000 to 17,000 full-time equivalent jobs across manufacturing, construction, installation and operations.
The scheme is also expected to strengthen domestic manufacturing by increasing demand for floating structures, photovoltaic cells, modules, battery energy storage systems and other components, reinforcing the government’s Aatmanirbhar Bharat vision for clean energy manufacturing.
Prashant Mathur, CEO, Saatvik Green Energy, said, ” Floating solar stands at barely 700 MW today, against a resource potential that NISE pegs at over102 GWp and the Pradhan Mantri Surya Sarovar Yojana is the policy intervention that finally puts that potential to work. With 5,000 MW of new capacity mandated alongside compulsory storage integration, this scheme is not incremental, it is structural.”
The PM Surya Sarovar Yojana forms part of India’s wider strategy to accelerate renewable energy deployment, enhance energy security, optimise the use of inland water resources and advance the country’s long-term climate and development goals under the vision of Viksit Bharat. Mathur added, “The scheme’s architecture, with Central Financial Assistance of ₹1 crore per MW materially de-risking project economics, is designed precisely to reward manufacturers who can bring modules, EPC execution, and storage capability to a single project.”
