India approves INR 5,070 crore scheme for 5 GW of floating solar with storage

The Indian government has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a INR 5,070 crore program to support the deployment of 5 GW of floating solar PV projects paired with energy storage systems. The scheme aims to expand floating solar capacity by utilizing existing reservoirs and industrial ponds, reducing competition for scarce land resources while improving grid reliability through integrated energy storage.

The scheme targets the development of 5 GW of floating solar PV projects with co-located energy storage systems having a minimum storage capacity of two hours, i.e., 10 GWh. The projects will be sanctioned during FY 2026-27 to FY 2030-31, with disbursement of financial support continuing up to FY 2032-33.

The approval follows the recent assessment undertaken by the National Institute of Solar Energy (NISE), which has estimated a floating solar potential of approximately 102.18 GWp across reservoirs and other suitable inland water bodies in the country. Maharashtra has the highest estimated potential at 16.28 GWp, followed by Madhya Pradesh (14.89 GWp), Karnataka (13.69 GWp), Odisha (12.81 GWp), and Telangana (10.72 GWp).

Under the scheme, central financial assistance (CFA) of INR 1 crore per MW will be provided for eligible floating solar photovoltaic projects after successful commissioning. In addition, CFA of up to INR 50 lakh per project will be provided for undertaking feasibility studies, including bathymetry and hydrography assessments, environmental studies, and other preparatory activities required for de-risking the project development.

India currently has only around 700 MW of installed floating solar PV capacity.

The scheme would help in the reduction of around 10 million tonnes of CO₂ emissions annually. It would also help in the generation of 16,000–17,000 full-time equivalent employment opportunities across the project value chain.

“The approval of the INR 5,070 crore PM Surya Sarovar Yojana is a landmark step for India’s renewable energy sector and provides the policy support needed to accelerate floating solar adoption at scale. At AB Energia, we have seen the potential of this technology firsthand through the successful execution of Odisha’s first floating solar project, a 7.324 MW installation for Jindal Stainless Limited (JSL). The project demonstrated how floating solar can unlock clean energy generation where land availability is a constraint while delivering strong operational performance,” said Sandesh Naik, Chief Financial Officer, AB Energia.

Naik added: “Floating solar presents a compelling opportunity for India as it optimises the use of existing water bodies, improves module efficiency through the natural cooling effect of water, and helps reduce water evaporation. With an estimated 102 GW of floating solar potential across the country’s reservoirs and water bodies, India has a significant opportunity to diversify its renewable energy mix. With a dedicated national scheme now in place, we expect greater investment, faster project execution, and increased innovation across the floating solar ecosystem.”

“The scheme will also encourage developers, technology providers, and state agencies to work more closely to unlock this vast potential. We believe it will play an important role in diversifying India’s renewable energy portfolio and supporting the nation’s long-term clean energy and energy security goals.”

Manmohan Sharma, CFO, Waaree Renewable Technologies Limited, said, “The Pradhan Mantri Surya Sarovar Yojana marks an important step in expanding India’s renewable energy landscape by unlocking the potential of reservoirs and other water bodies for clean power generation. With an outlay of over ₹5,000 crore to support 5 GW of floating solar capacity integrated with 10 GWh of Battery Energy Storage Systems (BESS), the scheme addresses key priorities such as land optimisation, grid reliability, energy security and sustainable water management. India’s estimated floating solar potential of over 102 GW presents a significant opportunity to diversify the country’s renewable energy mix while accelerating the transition towards dispatchable clean power.

Sharma said Waaree has built meaningful experience in floating solar through successfully commissioned projects at Rubamin in Vadodara, NTPC Kawas in Gujarat, and NLC India Ltd. in Neyveli.  

“As part of our Waaree 2.0 vision, we are evolving into an integrated clean energy solutions provider with capabilities spanning high-efficiency solar PV modules, cells, inverters, EPC, Battery Energy Storage Systems and end-to-end energy solutions. We believe this scheme will accelerate the adoption of integrated renewable energy solutions, strengthen domestic manufacturing, foster innovation across the value chain and reinforce India’s position as a global clean energy manufacturing hub,” he added.