Cabinet Approves ₹5,070 Crore PM Surya Sarovar Yojana to Boost Floating Solar Capacity
August 1, 2026
The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) with a financial outlay of ₹5,070 crore to accelerate the deployment of floating solar photovoltaic (FSPV) projects across India. The scheme aims to significantly expand the country’s floating solar capacity while strengthening grid reliability through integrated energy storage systems.
Under the programme, the government plans to develop 5,000 MW of floating solar capacity between FY2026-27 and FY2030-31. Every project sanctioned under the scheme will include a minimum two-hour Battery Energy Storage System (BESS), creating a combined storage capacity of 10,000 MWh to improve renewable energy availability and grid stability.
Floating solar plants will be installed on reservoirs, lakes and other suitable water bodies, helping generate clean electricity without competing for valuable land resources. Besides increasing renewable energy generation, floating solar systems can also reduce water evaporation and improve panel efficiency through the natural cooling effect of water.
The Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible floating solar projects after commissioning. Financial assistance under the scheme will continue until FY2032-33, ensuring long-term support for project developers and state agencies.
India currently has an estimated 700 MW of floating solar capacity. The new scheme is expected to increase this nearly seven-fold while supporting the country’s renewable energy expansion and reducing dependence on conventional power generation. Maharashtra, Madhya Pradesh and Karnataka are among the states with the highest identified floating solar potential.
Alongside the floating solar initiative, the Cabinet also approved a five-year extension of the PM-KISAN income support scheme until FY2030-31, ensuring continued financial assistance for farmers. The combined Cabinet decisions reinforce the government’s focus on strengthening clean energy infrastructure, agricultural support and sustainable economic growth.
The PM Surya Sarovar Yojana is expected to play a major role in India’s clean energy transition by promoting innovative renewable technologies while improving electricity reliability through battery storage. The initiative aligns with the country’s broader objective of expanding non-fossil fuel electricity generation and enhancing long-term energy security.
