Pradhan Mantri Surya Sarovar Yojana (PM-SSY) Cabinet Approves Scheme for Floating Solar Plants

The Union Cabinet recently approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a major initiative aimed at promoting Floating Solar Photovoltaic (FSPV) projects integrated with Energy Storage Systems (ESS), with a total financial outlay of T 5,070 crore. The projects under the scheme will be sanctioned during FY 2026-27 to FY 2030-31, with disbursement of financial support continuing up to FY 2032-33.

Aim and Objectives: Development of 5,000 MW of Floating Solar Photovoltaic projects with co-located Energy Storage Systems having a minimum storage capacity of two hours, i.e., 10,000 MWh. The scheme supports Aatmanirbhar Bharat by strengthening India's renewable energy ecosystem and clean energy manufacturing capabilities.

Financial Incentives: Central Financial Assistance (CFA) of Rs. 1 crore per MW will be provided for eligible Floating Solar Photovoltaic projects after successful commissioning. In addition, CFA of up to T 50 lakh per project will be available for undertaking feasibility studies, including bathymetry and hydrography assess­ments, environmental studies, and other preparatory activities required for de-risking the project development.

Expected Outcome

• Nationwide Coverage: Benefits all States and Union Territories by promoting floating solar capacity across the country.
• Capacity Expansion: Increases India's floating solar PV capacity by 5,000 MW from the existing capacity of around 700 MW.
• Efficient Land Use: Enables utilisation of reservoirs and industrial ponds, reducing competition for scarce land resources.
• Grid Stability: Integration of Energy Storage Systems (ESS) will improve renewable energy mana-gement and enhance grid reliability.
• Climate Benefits: Expected to reduce around 10 million tonnes of CO2 emissions annually.
• Employment Generation: Likely to create approxi-mately 16,000-17,000 full-time equivalent jobs across the project value chain.
• Boost to Domestic Manufacturing: Promotes indigenous production of floating structures, solar PV cells and modules, energy storage systems and related components.