Scheme would enhance the floating solar capacity by 5,000 MW
The Cabinet has approved the ‘Pradhan Mantri Surya Sarovar Yojana (PM-SSY)’, a Scheme for the development of Floating Solar Photovoltaic (FSPV) Projects with Energy Storage Systems (ESS) with a total outlay of Rs.5,070 crore.
The scheme envisages the 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 projects will be sanctioned during FY 2026-27 to FY 2030-31, with disbursement of financial support continuing up to FY 2032-33, the Ministry of New and Renewable Energy said on 31 July.
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.
Under the scheme, 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 Rs.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.
All States and Union Territories will benefit through this scheme. The scheme would enhance the floating Solar PV capacity in the country by 5,000 MW, which is presently around 700 MW only. These projects would provide an opportunity to gainfully utilize existing reservoirs & industrial ponds, and eliminate competition for scarce land resources.
The integration of an energy storage system will help strengthen grid reliability. The scheme would help in the reduction of around 10 million tonnes of CO₂ emissions annually. It would help in the generation of approximately 16,000–17,000 full-time equivalent employment opportunities across the project value chain. The scheme would also promote domestic manufacturing of floatation systems as well as the entire value chain of the projects, like PV cells, modules, energy storage systems, etc., and support the vision of Aatmanirbhar Bharat.
The scheme will contribute to renewable energy capacity addition, support the achievement of national energy and climate objectives, and facilitate optimal utilisation of water resources while advancing the vision of Viksit Bharat, the Ministry said.
Meanwhile, MNRE is implementing the New Solar Power Scheme (for PVTG and Tribal Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) and Dharti Aaba Janjatiya Gram Utkarsh Abhiyan (DAJGUA) for the electrification of un-electrified households (HHs) in PVTG and Tribal habitations/villages, solarisation of Multi-Purpose Centres (MPCs) in PVTG areas; and solarisation of public institutions in identified tribal habitations/villages through off-grid solar systems; where electricity supply through grid is not techno-economically feasible.
The New Solar Power Scheme has provision of 100% Central Financial Assistance for different components of the scheme as per details given below, the Minister of State for Ministry of New & Renewable Energy Shripad Yesso Naik updated Lok Sabha through a written reply on 31 July.
Under New Solar Power Scheme, as on 30 June 2026, central finance assistance (CFA) of Rs.57.10 crore has been released.
The New Solar Power Scheme has provision to cover electrification of One Lakh un-electrified households (HHs) in Tribal and PVTG areas identified by Ministry of Tribal Affairs (MoTA) by provision of off-grid solar systems. The scheme also includes a provision for Solarisation of 1500 Multi-Purpose Centres (MPCs) in PVTG areas as approved under PM JANMAN. Under the New Solar Power Scheme, as on 30.06.2026, 11,838 households are reported to be electrified through solar off-grid systems in different states.
As per the information received from Ministry of Power, States are being supported for grid electrification of un- electrified households under the ongoing Revamped Distribution Sector Schemes (RDSS), wherever feasible. Under the scheme, works for electrification of PVTG households, identified under PM-JANMAN, amounting to Rs. 521.45 Cr. with gross budgetary support of Rs.331.49 crore have been sanctioned in 13 States for providing on grid connectivity to 139,126 PVTG households as per the scheme guidelines. As on 24 July 2026, 138,620 households belonging to PVTG have been electrified.
No subsidy is being provided by the Government to small shopkeepers/commercial premises operators for installing solar panels on their commercial establishments, he said.
No such proposal for considering any new subsidy scheme to encourage small businessmen to adopt solar energy for commercial use in the tribal regions is under consideration. Fiinews.com
