Union Cabinet Approves PM Surya Sarovar Yojana

Union Cabinet has approved the Prime Minister Surya Sarovar Yojana (PM-SSY) with a total outlay of ₹5,070 crore. The scheme aims to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) projects integrated with Energy Storage Systems (ESS).Under the scheme, floating solar power plants will be installed on reservoirs, dams, lakes, and other water bodies to expand India's renewable energy capacity without requiring large tracts of land. The integration of Energy Storage Systems will enable reliable power supply by storing excess electricity generated during peak sunlight hours and supplying it when solar generation is low.

Floating Solar Photovoltaic (FSPV) Plant

¨     A FSPV Plant is a solar power system installed on reservoirs, lakes, irrigation tanks, industrial ponds and other inland water bodies instead of land.

¨     Solar panels are mounted on floating platforms anchored with mooring systems to withstand changing water levels and weather conditions.

¨     Electricity generated is transmitted to the grid through underwater or floating cables connected to substations.

¨     Floating solar reduces land requirement, lowers water evaporation, and improves panel efficiency due to the cooling effect of water.

Pradhan Mantri Surya Sarovar Yojana (PM-SSY)

¨     Nodal Ministry: Ministry of New and Renewable Energy (MNRE).

¨     Total Outlay: ₹5,070 crore

¨     Objective: To promote large-scale deployment of Floating Solar Photovoltaic (FSPV) Projects integrated with Energy Storage Systems (ESS) across reservoirs and other inland water bodies.

¨     Target: Development of 5,000 MW of Floating Solar Photovoltaic Projects with a minimum 2-hour Energy Storage System (10,000 MWh).

¨     Implementing Period: FY 2026–27 to FY 2030–31, with financial assistance disbursement up to FY 2032–33.

¨     Central Financial Assistance (CFA): ₹1 crore per MW for eligible Floating Solar PV projects after successful commissioning. Up to ₹50 lakh per project for feasibility studies, including: Bathymetry studies ,Hydrography assessments ,Environmental studies

¨     Other preparatory activities for project de-risking. Nationwide Coverage: Applicable to all States and Union Territories. Efficient Land Utilisation: Promotes renewable energy generation without requiring additional land acquisition.

¨     Reduces competition for scarce land resources by using existing water bodies.

Need and Significance of the Scheme

¨     Harnesses India’s Vast Floating Solar Potential: The National Institute of Solar Energy (NISE) has estimated a floating solar potential of about 102.18 GWp across reservoirs and other inland water bodies, while the current installed floating solar capacity is only around 700 MW.

¨     Addresses Land Constraints: Utilises existing reservoirs, dams, canals and industrial ponds for solar power generation, eliminating the need for additional land acquisition and reducing competition for scarce land resources.

¨     Strengthens Grid Reliability: The mandatory Energy Storage System (ESS) with a minimum two-hour storage capacity (10,000 MWh) enables renewable energy generated during the day to be supplied during peak demand and helps reduce renewable energy curtailment.

¨     Boosts Renewable Energy and Climate Goals: The scheme will add 5,000 MW of floating solar capacity, contribute to India’s renewable energy capacity addition, support the 500 GW non-fossil fuel capacity target by 2030, Net Zero by 2070, and reduce around 10 million tonnes of CO₂ emissions annually.

¨     Promotes Employment and Atmanirbhar Bharat: Expected to generate approximately 16,000–17,000 full-time equivalent employment opportunities while promoting domestic manufacturing of floatation systems, photovoltaic cells, modules and Energy Storage Systems.

¨     Promotes Sustainable Utilisation of Water Resources: Facilitates productive use of reservoirs and other inland water bodies for clean energy generation, supporting sustainable resource management and the vision of Viksit Bharat.