Cabinet approves scheme to promote ‘floating’ solar plants
The Union Cabinet approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a scheme to develop Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS), with a total outlay of ₹5,070 crore
The scheme targets 5,000 MW of floating solar capacity on water bodies by 2030-31, with each project required to have storage of at least two hours (10,000 MWh in aggregate)
Projects will be sanctioned during FY 2026-27 to FY 2030-31, with financial disbursement continuing up to FY 2032-33
Financial assistance is set at ₹1 crore per MW for eligible projects, and up to ₹50 lakh for feasibility studies
Floating Solar Photovoltaic (FSPV) Technology
Floating solar involves mounting photovoltaic panels on pontoons anchored on reservoirs, irrigation canals, or other inland water bodies rather than on land. It reduces land-acquisition costs and water evaporation losses while benefiting from the cooling effect of water, which improves panel efficiency compared with land-based installations.
Key Details
- The National Institute of Solar Energy (NISE), under the Ministry of New and Renewable Energy (MNRE), has assessed India's floating solar potential at approximately 102.18 GWp across reservoirs and other suitable inland water bodies
- Distinct from rooftop solar (under PM Surya Ghar Muft Bijli Yojana, targeting residential rooftops) and from PM-KUSUM (targeting decentralised solar for agricultural feeders and irrigation pumps)
- Co-locating Energy Storage Systems (minimum 2-hour duration) addresses solar's intermittency, allowing dispatch during non-sunlight hours — a key grid-integration requirement as renewable penetration rises
PM-SSY is the first dedicated national scheme to scale floating solar with mandatory storage, converting NISE's potential assessment into a funded capacity-addition target.
India's Renewable Energy and Non-Fossil Fuel Capacity Targets
India's climate commitments under its Nationally Determined Contributions (NDCs) include installing 500 GW of non-fossil fuel electricity generation capacity by 2030, part of the broader net-zero-by-2070 pledge announced at COP26 (2021).
Key Details
- India crossed 50% non-fossil fuel share in installed electricity capacity in mid-2025, more than five years ahead of its original NDC timeline
- The Jawaharlal Nehru National Solar Mission (JNNSM), launched in 2010 under the National Action Plan on Climate Change (NAPCC), was the originating policy for India's solar push
- The Ministry of New and Renewable Energy (MNRE) is the nodal ministry for solar, wind, and floating solar schemes; renewable projects also receive waivers on Inter-State Transmission System (ISTS) charges to encourage inter-state power sale
The 5,000 MW floating solar target under PM-SSY contributes incrementally toward the 500 GW non-fossil capacity goal, while conserving land — a growing constraint for utility-scale solar in a densely populated country.
PM-KUSUM and the Broader Solar Scheme Architecture
UPSC frequently tests the ability to distinguish between India's overlapping solar schemes by their target segment and delivery mechanism.
Key Details
- PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), launched 2019, targets 34,800 MW of solar capacity via three components: Component-A (10,000 MW decentralised ground/stilt-mounted plants), Component-B (14 lakh standalone solar agricultural pumps), Component-C (35 lakh grid-connected pump solarisation), with central support of ₹34,422 crore
- PM Surya Ghar Muft Bijli Yojana targets household rooftop solar with subsidy support and net-metering
- PM-SSY (this scheme) is the water-body-based, storage-integrated component, filling the gap in land-constrained but water-rich regions
PM-SSY completes a four-pronged national solar architecture — rooftop (PM Surya Ghar), agricultural (PM-KUSUM), utility-scale ground-mounted (various state auctions), and floating with storage (PM-SSY).
- Scheme outlay: ₹5,070 crore
- Capacity target: 5,000 MW floating solar with co-located storage (minimum 10,000 MWh aggregate)
- Financial assistance: ₹1 crore/MW; up to ₹50 lakh for feasibility studies
- Implementation window: sanctioning FY 2026-27 to FY 2030-31; disbursement up to FY 2032-33
- Estimated national floating solar potential (NISE assessment): ~102.18 GWp
- Expected CO2 emission cuts: ~10 million tonnes annually
- Expected employment generation: 16,000-17,000 jobs
- India's non-fossil fuel capacity target: 500 GW by 2030 (under NDC); over 50% non-fossil share achieved by mid-2025