The Union Cabinet today approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a Rs 5,070 crore scheme to promote the development of 5,000 MW of Floating Solar Photovoltaic (FSPV) Projects integrated with Energy Storage Systems (ESS). The scheme aims to establish co-located storage with a minimum capacity of two hours, equivalent to 10,000 MWh, enhancing grid reliability and renewable energy integration.

The projects will be sanctioned during FY 2026-27 to FY 2030-31, while financial assistance will continue to be disbursed up to FY 2032-33.

The approval follows a recent assessment by the National Institute of Solar Energy (NISE), which estimated India's floating solar potential at approximately 102.18 GWp across reservoirs and other suitable inland water bodies. To support project implementation, the scheme provides Central Financial Assistance (CFA) of Rs 1 crore per MW for eligible FSPV projects upon successful commissioning.

Additionally, CFA of up to Rs 50 lakh per project will be provided for feasibility studies, including bathymetric and hydrographic surveys, environmental assessments, and other preparatory activities to facilitate project development and reduce implementation risks.

The scheme will benefit all States and Union Territories and is expected to increase India's floating solar capacity from the current around 700 MW to 5,700 MW. By enabling the productive use of reservoirs and industrial ponds for clean energy generation, the initiative will reduce pressure on scarce land resources while accelerating the country's renewable energy transition.