Context:

• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) on July 31, 2026.

Key Highlights:

• Scheme Name: Pradhan Mantri Surya Sarovar Yojana (PM-SSY)
• Objective: To develop 5,000 Megawatt (MW) capacity Floating Solar Photovoltaic (FSPV) projects across the country’s reservoirs and inland water bodies.
• Total Financial Outlay: ₹5,070 Crore
• Target Capacity: 5,000 MW (5 GW) Floating Solar Photovoltaic (FSPV) capacity
• Energy Storage: Co-located Energy Storage Systems (ESS) with a minimum storage duration of 2 hours — totaling 10,000 MWh
• Implementation Period: FY 2026-27 to FY 2030-31 (Financial assistance distribution will continue up to FY 2032-33)
• Implementing Agencies: Ministry of New and Renewable Energy (MNRE) and Solar Energy Corporation of India (SECI)

Key Features of the Scheme:

• Project Commissioning Support: Central Financial Assistance (CFA) of ₹1 Crore per MW for eligible FSPV projects after successful commissioning.
• Feasibility Study Support: Grant of up to ₹50 Lakh per project for Bathymetry, Hydrography, and Environmental Impact Assessment (EIA).

Technical & Infrastructure Aspect:

• Floating Technology: Installation of solar panels on the surface of reservoirs, dams, lakes, and industrial ponds.
• Energy Storage: Mandatory minimum 2-hour battery storage integrated into each project to ensure seamless and stable power supply to the grid.
• National Capacity Expansion: India’s current floating solar capacity is around 700 MW, which this scheme aims to scale up to 5,700 MW.

Need and Background of the Scheme:

• Vast Potential: According to the assessment by the National Institute of Solar Energy (NISE), India possesses a potential capacity of approximately 102.18 GWp for floating solar on reservoirs and inland water bodies.
• Land Acquisition Bottlenecks: Given the land scarcity and land acquisition disputes/delays in India, utilizing water bodies presents an ideal alternative.
• Climate Commitments (COP-26 & NDCs): Accelerates India's targets of achieving 500 GW of non-fossil energy capacity by 2030 and 'Net-Zero' carbon emissions by 2070.

Significance and Potential Benefits:

┌──► Land Conservation (Zero Land Friction)

├──► Water Conservation (Reduced Evaporation)

Benefits of PM-SSY ─┼──► Higher Efficiency (Cooling Effect -> High Efficiency)

├──► Grid Stability (Energy Storage System)

└──► Environment & Employment (10M tonnes CO2 Cut | 17k Jobs)

• Land Conservation: Development of massive solar energy capacity without acquiring agricultural or commercial land.
• Water Conservation: Solar panels installed over water surfaces reduce direct sunlight exposure, significantly curbing water evaporation losses.
• Higher Panel Efficiency: The natural cooling effect of water regulates panel temperature, boosting electricity generation efficiency by 5–10%.
• Grid Stability & Dispatchability: Integration with ESS (Energy Storage) allows power supply during peak hours, maintaining grid frequency balance.

Environmental and Socio-Economic Impact:

• Reduction of approximately 10 Million Tonnes (1 Crore Tonnes) of $\text{CO}_2$ emissions annually.
• Creation of 16,000 to 17,000 direct and indirect jobs across the entire value chain.

Challenges and Concerns:

• High Initial Capital Cost: Due to floating structures, anchoring systems, and anti-corrosive materials, the installation cost of FSPV is 20–30% higher than ground-mounted solar plants.
• Impact on Aquatic Ecosystems: Covering water body surfaces can limit sunlight and oxygen penetration, potentially affecting aquatic life (fish, plankton).
• Operation & Maintenance (O&M) Complexities: Fluctuations in water levels, storms, corrosion, and bio-fouling pose risks of damage to panels and anchoring grids.
• Power Evacuation & Grid Connectivity: Many remote reservoirs lack high-capacity transmission lines nearby, requiring additional infrastructure investments.

Current Status and Potential of Floating Solar in India:

• Total Capacity: As of 2026, India's installed floating solar power capacity stands at merely ~700 Megawatts (MW) or 0.7 Gigawatts (GW).
• Development Status: This accounts for a very small fraction of India's total installed solar grid (which is close to ~100 GW), prompting the government to launch the 'Pradhan Mantri Surya Sarovar Yojana' to boost it.

Top States by Floating Solar Potential:

• Maharashtra: 16.28 Gigawatts (GW)
• Madhya Pradesh: 14.89 Gigawatts (GW)
• Karnataka: 13.69 Gigawatts (GW)
• Odisha: 12.81 Gigawatts (GW)
• Telangana: 10.72 Gigawatts (GW)

Major Floating Solar Plants in India: