Floating solar projects to be fired up by Rs 5,000 cr scheme

New Delhi: The Cabinet on Friday approved the Pradhan Mantri Surya Sarovar Yojana with a total outlay of ₹5,070 crore aimed at the development of floating solar projects with energy storage systems.

The scheme envisages development of 5,000 MW of floating solar photovoltaic projects with co-located energy storage systems having minimum storage capacity of two hours, which is 10,000 MWh.

The projects will be sanctioned from FY27 to FY31, with disbursement of financial support continuing up to FY33. "This will provide an opportunity to gainfully utilise existing reservoirs and industrial ponds, while eliminating competition for scarce land resources. It will also help in the integration of energy storage systems to strengthen grid reliability," renewable energy secretary Santosh Kumar Sarangi said. The move is likely to help states with large water bodies by generating renewable energy on underutilised water surfaces.


"We are planning to work on floating solar as there are many water bodies including perennial ones and the scheme will support the plan," Rahul Kumar, MD, North Bihar Power Distribution Company Ltd told ET. The National Institute of Solar Energy has estimated a floating solar potential of around 102.18 GWp across reservoirs and other inland water bodies. Under the scheme, central aid of ₹1 crore/MW will be provided for eligible projects after commissioning. Assistance of up to ₹50 lakh per project will be available for studies and other activities required for de-risking the project development.

The scheme would enhance the floating solar 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 remove 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 carbon emissions annually.

A major quantity of the financial assistance will be required from 2028-29, once the projects start to get commissioned. Prior to that, funds will be required for conducting feasibility studies, the renewable energy ministry said.

The process will include online submission of project proposals from state governments along with pre-feasibility reports.

After the in-principle approval from the ministry for feasibility studies, the report needs to be submitted.

The tendering for project capacity and award of work is followed by the disbursal of the financial assistance.