India has achieved commendable success when it comes to solar power. Electricity generated from solar power projects constitutes the biggest share of India’s renewable energy capacity. The last financial year, FY2025-26, was a milestone year for the renewable sector, especially the solar power industry. The year witnessed record additions in both solar and non-fossil fuel capacity.

India added 44.61 GW of solar capacity, nearly double the 23.83 GW added in FY2024–25, according to the government data published in early August. Schemes like Pradhan Mantri-Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM), which helps farmers achieve energy independence by promoting solar power in agriculture and replacing diesel pumps, and PM Surya Ghar: Muft Bijli Yojana, the world’s largest domestic rooftop solar initiative, have been a great enabler of this growth.

In another boost to the sector, the Indian Union Cabinet recently approved the ‘Pradhan Mantri Surya Sarovar Yojana (PM-SSY)’, a scheme for the development of floating solar photovoltaic (FSPV) projects. The solar projects will be combined with energy storage systems (ESS) and the combined outlay for PM-SSY will be to the tune of INR50.7bn ($534mn).

The PM-SSY is designed to facilitate the development of 5,000 MW of floating solar photovoltaic capacity, with each project required to include a co-located energy storage system capable of providing at least two hours of storage or equivalent to 10,000 MWh in total. According to the Indian government, projects will be approved over the five-year period from FY2026-27 to FY2030-31, while financial support under the scheme is expected to continue through FY2032-33.

The government’s green light to the PM-SSY comes after the recent assessment done by the National Institute of Solar Energy (NISE). According to the NISE study, a floating solar project holds potential of about 102.18 GWp across reservoirs and other suitable inland water bodies in the country.

Under the scheme, Central Financial Assistance (CFA) of INR10mn per MW will be provided for eligible floating solar photovoltaic projects after successful commissioning. In addition, CFA of up to INR5mn per project will be available for undertaking feasibility studies, including bathymetry and hydrography assessments, environmental studies, and other preparatory activities required for de-risking the project development.

The government believes that the states and Union Territories will benefit through this scheme. The scheme would enhance the floating Solar PV capacity in the country by 5,000 MW, which is presently just around 700 MW.

The government is of the view that the combination of an energy storage system with the power project will help boost grid reliability. The government also envisions that the floating solar power scheme would facilitate the reduction of around 10mn tonnes of CO₂ emissions every year. The scheme is also expected to generate about 16,000–17,000 full-time equivalent employment opportunities across the project value chain. The scheme is further expected to give impetus to domestic manufacturing of floating systems as well as the entire value chain of the projects, like PV cells, modules and energy storage systems.

Advantages of floating solar systems

Floating solar systems offer many advantages since the solar modules are installed on water bodies such as lakes and water reservoirs.

According to a report by Economic Times, the most important benefit of floating solar systems is that they help conserve land. In India, land is a very vital resource given the country’s large and growing population. The floating systems also offer the advantage that they help reduce the extent of evaporation of water from the water bodies and boost the efficiency of solar modules by keeping them cooler during the summer months.

Some prominent companies have already begun work in this space. State-owned power giant NTPC Limited launched two of India’s biggest floating solar projects in 2022. The first, 100-MW Ramagundam project in the state of Telangana. The second project, 92-MW Kayamkulam project, is located in the southern state of Kerala. The proposed 600-MW Omkareshwar floating solar park in the central Indian state of Madhya Pradesh is another vital project, with 278 MW currently operational.

The Economic Times report stated that CFA can help improve the economics of the project. The floating systems are generally more expensive than land-based projects, mainly due to the cost attached to floating platforms, anchoring systems, specialised electrical equipment and installation. The addition of energy storage adds to the final cost of capital. The report argues that project developers will require financing that is affordable. The developers will also require a visible and attractive revenue stream through long-term power purchase agreements (PPAs) for project viability.

Although the ambition behind the PM-SSY is relevant, the success of the scheme depends on factors such as clean execution, the bankability of eligible projects and strong coordination among institutions. The process will require careful identification of suitable water bodies, detailed feasibility assessments and the development of climate-resilient systems capable of withstanding extreme winds, waves and changing water levels. Protecting the environment will also be essential, with ecologically sensitive locations subject to comprehensive impact assessments before any project is approved.