Why in News?
The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) to help India increase its use of renewable energy and strengthen the country’s energy security.
What are the Key Facts About the Pradhan Mantri Surya Sarovar Yojana (PM-SSY)?
Pradhan Mantri Surya Sarovar Yojana (PM-SSY)
The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) is a Central Sector Scheme aimed at increasing India’s use of renewable energy by developing solar power projects on water bodies. It focuses on Floating Solar Photovoltaic (FSPV) projects, where solar panels are installed on floating platforms on reservoirs, lakes, and other inland water bodies. This allows India to generate clean electricity without using large areas of valuable land.
Key Features of the Scheme
- Budget and Target: The scheme has a total allocation of ₹5,070 crore and aims to develop 5,000 MW of floating solar capacity between FY 2026–27 and FY 2030–31.
- India’s Floating Solar Potential: According to an assessment by the National Institute of Solar Energy (NISE), India has an estimated floating solar potential of around 102.18 GWp across its reservoirs and inland water bodies. However, the country currently has only around 700 MW of installed floating solar capacity, showing the large scope for expansion.
- Energy Storage: To ensure that solar power can be supplied more reliably, projects under the scheme must include Energy Storage Systems (ESS) with at least two hours of storage capacity. Together, the scheme is expected to provide around 10,000 MWh of storage.
Financial Support
The government will provide financial assistance to encourage developers to invest in floating solar projects:
- Developers will receive ₹1 crore per MW after successfully completing eligible floating solar projects.
- An additional financial support of up to ₹50 lakh per project will be available for important preliminary studies, such as water-depth mapping, hydrographic surveys, and environmental assessments.
Why the Scheme Matters
The PM-SSY can provide several benefits for India:
- More clean energy: It could increase India’s floating solar capacity from around 700 MW to about 5,700 MW.
- Lower carbon emissions: The additional renewable energy capacity is expected to help reduce around 10 million tonnes of CO₂ emissions every year.
- More employment: The scheme is expected to create around 16,000–17,000 full-time equivalent jobs across activities such as manufacturing, construction, installation, and maintenance.
- Boost to domestic manufacturing: It can support Aatmanirbhar Bharat by encouraging Indian manufacturing of floating structures, solar cells, modules, and energy storage systems.
- Better grid stability: Combining solar power with two-hour battery storage can help manage fluctuations in renewable generation, meet peak electricity demand, and make the power supply more reliable.
Overall, the PM-SSY aims to make better use of India’s water resources for clean energy generation while reducing pressure on land, creating jobs, supporting domestic manufacturing, and improving the reliability of renewable power.
Floating Solar Photovoltaic (FSPV)
Floating Solar Photovoltaic (FSPV) means installing solar panels on water bodies such as reservoirs, lakes, dams, and industrial ponds, instead of putting them on land. It is a useful way to generate renewable energy while making better use of available water surfaces.
One of the biggest advantages of floating solar is that it saves land. Unlike traditional solar farms, it does not require large areas of agricultural or residential land. This makes it particularly useful in a country like India, where land is needed for farming, housing, and other activities.
However, floating solar projects are more expensive to build than conventional ground-mounted solar plants. They can cost around 25% more because they require floating platforms, anchoring systems, and specialised waterproof electrical equipment.
India is already developing large floating solar projects. The Omkareshwar Floating Solar Park in Madhya Pradesh, located on the Narmada River, is currently India’s largest operational floating solar project, with a capacity of 278 MW. The project is planned to expand to 600 MW.
Globally, floating solar is also growing rapidly. By 2024, global floating solar capacity had reached around 9.6 GW, with Asia accounting for nearly 90% of total installations.
Overall, floating solar offers India an opportunity to increase clean energy production without putting additional pressure on scarce land resources. Despite its higher initial cost, it can become an important part of India’s renewable energy transition.
Status of Solar Energy in India
India’s Growing Solar Energy Sector
India has made rapid progress in solar energy over the past decade. Solar power capacity has increased from just 3 GW in 2014 to around 129 GW in 2025. This growth is an important part of India’s goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.
Leading Solar Power States
States such as Rajasthan, Gujarat, Maharashtra, and Tamil Nadu are among the leading producers of solar power in India. Their strong performance is supported by good sunlight availability, suitable land, and supportive government policies.
Strengthening the Power Grid
As more renewable energy is added to the electricity system, strong transmission infrastructure is needed to move electricity from solar and wind projects to areas where it is required. The Green Energy Corridor is helping improve this transmission network and making it easier to integrate renewable energy into the national grid.
Rooftop and Agricultural Solar
Solar power is also expanding beyond large solar parks. The PM Surya Ghar Yojana has helped install around 24 lakh rooftop solar systems by December 2025, allowing households to generate their own electricity.
Similarly, PM-KUSUM supports farmers by promoting solar-powered agricultural pumps and grid-connected solar systems. This can reduce farmers’ dependence on conventional electricity and diesel while also encouraging the use of clean energy.
Battery Storage for Reliable Renewable Energy
Solar power depends on sunlight, so energy storage is important for maintaining a reliable electricity supply. The government has introduced a ₹5,400 crore Viability Gap Funding (VGF) scheme to support the development of around 30 GWh of Battery Energy Storage Systems (BESS). These systems can store electricity when renewable generation is high and supply it when demand increases.
Boosting Domestic Solar Manufacturing
India is also working towards reducing its dependence on imported solar equipment. The country has developed around 100 GW of solar PV module manufacturing capacity under the Approved List of Models and Manufacturers (ALMM). This supports the goal of Aatmanirbhar Bharat by encouraging domestic production of solar equipment and strengthening the renewable energy supply chain.
International Solar Alliance
India has also taken a leading role in promoting solar energy globally through the International Solar Alliance (ISA). Headquartered in Gurugram, the ISA is an Indian-led international initiative that brings together countries with high levels of sunlight, particularly those located between the Tropics of Cancer and Capricorn. Its main aim is to encourage investment, cooperation, and wider use of solar technology in these countries.
Overall, India’s solar energy growth is not limited to increasing generation capacity. It is also about strengthening the electricity grid, supporting households and farmers, developing battery storage, creating domestic manufacturing capacity, and promoting international cooperation. Together, these efforts can help India move towards a cleaner and more secure energy future.
Frequently Asked Questions (FAQs)
1. What is the Pradhan Mantri Surya Sarovar Yojana (PM-SSY)?
The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) is a Central Sector Scheme introduced to promote floating solar power projects across India. The scheme has a budget of ₹5,070 crore and aims to develop 5,000 MW of floating solar capacity along with Energy Storage Systems (ESS).
2. What are the benefits of Floating Solar Photovoltaic (FSPV) projects?
Floating solar projects allow solar panels to be installed on reservoirs, lakes, dams, and other water bodies instead of using land. This helps save valuable land that can be used for agriculture and housing. Floating solar can also reduce water evaporation, improve the performance of solar panels, and support large-scale clean energy generation.
3. Why is Energy Storage mandatory under PM-SSY?
Solar power is only generated when sunlight is available, so storage is needed to provide electricity more reliably. Under PM-SSY, projects must have Energy Storage Systems with at least two hours of storage. This will help maintain grid stability, manage fluctuations in solar power generation, and meet periods of high electricity demand.
4. How will PM-SSY support India’s climate and energy goals?
The scheme will add 5,000 MW of floating solar capacity and is expected to reduce around 10 million tonnes of CO₂ emissions every year. It will also encourage domestic manufacturing and investment, supporting the goal of Aatmanirbhar Bharat. In addition, the scheme will contribute to India’s target of achieving 500 GW of non-fossil fuel energy capacity by 2030.
5. Why is the NISE assessment important?
The National Institute of Solar Energy (NISE) has estimated that India has a floating solar potential of around 102.18 GWp across its reservoirs and other inland water bodies. This assessment shows that India has a large untapped potential for floating solar power and provides an important technical basis for expanding projects under PM-SSY.
