India Approves $532 Million Scheme to Add 5 GW of Floating Solar Capacity

August 17, 2026--Researched by IIR News Intelligence (Sugar Land, Texas)--India is launching a major policy-driven push into floating solar power.

The Union Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore (approximately US$532 million) program targeting the development of 5 gigawatts (GW) of floating solar photovoltaic (FSPV) projects integrated with energy storage systems. The scheme will support projects sanctioned between Fiscal Year 2026-27 and Fiscal Year 2030-31, with financial assistance continuing through Fiscal Year 2032-33. The program is intended to unlock reservoirs and industrial ponds for renewable generation while reducing competition for scarce land.

The program requires FSPV projects to incorporate co-located energy storage with a minimum duration of two hours, equivalent to 10,000 megawatt hours (MWh) across the targeted 5-GW portfolio. India currently has around 700 MW of floating solar capacity, meaning the new program could expand the country's floating-solar fleet by more than seven times if fully implemented.

The government is also using financial incentives to address project-development risks. Eligible projects will receive central financial assistance of ₹1 crore (US$105,000) per megawatt after successful commissioning, while up to ₹50 lakh (US$52,600) per project will be available for feasibility studies covering bathymetry, hydrography, environmental assessments and other preparatory activities.

The policy follows a nationwide assessment by the National Institute of Solar Energy (NISE), which estimates India's floating-solar potential at approximately 102.18 gigawatts-peak (GWp) across reservoirs and other suitable inland water bodies. Maharashtra, Madhya Pradesh and Karnataka are among the states with the largest identified potential.

Industrial Info Resources is tracking 1,079 solar-related projects, including ground-mounted solar, floating solar and battery energy in India, worth US$236 billion.

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