Cabinet Approves PM Surya Sarovar Yojana for Floating Solar Projects
UPSC / SSC current affairs note · Economy
Why in news
The Union Cabinet has approved the PM Surya Sarovar Yojana (PM-SSY) to develop floating solar photovoltaic projects with energy storage systems, with a total outlay of Rs 5,070 crore. This is significant as it aims to add 5,000 MW of floating solar capacity, boosting India's renewable energy goals and energy security.
Background
India's current floating solar capacity is about 700 MW. The National Institute of Solar Energy (NISE) has assessed a potential of about 102.18 GW in reservoirs and other inland water bodies. The scheme is part of efforts to utilize water bodies for solar generation and reduce land use conflicts.
Key facts
The Union Cabinet approved PM Surya Sarovar Yojana (PM-SSY) on 31 July 2026 with a total outlay of Rs 5,070 crore.
The scheme aims to develop 5,000 MW of floating solar photovoltaic (FSPV) projects, including energy storage systems with at least 2 hours of storage capacity (10,000 MWh).
Projects will be approved during FY 2026-27 to FY 2030-31, with financial support disbursed up to FY 2032-33.
Central Financial Assistance (CFA) of Rs 1 crore per MW will be provided to eligible projects after successful commissioning.
CFA of up to Rs 50 lakh per project will be available for feasibility studies, including bathymetry, hydrography, and environmental studies.
The scheme will benefit all states and union territories, adding 5,000 MW to India's floating solar capacity, which is currently about 700 MW.
It is expected to reduce carbon dioxide emissions by approximately 10 million tonnes annually.
The scheme is expected to create about 16,000-17,000 full-time equivalent jobs in the project value chain.
It will promote domestic manufacturing of PV cells, modules, energy storage systems, and flotation systems, supporting the Atmanirbhar Bharat vision.
Prelims pointers
- PM Surya Sarovar Yojana (PM-SSY)
- Floating Solar Photovoltaic (FSPV) projects
- Energy Storage Systems (ESS)
- Central Financial Assistance (CFA)
- National Institute of Solar Energy (NISE)
- Outlay: Rs 5,070 crore
- Target: 5,000 MW capacity
- Storage: 10,000 MWh (2 hours)
- Timeline: FY 2026-27 to FY 2030-31
- CO2 reduction: ~10 million tonnes/year
Mains angles
- Discuss the significance of floating solar projects in India's renewable energy transition and energy security.
- Critically examine the role of energy storage systems in enhancing grid reliability and integrating renewable energy.
- Evaluate the potential of utilizing water bodies for solar power generation and its environmental and social implications.
- Analyze the impact of PM-SSY on domestic manufacturing and employment in the renewable energy sector.