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Cabinet Approves PM Surya Sarovar Yojana for Floating Solar with Storage

UPSC / SSC current affairs note · Economy

EconomyIRScience and Technology

Why in news

The Union Cabinet has approved the PM Surya Sarovar Yojana (PM-SSY) to develop 5,000 MW of floating solar photovoltaic projects with energy storage systems, with a total outlay of ₹5,070 crore. This is a significant step towards India's renewable energy goals and energy security, as it utilizes water bodies for solar generation while integrating storage to enhance grid reliability.

Background

India's current floating solar capacity is about 700 MW. The National Institute of Solar Energy (NISE) has assessed a potential of approximately 102.18 GW of floating solar capacity in reservoirs and other inland water bodies. The scheme aims to boost this capacity and support the country's climate commitments.

Key facts

in5points

  1. The Union Cabinet, chaired by PM Narendra Modi, approved the PM Surya Sarovar Yojana (PM-SSY) on 31 July 2026.

  2. Total outlay: ₹5,070 crore.

  3. Target: Develop 5,000 MW of floating solar photovoltaic (FSPV) projects.

  4. Includes energy storage systems (ESS) with at least 2 hours of storage capacity, totaling 10,000 MWh.

  5. Projects to be approved from FY 2026-27 to FY 2030-31; financial support disbursed until FY 2032-33.

  6. Central Financial Assistance (CFA) of ₹1 crore per MW for eligible projects after successful commissioning.

  7. CFA of up to ₹50 lakh per project for feasibility studies (bathymetry, hydrography, environmental studies, etc.).

  8. Expected to reduce CO2 emissions by about 10 million tonnes annually.

  9. Expected to create 16,000-17,000 full-time equivalent jobs.

  10. Will promote domestic manufacturing of PV cells, modules, energy storage systems, and flotation systems.

Prelims pointers

  • Scheme: PM Surya Sarovar Yojana (PM-SSY)
  • Ministry: Ministry of New and Renewable Energy (MNRE)
  • Total outlay: ₹5,070 crore
  • Target capacity: 5,000 MW floating solar
  • Storage capacity: 10,000 MWh (2 hours)
  • CFA: ₹1 crore per MW
  • Feasibility study support: ₹50 lakh per project
  • NISE: National Institute of Solar Energy
  • Potential assessed: 102.18 GW
  • Current capacity: ~700 MW

Mains angles

  • Discuss the significance of floating solar projects in India's renewable energy transition.
  • Examine the role of energy storage in enhancing grid stability and integrating renewable energy.
  • Analyze the potential of PM-SSY in achieving India's climate commitments and energy security.
  • Evaluate the challenges and opportunities in implementing large-scale floating solar projects in India.