PM Surya Sarovar Yojana: Cabinet Approves Rs 5,070 Crore Floating Solar Scheme
UPSC / SSC current affairs note · Economy
Why in news
The Union Cabinet, led by PM Narendra Modi, approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) on July 31, 2026, to establish 5,000 MW of Floating Solar PV (FSPV) capacity. This is a significant policy push to boost renewable energy, especially in land-constrained states, and represents a seven-fold increase over current installed capacity.
Background
India has been expanding its solar energy portfolio, with a focus on floating solar to utilize water bodies without acquiring land. The scheme aims to leverage existing reservoirs, canals, and industrial ponds for solar generation, addressing land scarcity and water conservation.
Key facts
The scheme has a total outlay of Rs 5,070 crore and is approved for a period of 5 years.
It targets establishing 5,000 MW of Floating Solar PV (FSPV) capacity.
The scheme will support up to Rs 1 crore per MW.
FSPV projects will include a minimum of 2-hour Energy Storage Systems (ESS), totaling 10,000 MWh.
Projects will be selected through tariff-based competitive bidding.
Current installed floating solar capacity is nearly 700 MW, so the scheme aims for a more than seven-fold increase.
Benefits include no additional land acquisition, productive use of water bodies, lower dust levels on panels, reduced evaporation, and opening solar capacity in land-constrained states.
Prelims pointers
- Pradhan Mantri Surya Sarovar Yojana (PM-SSY)
- Cabinet approval date: July 31, 2026
- Total outlay: Rs 5,070 crore
- Target: 5,000 MW Floating Solar PV capacity
- Support: Up to Rs 1 crore per MW
- Energy Storage Systems: Minimum 2-hour ESS, totaling 10,000 MWh
- Selection: Tariff-based competitive bidding
- Current capacity: ~700 MW
Mains angles
- Discuss the significance of floating solar projects in India's renewable energy transition.
- Critically examine the role of government schemes like PM-SSY in achieving energy security and climate goals.
- Analyze the environmental and economic benefits of floating solar over land-based solar.