Cabinet clears Rs 5,070-crore floating solar scheme, targets 5 GW capacity

The programme, to be implemented by the Solar Energy Corporation of India, is expected to attract investment of around ₹28,500 crore. Every project will be coupled with an energy-storage system capable of supplying electricity for at least two hours, enabling states to use solar power to meet peak demand.

“The scheme will strengthen India’s energy security, accelerate the clean-energy transition and power the journey towards a self-reliant, sustainable Viksit Bharat,” New and renewable energy minister Pralhad Joshi said.

India currently has only around 700 MW of installed floating solar capacity against an estimated potential of nearly 102 GW. The scheme will add 5,000 MW, significantly expanding the use of reservoirs and industrial ponds for solar generation.

Capacity Allocation

Capacity under the programme will be allocated until FY2030-31, while central financial assistance can be disbursed through FY2032-33. The Centre will provide support of ₹1 crore per MW after successful commissioning.

Projects will ordinarily have a minimum capacity of 50 MW and a maximum of 500 MW. A lower threshold of 20 MW will apply to projects in the North-East, including Sikkim, Union Territories and hilly states, which together will be eligible for an allocation of up to 500 MW.

Projects of up to 250 MW will have to be commissioned within 18 months of signing the power-purchase agreement. Larger projects will be allowed 24 months.

To reduce development risks, the government will also support feasibility studies covering bathymetry, hydrography, solar-yield assessment and the potential impact on aquatic ecology, flora and fauna.

Projects of up to 100 MW can receive assistance of up to ₹30 lakh for feasibility studies, while those between 100 MW and 250 MW can receive up to ₹40 lakh. Projects above 250 MW will be eligible for up to ₹50 lakh. Advance assistance of up to ₹30 lakh may be released for the studies.

Floating solar projects cost more than conventional ground-mounted plants. The system cost of a floating solar project is estimated at ₹4.9-5.2 crore per MW, nearly 25% higher than the ₹3.9-4.2 crore per MW required for ground-mounted solar.

The additional cost arises from floaters, anchors and mooring systems. The mandatory two-hour battery-storage component could add another ₹0.9-1.2 crore per MWh.

Subrahmanyam Pulipaka, Chief Executive Officer of the National Solar Energy Federation of India, said the programme represented the next major chapter in India’s solar expansion after utility-scale projects, agricultural solarisation under PM-KUSUM and the rooftop push under PM Surya Ghar.

“By unlocking the immense potential of floating solar across reservoirs and inland water bodies, the scheme will diversify India’s renewable-energy portfolio, reduce pressure on scarce land resources and ensure that clean solar power reaches every corner of the country. It also reinforces India’s vision of building a resilient, future-ready power system by integrating energy storage alongside renewable-energy deployment from the outset,” Pulipaka said.

Environmental Impact

The government estimates that the programme will help avoid nearly 10 million tonnes of carbon dioxide emissions annually and generate about 16,000-17,000 full-time equivalent jobs across manufacturing, engineering, construction, operations and maintenance.

The scheme is also expected to support domestic manufacturing of floaters, anchors, mooring lines, solar cells and modules, storage systems and associated equipment. India currently has around 2.5 GW of manufacturing capacity for floating systems, with components and raw materials largely sourced locally.

Maharashtra has the highest assessed floating solar potential at 16.28 GW, followed by Madhya Pradesh at 14.89 GW, Karnataka at 13.69 GW, Odisha at 12.81 GW and Telangana at 10.72 GW.