PM Surya Sarovar Yojana: Cabinet Approves 5,070 Crore Scheme to Build 5 GW of Floating Solar Projects

The new central scheme aims to accelerate floating solar installations on reservoirs and other water bodies, helping India expand renewable energy capacity without putting additional pressure on land resources.

The Union Cabinet has approved the PM Surya Sarovar Yojana, a ₹5,070 crore central sector scheme that aims to develop 5 gigawatts (GW) of floating solar power projects across reservoirs and other suitable water bodies in India. The initiative is expected to support the country's clean energy ambitions while addressing one of the biggest challenges facing large-scale solar expansion—land availability.

According to government announcements, the scheme will be implemented over multiple years and will encourage the deployment of floating photovoltaic (FPV) systems on reservoirs, dams and similar water bodies. The projects are expected to contribute significantly towards India's renewable energy targets while making use of existing infrastructure instead of acquiring new land.

Floating solar plants differ from conventional ground-mounted solar parks because photovoltaic panels are installed on floating platforms anchored to the surface of lakes or reservoirs. Since the panels sit above water, they occupy no agricultural or developable land. The surrounding water also helps cool the solar modules, improving their operating efficiency compared with installations exposed to higher ground temperatures.

Another advantage is reduced water evaporation. By partially shading reservoirs, floating solar arrays can help conserve water, an added benefit for regions facing increasing water stress. The technology has attracted growing interest globally as countries seek to maximise renewable energy generation without competing for scarce land resources.

India has steadily expanded its floating solar capacity over the past few years, with projects already operating in states including Telangana, Kerala, Madhya Pradesh and Andhra Pradesh. However, the newly approved PM Surya Sarovar Yojana marks one of the country's largest dedicated policy interventions for the sector.

The scheme is expected to create new opportunities for engineering, procurement and construction (EPC) companies, floating platform manufacturers, solar module suppliers and state electricity utilities involved in renewable energy development. It could also encourage state governments to identify suitable reservoirs and accelerate project implementation.

The approval comes as India continues to diversify its renewable energy mix beyond traditional ground-mounted solar parks. While utility-scale solar installations remain the backbone of the country's clean energy programme, floating solar is increasingly being viewed as an effective solution in densely populated regions where acquiring large parcels of land can delay projects and increase costs.

Industry experts have also pointed to the technology's potential to improve the utilisation of existing hydropower reservoirs. In some cases, floating solar systems can complement hydroelectric projects by sharing transmission infrastructure, reducing overall project costs and improving grid integration.

Although the Cabinet has approved the scheme, detailed implementation guidelines—including project eligibility, funding mechanisms, bidding processes and timelines—are expected to be issued by the Ministry of New and Renewable Energy (MNRE) in the coming months.

With a target of adding 5 GW of floating solar capacity, the PM Surya Sarovar Yojana represents one of India's most significant policy pushes towards innovative solar deployment. If implemented successfully, it could help expand renewable energy generation while conserving land and making better use of the country's extensive network of reservoirs and water bodies.

Sources

https://timesofindia.indiatimes.com/business/india-business/pm-surya-sarovar-yojana-cabinet-approves-rs-5070-crore-scheme-for-floating-solar-projects/articleshow/132764917.cms

https://economictimes.indiatimes.com/industry/renewables/cabinet-approves-pm-surya-sarovar-yojana-for-floating-solar-projects/articleshow/132764819.cms