The central government has approved a new initiative to boost solar power generation without putting additional pressure on land availability. The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) will promote large floating solar projects on reservoirs and other suitable water bodies across the country.

The scheme was approved on July 31, 2026, and will support 5,000 MW of floating solar capacity along with energy-storage systems. The government has earmarked ₹5,070 crore for the programme.

What is Pradhan Mantri Surya Sarovar Yojana?

Unlike conventional solar projects where panels are installed on land or rooftops, floating solar projects place photovoltaic panels on specially designed structures floating on water.

Under PM-SSY, existing reservoirs and suitable industrial ponds can be utilised for generating electricity. This could help expand renewable-energy capacity while reducing the requirement for large parcels of land.

Government targets 5,000 MW capacity

The government plans to support 5,000 MW of Floating Solar Photovoltaic projects under the scheme. These projects will also be equipped with co-located Energy Storage Systems.

The storage systems will have a minimum two-hour capacity, equivalent to a total of 10,000 MWh. This stored electricity can help states manage electricity demand during peak hours and improve grid reliability.

₹5,070 crore allocated

The total financial outlay for PM Surya Sarovar Yojana has been fixed at ₹5,070 crore.

The scheme will be implemented over five financial years, starting from FY 2026-27 and continuing until FY 2030-31. All states and Union Territories will be eligible to participate in the programme.

Why put solar panels on water?

One of the biggest advantages is better utilisation of existing resources. Large solar parks normally require considerable land, which can sometimes compete with agriculture, industries or other infrastructure.

Floating projects can instead utilise suitable reservoirs and ponds that already exist.

According to an assessment by the National Institute of Solar Energy, India's reservoirs and suitable inland water bodies have an estimated floating-solar potential of about 102.18 GWp.

Jobs could also be created

The scheme isn't only about generating electricity. The government expects PM-SSY to create approximately 16,000 to 17,000 full-time-equivalent jobs.

It is also expected to encourage domestic manufacturing of solar cells, modules, floating structures and energy-storage equipment, creating opportunities for companies involved in India's renewable-energy supply chain.

How much difference could it make?

India currently has roughly 700 MW of floating solar capacity. The new programme aims to add another 5,000 MW, significantly expanding this segment.

The government estimates that projects supported by the scheme could eventually help reduce around 10 million tonnes of carbon dioxide emissions annually.

Will households get a subsidy under this scheme?

PM Surya Sarovar Yojana should not be confused with PM Surya Ghar: Muft Bijli Yojana.

PM Surya Ghar is designed primarily for rooftop solar installations for households and provides eligible consumers with financial assistance. PM-SSY, on the other hand, focuses on large floating-solar and energy-storage projects rather than individual rooftop installations.

For consumers, the benefits of PM-SSY are therefore expected to be indirect. Increasing renewable generation and storage capacity can help strengthen electricity supply, reduce dependence on conventional sources and make the power grid better equipped to handle periods of high demand.