India approves US$532 million floating solar and storage scheme targeting 5GW deployment

In brief

India’s Union Cabinet has approved a INR50.7 billion (US$531.7 million) programme to deploy 5 GW of floating solar capacity with co-located battery energy storage under the Pradhan Mantri Surya Sarovar Yojana. Each project must include at least two hours of storage, bringing the programme’s total storage target to 10 GWh. Projects may be approved between the 2026–27 and 2030–31 financial years, with funding available until 2032–33. Developers will receive INR10 million per MW after commissioning, while an additional INR5 million per project will support feasibility studies and environmental and technical assessments.

The scheme is expected to raise India’s floating solar capacity from around 700 MW to 5.7 GW and reduce annual carbon dioxide emissions by approximately 10 million tonnes. It is also intended to strengthen domestic manufacturing of flotation systems, solar cells, modules and batteries while using reservoirs rather than scarce land. Industry representatives welcomed the mandatory storage requirement and financial support but warned that inadequate transmission infrastructure, particularly near remote inland reservoirs, could raise costs and delay deployment. India’s technical floating solar potential is estimated at more than 102 GW, with Maharashtra, Madhya Pradesh, Karnataka, Odisha, Telangana and Gujarat offering the largest opportunities.

Source: PV Tech

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