Govt. Clears INR 5,500 Cr Floating Solar-Battery Storage Plan
Govt. has approved INR 5,500 Cr floating solar-battery storage plan to boost renewable capacity, ease land pressure, and stabilise grid, Cabinet nod awaited.
May 20, 2026. By EI News Network
The proposed plan is expected to be presented to the Union Cabinet for final approval, as the government steps up its push to expand clean energy infrastructure in response to global supply disruptions caused by ongoing tensions in West Asia.
Under the scheme, floating solar installations will be developed on reservoirs and other water bodies, paired with integrated battery storage systems. According to officials, this approach may ease land-use pressures while enhancing the efficiency and dependability of renewable power generation.
According to reports, the Ministry of New and Renewable Energy (MNRE) had initially sought an allocation of INR 6,700 crore for the scheme. However, the Expenditure Finance Committee (EFC) approved a reduced outlay of INR 5,500 crore and recommended changes to certain elements of the incentive structure ahead of the scheme’s rollout.
The central government is positioning floating solar technology as a crucial element of its broader renewable energy expansion strategy, particularly beyond traditional high-solar-radiation zones. The incorporation of battery storage is also anticipated to improve grid reliability by retaining surplus solar energy and delivering electricity during high-demand periods.
This scheme is part of India’s larger clean energy transition roadmap, which seeks to decrease dependence on imported fossil fuels amid geopolitical uncertainties and volatile global energy prices.
Santosh Sarangi, Secretary of the MNRE, recently stated that the government is exploring new incentive mechanisms to promote a more equitable geographic distribution of renewable energy projects across the country.
Although floating solar projects currently involve higher expenses than ground-mounted systems, pilot initiatives conducted in Madhya Pradesh and Andhra Pradesh have demonstrated their scalability and future viability. Officials note that India has substantial untapped potential for deploying floating solar across its dams, reservoirs, and inland water bodies.
Further, commenting on this, Siddharth Bhatia, MD and CEO, AB Energia, said, "The INR 5,500 crore floating solar and battery storage scheme is a strong and timely policy signal one that reflects a broader and welcome shift in how India is thinking about renewable energy. The focus is no longer just on adding capacity; it is on building reliable, integrated infrastructure. That distinction matters enormously .
At AB Energia, we have experienced this firsthand. Our 7.324 MWp floating solar installation at Jindal Stainless's Jajpur facility Odisha's largest captive industrial solar project showed us that floating solar delivers well beyond clean energy generation. It measurably reduces water evaporation from the reservoir and improves panel efficiency through natural cooling. These are compounding benefits that ground-mounted solar simply cannot replicate ."
"As this sector scales, what the industry will need most is clarity and standardised grid integration frameworks and procurement timelines that reflect the realities of floating solar construction, especially since floating solar projects have longer construction cycles than ground-mounted installations. The EPC capability is proven and ready. The opportunity now is for policy and execution to move in step and schemes like this one are exactly the kind of signal that makes that possible," noted Bhatia.
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