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.
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