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Cabinet Approves ₹5,070 Crore Scheme to Promote Floating Solar Plants

Cabinet Approves ₹5,070 Crore Scheme to Promote Floating Solar Plants

Context

The Union Cabinet has approved the National Floating Solar Mission (NFSM) with a total outlay of ₹5,070 crores to promote floating solar power projects on reservoirs and other water bodies. The mission will provide Central Financial Assistance (CFA) of up to ₹1 crore per MW and aims to achieve 5,000 MW (5 GW) of floating solar capacity by 2030–31.

National Floating Solar Mission (NFSM)

  • A Central Sector Scheme to promote the installation of floating solar photovoltaic (FPV) plants on reservoirs, dams, lakes, and other water bodies.
  • Designed to diversify India’s renewable energy portfolio while minimizing land-use conflicts.
  • Key Features
  • Total Outlay: ₹5,070 crore
  • Target Capacity: 5,000 MW by 2030–31
  • Financial Assistance: Up to ₹1 crore per MW
  • Eligible Sites: Reservoirs, dams, lakes, irrigation tanks, and other suitable inland water bodies.
  • Implementation: Solar Energy Corporation of India (SECI) and other designated agencies in coordination with States.

What are Floating Solar Plants?

  • Floating Solar Photovoltaic (FPV) systems are solar panels mounted on floating structures that are anchored on the surface of water bodies instead of being installed on land.
  • Major Components
  • Solar PV modules
  • Floating platforms (HDPE pontoons)
  • Anchoring and mooring systems
  • Inverters and transmission infrastructure

Why is India Promoting Floating Solar?

1. Limited Availability of Land

  • Avoids acquisition of agricultural and forest land.
  • Reduces land-use conflicts and rehabilitation issues.

2. Better Efficiency

  • Water cools the solar panels, improving their efficiency compared to ground-mounted systems.

3. Reduced Water Evaporation

  • Solar panels partially cover the water surface, reducing evaporation losses from reservoirs.

4. Cleaner Energy Mix

  • Supports India’s transition towards non-fossil fuel energy sources.

5. Existing Grid Connectivity

  • Many reservoirs are located near hydropower stations, enabling easier grid integration.

Advantages of Floating Solar

  • No requirement for large land parcels.
  • Higher power generation due to natural cooling effect.
  • Reduces algae growth by limiting sunlight penetration.
  • Conserves freshwater by lowering evaporation.
  • Complements hydropower generation in multipurpose reservoirs.
  • Reduces transmission costs when integrated with existing power infrastructure.

Challenges

  • Higher installation and maintenance costs than ground-mounted solar.
  • Corrosion and biofouling due to continuous water exposure.
  • Complex anchoring in fluctuating water levels.
  • Environmental concerns regarding aquatic biodiversity if poorly designed.
  • Limited domestic manufacturing ecosystem for floating platforms.

India’s Floating Solar Potential

  • India has an estimated 278 GW floating solar potential across reservoirs.
  • Omkareshwar Floating Solar Park (Madhya Pradesh) is India’s largest operational floating solar project and is planned to expand to around 600 MW.
  • Several States including Madhya Pradesh, Kerala, Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, and West Bengal are actively developing floating solar projects.

Related Government Initiatives

  • National Solar Mission (NSM) – Flagship programme for solar energy expansion.
  • PM Surya Ghar: Muft Bijli Yojana – Rooftop solar promotion.
  • PM-KUSUM Scheme – Solarisation of agriculture and decentralized renewable energy.
  • Green Energy Corridor Project – Strengthening transmission for renewable energy integration.
Important CTC from this article for UPSC:

Pradhan Mantri Surya Sarovar YojanaNarmada River
Q. With reference to Floating Solar Photovoltaic (FPV) Plants in India, consider the following statements:
1. Floating solar plants are installed on reservoirs, lakes, and other water bodies.
2. Floating solar panels generally operate at lower efficiency than ground-mounted solar plants due to continuous exposure to moisture.
3. Floating solar projects help reduce water evaporation from reservoirs.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B. 1 and 3 only
• Statement 1: Correct. Floating Solar Photovoltaic (FPV) plants are installed on reservoirs, lakes, ponds, dams, and other water bodies.
• Statement 2: Incorrect. Floating solar panels are generally more efficient than ground-mounted systems because the surrounding water cools the panels, improving their performance.
• Statement 3: Correct. Floating solar panels partially cover the water surface, thereby reducing evaporation losses, especially in water-scarce regions.
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