From 3 GW To 162.15 GW: India’s Solar Growth Gains Momentum With INR 5,070 Crore Pradhan Mantri Surya Sarovar Yojana

India’s clean energy transition has received a major boost with the Government of India approving the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a flagship initiative aimed at expanding floating solar power generation across the country. Approved on July 31, 2026, the scheme has been allocated ₹5,070 crore and will be implemented from FY 2026–27 to FY 2030–31. It targets the installation of 5,000 MW of Floating Solar Photovoltaic (FSPV) capacity integrated with Energy Storage Systems (ESS) on reservoirs and other inland water bodies.

The new scheme is expected to make better use of existing water surfaces while reducing the need for large tracts of land for solar projects. According to government estimates, PM-SSY could reduce carbon dioxide emissions by around 10 million tonnes every year. It is also expected to create nearly 17,000 full-time jobs and strengthen domestic manufacturing by increasing demand for solar modules, storage systems, and related equipment.

The announcement comes at a time when India’s solar sector is witnessing unprecedented growth. The country’s installed solar power capacity has increased from nearly 3 GW in 2014 to 162.15 GW as of June 30, 2026. In 2025, India added around 37 GW of new solar capacity, overtaking the United States in annual additions and becoming the world’s second-largest solar growth market. During the financial year 2025–26, India also recorded a historic addition of 55.29 GW in non-fossil fuel capacity, taking the country’s total non-fossil fuel capacity to 283.46 GW.

This rapid expansion has been supported by a series of government policies and infrastructure initiatives. The National Solar Mission, competitive reverse bidding, the Solar Parks Scheme, and the Green Energy Corridor Programme have all played an important role in accelerating renewable energy deployment. Under the Solar Parks Scheme, 54 solar parks with a combined sanctioned capacity of more than 39,000 MW have been approved across the country. Projects such as Rajasthan’s Bhadla Solar Park have become global examples of large-scale solar development.

Competitive reverse auctions have also helped make solar electricity more affordable. Solar tariffs, which were around ₹18 per unit in 2010, have fallen significantly over the years, reaching a low of ₹2.44 per unit. This sharp decline has made solar energy one of the most economical sources of electricity in India.

The government has also focused on expanding solar adoption beyond utility-scale projects. Under the PM Surya Ghar: Muft Bijli Yojana, launched in 2024 with an outlay of ₹75,021 crore, more than 43 lakh households had installed rooftop solar systems by June 2026, helping many families reduce or eliminate their electricity bills. At the same time, the PM-KUSUM scheme continues to support farmers through solar-powered pumps and feeder solarization.

To strengthen the domestic supply chain, the government has introduced the Production Linked Incentive (PLI) scheme for high-efficiency solar modules and the Approved List of Models and Manufacturers (ALMM) framework. These initiatives have helped increase India’s solar module manufacturing capacity from just 2.3 GW in 2014 to nearly 172 GW by March 2026. Together with new initiatives such as PM-SSY, these measures are expected to support India’s target of achieving 500 GW of non-fossil fuel capacity by 2030 while advancing the country’s long-term net-zero emissions goals.