Making Waves: India's ₹5,500-Crore Plan to Put Solar on Water

The Finance Ministry’s Expenditure Finance Committee (EFC) has approved a proposed Central scheme worth ₹5,500 crore for the deployment of floating solar projects integrated with battery energy storage systems (BESS).

The approved outlay is lower than the ₹6,700 crore initially sought by the Ministry of New and Renewable Energy (MNRE). The EFC has asked the ministry to revise certain elements of the proposed incentive structure before the scheme is placed before the Union Cabinet for final approval.

The initiative is intended to encourage states and private developers to utilise reservoirs and other water bodies for renewable energy generation, helping reduce pressure on land resources while improving solar generation efficiency through the cooling effect of water.

The inclusion of battery energy storage systems is expected to help address the intermittent nature of solar power, support grid stability and ensure electricity availability during peak demand periods. The move also aligns with India’s broader push to accelerate clean energy adoption and reduce reliance on imported fossil fuels amid rising geopolitical uncertainties.

News by Rahul Yelligetti.