The Finance Ministry’s Expenditure Finance Committee (EFC) has approved a Rs 5,500 crore Central scheme aimed at accelerating the deployment of floating solar power projects integrated with battery energy storage systems (BESS), marking another significant step in India’s clean energy expansion strategy.
The approved outlay is lower than the Rs 6,700 crore proposal initially submitted by the Ministry of New and Renewable Energy. The EFC has advised the ministry to further refine certain elements of the proposed incentive framework before the scheme is placed before the Union Cabinet for final approval.
The proposed programme is designed to encourage states as well as private sector participants to develop floating solar infrastructure across reservoirs, dams, and other water bodies. By shifting renewable energy installations onto water surfaces, the initiative seeks to ease pressure on land resources while simultaneously improving solar generation efficiency through the natural cooling properties of water.
A key feature of the scheme is the integration of battery energy storage systems, which are expected to play a critical role in stabilising renewable energy supply. The storage component will help manage fluctuations associated with solar power generation, support grid reliability, and ensure electricity availability during peak demand periods.
The move aligns with India’s broader energy transition roadmap, which is gaining momentum amid rising geopolitical uncertainties and ongoing tensions in West Asia. The government is increasingly focusing on reducing dependence on imported fossil fuels while fast-tracking domestic renewable energy capacity and energy security initiatives.