India has taken another major step toward renewable energy expansion after the Expenditure Finance Committee (EFC) approved a proposed ₹5,500 crore scheme to support floating solar projects integrated with Battery Energy Storage Systems (BESS).

The proposal, cleared under the Finance Ministry framework, will now move to the Union Cabinet for final approval. The initiative is aimed at accelerating renewable energy growth while strengthening the country’s long-term energy security.

Focus on Floating Solar Expansion

The approved scheme is designed to encourage states and renewable energy developers to deploy floating solar power projects across reservoirs, lakes, and other water bodies.

Unlike traditional ground-mounted solar plants, floating solar systems are installed on water surfaces. This approach helps reduce land usage challenges while also improving panel efficiency due to the natural cooling effect of water.

Industry experts believe floating solar could become one of the fastest-growing renewable energy segments in India over the next few years.

Integration of Battery Energy Storage Systems

A major highlight of the proposed programme is the integration of Battery Energy Storage Systems (BESS) with floating solar installations.

Battery storage systems are considered essential for:

• Managing renewable power fluctuations
• Improving grid stability
• Supporting peak demand management
• Ensuring reliable electricity supply

By combining floating solar with battery storage, the government aims to create a more stable and dispatchable renewable energy ecosystem.

Push for Energy Security

The approval comes at a time when global energy markets are facing uncertainty due to geopolitical tensions and supply disruptions in several regions, including West Asia.

India is increasingly focusing on expanding domestic clean energy generation to reduce dependency on imported fossil fuels and improve long-term energy security.

Officials believe large-scale renewable energy projects supported by storage infrastructure will play a major role in achieving these goals.

Revised Financial Framework

According to reports, the Ministry of New and Renewable Energy (MNRE) initially proposed an allocation of around ₹6,700 crore for the programme.

However, the Expenditure Finance Committee approved a reduced outlay of ₹5,500 crore and requested revisions to certain parts of the proposed incentive structure.

The revised framework is expected to improve implementation efficiency and optimize fund utilization before the proposal is sent for final Cabinet approval.

Growing Opportunity for Floating Solar in India

Earlier, the MNRE had already advised States and Union Territories to identify suitable water bodies for floating solar photovoltaic (FSPV) projects.

Despite India’s rapid solar growth, floating solar capacity remains relatively small, with installed capacity currently below 1 GW.

The new scheme is expected to unlock significant growth opportunities for floating solar development across the country.

The proposed ₹5,500 crore floating solar and battery storage scheme marks another important step in India’s renewable energy transition.

By promoting floating solar projects integrated with energy storage systems, the government aims to improve energy security, strengthen grid reliability, and accelerate clean energy deployment across the country.