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The Rise of the Floating Solar Sector in India: Opportunities and Challenges

  • Writer: Thajul haque
    Thajul haque
  • Nov 22, 2025
  • 2 min read

India’s energy demand is growing rapidly, and the country is actively seeking sustainable solutions to meet this need. One promising area gaining attention is the floating solar sector. Floating solar power plants, installed on water bodies such as reservoirs and lakes, offer a unique way to generate clean energy while addressing land scarcity. This post explores the opportunities and challenges of floating solar in India, highlighting why it is becoming an important part of the renewable energy mix.


Eye-level view of a large floating solar panel installation on a calm reservoir in India
Floating solar panels on a reservoir in India

Why Floating Solar Makes Sense in India


India faces a dual challenge: limited land availability for large solar farms and a growing need for clean energy. Floating solar projects help solve this by using water surfaces that would otherwise remain unused. This approach offers several advantages:


  • Land conservation: Floating solar reduces the need to clear land, preserving agricultural and forest areas.

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

  • Reduced evaporation: Covering water bodies with solar panels helps reduce water loss, which is critical in drought-prone regions.

  • Synergy with hydropower: Many floating solar plants are installed on reservoirs of hydropower dams, enabling better grid integration and shared infrastructure.


The Indian government has recognized these benefits and set ambitious targets for floating solar capacity. For example, the Ministry of New and Renewable Energy aims to install 4 GW of floating solar projects by 2025.


Current Projects and Progress


Several states in India have started implementing floating solar projects with promising results:


  • Kerala: The Banasura Sagar reservoir hosts one of India’s largest floating solar plants, generating 500 kW of power.

  • Tamil Nadu: The Kayamkulam floating solar project has a capacity of 9.5 MW and is integrated with a nearby hydropower station.

  • Maharashtra: The state is developing multiple floating solar projects on irrigation reservoirs to support farmers with clean energy.


These projects demonstrate that floating solar can be scaled up effectively in India’s diverse climate and geography.


Challenges Facing the Floating Solar Sector


Despite its potential, the floating solar sector in India faces several challenges:


  • High initial costs: Floating solar installations require specialized materials and anchoring systems, making them more expensive upfront than traditional solar farms.

  • Technical complexity: Designing systems that withstand water currents, waves, and weather conditions demands expertise and innovation.

  • Environmental concerns: There is limited research on the long-term impact of floating solar on aquatic ecosystems, including effects on water quality and biodiversity.

  • Grid integration: Many floating solar projects are located in remote areas where grid infrastructure may be weak or absent, complicating power transmission.


Addressing these challenges will require coordinated efforts from government, industry, and research institutions.


The Road Ahead for Floating Solar in India


Floating solar offers a practical solution to India’s renewable energy goals, especially where land is scarce and water bodies are abundant. To accelerate growth, the government can:


  • Provide financial incentives and subsidies to reduce upfront costs.

  • Support research on environmental impacts and technical improvements.

  • Develop policies that encourage public-private partnerships.

  • Invest in grid infrastructure near potential floating solar sites.


 
 
 

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