Introduction
Floating Solar Power Plant: India is witnessing a transformative era in renewable energy innovation, with floating solar power (also known as Floating Photovoltaic or FPV systems) emerging as a major frontier in sustainable electricity generation. As land availability becomes a limiting factor for large-scale renewable projects, floating solar technology is unlocking new opportunities by utilizing reservoirs, dams, and water bodies for clean power generation.
In 2025, India stands among global leaders driving FPV adoption, fueled by ambitious government targets, favorable policies, and growing private sector participation. This article explores the cost of floating solar power plants per MW in India, highlights major ongoing projects, opportunities, benefits, and government incentives critical for investors and developers considering entry into this rapidly expanding sector.
Understanding Floating Solar Power
Floating solar power plants install photovoltaic modules on buoyant structures anchored to water bodies like reservoirs, lakes, ponds, and hydro dam surfaces. These floating solar arrays are connected through mooring and anchoring systems designed to withstand dynamic water movement.
Key components include:
- Solar PV modules mounted on floating platforms
- Floaters and mooring systems
- Inverters and transformers
- Submarine cables for power evacuation
- Monitoring and control systems
This configuration reduces land-use conflicts, enhances PV efficiency due to natural cooling effects, and aids water conservation by minimising evaporation.
Read Also: Commercial Rooftop Solar System Payback in India 2025: A Complete Guide for Businesses
Cost per MW of Floating Solar Power in India (2025)
Capital Expenditure (CAPEX)
As of 2025, the average cost of developing a floating solar power plant in India ranges between ₹5.5 crore to ₹6.5 crore per MW, depending on location, design complexity, and site conditions.
A detailed cost comparison is as follows:
| Type of Solar Project | Typical Cost per MW (₹ crore) | Remarks |
| Ground-mounted Solar PV | 3.0 – 4.0 | Standard land-based installation |
| Floating Solar PV | 5.5 – 6.5 | Includes floaters, anchoring, and additional safety mechanisms |
| Hybrid Floating + Onshore | 6.0 – 7.0 | Integration with hydropower/canal systems |
While floating solar remains costlier upfront, declining equipment prices, innovative mooring designs, and modular scalability are steadily decreasing installation costs across regions.
Example: Omkareshwar Floating Solar Park
- Location: Khandwa, Madhya Pradesh
- Total Capacity: 600 MW (278 MW commissioned as of 2025)
- Estimated Cost: ₹330 crore for first phase
- Per MW Cost: Approximately ₹5.5 crore
- Tariff Range: ₹3.25 per kWh
Example: Ramagundam Floating Solar Project
- Location: Telangana
- Capacity: 100 MW
- Developer: NTPC
- Total Cost: ₹423 crore (₹4.23 crore/MW average)
Reflecting reduced costs through state and institutional synergy.
Cost Components of Floating Solar Systems
- Solar PV Modules (30–40%)
Latest mono PERC and TOPCon modules enhance space efficiency and power yield on limited water surfaces. - Floaters and Anchoring (15–20%)
Designed for buoyancy and hydrodynamic stability; often customized for specific reservoir conditions. - Mooring Systems (5–10%)
Ensures plant stability amid wind and wave fluctuations. - Electrical Infrastructure (20–25%)
Includes central inverters, transformers, undersea cables, and grid interconnection. - Project Management and Logistics (10–15%)
Covers transportation, installation, civil works, and ongoing maintenance.
Floating solar requires specialised engineering expertise across mechanical, hydro-logical, and electrical domains, contributing to higher capital costs compared to land-based PV.
Operational Cost and ROI
Annual O&M (Operation & Maintenance) expenses for floating solar projects range between ₹8–10 lakh per MW—slightly higher than ground-mounted systems. However, the payback period remains attractive at around 7–9 years, driven by:
- Lower cleaning costs due to reduced dust accumulation
- Enhanced output efficiency (5–10% higher generation)
- Minimal land acquisition expenses
With tariffs hovering around ₹3.2–₹3.8/kWh and steady CAPEX reductions, floating solar offers strong long-term returns for investors.
Policy and Government Support in 2025
MNRE Initiatives
The Ministry of New and Renewable Energy (MNRE) and Solar Energy Corporation of India (SECI) are spearheading India’s floating solar ambitions with dedicated project allocations and financial incentives.
Key policy initiatives include:
- Development of 10 GW floating solar capacity under national solar park schemes.
- Central Financial Assistance (CFA) of up to 30% of project cost for state agencies.
- Streamlined approval processes through state renewable development corporations.
- Target integration with hydropower reservoirs to create hybrid renewable energy hubs.
State-Specific Policies
- Tamil Nadu, Kerala, and Andhra Pradesh focus on reservoir-based floating projects under state electricity boards.
- Madhya Pradesh Renewable Energy Department (MPRED) encourages public-private partnerships under the Omkareshwar and Indira Sagar projects.
- Telangana and Maharashtra continue scaling FPV installations on irrigation and thermal reservoirs.
Opportunities and Growth Potential
Enormous Installed Capacity Potential
India possesses an estimated floating solar potential of over 280–300 GW, leveraging 18,000+ reservoirs and dams identified by TERI and World Bank studies. Even exploiting 10% of this could match India’s 2030 renewable target capacity.
Water Conservation and Land Optimization
Floating solar installations drastically curb water evaporation—Omkareshwar’s 600 MW project prevents up to 32.5 million cubic meters of annual water loss. Additionally, by offsetting land needs, FPV reduces dependence on agricultural and ecologically sensitive areas.
Employment and Local Industry Development
As India’s FPV sector matures, expanding construction, manufacturing, and maintenance roles create a robust green job ecosystem supporting local economies.
Public-Private Partnership (PPP) Opportunities
Government initiatives encourage private firms to partner with national entities for financing, technology sharing, and operational synergies in hydro-linked floating solar ventures.
Key Benefits of Floating Solar Power Plants
- Efficient Land Use
FPV eliminates the need for vast tracts of land, ideal for regions with high population density. - Enhanced Power Generation
Cooling from underlying water increases panel efficiency by 5–15%. - Water Conservation
Reduced evaporation in reservoirs and canals aids agricultural management. - Reduced Transmission Loss
Integration with existing hydroelectric infrastructure ensures proximity to substations. - Environmental Sustainability
Mitigates carbon emissions, reduces air pollution, and supports India’s net-zero mission by 2070.
Challenges and Risks
Despite immense promise, floating solar faces several challenges:
- High Initial Investment: Installation requires robust waterproofing, floaters, and mooring, raising CAPEX significantly.
- Maintenance Complexity: Access over water makes maintenance logistically challenging.
- Environmental Concerns: Shading effects and anchoring can impact aquatic ecosystems.
- Grid Integration: Site remoteness and underwater cabling increase infrastructure costs.
- Policy Uncertainty: Regulatory updates across states can delay project commissioning.
To sustain momentum, India must ensure cost-sharing mechanisms, standardise design norms, and incentivize domestic component manufacturing (floaters, cables, anchors).
Leading Floating Solar Power Projects in India (2025)
| Project | Location | Capacity (MW) | Developer | Estimated Cost (₹ crore) |
| Omkareshwar Dam | MP | 600 | RUMSL, SJVN, AMP | 330 |
| Ramagundam Reservoir | Telangana | 100 | NTPC | 423 |
| Kayamkulam | Kerala | 92 | NTPC | 500 |
| Simhadri Reservoir | Andhra Pradesh | 25 | NTPC | 125 |
| West Bengal FSPV | Sagardighi | 5 | WBSEDCL | 35 |
| Tilaiya & Panchet | Jharkhand | 755 (under proposal) | DVC | n/a |
These projects not only feed power into respective state grids but also act as case studies demonstrating FPV’s operational feasibility across diverse water conditions.
Investment Outlook: 2025 and Beyond
India’s floating solar growth aligns with its global clean energy commitments. Government projections estimate:
- 10–15% annual capacity increase in floating solar installations.
- CAPEX reduction by 2.5% annually due to supply chain optimization and innovation.
- Rising investor confidence backed by stable tariffs and hybrid renewable park developments.
Vast reservoir infrastructure offers ready-made sites requiring no land acquisition, ensuring scalability and attractive returns for investors focusing on green portfolios.
FAQs
1. What is the cost of a 1 MW floating solar power plant in India (2025)?
Average investment ranges between ₹5.5 crore to ₹6.5 crore per MW depending on site conditions and component quality.
2. Is Floating Solar Power Plant cheaper than land-based solar?
Not yet; land-based costs average ₹3–4 crore/MW. However, FPV avoids land costs and provides higher generation efficiency, improving long-term returns.
3. Which is India’s largest floating solar power project?
The Omkareshwar Floating Solar Project (600 MW) in Madhya Pradesh is the largest in India and among the biggest globally.
4. How long do floating solar panels last?
Typically 25–30 years, with float and anchor systems rated for similar durability.
5. What government incentives are available for floating solar projects?
Developers can access up to 30% Central Financial Assistance (CFA) and concessional financing under MNRE and SECI programs.
Conclusion
India’s floating solar revolution signifies a bold step toward sustainable energy independence, efficiently marrying technological innovation with eco-conservation. With declining costs, robust policy support, and expanding investor confidence, FPV is transitioning from experimental to mainstream deployment. Projects like Omkareshwar, Ramagundam, and Kayamkulam validate India’s potential to harness vast water surfaces for scalable renewable generation.
Looking beyond 2025, floating solar offers a resilient pathway to balance energy demand, land constraints, and climate action commitments—positioning India as a global leader in solar innovation. For investors, policymakers, and renewable energy developers, FPV represents not just a technological innovation but a lucrative and sustainable opportunity to power the nation’s clean future.