India May Introduce Incentives to Scale Floating Solar Panel Projects

The Government is considering incentives for floating solar projects as it looks to expand renewable energy capacity across more states, as per PTI reports. The proposal is for reducing the concentration of large renewable energy projects in states such as Rajasthan and Gujarat. 

Speaking at the CII Annual Business Summit, New and Renewable Energy Secretary Santosh Sarangi said renewable energy growth in the coming years would require wider regional deployment and continued policy support. 

Renewable Energy Capacity Projections 

Sarangi said estimates by NITI Aayog suggest India could require nearly 1,800 GW of renewable energy capacity by 2050. The projections also include close to 2,000 GWh of battery energy storage systems to support the power grid. 

He said future schemes would need to remain flexible to support large-scale renewable energy additions.  

Floating solar projects are being examined as one option to help states increase renewable energy generation without depending entirely on land-based solar parks. 

The proposed mechanism is expected to support renewable energy deployment in regions that currently have lower installation levels. 

Manufacturing Measures Under Discussion 

The government is also evaluating measures to support domestic solar manufacturing. Sarangi said discussions are underway on demand creation mechanisms for ingot and wafer manufacturing in India. 

In addition, policymakers are considering incentive support for polysilicon manufacturing, which remains a key part of the solar equipment supply chain. 

Grid and Transmission Challenges 

Sarangi said renewable energy curtailment remains a concern for the sector. Curtailment takes place when renewable power generation is reduced because transmission infrastructure or grid systems are unable to absorb the available supply. 

He said improvements in grid planning and transmission networks would be necessary to support rising renewable energy capacity. India is also expected to continue investments in green energy corridors to improve grid stability. 

Read More: India’s 3rd Semiconductor Plant to Begin Commercial Production in July 2026: Union Minister Ashwini Vaishnaw! 

Conclusion 

Industry participants at the summit also discussed supply chain diversification and energy security, with a focus on infrastructure expansion and wider renewable energy deployment across the country. 

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