Telangana is assessing floating solar projects on major reservoirs to meet rising electricity demand and reduce the burden of power subsidies, Deputy Chief Minister Mallu Bhatti Vikramarka told the state Assembly. The Energy and Irrigation departments are examining the feasibility of installing such projects at reservoirs including Nagarjunasagar, Srisailam, Pulichintala, Sriramsagar, Sripada Yellampalli, Devadula, Komaram Bheem, Palair, Wyra, Mallannasagar, LMD, Mid Manair and Pocharam.

Vikramarka said floating solar plants had higher costs than conventional ground-mounted projects. Although the Union government had announced viability gap funding of up to Rs. 10 mn per MW, requirements such as the mandatory use of domestically manufactured equipment added about Rs. 13 mn per MW. He said relaxing these conditions could help attract more investors.

The state government spends about Rs. 140 bn a year on free electricity for agricultural pump sets. It also spends another Rs. 50 bn to provide up to 200 free units of power a month to around 5.5 mn households.

Telangana’s peak power demand has increased from about 15,000 MW when the Congress government assumed office in December 2023 to 18,543 MW on September 9, 2026. The government is also examining a pilot project to solarise about 80 villages in the Amrabad tribal region through a micro-grid supplied by solar panels installed on houses.

The state is assessing whether about 670,000 acres distributed to landless tribal families under the Forest Rights Act can be used for solar generation. Vikramarka said floating solar projects would be taken up wherever they were technically and economically viable, and urged legislators to encourage farmers and local communities to explore solar power generation.