Floating solar panels serve as a valuable alternative to traditional land-based solar energy generation by utilizing space on waterbodies like lakes, reservoirs, and oceans. They consist of photovoltaic solar panels mounted on floating structures composed of hollow polyethylene or polypropylene floats that are anchored to the bed of a waterbody.
Floating solar panels provide significant advantages over fixed rooftop or ground installations as they result in lower albedo or reflected heat, minimized shading losses, and decreased water evaporation from the surface of water. Hence, they offer a higher capacity factor and more electricity output.
The Global Floating Solar Panels Market is estimated to be valued at US$ 62.3 Mn in 2025 and is expected to exhibit a CAGR of 29.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Global Floating Solar Panels Market are Ciel & Terre International, Hanwha Group, and JA SOLA.
The growing demand for renewable energy sources to reduce greenhouse gas emissions is a major factor driving the adoption of Floating Solar Panels Market Size across the world. According to the International Renewable Energy Agency, floating PV could generate over 160 TWh of electricity per year, avoiding nearly 135 million tons of CO2 emissions annually by 2050.
The falling costs of PV modules along with technological advancements like the use of lighter and more durable materials for floating structures are also propelling the floating solar panels market growth. New designs enable easier installation, require lower maintenance, and offer higher output.
Market Trends
The development of innovative floating solar panel setups is one of the key trends in the market. For instance, Hanwha Q CELLS has designed a floating solar system optimized for tidal zones that can withstand harsh coastal conditions.
In terms of geography, Asia Pacific is expected to dominate the market owing to China leading the region's floating PV capacity additions. Countries like Japan, South Korea, and India are also emerging as major markets.
Market Opportunities
The reduction in costs through economies of scale offers opportunities for further price declines and wider adoption of floating solar panels globally.
Unused areas in hydroelectric dams, irrigation canals and reservoirs present a massive untapped opportunity for large-scale floating PV installations. Countries are actively encouraging such projects to maximize renewable energy generation from existing water infrastructure.
Impact of COVID-19 on Global Floating Solar Panels Market Growth
The ongoing COVID-19 pandemic has adversely impacted the global floating solar panels market. The imposition of nationwide lockdowns led to temporary halts in both manufacturing as well as installation activities during 2020 and 2021. This disrupted supply chains and affected the availability of raw materials for solar panel production globally. Labor shortages further impacted market growth during the peak pandemic periods.
However, with vaccination drives ramping up across major economies from late 2021, production and operations have resumed steadily. The market is slowly recovering post pandemic, aided by rising focus on renewable energy sources. Various stimulus packages by governments worldwide toward clean energy generation are also boosting demand. For example, the Inflation Reduction Act in the US provides lucrative tax credits to boost solar adoption.
Moving ahead, integration of battery storage technology with floating solar installations is expected to drive market growth. This will help overcome intermittency issues related to solar power generation. Increased investments toward developing innovative floating solar panel designs optimized for tropical climate zones can further aid their uptake in Asia Pacific and Africa regions in the coming years.
Europe Concentrated in Spain, Italy and Netherlands
Europe accounts for a major share of the global floating solar panels market in terms of value. This is concentrated primarily across Spain, Italy and Netherlands where large floating solar projects have come up in recent years. Spain has emerged as an attractive market due to supportive regulatory policies and higher irradiation levels. The country is estimated to have an installed floating solar capacity of over 500 MW by 2024.
Asia Pacific Fastest Growing with China and India Leading
On the other hand, the Asia Pacific region is poised to witness the fastest growth in the floating solar panels market during the forecast period. This is majorly driven by China, which accounts for the world's largest floating solar capacity currently. India is also emerging as a lucrative market, with states like Andhra Pradesh and Rajasthan promoting large scale floating projects. Furthermore, reliable tropical climate and abundance of reservoirs make Asia Pacific an ideal adopter of floating solar technology.
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