April 23, 2024
Global Floating Solar Panels Market

Global Floating Solar Panels Market is Estimated to Witness High Growth Owing to Technological Advancements in Floating Solar Energy Solutions

Floating solar panels, also known as floating photovoltaic (PV) systems, are solar panels that are installed on structures floating on lakes, reservoirs, irrigation canals or retained water areas. Floating solar panels provide unique advantages over traditionally installed terrestrial solar panels as they can generate power from the unused surface area of water bodies while avoiding consumption of valuable land area. The floating solar panels are constructed with durable materials designed to withstand harsh underwater environment and utilize the cooling effect of water to boost efficiency. The global floating solar panels market is estimated to be valued at US$ 35.9 million in 2024 and is expected to exhibit a CAGR of 29% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in the global floating solar panels market are Ciel & Terre International, Hanwha Group, JA SOLAR Technology Co. Ltd., KYOCERA Corp., LONGi Solar, Trina Solar, Vikram Solar Ltd., Wuxi Suntech Power Co., Ltd., Yellow Tropus Pvt. Ltd., and Yingli Solar. These players are focusing on expanding their production capacities and geographical footprint to leverage growth opportunities in emerging markets.

Some of the key opportunities in the floating solar panels market include increasing focus on renewable energy adoption globally, rising investments in large floating solar projects from governments and private players, and growing need to maximize renewable energy generation from existing water resources without consuming additional land area.
Technological advancements such as development of lightweight and durable floating structures, higher efficiency solar PV modules, and smart online monitoring solutions are expected to boost the adoption of floating solar systems in the coming years.

Market Drivers

The  Global Floating Solar Panels Market Trends  driver for rising adoption of floating solar panels is growing emphasis on renewable and clean energy sources globally. Floating solar is considered a viable solution to generate solar power without encroaching upon valuable land area. Floating solar projects also help prevent evaporation from the water body underneath as the solar panels provide shade. This is expected to drive significant growth in the global floating solar panels market during the forecast period.

Current Challenges in the Global Floating Solar Panels Market

The adoption of floating solar panels is currently limited due to some key challenges. One of the major issues is the high initial investment cost associated with floating solar panel projects. Setting up the infrastructure for floating panels requires additional costs for anchoring equipment, mooring systems, underwater cables, and pontoons which makes these projects more expensive compared to traditional solar farms. The maintenance and cleaning of panels installed on water bodies is another operational challenge. Environmental concerns over the impact on marine life is also restricting the large-scale deployment of floating solar in many regions. The durability of system components in harsh water conditions and fluctuations in electricity generation due to water movements are some technical hurdles. Developing efficient mooring systems able to withstand extreme weather and improving construction methodologies can help address these challenges to some extent.

SWOT Analysis

Strength: Unique design allows the dual use of water surfaces not suitable for other uses; Increased solar electricity generation potential compared to ground-mounted panels.
Weakness: High initial setup and maintenance costs; Installation and repair in waterlogged conditions can be difficult.
Opportunity: Significant untapped potential, especially in countries with large reservoir areas; Technological advances may reduce costs and improve durability.
Threats: Restrictive regulations and environmental concerns in some regions; Financial and technical feasibility still needs to be proven at large commercial scales.

Geographical Regions

In terms of value, the Asia Pacific region currently accounts for the major share in the global floating solar panels market led by countries like China, India, and Japan. This is attributed to the presence of large water bodies as well as supportive government policies and renewable energy targets driving significant floating solar capacity additions.

The Europe market is expected to witness the fastest growth during the forecast period due to the increasing focus on developing innovative renewable technologies across countries like UK, Netherlands, France and Italy. Several utility-scale floating projects are in pipeline which can boost the regional market size.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.