Floating Solar Panels Market Size, Share, By Product Type, Capacity, Location, End-User, and Region - Trends, Analysis and Forecast till 2035

• Floating solar panels market size is expected to grow at USD 360.0 million by 2035.
• The target market was valued at USD 58.5 million in 2024.
• Target market is expanding at a CAGR of 24%.

Floating solar panels are also known as floating photovoltaic (FPV). They are solar panels mounted on structures that float on bodies of water, such as lakes, reservoirs, and ponds. Target Market is driven by increasing demand for clean and renewable energy. In addition, availability of government incentives and tax refunds over the installation of photovoltaic technology are another factors propelling growth of the global market. Furthermore, technological advancements, which increases the efficiency and cost-effectiveness of production, is also anticipated to create opportunities for growth of the global market over the forecast period.

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024 due to strong presence of key manufacturers.
• North America is projected to be the fastest-growing market in the coming years. This is due to the rising focus on battery technology for industrial and economic development.

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Key Drivers of Target Market:

Increasing Development of Floating Solar Projects is Expected to Propel Market Growth

Demand for floating solar panels are rising as the governments and corporate entities globally are increasingly investing in setting up large floating solar farms. It provides additional benefits as compared to traditional land-based solar projects, further aiding the floating solar panels market growth.

• For Instance, in June 2022, according to the data published by Energy Tracker Asia, Thailand built the world’s largest hydro-floating solar hybrid system on the Sirindhorn reservoir in 2021. Singapore starts a 60Mwp Sembcorp Tengeh floating solar farm, one of the largest inland floating solar farms. India plans to complete a 600 MW plant above the Omkareshwar dam by 2023, and South Korea developed a 41 MW FPV system in 2022.

Restrains:

Increased Algae Growth Under Floating Panels can Hamper Market Expansion

Issues, such as algae growth under floating panels can limit the expansion of market as when solar panels are installed on water bodies they provides a suitable condition for algae to grow. The uncontrolled algae growth will be very harmful for aquatic life and ecosystem.

• Counterbalance Statements: One of the major solutions to this problem is minimizing the amount of light that reaches underwater.

Opportunities:

New Innovations and Technological Advancements will Create Significant Opportunities in Upcoming Years

The floating solar panels system has undergone a radical transformation in recent years due to new innovations and technological advancements. It enhance functionality, efficiency, and durability of battery. Advanced technologies, such as bifacial solar panels, passivized emitter & rear cell, thin-film solar cells, and solar cell fabric, among others used in floating solar panels. Thus, many key market players are collaborating with each other contributing to the advanced solar panels energy.

• For instance, in April 2024, NHPC Limited, India's largest hydropower developer, has signed a Memorandum of Understanding (MoU) with Norewegian Company Ocean Sun to explore cooperation on floating solar technology projects. The MoU aims to implement Ocean Sun's photovoltaic panels, mounted on hydro-elastic membranes, at various sites identified by NHPC, contributing to India’s renewable energy capacity.

The market is segmented based on product type, capacity, location, end user, and region. 

Product Type

On the basis of product type, the floating solar panels market is segmented into stationary floating solar panels and tracking floating solar panels. The stationary floating solar panels segment held the market with largest revenue share of 81.22% in 2024 due to the use of low cost and high strength elastic in the construction of the panels.

Capacity

The floating solar panels market by capacity is segmented into Up to below 5MW, 5MW-500MW, and above 50MW. The 5MW-50MW segment holds the largest floating solar panels market share due to growing investment and funding for projects.

• For instance, in October 2024, Mainstream Renewable Power, a solar and wind project developer, announced the financial closure of its 50MW Ilikwa solar project in the Free State province of South Africa. Once fully operational, the solar project is expected to produce 141 GWh of clean electricity annually, enough to power over 42,000 households.

Location

The floating solar panels market by location is segmented into on shore and off shore. The on shore segment is expected to dominate the target market growth due to increasing acceptance of renewable sources, and increasing demand.

• For instance, in November 2024, State-owned China Energy Investment Corporation (CHN Energy) has completed a 1GW floating solar PV facility in the Shandong Province of China. The floating solar PV project also include a 66kV offshore cable paired with an onshore cable, marking a first for the Chinese market.

End-User

On the basis of end-user floating solar panels market is segmented into agriculture, commercial, industrial, residential, and government. The industrial segment held the market with largest revenue share of 40.2% in 2024 due to widespread usage.

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: Asia Pacific is expected to dominate the growth of the market during the forecast period with largest revenue share of 72% in 2024, due to less availability of land tied to limited amount of fossil fuels, government initiatives. The growth is also attributed to the decrease in solar panel cost in the region coupled with growing awareness of floating solar technology and increasing floating solar project across region.

• For instance, According to the data published by Hartek Group, NTPC Floating Solar Plant Ramagundam (100MW), NTPC Solar Plant Kayamkulam (92MW), Rihand Dam Floating Solar Power (50MW), Simhadri Floating PV Project, 2 MW Floating Solar Power Plant at Chandigarh, are some of the increasing floating solar projects across the region.

North America: North America region is considered to be the fastest growing region in the target market as countries, such as the U.S., Canada, and many more are leading the charge significantly due to a growing interest in optimizing underutilized water bodies for energy generation, water management challenges, rising energy demands.

Floating Solar Panels Market Report Scope:

Segmentation:

By Product Type:

• Stationary Floating Solar Panels
• Tracking Floating Solar Panels

By Capacity

• Below 5MW
• 5MW-50MW
• Above 50MW

By Location:

• On Shore
• Off Shore

By End User:

• Agriculture
• Commercial
• Industrial
• Residential
• Government

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the floating solar panels market include Kalyon PV, CETC Solar Energy Holdings Co., Ltd., and NorSun AS, among others. These key players are focusing on different organic and inorganic strategies, such as acquisition, merger, partnership, agreement, product launch and approval to expand their product portfolio and strengthen their market presence globally.

List of Key Players in the Market:

• Kalyon PV
• CETC Solar Energy Holdings Co., Ltd.
• NorSun AS
• LONGi
• Ciel & Terre
• Hanwha Group
• KYOCERA Corporation
• Trinasolar
• VIKRAM SOLAR LTD.
• Wuxi Suntech Power Co., Ltd.

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• In September 2024, Tata Power Solar Systems Limited (Tata Power Solar), a wholly-owned subsidiary of Tata Power, has accomplished a remarkable feat by commissioning India's largest floating solar power project in Kayamkulam, Kerala on a 350-acre water body, backwaters area, having an installed capacity of 101.6 Megawatt Peak. 
• In June 2024, The Bui reservoir in Ghana is now home to the continent's largest floating solar photovoltaic (PV) project. This remarkable achievement underscores Ghana's commitment to sustainable solutions and sets a precedent for the region facing escalating environmental challenges.

Analyst View:      

The industry for floating solar panels market is placed for substantial growth due to the increasing demand for clean and renewable energy, availability of government incentives, and tax refunds over the installation of photovoltaic technology. New innovations and development, advance technologies, and many collaborations and partnerships help to boost the growth of the market in upcoming years.

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