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The Growing Market of Floating Solar Panels

The floating solar panels market is experiencing remarkable growth, projected to escalate from USD 55.11 million in 2024 to USD 84.90 million by 2032. This translates to a compound annual growth rate (CAGR) of 5.55% between 2025 and 2032, as reported by DataM Intelligence. With water scarcity becoming a pressing concern and available land for traditional solar farms diminishing, floating photovoltaic systems, commonly referred to as floatovoltaics, are emerging as an efficient and cost-effective solar installation model.

The Evolution of Floating Solar

In recent years, floating solar technology has evolved from a niche to a central pillar of national renewable energy strategies across the globe. Countries including the U.S., Japan, South Korea, Singapore, China, and India are increasingly prioritizing floating solar systems as a viable solution to meet their energy needs while addressing land-use conflicts. The year 2024 marked a notable achievement with more than 1.8 GW of floating solar capacity added worldwide, marking the highest annual addition to date.

Advantages of Floating Solar Installations

Floating solar offers distinct advantages over traditional ground-mounted solar panels. One of the most significant benefits is the natural cooling effect provided by the water, which enhances panel efficiency by an impressive 9%. Furthermore, the reduced land footprint mitigates conflicts with agriculture and urban development. Ideal deployment zones include various water bodies such as reservoirs, treatment ponds, hydroelectric dams, and closed quarries.

As countries strive to enhance their renewable energy portfolios to meet net-zero commitments, floating solar systems are increasingly being integrated with hydropower to create hybrid solutions. These systems not only improve energy availability but also reduce transmission losses, making them an attractive option for utility-scale projects.

Market Segmentation Analysis

Types of Floating Solar Panels

The floating solar panel market is segmented by product type into:

• - Tracking Floating Solar Panels
• - Stationary Floating Solar Panels

In 2024, stationary floating solar panels dominated the market with over 82% of floating solar revenue, accounting for USD 45.19 million. Their affordability and simpler installation requirements make them particularly suitable for large-scale industrial water bodies. For instance, the 320 MW Dezhou floating solar plant in China utilizes stationary panels due to predictable water currents, offering cost efficiency.

Conversely, the tracking floating panels, which adjust their tilt based on the sun's position, represented 18% of the market, or approximately USD 9.92 million. While these panels generate 18% more energy compared to stationary panels, their higher installation and maintenance complexity limit their use to stable inland water bodies.

Floating Solar Market by Location

The market can also be segmented by location into:

• - Onshore Water Bodies
• - Offshore Water Bodies

Onshore water bodies, including lakes, reservoirs, and ponds, constituted nearly 90% of the market, generating USD 49.6 million in 2024. These sites predominantly offer stable anchoring and easier maintenance access, ensuring smoother project execution. On the other hand, offshore floating solar, which makes up about 10% of the market, is an emerging segment anticipated to grow as countries with limited land begin exploring deep-water solar farming solutions.

Technology Breakdown

Regarding technology, the floating solar market is dominated by Photovoltaic (PV) technology, which contributed over 95% of total revenue, equating to USD 52.35 million in 2024. Crystalline silicon PV modules are globally recognized for their efficiency, cost-effectiveness, and broad availability, ensuring their sustained dominance in the market. Other technologies like Concentrated Solar Power (CSP) and Concentrator Photovoltaics (CPV) account for a smaller share due to various deployment limitations; however, research and development are ongoing to create lightweight CSP mirrors for potential future applications in floating solar systems.

Regional Insights

The U.S. floating solar market was valued at approximately USD 6.4 million in 2024, capturing 11.6% of the global market share. California, Florida, and Colorado are leading in new installations, bolstered by federal incentives and state-level initiatives aimed at promoting renewable energy.

Japan, on the other hand, commands around 14% of the global market, valued at USD 7.7 million in 2024. Its land scarcity and favorable government policies uniquely position it to expand floating solar implementation further.

Competitive Landscape

Among the leading players in the floating solar panels market, Ciel Terre International holds a dominant 23% market share, followed by Trina Solar with 14%, and JA Solar at 12%. These companies, along with emerging players like Vikram Solar Limited and First Solar, Inc., are propelling the market forward with innovative solutions and strategic partnerships.

Conclusion

With structured investments continuing to pour into this sector, floating solar technology is poised to become a mainstream solution for energy production, particularly in regions with adequate water bodies. Between 2025 and 2032, trends indicate a shift towards hybrid systems combining floating solar with hydropower, along with an increased focus on offshore installations. As the global community strives to meet climate targets, the floating solar foray signifies a transformative approach towards sustainable energy.