The Floating solar panels market enables the installation of photovoltaic systems on floating structures like lakes, oceans, reservoirs, and quarry lakes. These panels consist of photovoltaic modules installed on photovoltaic tracker systems mounted on floating structures or anchored floating frameworks. The panels help maximize usable surface area, avoid loss of land area for power generation, and help maintain ambient lake temperatures which helps regulate electricity output. The Global Floating Solar Panels Market is estimated to be valued at US$ 35.9 MN in 2024 and is expected to exhibit a CAGR of 29.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Floating solar panels market include 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 manufacturing facilities and product portfolios to cater to the rising demand.
Some key opportunities in the market include favorable government policies promoting renewable energy adoption, declining solar module prices increasing project viability, and growing emphasis on integrating panels into existing water infrastructure projects across regions. Major players are also investing in research & development to introduce efficient flexible panel designs and floaters tailored for large reservoirs and seawater applications to exploit untapped markets.
The Global Floating Solar Panels Market Trends is also witnessing high growth prospects in regions like the Asia Pacific and Middle East & Africa. China, Japan, India, and Southeast Asian nations are investing heavily in setting up large capacity floating solar parks. Similarly, countries in Africa and the Middle East with large reservoirs are actively pursuing projects to bolster renewable energy mix using innovative floating solar solutions.
Market Drivers
The rising global demand for renewable energy along with supportive government policies promoting solar rooftop installations is driving the adoption of floating solar panels. Countries have outlined renewable purchase obligations and attractive feed-in-tariffs for projects using these innovative systems. Another key driver is the surging requirement for alternate low-cost land-saving solutions. Floating solar helps optimize usable surface area of water bodies for power generation at competitive costs vs land-based installations.
Market Restraints
Higher initial setup and installation costs for floating racking systems and floating platforms required for anchoring panels remain a major challenge limiting widespread adoption. Additional costs are involved for mooring parts, corrosion protection, and module sealing. Financial viability also depends on suitable water depth, geography, and aquatic conditions of the project site. Stringent design standards and testing needs for ensuring system durability in harsh underwater environments further add to costs.
Segment Analysis
The commercial segment dominated the market in 2024 with a market share of more than 55%. This is because commercial establishments such as industries, corporate offices, and malls have higher electricity requirements and are investing significantly in renewable energy to reduce their long-term energy costs and meet sustainability targets. The utilities segment is anticipated to witness highest growth during the forecast period owing to increasing solar power projects globally by utilities providers to generate clean energy.
Global Analysis
The Asia Pacific region dominated the global floating solar panels market in 2024 with a share of over 60%. China accounted for the largest market in the region due to extensive government support through incentives and targets for renewable energy generation. Europe is projected to witness the highest growth during the forecast period owing to stringent government regulations restricting carbon emissions coupled with growing investments to achieve renewable energy targets set by EU countries. Supportive government policies promoting renewable energy adoption will continue to drive the demand for floating solar panels in countries including Japan, India, UK, France and Spain in the coming years.
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