Global floating solar panels market was valued at US$ 62.3 Mn in the year 2025 and anticipates an expansion at a compound annual growth rate (CAGR) of 29.8% during the forecast period from 2025 to 2032. Floating solar panels which is also known as floatovoltaics, are photovoltaic solar panels that are mounted on floating structures located in lakes, reservoirs, quarry lakes, irrigation canals or sea areas. There are two main types of floating solar panel systems - stationary structures and tracked systems. Stationary structures simply float on the water surface without any means of movement, while tracked systems can adjust their positioning by always facing the sun for maximum generation of solar power.
Floating solar panels have several advantages over traditional land-based installations. They avoid using valuable land space which can then be utilized for other productive uses. The water surface keep the panels cooler which helps improve their performance and efficiency as compared to installations that are located on direct land surfaces which tend to get heated easily. Floating solar farms also help reduce evaporation from the waterbody as the panels provide shade limiting direct sunlight. However, installation and maintenance of floating systems is more complex and costly than traditional land-based installations. There are also concerns about potential impact on aquatic life and possible damage during flood events that need to be addressed properly.
Asia Pacific, especially China, is the dominant region in the global floating solar panels market. China has emerged as one of the world's largest producers and consumers of solar power over the past decade. It has invested heavily in developing its domestic solar manufacturing capabilities and is the home to many leading manufacturers. Several key solar component suppliers are headquartered in China, with an inherent advantage in the floating solar panels market value chain. China also boasts a very competitive manufacturing environment, allowing its producers to offer floating solar panels at competitive prices. This has contributed to the rapid uptake of floating solar panels installations across the country. Many Chinese provincial governments have also unveiled supportive policy initiatives and provide subsidies that have boosted market growth.
The Middle East region, centered on GCC countries, is fastest growing regional market for floating solar panels. With increasing prominence of solar power across the oil-rich Gulf nations in their pursuit of diversifying energy mix, floating solar PV is gaining traction. GCC countries are witnessing rising demand from large-scale utility projects as well as commercial and industrial installations. U.A.E, in particular, has emerged as an attractive market. The formation of the Dubai Electricity and Water Authority Solar Park, the largest single-site solar park in the world based on independent power producer model, which has raised the profile of solar power in the country. Increasing investments are flowing into the region from panel manufacturers targeting new project opportunities arising from the expanding solar addressable market. This makes the Middle East an attractive production and export base for floating solar panel manufacturers.
To learn more about this report, Request sample copy
Global floating solar panels market has significant growth potential driven by the increasing demand for renewable energy sources and need to reduce carbon emissions. Adoption of floating solar is expected to grow as these solutions enable the generation of solar power without consuming additional land. Government initiatives and subsidies promoting solar energy adoption will further drive market expansion. Asia Pacific dominates global installations due to strong government support in China, Japan, and South Korea. However, Europe and North America are expected to witness faster growth over the next decade led by initiatives to achieve carbon neutrality goals.
While the lack of awareness and higher initial costs pose challenges, declining solar module prices and technical advances will aid adoption. Power generation by using floating systems is also more efficient than ground-mounted panels as they are cooled by the surrounding water. The market offers opportunities for players across the solar supply chain including panel manufacturers, floating structure providers and engineering, procurement and construction (EPC) contractors. Successful demonstration projects will strengthen demand from commercial and industrial consumers with waterfront real estate.
Overall, the floating solar panels market has significant upside potential as they provide an effective solution to space constraints facing traditional land-based installations. While Asia leads, other regions are expected to ramp up investment into these innovative solar technologies to meet renewable energy targets sustainably over the long-term.
Large available surface area of water bodies: The large available surface area of water bodies around the world is creating significant opportunities for expansion of floating solar panel market. Floating solar panels utilize the unused surface area of water reservoirs, lakes, seas, and oceans to generate solar power. This provides a practical solution to land constraint issues faced in setting up conventional large-scale ground-mounted solar farms. With rapid urbanization, land availability has become scarce for renewable energy projects in many parts of the world. According to the data provided by the Food and Agriculture Organization of the United Nations, around 3.5% of the world's total land area comprises of inland water bodies such as lakes, reservoirs, and others. Harnessing this vast untapped resource for installing floating solar photovoltaic systems can accelerate global efforts towards achieving clean energy goals.
Many countries and regions with abundance of inland water resources have started large floating solar projects to take advantage of this opportunity. For instance, China which has the largest inland water surface area in the world, has set an ambitious target of constructing 150GW of floating solar capacity by 2025 to meet its renewable energy and carbon emission reduction targets.
Global Floating Solar Panels Market Report Coverage
Report Coverage | Details | ||
---|---|---|---|
Base Year: | 2024 | Market Size in 2025: | USD 62.3 Mn |
Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
Forecast Period 2025 to 2032 CAGR: | 29.8% | 2032 Value Projection: | USD 386.9 Mn |
Geographies covered: |
|
||
Segments covered: |
|
||
Companies covered: |
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 |
||
Growth Drivers: |
|
||
Restraints & Challenges: |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Global Floating Solar Panels Market Opportunities:
Technological innovation lowering costs and improving durability: Technological innovation in floating solar panels presents a great opportunity by lowering costs and improving durability. Floating solar installations are becoming more competitive as technologies advance. Dual-glass photovoltaic modules, for instance, use two glass layers to fully encapsulate solar cells, by providing better protection from the elements as compared to traditional panels. This allows floating solar farms to endure years of wave action and aquatic conditions with minimal degradation. The improved design life-cycles significantly reduce long-term costs by increasing performance periods before replacement is needed.
New anchoring and mooring systems are also being developed to withstand dynamic aquatic environments. Lighter yet stronger moorings made from advanced composites and high-tensile alloys reduce infrastructure expenditures. Innovations in module shaping and assembly further cut expenses. For example, lightweight curved panels with integrated flotation help stabilize arrays without increasing ballast needs. Their ergonomic designs streamline deployment and make replacement simpler to carry out. This boosts installation efficiency while lowering workforce requirements over traditional rectangular panels. For instance, according to the report by the International Renewable Energy Agency in 2023, floating PV capacity will grow five-fold by 2030 to over 10 gigawatts globally as costs decline.
Global Floating Solar Panels Market Trends
Several pilot and commercial-scale floating solar projects have come up in the last few years. For example, the PlusPower Aqua-z floating solar farm in Singkarak Lake, Indonesia deployed 22,000 panels in 2022 covering an area of 50 acres thus making it one of the largest floating solar plants in Southeast Asia. Such large installations are driving higher demand for high-quality floating solar panels that can withstand corrosion, shading, and rough waters over extended durations. Manufacturers are actively investing in research and development (R&D) to develop floating solar panels featuring higher efficiency monocrystalline or polycrystalline cells, durable encapsulation layers, and advanced mooring systems. For instance, according to data provided by the French Development Agency, over US$ 25 Mn were invested globally in floating solar projects in 2020 alone.
Decreasing prices: The declining prices of floating solar panel technology are having a major impact on its adoption and growth in the market. As the costs have reduced significantly over the past few years, it has made floating solar a more economically viable solution for many businesses and government entities. With further price decreases expected, demand is projected to increase substantially.
Many factors have led to lower prices. Mass production has helped drive down manufacturing costs as economies of scale are achieved. Technological advancements have also made the panels themselves more efficient and cheaper to produce. There is improved understanding of the complex logistical and engineering challenges of installing floating panel arrays on water bodies. This has streamlined the installation process and reduced the labor costs associated with setup. Competitive pressure among suppliers has encouraged more cost-effective innovations across the supply chain. For instance, in 2021, according to a report provided by the International Renewable Energy Agency (IRENA), installed floating solar capacity grew by over 25% from 2020 to 2021, reaching over 1.1 gigawatts globally.
Global Floating Solar Panels Market Restraints
Counterbalance: Developing floating panel designs that can withstand greater depths of 5-10 meters would vastly expand the number of viable project locations.
Concerns over increased algae growth under floating panels: Increasing concerns over algae growth underneath floating solar panels is one of the major factors constraining the growth of the floating solar panel market. When solar panels are installed on water bodies like lakes, reservoirs or oceans, it provides a suitable condition for algae to grow in abundance by getting sunlight from below the panels. The excessive algae growth can negatively impact the aquatic life and ecosystems in these water bodies. It also reduces the efficiency of solar panels by blocking sunlight from reaching the panels.
Further, the maintenance of excessive algae becomes quite challenging. Regular cleaning is required to remove algae from underneath the panels which increases overall operational costs. Some algae species can also damage the structure of floating panels by releasing acids or through other biological processes over long term exposure. This poses risk to structural integrity and durability of panels. The uncertainty around long term impact of algae on performance of panels deters many potential investors and developers from significantly scaling up floating solar projects. For instance, according to a study published by European Environmental Agency, in 2021 on various floating solar projects across Europe, 60% of the projects reported unexpected maintenance issues and decrease in efficiency primarily due to excessive algae growth within first 2-3 years of commissioning.
Figure 2. Global Floating Solar Panels Market Share (%), By Product, 2025
To learn more about this report, Request sample copy
Definition: Floating solar panels which is also known as floating photovoltaic (FPV) systems are a type of solar panel array that floats on a body of water. Typically, these systems are installed on relatively calm bodies of water such as lakes, reservoirs, or artificial basins. They can be a particularly attractive option for areas where land space is limited or land costs are high. The floating structures on which the solar panels are mounted are designed to be buoyant and durable, thus resisting the corrosive effects of water over time. They also often house the necessary electrical components, such as inverters and wiring systems.
Share
Share
About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Select a License Type
Credibility and Certifications
860519526
9001:2015
27001:2022
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients