GLOBAL FLOATING SOLAR PANELS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Global Floating Solar Panels Market Drivers

Government incentives and subsidies : Government incentives and subsidies have played a pivotal role in driving the growth of floating solar panel installations across various countries. Many governments around the world have introduced schemes to promote cleaner and greener sources of renewable energy like solar and wind. Floating solar panels offer a unique solution to utilize unused water bodies for power generation. This has led many nations to provide financial support for setting up floating solar farms.  Governments around the world recognize the potential of floatovoltaics in optimizing the use of existing water resources for energy generation. Countries like China, India, Japan, and many European nations have introduced attractive fiscal policies and financing schemes to encourage firms to invest in floating solar installations.

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.

Global Floating Solar Panels Market Opportunities:

Untapped potential of large water bodies: The abundant solar energy available on large water bodies remains an untapped resource for power generation. Large water reservoirs and coastal areas receive ample sunlight throughout the year and have vast open surface area suitable for installation of floating solar panels. These panels can generate clean energy from the sun's rays without requiring additional land space. Countries like China, India, and Japan which have large river basins and coastlines can significantly benefit from setting up floating solar farms. Floating solar photovoltaic systems offer multiple advantages as compared to traditional land-based installations. They help reduce evaporation from water reservoirs due to shade provided by the panels. This minimizes water loss which is a growing concern in many water-stressed regions.

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.

Global Floating Solar Panels Market Restraints

Constraints related to water depth and wind condition: Floating solar panels provide a promising solution to address land scarcity issues for setting up large-scale solar projects. However, their growth is facing key constraints related to water depth and wind conditions. Most floating solar panel designs available can only be deployed in water depths of up to 3 meters. This significantly limits the sites where such projects can be set up.

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.