Global Floating Solar Panels Market Size and Trends

Global floating solar panels market was valued at US$ 35.1 Mn in the year 2023 and anticipates an expansion at a compound annual growth rate (CAGR) of 29.6% during the forecast period from 2023 to 2030.

Global Floating Solar Panels Market Trends

Increasing development of large-scale floating solar projects: The large-scale development of floating solar projects is significantly influencing the floating solar panel market. Governments and corporate entities across the world are increasingly investing in setting up large floating solar farms as it provides additional benefits over traditional land-based solar projects. With land availability and costs being a major concern, floating solar helps optimize the use of available surface water resources like lakes, dams, and reservoirs for power generation.

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 Trends