Floating Solar Panel Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Capacity (Up to 1MW, 1MW-5MW, Above 5MW), By Type (Stationary, Solar Tracking), By Connectivity (On Grid, Off Grid), By Region, By Competition Forecast 2018-2028

Floating Solar Panel

The global floating solar panels market has expanded rapidly in recent years due to the increasing demand for renewable energy, coupled with the need to find alternative locations for solar power generation. The market is primarily driven by the rising awareness about climate change, the need to reduce greenhouse gas emissions, and the shift toward clean and sustainable energy sources. Government incentives, favorable policies, and technological advancements in solar panel technology have also played a significant role in driving the floating solar panels market across the world.

Asia-Pacific has surfaced as the largest market for floating solar panels, with countries, such as China, Japan, South Korea, and India, leading the market due to their large water bodies, high solar irradiation, and government support for renewable energy. Europe and North America are also emerging markets for floating solar panels, with increasing installations in countries, such as France, Germany, the Netherlands, and the United States. Developing regions, including Latin America, Africa, and the Middle East, are also expected to witness significant growth in the floating solar panels market in the coming years as renewable energy gains more traction.

The floating solar panels market is characterized by intense competition among key players, including solar panel manufacturers, EPC (engineering, procurement, and construction) companies, and project developers.

The outlook for the global floating solar panels market is expected to remain positive, with significant growth potential. Factors, such as increasing investments in renewable energy, declining costs of solar panels, favorable government policies, and growing environmental concerns are likely to drive the demand for floating solar panels during the forecast period. However, challenges, such as high initial installation costs, technical complexities, environmental and regulatory issues, and limited availability of suitable water bodies for floating solar installations may hinder market growth to some extent. Nevertheless, ongoing research and development efforts, innovation in floating solar panel technology, and collaborations among industry players are expected to unlock new opportunities and drive the growth of the global floating solar panel market in the coming years.

Supportive Government Policies

Globally, the growing energy crisis, high rates of carbon emissions, and growing concerns about environmental protection have increased the consumption of sustainable power generation. The increasing number of pacts and initiatives related to the implementation of solar energy projects across the world is the primary factor driving the increased installation of solar panels or PV modules, which is driving the floating solar panel market.

Some of the policies and initiatives are

• The government of India has formed Viability Gap Funding (VGF) support of Rs. 5,050 crores for setting up at least 5,000 MW Grid-connected Solar PV power projects by Solar Power Developers on a Build-Own-Operate basis.
• In the US, there is an implementation of the Solar Investment Tax Credit (ITC), which is one of the significant federal policies to support the growth of solar energy. 
• The Australian government has announced a USD 2 million grant as part of the National Product Stewardship Investment Fund to develop an industry-led product stewardship scheme for PV systems.

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The increasing use of solar energy is indeed a significant factor, driving the global floating solar panel market. There are several reasons solar energy is becoming increasingly popular as a renewable energy source, and how it is contributing to the growth of the floating solar panel market

• Renewable and Clean Energy Source Solar energy is a renewable and clean energy source that does not produce harmful greenhouse gas emissions or air pollutants. As concerns about climate change and environmental sustainability grow, there is a global push toward adopting cleaner sources of energy. Floating solar panels, which harness solar energy by floating on water bodies, such as reservoirs, ponds, and lakes, provide an innovative solution to tap into this clean energy source without using valuable land resources.
• Land Constraints and Increasing UrbanizationLand constraints and increasing urbanization in many parts of the world have limited the availability of land for large-scale solar power installations. Floating solar panels offer an alternative by utilizing water bodies that may not be suitable for other uses, such as agriculture or construction. Floating solar panels can be deployed in areas where land availability is scarce, thereby expanding the potential for solar power generation.
• Enhanced Energy Generation Floating solar panels have several advantages over conventional ground-mounted solar panels. Firstly, the reflection of sunlight from the water surface can enhance the efficiency of solar panels, resulting in increased energy generation. Additionally, the cooling effect of water can reduce the operating temperature of solar panels, which can further improve their performance. These factors make floating solar panels an attractive option for maximizing solar energy generation and increasing overall system efficiency.
• Water Conservation Floating solar panels also offer potential benefits in terms of water conservation. By covering the water's surface, floating solar panels can help reduce water evaporation, which is a significant concern in many water-stressed regions. This can result in water savings and help in preserving precious freshwater resources, making floating solar panels an environmentally responsible choice.
• Flexible Installation and Scalability Floating solar panels are flexible in terms of installation and scalability. They can be installed on a wide range of water bodies, including man-made reservoirs, dams, and natural lakes. Floating solar panel systems can also be easily expanded or reconfigured as per the energy demand, making them highly scalable. This flexibility in installation and scalability makes floating solar panels a viable option for various applications, including utility-scale solar power plants, industrial and commercial installations, and rural electrification projects.
  

In conclusion, the increasing use of solar energy as a clean and renewable energy source, along with its advantages in terms of land constraints, enhanced energy generation, water conservation, and installation flexibility, are driving the global floating solar panel market. As the world continues to focus on sustainable energy solutions, floating solar panels are expected to play a significant role in the global transition toward renewable energy sources.

Some of the examples are

• Apple is the fourth largest corporate solar user with a 101 MW installed capacity. The company has solar facilities, which produce adequate electricity to fully charge nearly 45 million iPhones every day for a year.
• IKEA currently has more than 100 stores fitted with solar panels. The company has invested USD 1.6 billion toward the plan of sustainable harvest of their cotton and wood globally.

Key developments

• In October 2022, First Solar invested USD 270 million in a dedicated R&D innovation center in the development and production of advanced thin film photovoltaics (PV).
• In May 2022, Reclaim PV Recycling and The Circular PV Alliance collaborated to reuse and resale solar panels and enhance the solar energy circular economy.

Market Segmentation

The global floating solar panel market is classified based on capacity and type. Based on the capacity, the market is categorized into Up to 1MW, 1MW-5MW, and above 5MW. Based on type, the market is divided into stationary and solar tracking.

Market Players

Ciel & Terre International, Kyocera Corporation, JA Solar Co., Ltd., Trina Solar Limited, Sharp Corporation, Yingli Solar, SPG Solar, Vikram Solar, Solaris Synergy, and Novaton AG are the key players in the global floating solar panels market