Floating Solar System Market Size, Share, Growth, And Industry Analysis by Type (Tracking Floating Solar Panels and Stationary Floating Solar Panels) by Application (Onshore & Offshore) Regional Forecast To 2031

Updated On: 15 April 2024

Floating Solar System Market Report Overview

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The global floating solar system market size was USD 0.26911 billion in 2021 and the market is expected to reach USD 1.189 billion in 2030, exhibiting a Compound annual growth rate (CAGR) of 18.36 % during the forecast period. The sudden rise in CAGR was brought on by the market's expansion and the demand levelling down after the pandemic is over.

A floating solar power plant, also known as a floating solar farm, is a collection of photovoltaic solar panels mounted on a structure that floats on a body of water, usually a lake or reservoir. Floating solar panels are those employed in the development of floating solar farms. Since floating solar panels are a brand-new, affordable, and trustworthy renewable option for using empty water surfaces of reservoirs or lakes to generate renewable solar electricity, their use has been growing. On a body of water, such as a lake or reservoir, stationary floating solar panels may be installed without much difficulty. Water evaporation is decreased by stationary floating solar panels that also serve as a shade for the body of water. The cost of installing a stationary floating solar panel is less expensive than that of installing a tracking floating solar panel since the panels are made of low-cost, high-strength elastic.

The quest for innovative solar floating power plant possibilities and solutions is being driven by the rise in demand for renewable energy. The more established ground-mounted solar panel technology serves as the foundation for floating solar panels, which also have a variety of installation options. One of the top strategies for combating climate change is solar energy. Since a few years ago, there have been more distributed PV (photovoltaic) solar systems placed on rooftops and solar farms to boost the generation of clean energy. The creation of a new product known as the floating solar panel is the result of ongoing research and development in the field of renewable energy. In the upcoming years, it is anticipated that floating solar system market size will increase due to rising costs associated with the production and installation of solar panels in developing nations.

COVID-19 Impact: The Manufacturing Sector Was Affected by Lockdowns, Strict Social Laws, and Prohibitions Against Isolation

The COVID-19 pandemic has halted manufacturing of a number of items in the floating solar panel sector, mostly as a result of the protracted state of emergency in several developed nations. The floating solar system market size has been severely affected by this during the past several months, and this is expected to continue in 2020. Pandemic has an influence on the sales of machinery and equipment in the first quarter of 2020 and is probably going to have a bad year-round effect on market expansion. Prior to the development of the coronavirus, which has a severe impact on China and other large industrial nations like the U.S., Germany, Italy, the UK, and China, there was a significant demand for equipment and machinery from these nations. 

Latest Trends

"Stationary Floating Solar Panels Are Highly Desired to be Trendsetter"

The market for floating solar panels has been segmented into two types: solar-tracking floating solar panels and stationary floating solar panels. In 2021, the sector for stationary floating solar panels accounted for 99.92% of the worldwide market. During the projected period, expansion of the stationary floating solar panel market is anticipated to increase market size for floating solar panels. On the water's surface, stationary floating solar PV systems are deployed. On a structure that floats on a body of water, there are PV panels. A number of solar panels, aluminium frames, wires, and invertors make up the overall system. Panels in a stationary floating solar system are set at a single tilt angle.

The effectiveness and low maintenance requirements of stationary solar panels make them a good choice. Compared to movers or tracking solar panels, fixed floating systems are less expensive overall. To guarantee a thriving future for the floating solar panel sector, several large-scale projects have been suggested. The overall capital and operating costs of stationary solar panels and floating solar panels with monitoring the sun are noticeably different. The need for these panels has been increased by the simple availability of stationary panels. 

Floating Solar System Market SEGMENTATION

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• By type

Depending on floating solar system market given are types: Tracking Floating Solar Panels, Stationary Floating Solar Panels. The tracking floating solar panels type will capture the maximum market share through 2030.

• By Application

The market is divided in Onshore & Offshore based on application. The global floating solar system market  players in cover segment like onshore will dominate the market share during 2021-2030.

Driving Factors

"Water Savings from Reduced Evaporation Losses to Drive the Market for Floating Solar Panels"

The rate at which water evaporates from bodies of water is decreased by floating solar systems. The device may reduce evaporation losses by up to 70% and provides shade to protect the water from direct sunshine. The installation of floating solar panels in a reservoir can reduce annual water evaporation losses by about 1250 million litres per square kilometre, or about 4 million gallons per acre, according to a study on the potential of floating solar PV in large reservoirs that was published in the International Journal for Innovative Research in Science & Technology in April 2016. By obstructing sunlight, which is necessary for photosynthesis and promotes the growth of algae in water, floating solar systems also help to enhance the quality of the water. Thus, by shading the water, algae development in reservoirs is halted. This decreases the expense of labour and related medical care.

"An Increase in The Need for Clean Energy Sources Will Boost Market Expansion"

The increasing desire for renewable energy sources to fulfil the rising global energy demand is what propels the global market for floating solar panels. The favourable government programmes to encourage the use of solar panels are a major factor in the floating solar system market growth. Additionally, the lack of available land is anticipated to increase demand for floating solar system, which may utilise water bodies like irrigation ponds, reservoirs, lakes, canals, and others to supply a variety of energy demands. For instance, the units in the quarry and mining industries are situated in distant locations with expensive and difficult water and electricity supplies. Therefore, floating solar panels provide an affordable way to satisfy these demands.

Restraining Factors

"The Market Is Being Constrained by The High Installation Costs of Floating Solar Panels"

To install floating solar panels or a floating solar system, specific floaters that are secured to the reservoir's bottom are needed to stop the panels from moving in the wind. The tracking technology is still in its infancy. Technology often costs more than stationary technology, which has an impact on project costs. A significant barrier to the worldwide floating solar system market growth is the high installation cost connected with the panel or system. Additionally, high investment costs put the system's profitability in jeopardy and cause uncertainty regarding project investment. Customers have the option of funding the improvements through businesses like Ciel & Terre. Along with EPC and operation & maintenance services, they also provide clients with a full range of project development services. A number of governments, including those in Brazil, India, and Singapore, have expressed interest in this technology. These nations provide financial incentives to the owners of projects utilising floating solar panels.

Floating Solar System Market Regional Insights

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"Significant Market Share of Floating Solar Panels is Held by Asia Pacific "

Asia Pacific held the biggest floating solar system market share and dominated the world market. Due to the limited availability of land and the finite supply of fossil fuels, floating solar panels are widely used in Japan. As a result, the government has approved a number of plans for floating panels to supply the rising need for power while causing less environmental harm. Due to its significant market potential, floating solar technology is anticipated to rapidly spread throughout the APAC area. Additionally, it is projected that in the upcoming years, market development would be boosted by a decline in solar panel prices in the area and a rise in consumer awareness of floating solar technology. 

Due to favourable laws that encourage the use of solar energy for electricity generation, the floating solar system market share in North America is predicted to expand. Additionally, elements including land availability and solar technology's capacity to float to reduce the impact of evaporation are projected to increase product demand. When floating solar farms are installed, the rate of evaporation is decreased, which helps to lessen the likelihood of drought in hot climates like the central regions of the US. Some nations' lack of available land for constructing ground-mounted PV cells would propel market expansion.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Talesun (China)
• Vikram Solar Limited (India)
• Ciel & Terre International (France)
• LONGi Solar (China)
• Sharp Corporation (Japan)
• JA SOLAR Technology Co. Ltd. (China)
• Yingli Solar (China)
• Trina Solar (China)
• Pristine Sun Corp. (U.S)
• Hanwha Group (South Korea)
• GCL-SI (China)
• Yellow Tropus Pvt. Ltd. (India)
• KYOCERA Corporation (Japan)
• Sulzer Ltd. (Switzerland)
• Wuxi Suntech Power Co., Ltd. (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.