Global Floatovoltaics Market Expected to Reach 4.8 GW by 2030: Report

Global floating solar panels market, estimated at 1.6 GW in 2021, is projected to reach 4.8 GW by 2026, finds a new study published by research company Global Industry Analysts (GIA).

Floating solar panels or floating photovoltaics (FPV), which are also known as floatovoltaics, are solar panels that are mounted on a structure floating on a water body, typically a lake or a reservoir. FPVs float on water and an embedded solar tracker follows the sun’s movement and place the solar panel to increase the time of exposure to sunlight and enhance the complete efficiency of the FPV system.

The report, titled “Floating Solar Panels – Global Market Trajectory & Analytics,” reflects on the opportunities and challenges in a significantly transformed post COVID-19 marketplace.

Global floating solar panels market is projected to register significant growth over the near-to-long term, according to the report. The market, estimated at 1.6 GW in 2021 is projected to reach 4.8 GW by 2026, registering a compounded annual growth rate (CAGR) of 33.7% over the analysis period. Asia-Pacific represents the largest regional market for Floating Solar Panels, accounting for an estimated 62.2% share of the global total in 2020. The market, estimated at 771.6 MW in 2021, is projected to reach 2.7 Thousand MW by 2026.

China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 59.4% over the analysis period. The market is expected to progress steadily to evolve as a major regional market for Floating Solar Panels, supported by various factors conducive to healthy growth.

Advantages related to setting up FPV panel plants in comparison with traditional plants are anticipated to boost the FPV panels’ market growth. Shifting preference towards renewable energy resources such as solar and wind for power generation, rise in investments for renewable resources of energy, and various government initiatives to encourage solar energy are the prime factors driving the FPV panels’ market growth.

Generally, 1 MW of FPV plant covers water bodies of nearly 7 to 10 hectares, conserves water of 15 MI, and generates electricity of 1500 MWh. However, the FPV panels’ overall cost is much higher compared to stationary solar panels, which is estimated to be the key factor hindering the FPV panels’ market growth. Additionally, increased demand for energy, rising solar installers’ networks, and decreased prices of FPV technology are estimated to augment the growth of the FPV panels’ market.

Demand for FPV panels will also be supported by the fact that FPV panels’ installation doesn’t require colossal land areas and the FPV projects are cost-efficient. FPV panel projects are possible to set up on unused water bodies, which are anticipated to be the prime driving factor for the FPV panels’ market growth.

Countries like India, China, Germany, the USA, and Japan have emerged as solar powerhouses, and the growing solar energy-based electricity production, in turn, boosted the market growth of FPV panels, states the report. The US has over 24,000 water bodies that are manmade which are anticipated to be useful in FPV development, as man-made water bodies are easy to manage and have infrastructure and roads in place. The untapped regions’ exploration such as Russia and Azerbaijan for growth, too, is estimated to benefit the FPV panels’ market.

The offshore segment based on location dominates the FPV panels’ global market and is anticipated to continue dominating in years to come. However, forceful water currents and tides are estimated to cause issues or damage the FPV panels. Furthermore, high construction and maintenance costs of seawater plants are estimated to cause the inland segment to observe increased growth. The Netherlands is the epicenter of inland FPVs and GroenLeven owns a huge FPV farm in Europe promising a steady income for people willing to rent the locations that have the ability to host FPVs.