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 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 62.51 Million
CAGR (2026-2031)	24.55%
Fastest Growing Segment	Stationary
Largest Market	Asia Pacific
Market Size (2031)	USD 233.35 Million

Market Overview

The Global Floating Solar Panel Market will grow from USD 62.51 Million in 2025 to USD 233.35 Million by 2031 at a 24.55% CAGR. Floating solar photovoltaic systems consist of solar modules mounted on buoyant structures situated on water bodies such as reservoirs, industrial ponds, and lakes. The market is primarily driven by the increasing scarcity of viable land for large-scale energy projects and the enhanced module efficiency provided by the natural cooling effect of the water. Furthermore, the capability to co-locate these installations with existing hydropower facilities allows developers to optimize grid infrastructure usage and stabilize energy output. According to the International Energy Agency Photovoltaic Power Systems Programme, in 2023, the global cumulative installed capacity of floating solar photovoltaics reached 7.7 gigawatts.

However, a significant challenge impeding market expansion involves the high capital expenditures associated with specialized anchoring and mooring systems required to withstand fluctuating water levels. These technical complexities elevate initial costs compared to traditional ground-mounted alternatives, potentially deterring investment in cost-sensitive regions. Additionally, limited longitudinal data regarding the ecological impact on aquatic ecosystems has resulted in undefined or cautious regulatory frameworks. This uncertainty regarding environmental compliance and long-term system durability creates barriers to project bankability, thereby restricting the pace of widespread commercial adoption.

Key Market Drivers

The rising adoption of hybrid hydro-floating solar power systems serves as a primary catalyst for industry expansion. By integrating floating photovoltaic modules with existing hydroelectric facilities, developers can leverage established transmission infrastructure, significantly reducing capital expenditures related to grid connection and land preparation. This configuration also mitigates the intermittency of solar energy, as hydropower can compensate for fluctuations in photovoltaic output, thereby enhancing overall grid stability. According to pv magazine, March 2024, the Electricity Generating Authority of Thailand (EGAT) commenced commercial operations of a 24-megawatt floating hydro-solar hybrid project, which is part of a broader strategic roadmap to deploy 2,725 megawatts of combined capacity across its dams. This trend underscores the growing value of maximizing asset utilization at reservoir sites to ensure reliable renewable energy baseloads.

Simultaneously, the limited availability of suitable land for ground-mounted solar projects compels energy stakeholders to utilize water surfaces. This shift not only preserves valuable agricultural and terrestrial resources but also improves energy generation efficiency through the natural cooling effect of water. According to pv magazine, January 2024, research indicates that deploying floating solar on reservoirs in China could conserve approximately 7,117 square kilometers of land while reducing annual water evaporation by 5.8 cubic kilometers. Highlighting the immense scale of this opportunity, according to the National Renewable Energy Laboratory (NREL), in July 2024, the technical potential for floating photovoltaics on federally controlled reservoirs in the United States alone was estimated to range between 861 and 1,042 gigawatts, suggesting a massive untapped capacity for future market development.

Download Free Sample Report

Key Market Challenges

The high capital expenditures required for specialized anchoring and mooring systems present a formidable barrier to the growth of the Global Floating Solar Panel Market. Unlike ground-mounted installations, floating arrays demand robust aquatic engineering to maintain stability against wind loads, water currents, and fluctuating water levels. These technical requirements significantly increase the balance-of-system costs, making initial project outlays considerably higher than traditional land-based alternatives. Consequently, developers in cost-sensitive markets often hesitate to commit to floating projects when cheaper terrestrial options remain available, effectively restricting the technology to niche applications where land is scarce or expensive.

This cost disparity directly affects the economic competitiveness of floating technologies relative to standard utility-scale solar, which has achieved historic pricing lows. According to the International Renewable Energy Agency, in 2024, the global weighted average levelized cost of electricity for newly commissioned utility-scale solar photovoltaic projects fell to 0.043 U.S. dollars per kilowatt-hour. Floating solar projects, burdened by the additional expense of buoyant structures and sub-surface mooring, struggle to match this ultra-low cost benchmark. As a result, the higher levelized cost of energy for floating systems creates a financial disincentive that slows their widespread commercial adoption and hampers the overall expansion of the market.

Key Market Trends

The expansion into near-shore and offshore marine environments represents a pivotal shift in the market, moving the technology beyond calm inland reservoirs to the vast, untapped potential of open seas. This progression addresses the limitations of inland water surface availability while necessitating the development of ruggedized floating structures capable of withstanding high waves, corrosive saltwater, and strong ocean currents. Developers are increasingly deploying gigawatt-scale marine projects that utilize advanced mooring and anchoring solutions designed for harsh nautical conditions. According to TaiyangNews, November 2024, in the 'Commercial Operations Start For World's 'Largest' Offshore Solar PV Project' article, the scale of this maritime transition was demonstrated when CHN Energy connected the first phase of a massive 1 gigawatt offshore floating solar plant situated 8 kilometers off the eastern coast of Dongying City.

Simultaneously, the adoption of bifacial modules is transforming system design by capitalizing on the reflective properties of water surfaces to boost energy yield. Unlike traditional monofacial panels that generate energy solely from the front, bifacial modules capture albedo light reflected off the water onto the rear side of the panel, significantly increasing the overall power output density of the floating array. This technical evolution is particularly effective in aquatic environments where the surrounding water creates a diffuse reflective surface, offering a distinct advantage over many ground-based surfaces. According to PV Magazine Australia, September 2024, in the 'Optimising bifacial solar panels for floating PV applications in tropical freshwater' article, experimental research utilizing optimized floating configurations recorded a high-accuracy bifacial gain of 10.39% compared to standard monofacial equivalents, validating the performance benefits of this technology.

Segmental Insights

The stationary segment is anticipated to register the fastest growth within the global floating solar panel market due to its superior cost-effectiveness and operational reliability. Unlike tracking systems, stationary configurations involve fewer mechanical components, resulting in significantly lower maintenance requirements and initial installation expenses. This structural simplicity makes them particularly suitable for deployment on water bodies such as hydroelectric dams and reservoirs where stability is essential. Consequently, project developers increasingly prioritize stationary structures to ensure long-term durability and financial viability while avoiding the complex engineering challenges associated with maintaining moving parts in aquatic environments.

Regional Insights

Asia Pacific dominates the global floating solar panel market primarily due to limited land availability and high population density in key economies such as China and Japan. Governments in this region actively promote floating photovoltaics to generate renewable energy without competing for scarce agricultural or residential resources. Additionally, rapid industrialization drives the need for efficient power solutions, prompting national energy authorities to utilize existing reservoirs and water bodies. This strategic focus enables the region to expand its renewable infrastructure effectively while mitigating geographical constraints.

Recent Developments

• In September 2024, Sungrow FPV unveiled its latest high-capacity floating solar system solutions tailored for the North American market at the RE+ exhibition. The newly introduced product was engineered to withstand extreme environmental challenges, including heavy snow loads and wide temperature variations ranging from -40°C to 80°C. This solution offered customizable buoyancy options and compatibility with various panel types to optimize installation capacity and efficiency. The launch underscored the company's strategy to address localized market needs with robust technologies that ensure the reliable operation of floating photovoltaic plants in diverse and demanding climates.
• In July 2024, SolarDuck and the energy utility RWE successfully installed the Merganser offshore floating solar pilot project in the Dutch North Sea. This 0.5 MWp installation served as a critical test for demonstrating the structural integrity and electrical performance of floating solar technology under harsh offshore conditions. The project featured six interconnected platforms designed to float meters above the water, ensuring stability and component safety in rough seas. The collaboration provided valuable insights into manufacturing and offshore maintenance methodologies, marking a significant step toward the commercial deployment of large-scale offshore floating photovoltaic systems.
• In June 2024, Nova Innovation and the global engineering services firm RSK Group announced the launch of a joint venture named AquaGen365 to accelerate the deployment of floating solar sectors. This collaboration combined Nova’s expertise in marine energy systems with RSK’s environmental and engineering capabilities to design, build, and install water-based solar power stations. The new entity was established to serve both inland and offshore markets, offering a scalable solution for generating low-cost renewable electricity. The initiative aimed to utilize underused water surfaces to meet rising global energy demands without occupying valuable land resources.
• In April 2024, the largest hydropower development company in India entered into a strategic partnership with the Norwegian technology provider Ocean Sun to advance floating solar energy initiatives. The two entities signed a Memorandum of Understanding to collaborate on deploying photovoltaic panels mounted on hydro-elastic membranes at various reservoir sites. This agreement focused on demonstrating the viability of the technology through a planned 2 MW pilot project, designed to withstand rough water environments and reduce evaporation. The collaboration highlighted a shared commitment to integrating solar capacity with existing hydropower infrastructure to enhance sustainable energy generation.

Key Market Players

• Ciel & Terre International
• Kyocera Corporation
• JA Solar Co., Ltd.
• Trina Solar Limited
• Sharp Corporation
• Yingli Solar
• SPG Solar
• Vikram Solar Limited
• Solaris Synergy
• Novaton AG

By Capacity	By Type	By Connectivity	By Region
Up to 1MW 1MW-5MW Above 5MW	Stationary Solar Tracking	On Grid Off Grid	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Floating Solar Panel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Floating Solar Panel Market, By Capacity:

• Up to 1MW
• 1MW-5MW
• Above 5MW

• Floating Solar Panel Market, By Type:

• Stationary
• Solar Tracking

• Floating Solar Panel Market, By Connectivity:

• On Grid
• Off Grid

• Floating Solar Panel Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE