|
Forecast Period
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2025-2029
|
|
Market Size (2023)
|
USD 90 Million
|
|
Market Size (2029)
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USD 349.75 Million
|
|
CAGR (2024-2029)
|
25.2%
|
|
Fastest Growing Segment
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Hydroelectric Dam
|
|
Largest Market
|
West US
|
Market Overview
United States Onshore Floating Solar
Market was valued at USD 90 Million in 2023 and is anticipated to project
robust growth in the forecast period with a CAGR of 25.2% through 2029. The
United States Onshore Floating Solar Market is experiencing a significant
upswing, driven by a confluence of factors that underscore the industry's
potential. With an increasing emphasis on sustainable energy solutions, the
demand for renewable sources has propelled the adoption of onshore floating
solar technologies. This trend is further fueled by a dual commitment to
environmental conservation and maximizing energy production efficiency. By
harnessing solar power on water surfaces, the sector addresses land-use
constraints while offering a viable alternative to traditional solar
installations. The United States' strategic focus on diversifying its energy
portfolio and mitigating environmental impact has provided a conducive
environment for the onshore floating solar market's growth. As a result,
stakeholders in the industry are witnessing expanding opportunities, with
investments pouring into innovative solutions that align with the nation's
broader goals of achieving a cleaner and more sustainable energy landscape.
Key Market Drivers
Renewable Energy Transition
The rapid
acceleration of the United States Onshore Floating Solar Market can be
primarily attributed to the overarching global transition towards renewable
energy sources. As the nation endeavors to reduce its dependence on fossil
fuels and mitigate the impact of climate change, there is a growing consensus
on the imperative of adopting sustainable alternatives. Onshore floating solar
emerges as a pivotal player in this transition, offering a scalable and
environmentally friendly solution. With solar power accounting for a
significant share of the renewable energy mix, the onshore floating solar
market becomes a strategic focal point for meeting clean energy targets. The
emphasis on reducing carbon emissions and fostering a greener energy
infrastructure positions onshore floating solar as a key driver, aligning with
national and international sustainability goals.
Land Conservation and Optimization
One of the
prominent drivers propelling the United States Onshore Floating Solar Market is
the pressing need for effective land use and conservation. Traditional solar
installations often require vast expanses of land, potentially leading to
deforestation or encroachment on valuable ecosystems. Onshore floating solar
addresses this concern by utilizing water bodies, such as reservoirs and lakes,
for energy generation. This innovative approach not only mitigates the
environmental impact associated with land use but also optimizes existing water
resources. By repurposing water surfaces for solar energy production, the
onshore floating solar market contributes to land conservation efforts while
simultaneously enhancing the overall efficiency of energy infrastructure.
Higher Energy Production Efficiency
The onshore
floating solar market in the United States is gaining momentum due to its
inherent advantage of higher energy production efficiency. Placing solar panels
on water surfaces helps to mitigate the challenges associated with land-based
installations, such as overheating and energy loss. The cooling effect of water
enhances the performance of solar panels, resulting in increased energy yield.
This efficiency boost not only makes onshore floating solar a compelling
economic choice but also aligns with the broader objectives of maximizing
renewable energy output. As the demand for sustainable energy solutions grows,
the focus on optimizing efficiency becomes a pivotal driver, positioning
onshore floating solar as a technologically advanced and economically viable
alternative.
Economic Viability and Cost Competitiveness
The economic
viability of onshore floating solar installations stands out as a key driver in
the United States market. Advances in technology, coupled with economies of
scale, have significantly reduced the overall costs associated with onshore
floating solar projects. The decreasing cost trajectory of solar panels,
coupled with innovations in floating platform design, contributes to the
sector's competitiveness in the energy market. Moreover, the operational and
maintenance costs of onshore floating solar are often lower than traditional
solar installations. This combination of reduced capital expenditure and
ongoing operational efficiency enhances the attractiveness of onshore floating
solar from an economic standpoint, driving increased investment and adoption
across the United States.
Government Support and Incentives
Government
policies and incentives play a pivotal role in fostering the growth of the
onshore floating solar market in the United States. Federal and state-level
initiatives, including tax credits, grants, and regulatory frameworks,
incentivize businesses and investors to participate in the development of
onshore floating solar projects. The commitment to achieving renewable energy
targets and reducing greenhouse gas emissions is reflected in supportive
policies that encourage the adoption of clean energy solutions. Government
backing provides a conducive environment for project development, reduces
financial risks, and bolsters investor confidence. The alignment of onshore
floating solar with national energy goals positions it as a beneficiary of
government support, driving the market's expansion and contributing to the
overall diversification of the energy landscape in the United States.
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Key Market Challenges
Technological Challenges
The United
States Onshore Floating Solar Market faces significant technological challenges
that impede the seamless integration and widespread adoption of this innovative
energy solution. One primary obstacle is the development of robust and durable
floating platforms capable of withstanding diverse water conditions, such as
fluctuations in depth, waves, and varying water quality. Ensuring the
resilience of these platforms to environmental stressors while maintaining
cost-effectiveness poses a considerable engineering challenge. Additionally,
the longevity and performance of solar panels in aquatic environments need to
be optimized to withstand prolonged exposure to water, UV radiation, and
potential biofouling. Overcoming these technological hurdles requires ongoing
research and development efforts to enhance the reliability and durability of
onshore floating solar installations, ensuring their long-term viability as a
sustainable energy solution.
Environmental Impact and Ecological Concerns
While onshore
floating solar presents itself as a more environmentally friendly alternative
to land-based installations, it is not without its own set of environmental
challenges. The potential impact on aquatic ecosystems, including disruptions
to water quality, wildlife habitats, and aquatic biodiversity, is a significant
concern. Installation and maintenance activities can introduce pollutants, and
the shading effect of solar panels on the water surface may affect the
photosynthesis processes of aquatic plants. Striking a balance between
harnessing solar energy and mitigating environmental impact requires careful
consideration of site selection, design modifications, and ongoing monitoring.
Addressing these environmental concerns is essential to ensure the sustainable
growth of the onshore floating solar market and its alignment with broader
conservation goals.
Regulatory and Permitting Hurdles
The regulatory
landscape poses a formidable challenge to the expansion of the United States
Onshore Floating Solar Market. Obtaining the necessary permits for onshore
floating solar projects involves navigating a complex web of federal, state,
and local regulations. Challenges include securing rights to use water bodies,
complying with environmental impact assessments, and addressing concerns from
stakeholders such as local communities and recreational users of water bodies.
The lack of standardized regulations specific to onshore floating solar further
complicates the permitting process. Streamlining and harmonizing regulatory
frameworks at different levels of government are crucial to fostering a more
conducive environment for project development, reducing delays, and providing
investors with greater certainty in the regulatory landscape.
Economic Considerations and Financing Challenges
Despite the
economic advantages associated with onshore floating solar, financing and
economic considerations present challenges that can hinder the market's growth.
The upfront capital costs for developing onshore floating solar projects,
including the cost of floating platforms, solar panels, and anchoring systems,
can be substantial. Securing financing for such projects may be challenging,
particularly for smaller developers or in regions where traditional energy
sources remain dominant. Additionally, uncertainties related to project revenue
streams, energy pricing, and the long-term economic viability of onshore
floating solar may deter potential investors. Overcoming these economic
challenges requires innovative financing mechanisms, clear risk mitigation
strategies, and continued efforts to demonstrate the long-term economic feasibility
and competitiveness of onshore floating solar in comparison to conventional
energy sources.
Key Market Trends
Accelerated
Capacity Expansion
The United States Onshore Floating Solar
Market is witnessing a notable trend of accelerated capacity expansion as the
industry scales up to meet the growing demand for renewable energy. With a
focus on achieving ambitious clean energy targets, both public and private
entities are investing in larger and more extensive onshore floating solar
projects. This trend is driven by advancements in technology, economies of
scale, and a deeper understanding of the benefits offered by onshore floating
solar, such as increased energy production efficiency and land conservation. As
capacity expands, the market is experiencing a shift toward utility-scale
projects, marking a significant evolution in the deployment of onshore floating
solar as a mainstream energy solution.
Integration
with Existing Infrastructure
A key market trend in the United States
is the integration of onshore floating solar with existing infrastructure, such
as water treatment facilities, agricultural reservoirs, and hydropower plants.
This approach capitalizes on synergies between onshore floating solar
installations and other water-based operations, providing dual benefits of
energy generation and enhanced functionality for these facilities. By
repurposing underutilized water surfaces, this trend aligns with sustainability
goals while minimizing potential conflicts over land use. The strategic
integration of onshore floating solar with existing infrastructure not only
streamlines the permitting process but also enhances the overall economic
viability of projects by leveraging shared resources and infrastructure.
Technological
Innovations and Efficiency Improvements
Continued technological innovations and
efficiency improvements represent a significant trend in the United States
Onshore Floating Solar Market. Advances in floating platform design, solar
panel technology, and materials contribute to increased durability,
performance, and cost-effectiveness. The development of tracking systems that
enable solar panels to follow the sun's trajectory, optimizing energy capture,
is gaining prominence. Moreover, innovations in energy storage solutions are
addressing the intermittent nature of solar power, enhancing grid integration
and overall reliability. These technological trends underscore the industry's
commitment to continuous improvement, making onshore floating solar an
increasingly competitive and reliable option in the broader renewable energy
landscape.
Collaborations
and Strategic Partnerships
A notable trend shaping the onshore
floating solar market in the United States is the rise of collaborations and
strategic partnerships among stakeholders. These partnerships involve
coordination between technology developers, project developers, utilities, and
financial institutions. Such collaborations facilitate knowledge exchange,
promote standardization, and streamline project development processes. As the
industry matures, cross-sector partnerships are becoming instrumental in
addressing challenges related to technology deployment, regulatory frameworks,
and financing. These collaborative efforts contribute to a more robust and
cohesive ecosystem, fostering the growth and sustainability of the onshore
floating solar market.
Increasing
Investment and Financial Support
The United States Onshore Floating Solar
Market is experiencing a trend of increasing investment and financial support
from both public and private sources. As governments and investors recognize
the long-term potential of onshore floating solar in the transition to
renewable energy, funding for research, development, and project implementation
is on the rise. Financial instruments such as grants, subsidies, tax
incentives, and green bonds are being deployed to incentivize investment in
onshore floating solar projects. This trend not only reflects the economic
viability of onshore floating solar but also indicates a broader shift in
financial markets toward sustainable and environmentally friendly investments.
The infusion of capital into the onshore floating solar market is expected to
further propel its growth and contribute to the achievement of clean energy
goals in the United States.
Segmental Insights
Type Insights
The Tracking segment emerged as the
dominant force in the United States Onshore Floating Solar Market and is poised
to sustain its dominance throughout the forecast period. Tracking systems,
which enable solar panels to dynamically follow the sun's trajectory, have
gained prominence due to their ability to optimize energy capture and
significantly enhance overall efficiency. The Tracking segment's dominance is
driven by the increasing recognition of the operational advantages it brings to
onshore floating solar installations, including higher energy yields and a more
consistent power output throughout the day. As the technology matures and
becomes more cost-effective, stakeholders in the United States are increasingly
opting for tracking systems to maximize the utilization of sunlight. The
ability of tracking systems to adapt to changing solar angles, seasonal
variations, and weather conditions positions them as a technologically advanced
solution that aligns with the broader goals of maximizing energy production
from renewable sources. The Tracking segment's dominance is further bolstered
by the growing emphasis on grid integration and the need for stable and
reliable energy sources, positioning it as a key driver in the evolving
landscape of onshore floating solar installations in the United States. As the
market continues to evolve, the Tracking segment is expected to maintain its
lead, supported by ongoing innovations, improved cost-effectiveness, and a
deeper understanding of its positive impact on overall energy generation
efficiency.
Component
Insights
The PV Modules segment emerged as the
dominant force in the United States Onshore Floating Solar Market and is
anticipated to maintain its supremacy throughout the forecast period. PV
Modules, or photovoltaic modules, play a pivotal role as the core component
responsible for converting sunlight into electrical energy. The dominance of
this segment can be attributed to several factors, including advancements in
solar cell technology, increased efficiency in energy conversion, and economies
of scale driving down the overall cost of PV modules. As technology continues
to evolve, PV modules are becoming more resilient to environmental stressors,
enhancing their durability and overall performance in aquatic environments.
Additionally, the PV Modules segment benefits from ongoing research and
development initiatives aimed at improving energy output and reducing
manufacturing costs. The increasing focus on sustainability and the urgency to
transition towards cleaner energy sources are driving significant investments
in the PV Modules segment. The widespread adoption of onshore floating solar
projects across various applications, such as water reservoirs, lakes, and
ponds, further underscores the central role of PV Modules in the market. As the
United States intensifies its efforts to achieve renewable energy targets, the
PV Modules segment is poised to maintain its dominance by serving as the
linchpin of onshore floating solar installations, offering both technological
innovation and economic viability for sustainable energy production.
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Regional Insights
The West region emerged as the dominant
force in the United States Onshore Floating Solar Market and is poised to maintain
its leadership throughout the forecast period. The West region, encompassing
states such as California, Arizona, and Nevada, has witnessed a surge in
onshore floating solar installations due to favorable environmental conditions,
high solar insolation, and a proactive approach towards renewable energy
adoption. California, in particular, has been a frontrunner in advancing solar
technologies, driven by ambitious renewable energy targets and a commitment to
combat climate change. The region's dominance can be attributed to a
combination of factors, including strong policy support, favorable economic
conditions, and a progressive regulatory environment. As the West region
continues to prioritize sustainability and renewable energy integration, it is
expected to maintain its leading position in the United States Onshore Floating
Solar Market. The vast expanses of water bodies, along with a robust solar
energy potential, make the West region an ideal landscape for the growth of
onshore floating solar projects. Additionally, collaborations between public
and private entities, as well as innovative financing mechanisms, have further
propelled the development of onshore floating solar installations in the
region. As the demand for clean and sustainable energy solutions intensifies,
the West region's strategic positioning and ongoing commitment to renewable
energy initiatives position it to remain at the forefront of the United States
Onshore Floating Solar Market in the coming years.
Recent Development
- As of
Dec, 2023, Masdar has signed agreements to collaborate with Indonesia's state-owned
utility company, PLN, to move ahead with major development plans for Southeast
Asia's largest floating solar power plant and explore green hydrogen
opportunities. The partnership has already resulted in the launch of Southeast
Asia's largest floating solar power plant, the 145MW Cirata project
located on the Cirata reservoir in West Java, Indonesia.
Key Market Players
- Floating Solar Solutions, LLC
- Ciel & Terre USA Inc.
- Infratech Industries, Inc.
- Principle Power, Inc.
- Wunderlich-Malec Engineering, Inc.
- Cypress Creek Renewables LLC
- PowerDocks LLC
- Solar Energy Initiatives, Inc.
|
By Component
|
By Type
|
By Application
|
By Region
|
- PV Modules
- Lightning Protection System
- Anchoring System
- Inverter
- Others
|
|
- Irrigation
- Hydroelectric Dam
- Water Treatment
- Quarry
- Mining
|
- South US
- Midwest US
- North-East US
- West US
|
Report Scope:
In this report, the United
States Onshore Floating Solar Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- United States Onshore
Floating Solar Market, By
Component:
o PV Modules
o Lightning Protection System
o Anchoring System
o Inverter
o Others
- United States Onshore
Floating Solar Market, By
Type:
o Stationary
o Tracking
- United States Onshore
Floating Solar Market, By
Application:
o Irrigation
o Hydroelectric Dam
o Water Treatment
o Quarry
o Mining
- United
States Onshore Floating Solar Market, By Region:
o South US
o Midwest US
o North-East US
o West US
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the United States Onshore Floating Solar Market.
Available Customizations:
United States Onshore Floating Solar Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
United States Onshore Floating Solar Market is an
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report or want to confirm the date of release, please contact us at [email protected]