United States Onshore Floating Solar Market, By Component (PV Modules, Lightning Protection System, Anchoring System, Inverter, Others), By Type (Stationary, Tracking), By Application (Irrigation, Hydroelectric Dam, Water Treatment, Quarry, Mining), By Region, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.82 Billion
CAGR (2026-2031)	24.18%
Fastest Growing Segment	Hydroelectric Dam
Largest Market	South
Market Size (2031)	USD 10.34 Billion

Market Overview

The United States Onshore Floating Solar Market will grow from USD 2.82 Billion in 2025 to USD 10.34 Billion by 2031 at a 24.18% CAGR. Onshore floating solar, technically defined as floating photovoltaics (FPV), consists of solar power generation systems mounted on buoyant structures and anchored to the beds of inland water bodies such as reservoirs, hydroelectric dams, and retention ponds. The expansion of this market is fundamentally driven by the scarcity of suitable land for large-scale ground-mounted projects, as utilizing water surfaces avoids conflicts with agricultural or conservation land use. Furthermore, the thermal coupling with the water body provides a natural cooling effect that enhances module performance, while the system simultaneously benefits water utilities by reducing evaporation rates and inhibiting algae growth.

Despite these distinct advantages, the market faces a significant challenge regarding the complex and often undefined regulatory permitting processes for aquatic environments, which can delay project timelines and increase development costs. The immense capacity available for this technology highlights its future importance to the energy grid. According to the National Renewable Energy Laboratory, in 2024, the technical potential for floating solar deployment on federally controlled reservoirs in the United States was estimated to range between 861 gigawatts and 1,042 gigawatts.

Key Market Drivers

Federal Investment Tax Credits and Renewable Energy Incentives serve as a primary catalyst for the United States Onshore Floating Solar Market by significantly reducing the capital expenditure barriers associated with aquatic installation. The financial viability of these projects is heavily reinforced by policy frameworks such as the Inflation Reduction Act, which provides long-term stability for developers and investors through tax mechanisms. According to Boston Solar, July 2024, in the 'Commercial Solar Benefits in the Inflation Reduction Act' article, the solar Investment Tax Credit (ITC) is worth 30% of total project costs, a substantial baseline that can be further increased through domestic content and energy community adders. This fiscal certainty is essential for offsetting the specialized anchoring and moist-environment engineering costs required for floating photovoltaic systems, thereby accelerating their deployment across the nation's energy grid.

The Utilization of Underused Man-Made Water Bodies is another critical driver, allowing for the deployment of renewable energy assets without exacerbating land-use conflicts. By siting arrays on water treatment plants, retention ponds, and industrial reservoirs, developers preserve valuable agricultural and conservation land while benefiting from existing grid interconnection points often found near these utilities. A prominent example of this application is seen in municipal strategies to offset operational energy costs. According to the Times Union, April 2024, in the 'Groundbreaking for solar panels floating on Cohoes reservoir' article, local officials broke ground on a municipal reservoir project designed to generate 3.2 megawatts of power to support city operations. This trend contributes to the broader growth of the solar sector; according to the U.S. Energy Information Administration, October 2024, in the 'Utility-scale U.S. solar electricity generation continues to grow in 2024' report, a total of 107.4 gigawatts of utility-scale solar generating capacity was operating in the Lower 48 states, creating a robust ecosystem for niche applications like floating solar to expand.

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Key Market Challenges

The complex and often undefined regulatory permitting processes for aquatic environments serve as a primary impediment to the expansion of the United States Onshore Floating Solar Market. Unlike ground-mounted solar projects that benefit from established zoning ordinances, floating photovoltaic systems occupy a regulatory gray area that frequently overlaps with the jurisdictions of multiple federal, state, and local agencies responsible for water quality, wildlife conservation, and public recreation. This lack of a standardized framework forces developers to navigate a fragmented and unpredictable approval landscape, often subjecting relatively low-impact solar projects to rigorous environmental assessments originally designed for major marine or hydroelectric infrastructure.

These bureaucratic hurdles significantly extend development timelines, increasing soft costs and introducing uncertainty that deters capital investment. The impact of such regulatory bottlenecks is evident across the broader renewable energy landscape, within which floating solar operates. According to the American Clean Power Association, in 2024, the average permitting timeline for major energy infrastructure projects in the United States was approximately 4.5 years. For the emerging floating solar sector, these prolonged delays are particularly detrimental, as they stall the deployment of capacity on federally controlled reservoirs and prevent the market from realizing its projected technical potential.

Key Market Trends

The Integration of Hybrid Floating Solar and Hydropower Systems is reshaping the market by capitalizing on the synergy between photovoltaic generation and existing hydroelectric infrastructure. Co-locating arrays on reservoirs utilizes established transmission lines, significantly reducing interconnection costs, while dispatchable hydropower compensates for solar intermittency to enhance grid stability. This specific application is forecasted to drive future growth as developers seek to maximize the asset value of federal water bodies. According to pv magazine USA, November 2024, in the 'United States on track to install 0.7 GW of floating solar by 2033' article, the market availability of hybrid floating solar-hydro projects is expected to surge, with the installed capacity for these systems projected to peak between 2026 and 2028.

The Emergence of Community-Based Floating Solar Projects is expanding as utilities leverage subscriber models to finance installations on public water assets. This trend allows municipalities to deploy renewable energy on water treatment plants and storage ponds through voluntary community funding, effectively bypassing local government budget constraints while fostering direct public engagement. A prominent example of this model is the recent development in Park City; according to Renewable Energy World, September 2024, in the 'Utah commissions first floating solar project' article, a 587.5-kilowatt floating solar array was commissioned on a water district's holding pond, supported by a community-based renewable energy program to offset facility energy costs.

Segmental Insights

The hydroelectric dam segment represents the fastest-growing category within the United States onshore floating solar market due to distinct operational synergies. This expansion is primarily driven by the ability to utilize existing transmission infrastructure at dam sites, which substantially lowers interconnection costs and accelerates project development. Furthermore, co-locating solar arrays with hydroelectric facilities allows operators to balance solar intermittency with dispatchable hydro power, enhancing overall grid stability. Research from the National Renewable Energy Laboratory indicates that these hybrid configurations offer practical solutions for increasing renewable capacity without requiring additional land resources.

Regional Insights

The South US stands as the leading region in the United States Onshore Floating Solar Market, driven by an abundance of suitable infrastructure and favorable climatic conditions. According to the National Renewable Energy Laboratory (NREL), the Southeast and Southern Plains possess the highest technical potential due to a dense concentration of man-made reservoirs and hydroelectric dams. These water bodies offer ideal sites for large-scale deployment, benefiting from the region's high solar irradiance and the natural cooling effect of water which improves panel efficiency. Consequently, the South US is strategically positioned to dominate the sector’s expansion, surpassing other regions in developable capacity.

Recent Developments

• In August 2025, a California-based floating solar technology company began construction on a pilot project in Golden, Colorado, featuring a breakthrough tracking system for water-based solar arrays. The 50-kilowatt installation on a reservoir was the first in the United States to deploy the company's proprietary floating solar tracker, which rotates solar islands to follow the sun's path. This new technology was projected to increase energy output by approximately 20% compared to traditional static floating systems. The project was developed in collaboration with a local water company to demonstrate how tracking technology could enhance the efficiency and economics of onshore floating solar generation.
• In December 2024, a prominent floating solar developer in the United States officially launched Ohio’s first floating photovoltaic array in partnership with a regional water utility. Located at the Olentangy Water Treatment Plant, the 1.5-megawatt system was constructed on a cooling pond to supply renewable power directly to the facility. The installation utilized a specialized floating racking system from a global manufacturer, designed to support thousands of solar panels while minimizing algae growth and water evaporation. This project highlighted the growing trend of water utilities adopting onshore floating solar solutions to optimize operational efficiency and utilize non-revenue water surfaces for energy production.
• In September 2024, a leading cleantech integrator and a specialized floating PV developer announced the completion of Utah’s first floating solar array at the Signal Hill Water Treatment Plant. The collaboration involved the installation of a 587.5-kilowatt system comprising over 1,000 solar panels on a holding pond. This project was designed to supply electricity directly to the treatment facility, offsetting more than 90% of its grid energy consumption. The system utilized a bottom-anchoring design to withstand local weather conditions, demonstrating the viability of floating solar technology in high-altitude, onshore environments to reduce energy costs and carbon emissions for water utilities.
• In April 2024, construction commenced on a landmark floating solar initiative in Cohoes, New York, representing a significant development in the United States onshore floating solar market. The project, valued at approximately $8 million, was designed to feature a 3.2-megawatt direct current array installed on a municipally owned drinking water reservoir. Private engineering firms collaborated with local officials to deploy over 8,000 bifacial solar panels, which were expected to generate enough electricity to power all municipal buildings. This venture was highlighted as a pioneering model for other municipalities to utilize man-made reservoirs for renewable energy generation while preserving land resources.

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	Stationary Tracking	Irrigation Hydroelectric Dam Water Treatment Quarry Mining	Northeast Midwest South West

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:

• PV Modules
• Lightning Protection System
• Anchoring System
• Inverter
• Others

• United States Onshore Floating Solar Market, By Type:

• Stationary
• Tracking

• United States Onshore Floating Solar Market, By Application:

• Irrigation
• Hydroelectric Dam
• Water Treatment
• Quarry
• Mining

• United States Onshore Floating Solar Market, By Region:

• Northeast
• Midwest
• South
• West