Floating solar, also Floating Photovoltaic (FPV), involves the installation of solar panels on water bodies like lakes, ponds, and oceans for rapid clean energy generation. Since these set-ups are entirely on water bodies, they depict new horizons across various countries that have land constraints.
Higher energy yield, improved water quality, reduced evaporation, etc., are a few prominent benefits of floating solar panels over land-based systems. As a result, they are being increasingly installed worldwide, specifically in countries with high population density & less available land, and are generating new prospects for expanding solar energy generation capacity.
The Global Floating Solar Market is projected to grow at a CAGR of around 45% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the mounting focus of various countries worldwide on producing clean & renewable energy and various government initiatives associated with floating solar plant installations, including tax rebates & incentives.
Many countries with high population levels & land constraints are actively setting up floating solar plants and scaling up solar energy utilization. Moreover, with the burgeoning energy requirements & rapidly depleting fossil fuels, the need for renewable energy resources is critically surging worldwide.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil, Argentina|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||Solaris Synergy, Sunengy Pty Ltd., Vikram Solar, Ciel & Terre International, KYOCERA Corporation, Novaton AG, Pristine Sun LLC, SPI Energy Co., Ltd., Yingli Solar, JA Solar Technology Co. Ltd., Ocean Sun AS, Quant Solar, Sharp Corporation, Tata Power Solar System Ltd., Swimsol GmbH, etc.|
In fact, several governments are also ambitious about reaching green energy targets, curbing carbon emissions, and addressing severe environmental challenges, which, in turn, would further generate a plethora of growth opportunities for the leading players in the industry and attract numerous investors over the coming years. Currently, China, India, Japan, the USA, and Germany act as powerhouses for the solar industry and are playing a crucial role in driving the global floating solar market.
Impact of Covid-19 on the Global Floating Solar Market
The advent of Covid-19 in 2020 severely impacted most industries worldwide. However, the Global Floating Solar Market did not observe, as such, any negative impact since several countries have categorized the solar industry under essentials to ensure continuous business operations even during restrictions & uncertainties. Although, floating solar plants were operational amidst the crisis. Still, with the sudden imposition of lockdown, the industry underwent a temporary halt and witnessed unprecedented challenges amidst the pandemic.
As most countries worldwide import solar materials, mainly from China, travel bans and import & export restrictions resulted in supply chain disruptions and a shortage of raw materials. However, with improved situations, governments of different countries uplifted restrictions & allowed the recommencement of business operations. In addition, exports from Chinese ports got reinstated while most countries gradually enabled imports. As a result, the market is projected to observe swift revival & substantial growth in the coming years.
Based on Type:
Of both, Stationary Floating Solar Panels dominated the market with the largest share and is anticipated to prevail the same trend during the forecast period. It owes primarily to the low cost & high strength of elastics used while manufacturing these floating solar panels. Besides, since these panels are cheaper & incur lower installation costs than solar trackers, they have a competitive edge in terms of cost advantages.
On the other hand, Solar Trackers are swiftly gaining momentum in the market. The governments of developed countries and many private companies are massively investing in the manufacturing & installation of highly durable & efficient floating solar panels, i.e., leading to the surging demand for solar trackers.
Besides, the ability of solar trackers to trail the sunlight for superior operational productivity is another crucial aspect expected to surge their production & sales in the coming years. However, since solar trackers have movable parts, the overall maintenance costs of these panels are significantly higher than the stationary ones. Hence, this might act as a critical restraint for their demand during 2021-26.
Based on the Capacity:
Here, floating solar panels with 0.1-1 MW capacity are observing increasing demand worldwide, principally due to massive utility investments in developing small-scale photovoltaic projects to suffice the rising demand from off-grid consumers across remote locations & minimize costs by vending power back to local utility companies.
However, floating solar panels with 1-5 MW capacity are witnessing an increasing demand owing to the mounting installations of PV systems across different industries, which, in turn, would positively impact the overall market growth. Moreover, a rise in investments by utilities & private investors in deploying largescale PV projects across various riverbeds would further promote the market growth for floating solar panels with 1-5 MW capacity.
Governments of different countries worldwide are actively working on attaining extensive utilization of floating solar panels, and most of them are offering subsidies, tax rebates, & feed-in tariffs, which, as a result, would further boost the market in the coming years.
Based on the Location:
Here, floating solar panels at On-shore locations are anticipated to continue their dominance in the global market during 2021-26. It owes principally to the lower chance of damages to solar panels & floating structures at On-Shore water bodies, which include irrigation ponds, dam reservoirs, etc., and have lower tides & weaker currents than off-shore water bodies like oceans. Furthermore, the less maintenance & construction costs of an On-Shore floating solar set-up is another crucial aspect attributing to their burgeoning demand globally.
Geographically, the Global Floating Solar Market expands across:
Amongst all regions globally, Asia-Pacific is anticipated to rule the Floating Solar Market with the largest share during the forecast period. With an extensive availability of reservoirs, favorable climate, and mounting focus on renewable energy production, Asia-Pacific expects plenty of promising opportunities for the solar industry. Several countries in the region are massively investing in the expansion of the floating solar capacity, owing to which the market would observe a notable upsurge in the coming years. Besides, cited below are a few countries with a prominent contribution to the growth of the Asia-Pacific Floating Solar Market.
On the other hand, Europe holds remunerative growth opportunities for the Floating Solar Market, with countries like the UK, the Netherlands, & France massively investing in power generation through renewable resources. The Netherlands, a prominent leader in the solar industry, is witnessing an increasing number of floating solar installations as a part of its larger renewable energy strategy and, in turn, contributing significantly to the regional market growth.
Moreover, the Sustainable Energy Production Incentive Grant 15 program of the Netherlands is another crucial aspect driving various developments in renewable energy across the country, which, as a result, would further boost the growth of the floating solar market across Europe in the coming years.
Nevertheless, in North America, the US is projected to witness significant market growth during the forecast period, owing primarily to various favorable government initiatives for intensifying its reliance on clean energy resources. On the other hand, Brazil is expecting considerable market expansion due to rising investments in installing Photovoltaic (PV) technologies through the vast river beds.
Recent Developments by Leading Companies
Ciel & Terre International is one of the prominent market players & amongst the largest floating solar providers worldwide. The company has extensively expanded across the globe and has set up nearly 50% of the total number of floating panels worldwide.
Key Driver: Increasing Number of Renewable Energy Sources
With the swiftly depleting fossil fuel reserves, the demand for sustainable power generation like floating solar technology is increasing at an astronomical pace. Solar energy is the fastest growing renewable source due to the ample amount of sunlight globally. Besides, benefits like sustainability, cost-effectiveness, low maintenance, excellent durability, & minimal effect on the environment are significantly propelling the use of floating solar plants worldwide, which, in turn, would drive the global market in the coming years.
Possible Restraint: Additional Costs Associated with the Transportation of Floating Solar Plants
The deployment of floating solar plants incurs additional costs while transporting them across farther locations & remote areas, which increases their overall costs. Hence, these increased prices associated with floating solar plants are projected to act as significant growth restraints for the market during 2021-26. Moreover, the unavailability of a long-standing track record, installation complications, and difficulty in maintaining electrical components might also challenge the market growth in the coming years.
Growth Opportunity: Mounting Need to Meet Sustainable Energy Generation Targets
The burgeoning energy requirements worldwide and the increasing shift toward renewable energy sources are creating lucrative growth opportunities for the Floating Solar Market over the forecast years. Besides, the improper power infrastructure & rising need to reach mandatory renewable energy generation targets are other prominent aspects projected to accelerate the overall market growth during 2021-26.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Floating Solar Market is expecting around 45% CAGR during 2021-26.
A. Stationary Floating Solar Panels are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Floating Solar Market through 2026.
A. The surging need for clean energy sources to suffice the increasing energy requirements and the mounting support of governments worldwide toward setting up more floating solar plants are the key growth opportunities projected to drive the Global Floating Solar Market in the coming years.