Floating Solar Farm Market- By Location , By Capacity , By Size , By Connectivity , By Application and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Floating Solar Farm Market Overview:

The Floating Solar Farm Market size is estimated to reach $5.2 billion by 2030, growing at a CAGR of 20.0% during the forecast period 2024-2030. Solar energy is a clean and renewable resource that significantly contributes to reducing greenhouse gas emissions and air pollution. By harnessing sunlight to generate electricity, solar energy helps decrease reliance on fossil fuels, which are major sources of carbon dioxide and other pollutants. As per Chariot Energy, a solar farm is a large collection of photovoltaic (PV) solar panels that absorb energy from the sun, convert it into electricity and send that electricity to the power grid for distribution and consumption by consumers. The market growth is mainly driven by the factors including scarcity of land for land based solar farms, simple installation and deployment with a high degree of modularity on sites, limited anchoring and mooring requirements. Moreover, as floating solar farm are anchored at a particular position, they can be conveniently transported around the water body, thereby providing a portability factor.

A key trend driving the market is efficiency gains in solar energy production. In February 2024, SolarisFloat, a Portuguese company, unveiled an innovative solution with floating solar panels that dynamically track sunlight. This technology aims to significantly improve energy generation, especially in cloudy conditions where traditional solar panels typically operate at lower efficiency levels. By enhancing the capacity of floating solar panels to capture solar energy more effectively, this approach could revolutionize the potential of floating solar farms, contributing to more sustainable and reliable renewable energy generation. Additionally, the market is benefiting from the growing trend of integration with smart grids and IoT. For example, in July 2024, NKS Solar One requested regulatory approval to develop a 250 MW floating solar array near Manila, with plans to connect it to the national grid in the Philippines. This project highlights the increasing integration of floating solar systems with smart grid infrastructure, allowing for more efficient energy distribution and better management of renewable power on a large scale. By connecting floating solar farms to smart grids, energy can be better balanced with supply and demand, enabling seamless integration of renewable energy into the existing grid.

Market Snapshot: 

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Floating Solar Farm Market- Report Coverage:

The “Floating Solar Farm Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Floating Solar Farm Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic initially caused significant disruptions to the floating solar industry, with labor shortages and delays in material deliveries affecting project timelines. Lockdowns and social distancing measures led to delays in key materials such as solar panels, inverters and buoys which are critical for floating solar systems. The sudden halt in manufacturing and the temporary suspension of many renewable energy projects slowed down global momentum for floating solar installations. 
• The Russia-Ukraine conflict highlighted the vulnerability of relying on energy imports from geopolitically unstable regions, particularly fossil fuels from Russia. This triggered a strong push for energy diversification across Europe and beyond. As fossil fuel prices become more volatile, floating solar farms are viewed as a more stable and long-term solution for generating clean energy. High energy prices are encouraging greater investment in alternative energy technologies like floating solar as they promise to offer a reliable and cost-effective energy source in the long run. 

Key Takeaways:

• Asia-Pacific Leads the Market

Asia-Pacific is currently leading the Floating Solar Farm market, holding a 55% market share in 2023. This dominance is driven by the region’s significant investments in renewable energy and the increasing adoption of floating solar technology. Major market players, coupled with ongoing research and technological advancements in the region, are positioning APAC as a key hub for growth in the floating solar farm industry. As per a June 2024 report by the International Energy Agency (IEA), China installed nearly 350 gigawatts (GW) of new renewable capacity in 2023, more than half of the global total. With China aiming to reach a target of 1,200 GW of wind and solar installed capacity by 2030, the country’s aggressive expansion in renewable energy is likely to create substantial opportunities for the floating solar farm market in the forecast period. This rapid pace of renewable energy development is expected to support the continued growth of floating solar farms, particularly as countries in APAC look to maximize their energy output while addressing land scarcity and environmental concerns.

• On- Grid is the Largest Segment 

The on-grid segment is the largest in the floating solar farm market, driven by the growing need for efficient energy distribution and integration with existing electricity grids. On-grid systems are particularly advantageous as they allow solar power to be directly fed into the national or local grid, optimizing energy consumption and ensuring a reliable power supply. In October 2024, the Central Mine Planning & Design Institute (CMPDI), a unit of Coal India, issued an e-tender for a 5 MW grid-connected floating solar power project. This project set to be developed at the Quarry Sump of the Dalmia Open Cast Project in West Bengal will further strengthen the on-grid segment by providing clean, renewable energy directly to the power grid. Additionally, in March 2024, Bharat Heavy Electricals Limited (BHEL) announced a tender for the supply and commissioning of outdoor grid-connected power conditioning units (PCUs) for a massive 300 MW AC capacity floating solar power project in Rengali. Such large-scale grid-connected projects reflect the growing confidence in on-grid floating solar technology, as it offers an efficient means of integrating renewable energy with existing infrastructure to meet rising energy demands. As more projects like these come to fruition, the on-grid segment is expected to maintain its position as the largest and most significant part of the floating solar farm market.

•  Utility Scale is the Largest Segment

The utility-scale segment is the largest in the floating solar farm market, driven by the need for large-scale, cost-effective renewable energy solutions. Utility-scale solar farms consist of vast installations, often spanning hundreds of acres where thousands of solar panels absorb energy from the sun to generate electricity. This electricity is then distributed through high-voltage power lines to the electricity grid ensuring a steady supply of power to large populations. Most utility-scale solar farms operate under power purchase agreements (PPAs) where businesses or utilities agree to purchase electricity at wholesale prices, making them a reliable source of energy for grids and providing a financial incentive for developers. A prime example of the growing prominence of utility-scale floating solar projects is the November 2023 launch of a 192 MWp floating solar plant at the Cirata hydropower reservoir in West Java, Indonesia. Developed by Indonesia's state-owned utility company PLN and Abu Dhabi Future Energy Company Masdar, the plant covers a 250-hectare area and is expected to produce approximately 300 GWh annually, powering 50,000 homes while offsetting 214,000 tons of CO2 emissions. Such large-scale floating solar projects are becoming a key part of the global transition to renewable energy with utility-scale developments continuing to dominate the market due to their capacity to generate significant amounts of power, their scalability and ability to integrate seamlessly with existing infrastructure.

• Utilization of Existing Infrastructure at Hydropower Sites to Drive the Market

By integrating floating solar panels with existing hydropower plants, the overall energy output can be enhanced, especially during periods of low water availability. Solar power complements hydropower by generating electricity when water resources are scarce, while hydropower can help stabilize the intermittent nature of solar power. This synergy is particularly advantageous in regions with weak grid systems, such as parts of Africa and developing Asia. Additionally, floating solar farms at hydropower sites offer environmental benefits, including reduced water evaporation, improved water quality, and simpler installation processes compared to traditional land-based solar projects. For example, in June 2024, Ghana’s 5 MW solar photovoltaic (PV) system launched at the Bui hydropower station in the Bono region. The solar PV system is part of a hybrid plant that combines both solar and hydraulic resources to generate electricity for the national grid. This floating solar farm complements an existing 50 MW land-based solar farm and the 404MW Bui hydropower plant, creating a more stable and efficient energy system. This type of hybrid system is becoming increasingly popular, demonstrating how the fusion of floating solar technology and hydropower infrastructure can maximize energy production and provide a reliable, sustainable energy solution.

• High Cost of Engineering, procurement, and construction (EPC) to Hamper the Market

The installation of floating solar farms is generally more expensive in the short term than land-based solar plants due to the complex engineering and construction requirements involved in building on water. The technical challenges, including the design of lightweight structures that float on water while maintaining structural integrity to hold the panels in place even during low to medium wind conditions, contribute to the increased cost. An example of the high costs involved is China Energy Engineering Corp.'s (China Energy) proposal in March 2023 to construct a 1,000 megawatt floating solar plant on Zimbabwe’s Kariba dam at an estimated cost of nearly $1 billion. The substantial investment required for large-scale floating solar installations, such as this one, highlights the challenges and costs associated with floating solar technology. The elevated EPC costs, along with the need for specialized equipment and infrastructure, are likely to hinder widespread adoption and market growth in the short term. Furthermore, the installation of specialized anchoring, mooring systems, and electrical infrastructure in a water-based environment adds to the complexity and cost of these projects.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Floating Solar Farm Market. The top 10 companies in this industry are listed below:

1. Sulzer Energy Ltd.
2. Trina Solar
3. KYOCERA Corporation
4. Wuxi Suntech Power Co., Ltd.
5. Talesun
6. Ciel & Terre International
7. LONGi Solar
8. JA SOLAR Technology Co. Ltd.
9. Hanwha Group
10. Yellow Tropus Pvt. Ltd.

Scope of the Report: 

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