The Global Floating Solar Panels Market is estimated to be valued at US$ 35.9 million in 2024 and is expected to exhibit a CAGR of 29% over the forecast period from 2024 to 2031. Floating solar panels, also known as floatovoltaics, are photovoltaic solar panels that are mounted on structures floating on a body of water, typically on artificial lakes, reservoirs, quarry lakes, farm ponds and canals. Floating solar panels serve multiple benefits such as minimizing evaporation, reducing algal bloom, preventing water loss and generation of renewable energy from unused stretches of water bodies. The advantages of floatovoltaic systems includes additional solar influx, utilization of water reservoirs as tracker, less maintenance cost and dual use of water bodies.
The Global Floating Solar Panels Market Trends is driven by increasing demand for renewable energy sources owing to rising energy costs and supportive government policies and regulations regarding adoption of clean energy. The key players operating in the Floating Solar Panels market are Ciel & Terre International, Hanwha Group, JA SOLAR Technology Co. Ltd., KYOCERA Corp., LONGi Solar, Trina Solar, Vikram Solar Ltd., Wuxi Suntech Power Co., Ltd., Yellow Tropus Pvt. Ltd., and Yingli Solar.
Key Takeaways
Key players operating in the Floating Solar Panels are Ciel & Terre International, Hanwha Group, JA SOLAR Technology Co. Ltd., KYOCERA Corp., LONGi Solar, Trina Solar, Vikram Solar Ltd., Wuxi Suntech Power Co., Ltd., Yellow Tropus Pvt. Ltd., and Yingli Solar. The key players are focusing on new product launches, partnerships and agreements to gain competitive edge in the market. For instance, in 2023 Trina Solar partnered with Xiamen C&D to deliver floating solar projects in China.
The Global Floating Solar Panels Market Trends is witnessing significant growth owing to growing demand for renewable sources of energy across residential, commercial and industrial applications. Also, supportive government policies and incentives regarding adoption of clean energy in various nations is promoting the adoption of floating solar panel systems.
Technological advancements including development of highly efficient polycrystalline solar cells, durable materials for floating structures, solar tracking and intelligent monitoring systems are boosting the floating solar panels market. New innovative floating solar panel structures that can withstand harsh weather conditions and maximize energy generation are gaining traction.
Market Trends
Growing large-scale floating solar power projects: Floating solar power plants of large capacities ranging from 50MW to 500MW are gaining prominence worldwide to meet the growing need for renewable energy on a commercial and utility scale.
Rising focus on floating agrivoltaic systems: Combining agriculture and floating solar power production, agrivoltaic systems are emerging as a promising innovation. They help optimize land use by allowing dual use of water bodies for agriculture and solar power generation.
Market Opportunities
Emerging economies in Asia and Latin America: Countries like India, China, Brazil, Mexico etc. offer lucrative opportunities for market players owing to supportive government policies and growing renewable energy goals.
Floatinovoltaics coupled with desalination: Integrating floating solar panels with desalination technology can enable effective use of clean energy for dual purpose of water and energy generation. This presents significant business potential.
Impact of Covid-19 on Global Floating Solar Panels Market
The Covid-19 pandemic created significant challenges for the global floating solar panels market. During the initial lockdown phases in 2020-21, the supply chains and logistics were disrupted severely impacting new projects and installations. Several ongoing projects faced delays and postponements. The demand from the commercial and industrial sectors also declined sharply as economic activities came to a halt. However, the residential sector demand remained relatively stable as people worked from home.
With progressive lifting of lockdowns and restarting of economic activities from mid-2021, the market is recovering gradually. The heightened focus on clean and renewable energy during the pandemic has also boosted opportunities. Many nations have announced large solar power plans to boost their economies in the post-Covid era. This is creating strong growth prospects for the floating solar panels market. Companies are ramping up production capacities and investing in new technologies to cater to the rising demand. Governments are also providing incentives and subsidies for renewable projects. If the supply chain issues are addressed, the market is expected to witness double digit growth rates in the forecast period surpassing the pre-pandemic levels.
Geographical Regions with Highest Concentration of Global Floating Solar Panels Market
The Asia Pacific region has the largest market share in terms of value for floating solar panels globally. Countries like China, Japan, India and South Korea have been early adopters and have a majority of ongoing projects. China alone accounts for over 60% of the global installed capacity. Supportive government policies, declining costs and expanding project pipelines are driving significant growth. The focus on solar to meet growing energy needs in a sustainable manner along with low production costs makes Asia Pacific extremely lucrative.
Fastest Growing Region for Global Floating Solar Panels Market
Europe is projected to be the fastest growing regional market for floating solar panels during the forecast period. Several nations like the UK, Netherlands, France, Italy etc. are installing large scale floating projects on lakes, reservoirs and artificial basins. Stringent environmental regulations and climate change commitments are increasing investments. Additionally, growing floating solar capacity additions from countries like Spain, Greece and others will aid Europe's growth. Availability of funds under green stimulus packages post Covid and policy push for renewables make Europe an attractive market.
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