Impact of COVID-19 on Floating Solar Panels Market : Implications on Business

Floating Solar Panels Market

Market Description

  • Floating solar panel based plant or farm is an arrangement of photovoltaic solar panels on a structure that floats on a water body, which is generally a lake or reservoir. Solar panels used in the construction of floating solar farms are known as floating solar panels.
  • It is a new method of utilizing water surface available on dams, reservoirs, and other water bodies for the generation of solar energy
  • The impetus to develop floating solar panels/plants over land-based plants is leading to an increase in prices of undeveloped land with solar potential
  • According to the IEA, a minimum 80 GW of solar capacity was installed worldwide in 2018, a rise of about 48% compared to that in 2019. Companies are constantly conducting research and development activities to increase the overall efficiency of solar panels and systems.
  • Floating solar panels/plants help conserve water through reduction of evaporation, and increase power generation due to the cooling effect of solar panels

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Advantages of Floating Solar Panels over Land-based Solar System to Drive Market

  • Floating solar panels eliminate the requirement of expensive land areas, especially farmlands, which are near any substation, for harvesting solar power
  • This significantly lowers the price of solar power generation and also frees the land for other purposes
  • The requirement of land for solar installation has driven the prices of even arid wastelands to more than 10 to 20 times in most of the countries
  • These high prices of land reflect in the total cost of generation of solar power. However, floating solar panels are installed on water surfaces; hence, they require surface of water bodies that are not used for any other purposes.
  • Installation of floating solar panels does not involve civil work or any removal of plantation as required in land-based solar installations
  • Floating solar panel/plants generally generate more electricity than ground-mounted and rooftop systems due to the cooling effect of the water


  • Increase in awareness about floating solar panels and solar power generation is projected to drive the floating solar panels market during the forecast period
  • Rise in investments in the renewable energy sector is also expected to boost the market
  • Thus, growth in land issues and availability of water bodies is projected to augment the floating solar market in the near future
floating solar panels market 2

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High Installation Cost of Floating Solar Panels/plants to Restrain Market

  • Installation of a floating solar panels/system requires special floaters that are anchored at the bottom of the reservoir to prevent the movement of the panels due to the wind
  • The tracking technology is in the nascent stage. The overall cost of technology is higher than the stationary type, which affects the project cost.
  • High installation cost associated with the floating solar panel/system is a major restraint of the global floating solar panels market
  • High investment cost also jeopardizes the profitability of the system and raises issues about project investment
  • Companies such as Ciel & Terre provide the option of financing the projects for their customers. They also offer the entire package of project development services to clients along with EPC and operation & maintenance services.
  • Governments of various countries such as Brazil, India, and Singapore have evinced interest in this technology. These countries provide financial incentives to the owners of floating solar panel projects. 

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