The growing market for floating solar proves solar’s adaptability

Enough sunlight shines across the US to power far more than our current energy needs. The challenge is that this sunlight shines everywhere–often in areas that are inaccessible or unsuited for solar development. One unique solution to this problem is to adapt PV systems in previously untapped areas. Floating solar aims to do so by enabling solar farms to be developed on our bodies of water. Though not the most straightforward undertaking, these systems can reap real benefits for us and help expedite our transition away from fossil fuels.

The first complete concepts for floating solar originated in 2006. These plans materialized in the United States a year later, when Napa Valley winery Far Niente set up a modest floating system to avoid using valuable vineyard land. This creative branch of solar development has continued to develop since, and expanded investment and growth are expected to continue. According to new data from Global Market Insights, the global floating solar market is expected to grow steadily at 1.4% from 2024 to 2032 to over $8.6 billion. In a world that continues to rely on dirty fossil fuels, floating solar can play a valuable role in supporting the transition to clean energy.

How do floating solar panels work?

Floating solar relies on the same fundamental PV technology and inverter equipment as solar systems on land. The differences lie in the engineering of the system to make the panels suitable on water. Floating solar requires flotation devices like pontoons and plastic floats, as well as anchoring to hold the system in place. Additional considerations arise to transmit the generated power to land. Floating systems require specially designed underwater cabling.

The complexities of floating solar undeniably lead to higher upfront costs. Estimates suggest floating solar systems cost an average of 10-15% more than equivalent solar projects on land. However, floating solar offers some unique benefits that can often make solar on water a viable investment.

What can make floating solar worth it?

By positioning solar on water, there are several key advantages. Perhaps most obviously, floating solar enables disused bodies of water to be repurposed for clean energy generation. From lakes to industrial ponds, floating solar opens the door to more solar deployment without using up valuable land. This can be especially useful in areas where available land is scarce and people are concerned about preserving natural tracts of land.

Floating solar also benefits from the unique situation of panels on water. Specifically, the underlying body of water acts as a coolant for solar panels. Since panels can convert sunlight more efficiently when cooler, solar panels on water are an estimated 5-15% more efficient than panels on land. This can help recoup some of the higher upfront costs associated with solar systems floating on water.

The benefits extend beyond solar energy production itself. By capturing sunlight above water, floating solar also acts as a shading device for the body of water. This helps to decrease evaporation and can save millions of gallons of water. One interesting application of floating solar has developed systems in collaboration with hydroelectric dams to help increase the water that can be converted into electricity. The floats used to uphold these solar systems are also better suited to adapt to flooding, yet another benefit over conventional solar systems on land.

Floating solar moving forward

Floating solar is an exciting and creative application of solar technology. While we should not expect floating solar to supplant traditional solar projects, it can become an increasingly viable form of solar system that can help supplement the transition to clean energy. As Global Market Insights estimates, there is growing interest and investment in these projects. And proof of concepts are abundant in Southeast Asia, where floating solar plays a major role in the region’s clean energy production.

Over 7 percent of the US is covered in water. If we tap some of that for clean energy, along with continued expansions of solar projects on land, we can ensure that we maximize the remarkable amounts of energy transmitted onto the surface of our planet each day.