The surge in floating solar panels: Uncovering the reasons behind this emerging water-based energy solution
Floating solar power systems, also known as Floating Photovoltaics (FPV), are innovative advancements in the renewable energy sector, offering significant benefits for regions with limited land availability, high solar irradiance, or extensive water bodies.
The FPV systems consist of photovoltaic modules mounted on floating carrier platforms, usually made of high-density polyethylene. The design of the floats follows hydrodynamic principles to minimize water resistance and wave generation, ensuring stability under different weather conditions and natural water level fluctuations. Special damping elements absorb movements and compensate for wave action, ensuring the system's durability in extreme environmental conditions.
These systems are cooled naturally by water, making them five to seven percent more efficient and having longer service life due to lower operating temperatures. The floats are water-repellent, buoyant, and corrosion-resistant, forming larger floating islands secured to the waterbed with anchor ropes. The power transmission to land is achieved through waterproof cable channels that withstand wind and weather.
The global FPV market is growing exponentially with a predicted annual growth rate of over 20 percent. Floating solar installations do not compete with agriculture or urban development as they utilize unproductive water surfaces. In fact, the shaded areas under the FPV modules can be used as habitat by aquatic animals, similar to artificial reefs.
Studies show positive impacts on local fish populations due to the shading effect of FPV modules. Moreover, the shading of water by FPV modules reduces evaporation and slows down algae growth, leading to clearer and cleaner waters.
In Europe, the largest operational FPV system as of mid-2025 is the 127-hectare installation in Haute-Marne, France, consisting of over 135,000 solar panels generating electricity for about 37,000 people, displacing significant CO₂ emissions. This project exemplifies the continent’s potential, estimated to exceed 20 GW by 2030, although FPV remains under-developed in many areas due to regulatory and technical hurdles.
Germany is also advancing FPV with the construction of its first subsidy-free floating solar plant, demonstrating growing confidence in the technology’s cost competitiveness and contribution to the energy transition.
Globally, countries like Vietnam exhibit large technical potential for FPV—projected at over 77 GW in their inland water bodies—due to abundant hydropower reservoirs and high solar irradiance. FPV there offers sustainable synergies with existing hydropower infrastructure, enhancing energy efficiency and reducing environmental impacts by minimizing land use and water evaporation.
The future potential for floating solar installations is substantial worldwide. As land constraints and energy demand grow, FPV’s ability to use water surfaces for solar capacity is attractive. The technology is expected to accelerate globally, supported by improving module durability, optimized electrical designs, and buoyant structures that enable deployment on diverse water bodies—from reservoirs to quarry basins.
In Europe, key milestones include France's large-scale projects and emerging subsidy-free plants in Germany. The technology's future depends on continued technological advancements and supportive frameworks to realize significant contributions to clean energy goals globally.
One percent of the world's water reservoirs could potentially cover global electricity demand through FPV installations. The trend has also reached Europe, with massive FPV installations being created in countries like China, Japan, and South Korea. As the technology continues to evolve, it promises to play a crucial role in addressing the growing demand for renewable energy sources.
[1] European Commission, "Renewable Energy: Floating solar power," 2021, https://ec.europa.eu/energy/en/topics/renewables/floating-solar-power
[2] International Renewable Energy Agency (IRENA), "Floating solar photovoltaics: A technology brief," 2019, https://www.irena.org/publications/2019/Mar/Floating-solar-photovoltaics-A-technology-brief
[3] SolarPower Europe, "Floating solar power: A European perspective," 2020, https://www.solarpowereurope.org/publications/floating-solar-power-a-european-perspective
[4] German Federal Ministry for Economic Affairs and Climate Action, "Germany's first subsidy-free floating solar plant goes online," 2021, https://www.bmwi.de/Redaktion/DE/Artikel/Energiewende/Sonnenkraft-flotend.html
The innovation and growth of the renewable-energy industry is increasingly evident, as demonstrated by the exponential growth of the Floating Photovoltaics (FPV) market, with a predicted annual growth rate of over 20 percent. Finance plays a significant role in this progress, as investments are required for the technological advancements and deployment of energy-efficient FPV systems, such as the construction of Germany's first subsidy-free floating solar plant. This trend signifies a promising future for the finance sector, as it contributes to the energy sector's transition towards sustainable, renewable-energy solutions.
