The global floating solar market is projected to surpass 6 GW by 2031, as PV developers struggle to meet increasing solar demand and turn to alternative technologies for development, according to Wood Mackenzie.
The global floating solar market will have a stable market share compared to global solar demand, with the compounded annual growth rate (CAGR) for floating solar (FPV) expected to increase 15% in the next decade.
Wood MacKenzie predicted that by 2031, 15 countries will exceed 500 MW of cumulative FPV installations, with Indonesia, India and China making up almost 70% of the total FPV demand in 2022.
In 2022, the Asia-Pacific region had roughly 3 GW of floating solar projects, capturing more than 90% of global floating solar demand that year, according to Wood Mackenzie's analysis.
Countries including China, Indonesia, India, South Korea, and Thailand are developing multiple floating solar projects, Wood Mackenzie found.
In China, the floating solar project pipeline will be growing steadily, with the cumulative capacity to top 13 GW by 2031, at a 12% CAGR over the next decade, according to the research.
Europe, with almost 150 MW of demand, is the second-largest region for FPV, with the Netherlands in the lead followed by France.
Outside the Asia-Pacific region, the Netherlands has the largest FPV project, representing 32% of Europe’s FPV market in 2022, helped by the Sellingen floating solar park (41.4MW) that went into operation in 2021.
Wood Mackenzie noted that this reflects how project sizes are continually growing in Europe's primary market for floating solar.
"The global solar industry, including PV developers, continue to battle limited land availability and increasing land costs for ground-mount solar projects, which is driving demand for floating installations," said Ting You, consultant at Wood Mackenzie.
Although the current price of floating solar is higher than that of traditional ground-mounted systems by 20-50%, its cost is decreasing due to increased demand and technological developments.
