Can floating solar replicate its Asian success in America?

The U.S. floating solar panels market is still in its infancy, valued at $35.4 billion in 2022, according to SNS Insider.

In comparison, Asia Pacific hosted around 90% of floating solar, equating to 3GW, in 2022. The 320MW Dezhou Ding Zhuang Floating Solar Farm in Shandong, China is currently the largest in the world – but not for much longer. An even bigger project from Blueleaf Energy and SunAsia Energy in the Philippines is on the cards.

In the U.S., momentum is also picking up. Growth is forecast at a compound annual growth rate of 22.6% to reach over $180 billion by 2030. 

Solar installation incentives and rebates at all levels are helping to make projects an attractive investment amid rising demand for clean energy across the public and private sector. The Federal government is offering tax credits through the Inflation Reduction Act while states such as New Jersey and New York have implemented their own incentive programs.

While floating solar will never compete against land-based solar in terms of output or scale, new innovations are helping. Renewable energy solution provider SDN recently unveiled new 600W solar modules designed specifically for floating installations.

Such developments underline the opportunity floating solar provides in maximizing the use of existing water-based assets to generate the increasing amounts of clean energy required.

Well-designed and well-managed projects can be a solid investment for owners to reduce their own energy costs and potentially open additional revenue avenues while playing their part in creating a more sustainable future.

To find out more about how you could integrate floating solar into your real estate, talk to our Sustainable Infrastructure team.

Contact: Bryan.Thomas@jll.com