The global adoption of floating solar systems continues to gain significant momentum, particularly in regions such as Europe, Japan and China. Since its introduction between 2006 and 2007, the technology has experienced remarkable growth, with a notable surge during 2012-15, driven by China’s top runner incentive programme. According to SolarPower Europe, as of 2022, global floating solar capacity had surpassed 5 GW, with China maintaining its leadership position in the Asia-Pacific region. Moreover, by 2023, Asia represented over 90 per cent of the world’s demand for floating solar systems.
India’s journey in floating solar began in 2015, marking the start of substantial growth in this domain. Recent developments have significantly transformed the landscape, with 2024 witnessing several milestone projects. Notably, November 2024 saw Tata Power Renewable Energy commissioning the 126 MW Omkareshwar floating solar project. This Rs 6 billion project, awarded by NHDC Limited, supplies clean power to Madhya Pradesh Power Transmission Company Limited and houses the world’s largest inverter floating platform, spanning 260 hectares of waterbody area. SJVN achieved another significant milestone by commissioning its 90 MW Omkareshwar floating solar project in August 2024. Other developers that have set up floating solar projects at Omkareshwar in the past year include AMPIN Energy transition (100 MW) and NHDC Limited (88 MW).
Studies conducted by TERI and the Centre for Study of Science, Technology, Environment and Policy estimate India’s floating solar potential to be between 206 GW and 280 GW. States such as Madhya Pradesh, Maharashtra and Odisha have emerged as front runners in exploration and implementation.
Market dynamics and growth drivers
India’s ambitious target of achieving 500 GW of installed non-fossil fuel capacity by 2030 continues to drive the floating solar sector. Renewable energy (excluding large hydro) comprises approximately 35 per cent of the country’s total installed electricity generation capacity, as of November 2024. While ground-mounted installations dominate the solar power segment, persistent challenges related to land availability and acquisition delays have necessitated the exploration of alternative applications, including floating solar.
The advantages of floating solar installations over traditional ground-mounted and rooftop systems are substantial and multifaceted. The technology’s land neutrality effectively addresses the growing competition for land resources, eliminating associated licensing and land preparation costs. According to industry experts, these installations demonstrate over 10 per cent higher energy yield compared to land-based installations, attributed to the cooling effect from the water surface, which reduces module temperatures by approximately 5-10 degrees.
In addition, strategic co-location with existing hydro/thermal power facilities enables seamless integration with pre-existing electrical infrastructure, minimising additional power evacuation requirements. The installation process itself is more streamlined, as these projects require minimal preparation once waterbed feasibility is confirmed, leading to shorter deployment times. Environmental benefits are equally noteworthy, with studies indicating up to 40 per cent reduction in water evaporation rates at floating solar sites, along with reduced algal activity, contributing to lower water purification costs.
Recent tender activity
The floating solar market in India has demonstrated remarkable dynamism throughout 2024, with significant tender activity across multiple states. December 2024 saw the Damodar Valley Corporation issue the year’s largest tender of 234 MW in Jharkhand, while Coal India announced a 5 MW project in West Bengal in October. GAIL initiated a 7.75 MW tender in Madhya Pradesh, while the Navi Mumbai Municipal Corporation issued a substantial 100 MW tender in March, and NTPC issued a 26 MW tender in Chhattisgarh in February.
Despite the considerable number of tenders floated, the auction landscape reveals the sobering reality of the floating solar market. While tenders have proliferated across states, the conversion rate to successful auctions remains concerningly low. In 2024, only a handful of auctions reached completion, with Madhav Infra Projects securing a 15 MW NTPC-SAIL project in Chhattisgarh and L&T winning a 100 MW project from SECI in Jharkhand. Earlier auctions saw players such as SJVN, NTPC and Hinduja Renewables secure projects in Madhya Pradesh, yet the gap between auction success and project commissioning remains substantial. This pattern indicates underlying challenges in project viability and execution, despite the strong market interest indicated by the tender activity.
Technical and cost considerations
The cost structure of floating solar projects continues to demonstrate distinctive characteristics, with modules and floating structures representing the majority of total hard costs at 75 per cent, according to Renewable Watch Research. The remaining cost components encompass marine civil works, balance of system costs, inverters and electrical works. Accounting for soft costs of 9-10 per cent, the total floating solar project cost in India continues to command a premium of 1.4-1.6 times that of ground-mounted solar projects.
Challenges and risk factors
The floating solar segment faces a complex array of challenges that demand careful consideration. The higher capital expenditure requirement, while justified by enhanced energy yield over the operational lifespan, presents a significant initial hurdle. Environmental considerations remain paramount as understanding of long-term effects on waterbodies and marine life continues to evolve, particularly regarding changes in algal growth patterns. The specialised nature of water-based installations necessitates specially trained personnel and equipment for operations and maintenance, adding another layer of complexity to project management.
The April 2024 incident at the Omkareshwar dam project serves as a crucial case study in infrastructure resilience. When a storm with winds reaching 50 kmph caused significant damage to the installation, it highlighted the critical importance of robust design considerations for extreme weather events. This incident has prompted renewed focus on comprehensive environmental and weather pattern analysis for site selection and design specifications, alongside the implementation of advanced weather monitoring and early warning systems.
The regulatory landscape presents its own set of challenges, with projects requiring multiple approvals from various waterbody owners across different states. The absence of standardised water rights agreements often leads to extended deployment times and potential cost escalations. Despite the entry of several domestic and international players, the availability of specialised manufacturers in the floating solar segment remains limited compared to the ground-mounted solar segment, creating potential supply chain constraints.
The way forward
Floating solar technology has firmly established itself as a viable segment of India’s renewable energy landscape. While recent major project commissioning milestones demonstrate the sector’s potential, the gap between tender announcements and successful project execution highlights the need for systematic improvements across the value chain.
The path forward demands concerted efforts in multiple directions. Research and development must focus on designing systems that can withstand India’s diverse weather conditions, as demonstrated by the Omkareshwar incident. This includes advancing floating structure technologies and integrating sophisticated monitoring systems. The regulatory framework needs significant enhancement, particularly in standardising water rights agreements and establishing clear testing and certification protocols. Without these foundational elements, the sector may continue to see a substantial gap between tender announcements and project completions.
Development of the industry requires a balanced approach combining financial support for domestic manufacturers and floor tariffs to ensure project viability in the initial years. These measures, coupled with comprehensive site assessment protocols and environmental impact studies, will be crucial in converting the sector’s potential into reality.
Despite current challenges in infrastructure resilience, regulatory frameworks and project execution, the floating solar segment shows promise. The entry of established players and ongoing technological advancements suggest positive long-term prospects. As the industry matures and addresses its growing pains, particularly in converting tenders into operational projects, the cost gap between ground-mounted and floating solar installations is expected to narrow. However, this transition will require sustained commitment from all stakeholders – developers, regulators and technology providers alike – to overcome the current hurdles and establish floating solar as a mainstream renewable energy option in India.
