A comprehensive review of economic and policy considerations for floating Photovoltaic Systems: Insight on national policies and sustainable development goals

Floating photovoltaic (FPV) systems offer a promising solution for both renewable electricity generation and water conservation. The Systems yield significant economic and environmental benefits, especially in land-constrained regions by using underutilized bodies of water such as reservoirs, lakes, and ponds. They reduce land acquisition costs and benefit from the cooling effect of water, which increases the efficiency of the solar panel and the energy output. Furthermore, FPVs can reduce water evaporation, an essential feature in drought-prone areas, while offering opportunities for integration with aquaculture and hybrid systems such as hydroelectric power plants and hydrogen fuel cells. However, challenges such as high capital and operating costs, potential environmental impacts, and complex decommissioning processes must be addressed. Global regulatory frameworks are essential to facilitate FPV adoption. Countries such as India, China, Brazil and Singapore have begun to incorporate FPV systems into their national renewable energy strategies, while Europe is focusing on environmental assessments and integration with existing water management infrastructure. To maximize the potential of FPV, harmonized international regulations and financial incentives such as subsidies, tax credits, and streamlined permitting processes are needed. In this sense, FPV systems are poised to contribute to the global transition to renewable energy by providing clean energy, improving water conservation, and supporting sustainable development. FPV systems contribute to at least eight Sustainable Development Goals (SDG) and it is expected that all economic and policy considerations will focus on these for further improvements. However, comprehensive policy frameworks, international cooperation, and continued research are critical to realize their potential.