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How floating solar technology could contribute to the UK’s net-zero targets

While insufficient data can cause concern for underwriters covering projects with emerging technologies, such technologies could significantly contribute to the UK’s net-zero targets.
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By Darren Popham , 

Head of Sales, Power and Renewable Energy

24/11/2023 · 3 minute read

Innovative renewable energy technologies are emerging in the UK to support the country's energy transition. One of these technologies is floating photovoltaic (FPV) plants, also referred to as floating solar. FPV has the potential to both contribute significantly to the UK's green energy targets and enhance the security and resilience of energy supplies.

The benefits of FPV

FPV involves mounting solar panels on buoyant structures on a body of water, typically a large lake or reservoir. 

FPV has some noticeable benefits compared to other forms of renewable energy − particularly typical onshore photovoltaic (PV) plants. Some of these advantages include:

  • Fewer land-preparation costs. 
  • Reduced likelihood of land-use conflicts.
  • Greater water security through reducing evaporation.
  • Reversible installation. 
  • Ease of installation enabling FPV to be readily deployed across different water bodies.
  • Placement flexibility with rotation and sun tracking to maximise output without the need for greater infrastructure.
  • Improved safety via the cooling effect of the water surrounding the solar panels.
  • A significant reduction of algae blooms in water. However, careful planning is essential prior to installation to avoid affecting local ecosystems.  

Risks associated with FPV

Despite these positive factors, there are some risks to consider when planning FPV developments. Relevant risks can be separated between the construction and operation phases of FPV projects. 

Construction risks

  • Labour

FPV infrastructure requires labour with advanced technical skills. Suitable workers may be difficult to source due to the rise in solar projects and scarcity of expertise. Additionally, workers may also require upskilling to become competent with the different materials used.   

  • Costs

FPV construction presents different hazards for workers compared to more common construction projects. Consequently, potentially higher costs may be associated with labour requirements, staff training, and health and safety procedures. 

  • Supply chain

As the energy transition progresses, more companies are needed to manufacture the specific materials and equipment required for FPV projects.

  • Water levels

Potential water-level fluctuations should be considered during construction, as well as deep analysis of the soil or bedrock the project will be moored or anchored on. Any issues encountered may pose a risk to the physical infrastructure and endanger the long-term performance of FPV.

Operation Risks

  • Data

The lack of long-term FPV operational data presents a challenge for insurers evaluating risks based on historic losses. Common issues and faults associated with FPV may not currently be abundantly clear. Risk management, as well as the asset’s inspection and maintenance regime, may support a favourable risk assessment by insurers — especially in the early years of FPV when risk data is still evolving. 

  • Maintenance

Operational and maintenance activities are performed on water rather than land, adding complexity. Some maintenance may be subaqueous and require workers to dive, which may present additional hazards and costs.

  • Fire

Similarly to PV plants, there is a risk of fire on FPV plants. In 2020, an electrical fault caused a fire to break out on the floating solar farm at the Queen Elizabeth II Reservoir in London. The blaze damaged the connectors between floating platforms, causing some modules to sink and exacerbate the damage.

  • Theft and vandalism

FPV plants are often located in remote, rural settings. Consequently, projects are more vulnerable to the risk of theft and vandalism. Security and surveillance measures should be prioritised, but this could increase costs due to the seclusion of projects. 

  • Corrosion

FPV structures corroding is a concern, particularly for installations placed on salt water. Suitable, external coatings may be added to designs to limit damage. 

Risk mitigation

The risks outlined above can be mitigated to allow developers and investors to take advantage of newer renewable technologies. As FPV technology gains prominence, those involved should apply standardisation across testing, use of materials, and health and safety practices to help reduce some of the risks. 

Insurance can help to facilitate investment in renewable energy projects. Understanding the requirements of insurers and collaborating with them on new projects will be vital for ensuring that insurance coverage is available to help manage exposures.

Next steps

FPV can enhance the UK’s energy resilience and security. While some concerns remain associated with its development and operation, there are options for mitigation available. For instance, while insufficient data can cause apprehension for underwriters covering projects using emerging technology such as FPV, a broker with specialist knowledge and first-hand experience in the renewable energy industry can help with insurability issues.

For further information on FPV and other emerging renewable technology within the UK, please contact your Marsh advisor.

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