Water is one of Nepal’s greatest natural assets. The National Lake Conservation Development Committee (NLCDC) lists 626 documented lakes across the country, alongside countless rivers and reservoirs. Most hydropower here is run-of-river, but storage projects such as Kulekhani I and II have already proven their worth. More are on the way, including the Tanahu Storage Hydropower Project, which will be completed in 2026, while large-scale schemes like the Budhigandaki Hydropower Project, West Seti Hydropower Project and Dudhkoshi Hydropower Project are in the pipeline. Each of these reservoirs offers a wide expanse of unused water surface, perfectly suited for floating solar.
On land, large solar farms require more than 0.5–0.7 MWp per hectare. In many countries, that means displacing agriculture or natural habitat. In Nepal, agricultural land is legally protected from such use, making FPV even more attractive. Floating panels don’t just generate power; they free up land for farming, housing, or conservation.
It also has many benefits. According to a study, reservoirs in the world can lose up to 40% of their water to evaporation. [2] The floating panels shade the surface, slowing the loss of precious water while also blocking the sunlight that fuels algae growth and making water clean, which is better for hydropower turbines and nearby communities.
Installing FPV on hydropower reservoirs means solar power can tap into existing transmission lines and grid connections, lowering project costs. Reservoir sites are often located close to demand centers, reducing transmission losses. Unlike ground-mounted systems, FPV requires minimal site preparation — no land grading or heavy foundations are needed.
FPV panels rest on pontoons made from durable, lightweight materials like polyethylene or fiber-reinforced plastics, often with aluminium or steel frames. The water below keeps them cooler by as much as 5–10°C [3], which boosts efficiency and reduces the thermal losses that limit conventional solar output. Less dust in the open water means cleaner panels, and cleaning is easy with a ready supply of water at hand. A study by Rai [4] found that FPV in Nepal could be 18% more efficient than ground-mounted systems, and global experience suggests gains of 1–10% are common. The key cost difference between ground-mounted and floating PV lies in the floating structure itself, along with the anchoring and mooring system, both of which are highly site-specific. While FPV installations generally have higher upfront costs than ground-mounted systems, their improved efficiency helps offset part of this gap. Even so, the levelized cost of electricity (LCOE) for FPV remains slightly higher. In a conservative scenario, where the performance ratio (PR) improves by 5%, FPV’s LCOE is estimated to be about 8–9% higher than that of ground-mounted PV. In a more optimistic scenario, with a 10% PR boost, the gap narrows to just 3–4%. [1]
Hydropower and Floating Solar complement each under. In Nepal, solar power peaks in the dry season when hydropower production often decreases, and in wet seasons, due to cloudy and no-sun days solar power decreases whereas hydropower productivity increases. [5] During sunny days, FPV can supply daytime demand, allowing hydropower to be used for evening peaks or cloudy periods, acting as energy storage. At pumped-storage facilities, surplus solar can even be used to pump water back uphill for later use, turning a reservoir into a giant renewable battery.
Nepal’s wealth of water, its hydropower infrastructure, and the natural seasonal balance between sun and water put it in a perfect position to lead the floating solar revolution. With FPV, the country could expand renewable capacity without sacrificing land, conserve water, and unlock new levels of efficiency, paving the way for a cleaner, more resilient energy future.