Political, Social, Economic, and Regulatory Considerations

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Advocating for Floating Solar

Advocating for Floating SolarAdvocating for Floating SolarAdvocating for Floating Solar

In the Colorado River Basin and beyond.

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Mission

Water Wise Solar Solutions was formed to study the application of Utility Scale Floating Photovoltaic Solar Arrays as an effective mitigation strategy for evaporative water loss within the Colorado River Basin.

Colorado River Basin (CRB) Water Supply

Saving Water with Floating Solar

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Political, Social, Economic, and Regulatory Considerations

May 5, 2025

The current political landscape reflects a growing awareness of the interconnected challenges posed by water scarcity, energy reliability, and climate resilience. While skepticism toward renewable energy lingers in certain sectors, the region has increasingly embraced clean energy development as part of its broader strategy to transition toward sustainable infrastructure. This includes recent legislative efforts to expand solar, wind, and energy storage, as well as long-standing commitments to water conservation across municipal and agricultural sectors.

Floating photovoltaic (FPV) systems offer a uniquely aligned solution to the West's dual challenges of long-term drought and clean energy generation. By emphasizing FPV as both a water-saving and clean energy-generating technology, advocates can appeal to a wide spectrum of stakeholders, from environmental groups to municipal utilities to economic development agencies. The value proposition of FPV is strongest when it is framed as practical infrastructure that conserves limited surface water while leveraging existing reservoirs for energy production.

Public adoption will still require careful outreach, particularly in communities where recreational water use is vital. Concerns around visual impacts, shoreline access, and seasonal use can be addressed through thoughtful siting and phased deployment. In many cases, FPV can be limited to low-use or underutilized sections of reservoirs, minimizing disruption while delivering measurable benefits in terms of water savings, grid support, and local economic activity.

To fully realize the benefits of floating photovoltaic (FPV) technology, a comprehensive policy environment must be established—one that acknowledges the technology’s dual value as both a water conservation and clean energy solution. FPV sits at the intersection of several pressing state priorities: water security, energy resilience, and economic development. Because it utilizes already-impounded water bodies, requires minimal land disturbance, and can often connect to nearby infrastructure, FPV represents a strategic, low-conflict investment opportunity. However, for it to scale in a meaningful way, coordinated legislative support, regulatory clarity, and market-based incentives must be aligned.

Policy Recommendations

1. Legislative Support for FPV Development

Recommend the introduction of state legislation that encourages FPV deployment through:

  • Streamlined permitting
  • Targeted tax incentives
  • Public-private partnerships

Such a framework can reduce soft costs, speed up project timelines, and help scale deployment—especially where FPV is co-located with municipal infrastructure.

2. Standardized PPA Terms Indexed to Transparent Benchmarks

Propose the development of standardized PPA templates for FPV, with price indexing tied to a transparent market benchmark like CAISO or a similar regional-specific analog. This increases bankability, reduces legal negotiation time, and boosts investor confidence. Alignment with CEBA standards, but tailored to state policy goals, would serve utilities and developers alike.

3. Fast-Track FPV Projects Through State Legislative Priority

Support the creation of a legislative mechanism to prioritize FPV for:

  • Top-of-queue utility interconnection placement
  • Expedited regulatory reviews
  • Coordinated federal agency engagement
  • Defined stakeholder resolution pathways (for recreational or public use conflicts)

This approach mirrors fast-track provisions used in other states (e.g., California's AB 205) for clean infrastructure and would significantly reduce time-to-build.

4. Mandated Utility SREC Facilitation with No Markup

Instead of requiring utilities to sell SRECs without markup (which may face regulatory resistance), propose a state-managed FPV REC marketplace. Utilities could serve as facilitators through a clearinghouse model, with prices publicly posted and verified through an independent exchange.

5. Create an FPV-Specific SREC Carve-Out or Premium Market

Recommend an RPS carve-out or voluntary premium REC market specifically for FPV, similar to existing mechanisms for wind or community solar in other states. This helps maintain REC value despite oversupply from land-based PV and supports broader investor participation.

6. Preferential FPV Electricity Pricing

Rather than mandating fixed higher rates (which may conflict with utility least-cost planning), suggest:

  • Time-of-day or location-based pricing advantages for FPV
  • Performance-based incentives for FPV generation near constrained load centers

7. Quantified Water Savings for Water Rights Recognition

Instead of senior water rights (which are legally and politically difficult), propose a new class of "conserved water rights" or integration with the Strategic Water Reserve. FPV developers could be credited for quantified evaporation savings using validated hydrologic models.

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