Floating solar panels could save cities millions. Is your town next?

What if your town could build a solar farm without giving up acres of valuable land? Lima, Ohio, is trying something different. The city has completed a 2-megawatt solar array that floats on the Twin Lakes Reservoir, its primary drinking water source.

More than 3,000 solar panels now sit on the water and feed electricity to the nearby water treatment plant. The city projects the system will save nearly $10 million in electricity costs over its lifetime. That kind of savings could get the attention of cities far beyond Ohio.

So, could floating solar panels eventually show up on a reservoir near you? Here's how the technology works, why cities are interested and what it could mean for your community.

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Lima officially celebrated the completion of its Twin Lakes Floating Solar Project on Aug. 12. The final system includes 3,120 solar panels spread across about 3.6 acres of water, according to developer D3Energy. The 2-megawatt array sits on Lima's primary drinking water reservoir. That reservoir serves roughly 35,000 residents.

Next door, the city's water treatment plant processes about 14 million gallons of water each day. It also consumes more electricity than any other city facility. That makes the plant an obvious place to look for energy savings. Lima projects the floating solar system will save nearly $10 million in electricity costs over its lifetime. Earlier city estimates put first-year savings at roughly $200,000. For a city utility, that is serious money. Actual lifetime savings will depend on factors including future electricity prices and how the system performs over time.

Instead of attaching panels to racks planted in the ground, engineers mount them on floating platforms. Anchors and mooring lines keep the array in position.

Lima uses Ciel & Terre's Hydrelio floating system. Its anchoring setup connects to the banks and reservoir bottom. The design also allows the array to move as water levels change. The project uses bifacial solar panels, which can capture light on both sides.

Electricity travels from the array to eight inverters onshore. From there, the electricity helps power the water treatment plant. The result looks a bit like a traditional solar farm that traded grass for water.

Here is where the idea gets particularly interesting. Land costs money. It also competes with housing, businesses, agriculture and other development. Reservoirs already occupy space. Lima's floating array covers about four acres.

A land-based system producing the same amount of electricity would reportedly need at least 10 acres. That could make floating solar attractive to cities with limited open space. The panels can also sit near the facilities that need the electricity. In Lima, the water treatment plant sits right beside the reservoir. That reduces the need to find a distant solar site and then figure out how to move the electricity where the city needs it.

Researchers have also studied whether floating solar can help reduce evaporation by shading portions of the water surface. Of course, every reservoir comes with different conditions. Water depth, changing levels and recreational use can affect whether a project makes sense. Federal researchers also consider existing dam operations when evaluating potential sites.

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This was one of my first questions. These panels are floating on the same reservoir that provides drinking water to about 35,000 people. Lima's system uses Ciel & Terre Hydrelio floats made from high-density polyethylene, or HDPE.

Ciel & Terre says its floating system complies with the BS 6920:2000 standard for nonmetallic materials that come into contact with water intended for human consumption. Still, communities considering floating solar have more to evaluate than whether the structure can float safely.

The National Renewable Energy Laboratory has examined environmental and regulatory questions surrounding floating solar. Its research notes that projects can affect water bodies differently depending on the location. That means a system that works well on one reservoir may require a different design somewhere else.

There is another number worth paying attention to. The Lima project cost about $5.3 million. Federal support played a substantial role in making the numbers work. The city received a $2.4 million Department of Energy grant. Combined with almost $900,000 in federal direct-pay tax credits, that support helped offset roughly half of the project's cost.

Those incentives covered a significant share of the upfront expense. That context is important when another city looks at Lima's projected $10 million in savings. A town considering floating solar would need to look at construction costs, financing and expected electricity production. Available incentives could change the calculation as well.

Lima began considering the project years before crews put panels on the water. City Council approved moving forward with the project in 2023. Construction began in 2025 before the system came online this August.

Lima may look unusual today, but floating solar has substantial room to grow. Ohio already has more than one project. D3Energy and ARP Solar completed a 1.5-megawatt floating array for Del-Co Water in Delaware, Ohio, in 2024. A 6-megawatt system in Monroeville is expected to come online before the end of 2026.

The bigger opportunity stretches far beyond Ohio. National Renewable Energy Laboratory researchers studied federally owned or regulated reservoirs across the U.S. They estimated those reservoirs have technical potential for 861 to 1,042 gigawatts of floating solar capacity.

That figure represents technical potential rather than a prediction that thousands of reservoirs will soon disappear under solar panels. Plenty of locations would never make sense.

Still, the scale helps explain why energy developers and local governments are taking a closer look at water. CyberGuy has covered this idea before on a much larger scale. India's Omkareshwar project showed how enormous floating solar installations can become. We have also seen developers rethink the shape of solar installations on land. One Texas company is building vertical solar towers designed to produce more power from a smaller footprint.

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Here is the part I would keep an eye on. Lima expects to save nearly $10 million in electricity costs over the project's lifetime. But that does not mean residents will suddenly see a cheaper water bill. The city could use those savings in different ways. Lower energy costs could help cover other expenses, pay for infrastructure upgrades or ease pressure on future rate increases.

So, if a floating solar project comes to your town, there is one question worth asking: Will any of those savings eventually make their way back to you? That answer could determine how much this technology really helps the people paying the bills.

You probably do not spend much time thinking about how much electricity your local water plant consumes. Yet you ultimately help pay for that electricity through taxes, utility rates or both. Floating solar gives cities another way to attack that expense without buying a huge parcel of land.

It also raises questions you should ask before cheering on a project. How much will it cost? How much electricity will it realistically generate? What happens to the savings? You should also ask what testing and monitoring will protect the water supply. Those answers will tell you whether a floating solar project makes financial sense for your community.

What I like about Lima's floating solar project is how practical the idea feels. The city already owns the reservoir, and its water treatment plant right next door uses a huge amount of electricity. So instead of finding another piece of land for solar panels, Lima put them on the water. Then there is the projected $10 million in savings. That certainly gets my attention. I want to see whether those savings hold up over time and, more importantly, whether residents eventually benefit from them. Lima also gives other cities something real to look at. We are seeing communities experiment with new ways to generate and store energy, from floating solar to massive battery projects. And who knows? The next solar project in your town may end up floating right on the water.

Would you be comfortable with thousands of solar panels floating on your town's drinking water reservoir if officials said the project could save millions, or would you need to see more long-term evidence first? Let us know by writing to us at Cyberguy.com.

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