Scrutiny over land-based photovoltaic systems (LPV) infringing on agricultural land is increasing with heightened demand for electricity. As a solution, we investigated the electricity generation potential of installing photovoltaic panels on embankments of, and floating in, ~800 irrigation reservoirs covering ~11,300 ha in Arkansas. We compared floating photovoltaic systems (FPV) to LPV using a techno-economic feasibility study that quantified (1) the difference in surface area requirements and installation cost per MW, (2) reduced wave action on embankment erosion with FPV compared to uncovered reservoirs, and (3) evaporation water savings from photovoltaic panel shading. Sensitivity analyses on water area coverage and investor adoption were also performed. Assuming a 5-MW FPV, covering 25% of surface water, and comparing it to a 100-MW LPV, the annual added electricity cost was estimated at 8.99 USD (7.80–10.54) per household (max. +0.7%). With economies of size, larger than 5-MW FPV systems installed on all reservoirs could quadruple photovoltaic capacity compared to 2025 without agricultural land use diversion. Policy options analyzed included (1) subsidizing FPV using a fee on electric bills, (2) continuing federal photovoltaic investment tax credits to lessen installation cost differences between FPV and LPV, (3) encouraging renewable energy portfolio standards, or (4) using funding sources targeted at water savings.
Wagher et al. (2026) studied this question.