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A solution to our data center woes? Covering California&r...
Efosa Udinmw · 2026-05-09 · via Latest from TechRadar
Solar Canal
(Image credit: Premier Energies Via PV Magazine)

  • Covering 4,000 kilometers of canals would save 63 billion gallons of water and generate 13GW of power annually
  • Pilot project shows significant drops in water loss and algae growth
  • Critics argue that the project is too expensive, and preventing canal evaporation can be counterproductive

California's extensive canal network could become a massive source of clean energy while saving billions of gallons of water each year.

A University of California study found covering roughly 4,000 kilometers of canals with solar panels would generate 13GW of power annually and save 63 billion gallons of water.

That amount of water is enough to meet the residential needs of more than two million people every single year.

What the pilot project has proven so far

A small-scale demonstration called the Nexus project was built to test whether this concept actually works in real-world conditions.

The 1.6-megawatt Nexus installation sits on canals operated by the Turlock Irrigation District, and after one full irrigation season, the covered canal sections showed evaporation reductions of 50 to 70% beneath the solar arrays.

Algae growth dropped by 85%, which significantly reduces the cost of maintaining the canals and cleaning water pumps.

The shade also keeps the solar panels cooler than ground-mounted alternatives, improving their electricity output by roughly 2.5 to 5%.

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India has already built similar canal-top solar projects, proving the concept works across different climates and geographies.

Despite the clear benefits, this idea faces resistance, and the major obstacle is cost.

Canal top solar requires heavy steel support structures that must span the width of the water channel below, and these structures alone can account for up to 40% of the total project cost, significantly more than ground-mounted solar farms.

Critics argue that canals are designed for water delivery, not as foundations for industrial infrastructure.

Such designs will require regular access to the canals by maintenance crews for desilting and repairs, and overhead panels would complicate that work significantly.

Some also point out California has plenty of cheap desert land where traditional solar panels can be installed at much lower expense.

Though a solar farm on desert land costs less and avoids the engineering complications, it does nothing to save water, a long-standing Californian issue, as the state has already lost 40% of its Colorado River allocation this year, and every drop saved matters.

What would need to change for widespread deployment

The economic calculation of this idea shifts when water savings are given real monetary value.

Canal top solar prevents evaporation in a state that regularly faces severe drought conditions, and also generates electricity exactly where agricultural demand exists, reducing transmission losses from distant desert solar farms.

From another vantage point, canal top solar could ease data center power demand, which usually places enormous strain on local grids and water supplies.

It generates clean power exactly where it is needed, reducing transmission losses and avoiding the need for new transmission lines.

The water saved through evaporation reduction could be used to cool data centers instead of being lost to the atmosphere.

A single data center can use millions of gallons of water each year, and canal shading preserves that resource for productive use.

The 13GW of potential generation from California's canals could power hundreds of data centers without requiring additional land or stressing the state's overtaxed grid.

That said, preventing evaporation, which the canal top solar will do, is not a guaranteed win.

It will likely have minimal impact on the local humidity and can disrupt aquatic ecosystems by reducing dissolved oxygen, which is like solving one problem while creating another.

The Nexus pilot will continue collecting data to determine whether California scales the concept or decides the ecological and operational trade-offs aren't worth the energy gains.

Via PV Magazine


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Efosa has been writing about technology for over 7 years, initially driven by curiosity but now fueled by a strong passion for the field. He holds both a Master's and a PhD in sciences, which provided him with a solid foundation in analytical thinking.