An array of 112 solar panels has been installed on one of the three basins of a waste water treatment plant operated by the Northern Areas Council (NAC).
Estimated to generate three times more power than fixed land-based systems, the new system will produce power required to operate the treatment plant.
The company will install a total of 6,000 panels at the plant, with bigger arrays to be equipped on the remaining two basins later this year.
Upon completion, the system is expected to generated electricity to meet the power needs of the local council and potentially to sell to other customers.
Infratech has signed a 25-year power purchase agreement to with NAC to draw power from the facility.
The solar panels float on a raft membrane that tracks the sun and cools using the water beneath. The cooling feature of the membrane avoids overheating of the panels and saves wastage of energy.
Infratech Industries director Felicia Whiting said: "On a broader scale, the technology is suitable for any body of water including drinking water and moving water bodies such as lakes."
Floating solar facilities are gaining momentum across the world.
Floating Solar UK has completed the first fully operational floating solar panel system in the UK, at Sheeplands farm in Berkshire, in October 2014.
Japan is also working on a similar project.