Floating photovoltaic (FPV) systems have emerged as an innovative and sustainable solution for renewable energy generation, offering advantages such as enhanced efficiency, land conservation, and integration with aquatic environments. This review examines critical factors influencing the efficiency, cost-effectiveness, and long-term viability of FPV systems compared to conventional land-based photovoltaic installations. Key considerations include the natural cooling effect of water, structural stability under environmental forces, electrical system optimization for safety and performance, and site selection to balance ecological preservation with energy generation. The study also explores maintenance strategies to address challenges like biofouling and corrosion, along with the environmental impacts of FPV systems on aquatic ecosystems, water quality, and biodiversity. Advanced corrosion protection methods, including multilayer coatings and cathodic protection, are highlighted for their role in extending system durability, while innovations in design, such as compliant modular structures, address stability in variable-depth and high-stress environments. FPV systems benefiting from reduced maintenance and enhanced energy output due to water's cooling effect. Case studies, such as the Huainan Coal Mine FPV system in China and the Omkareshwar Reservoir FPV project in India, demonstrate the transformative potential of FPV technology in mitigating climate change, optimizing land use, and promoting energy security. The review provides a comprehensive framework for successful FPV system deployment, offering actionable insights for engineers, policymakers, and stakeholders to advance sustainable energy solutions.