Solar canopies and electric vehicle charging

Mandating solar canopies on new car parks may have many benefits for their owners. These could include: self-consumption from electricity generation; shelter for cars and drivers; and localised power for EV charging points. Examples of potential benefits are given below.

Revenue Generation - Export

Solar PV allows car park owners to generate revenue by selling their surplus energy back to the grid under the Smart Export Guarantee (SEG) or a Power Purchase Agreement (PPA). This can provide a reliable income stream. For example, DESNZ is seeking comment on the estimate that an 80-space car park could generate around £22,000 per year through the installation of solar canopies and exporting all the electricity generated via a Smart Export Guarantee scheme (2025 prices).  

An alternative would be for a car park owner to sell the electricity to a nearby business with demand through a private wire agreement. The benefit of this would be that the off-taker would receive power at a lower rate than that available on the retail market. The generator (i.e. the car park owner) receives payment for the generation.

However, the car park owner would need the resources to understand how this works in practice and have the ability to interpret legislation and processes. They would be required to provide the upfront funding to construct a private wire. A private wire agreement would also incur ongoing operating and maintenance costs.

Self-consumption (Bill/Fuel Savings)

Another potential benefit from having solar on car parks is that the electricity generated can be used by the owner for self-consumption. For example, a large supermarket could use the electricity generated in its car park to reduce the amount of power it must buy from the grid. Consuming the electricity in this way rather than selling to the grid could also help recoup upfront installation costs.

For example, DESNZ is seeking comment on the estimate that an 80-space car park could save around £28,000 per year in electricity bills by installing solar carports and consuming all electricity generated (2025 prices).

EV Charging

Solar canopies could support EV charging infrastructure within car parks. By integrating solar PV systems with EV chargepoints, reliance on grid-supplied energy can be reduced, potentially lowering electricity costs and charging costs for EV-users. Onsite generation could reduce the size of the grid connection request. However, this would depend on: the capacity of the chargepoints and solar installation; when the maximum demand for the site would be (i.e., whether it would coincide with generation); and the capacity of any battery storage. Also, DNOs plan/model for all scenarios, including that the solar panels would export to the grid.

This setup would enable direct charging from solar energy during daylight hours, improving productivity of the land. Combining solar canopies with energy storage systems could help manage peak demand and ensure a stable power supply for EV chargers, making car parks more self-sufficient in energy, and contributing to a resilient low-carbon transport network. This combination would also aid car park owners’ and operators’ desire to optimise the returns they make from the car park space and maximise its value. Please see Section 2 of this document for our proposals, and questions to be answered, regarding EV charging infrastructure, the planning system, private, public and on-street charging.

Improved Value of Car Park

Installing solar canopies on a car park may increase its value, benefitting the owner if it were to be sold.

Diversifying Assets

Car park owners may be keen to diversify their portfolios and maximise the value of the car park space. Assets which generate electricity could be beneficial for them by providing an alternative revenue stream. There have already been moves within the industry towards this. For example, some operators have taken to installing parcel lockers on the car parks they manage as part of a deal with delivery companies.

Enhanced Customer Experience

Installing solar PV canopies improves the overall experience for customers by providing shade and protection from adverse weather conditions. Conversely, there is a risk that the shadier areas created by solar canopies could pose security risks. In hot weather, vehicles benefit from reduced internal temperatures, whilst during rain or snow, customers enjoy shelter as they park or retrieve their cars. These enhancements could increase customer satisfaction. Additionally, by reducing the surface temperature of asphalt, solar canopies could help to mitigate the urban heat island effect, creating a cooler environment for both vehicles and pedestrians.

Sustainability Credentials

Solar PV installation is a visible demonstration of commitment to environmental sustainability. Such initiatives align with growing consumer preferences for environmentally responsible businesses. These sustainability efforts can bolster a company’s brand reputation, and attract environmentally conscious customers. Furthermore, generating electricity from renewables would be seen as particularly positive in areas where high energy demands are coupled with an abundance of land use for parking, like suburban retail parks. Deploying solar canopies in these areas could also improve the sustainability of businesses that use the car park.

Questions

These are the benefits that have been identified could emerge from the installation of solar canopies on car parks for owners. The government would be interested to understand views on these benefits.