Solar canopies and electric vehicle charging

Closes 18 Jun 2025

Costs for Car Park Owners

This proposal would necessitate structural supports capable of bearing the additional load of solar canopies, as well as electrical infrastructure to handle energy generation and potential bidirectional energy flow. Incorporating battery storage systems and EV charging points might also be essential to optimize energy use, manage peak loads and maximise the benefits to owners, adding further complexity and cost. Car park owners would need to engage skilled professionals, including structural engineers, architects, and Engineering, Procurement and Construction (EPC) firms, from the outset. These investments may be offset over time by revenue from energy generation and reduced operational costs.

There are several costs which may be associated with putting solar canopies on car parks, both new and existing. In this section we explore our initial view of what those might be. We are keen to understand further the impact of solar canopies on wider society, owners/operators, customers of the car parks and business/public sector. The DESNZ statistics and analyses that follow in this chapter consider (and aim to reflect) the plurality of business scenarios and ownership structures in which car parks operate.

Installation Costs

One of the largest costs is expected to be the installation of the solar canopy itself. This includes, but is not limited to, the cost of buying the components and paying for installation.

DESNZ is seeking comment on estimates that the cost to install solar canopies on, for example, an 80-space car park, would be around £140,000 (2025 prices).

The government recognises that public sector car parks, particularly those managed by local authorities, face their own set of financial constraints. Councils may prioritise essential public services over the increased capital required to construct solar-equipped car parks. Furthermore, the financial viability of solar canopies in public sector (and potentially for private) car parks is influenced by their location, usage patterns, and integration with EV charging infrastructure. If solar generation capacity were to exceed local demand, the feasibility of selling excess electricity back to the grid depends on grid connection costs, capacity and export tariffs, which vary regionally.

Grid Connection Costs

For car park owners who choose to sell the generated electricity back to the grid, there may be an additional cost associated with setting up the necessary infrastructure to allow electricity to flow to the local distribution network. We expect that most existing car parks are already connected to the grid, but this connection (or the local substation) may need upgrading to allow for the increased quantity of electricity being exported or demanded. This cost would vary by the location of the car park and distance to the nearest point of connection to the grid, as higher costs are anticipated where cables need to be longer. If electricity were self-consumed or sold peer-to-peer via a private wire, then this cost would not materialise. Private wire infrastructure would incur a cost and ongoing operation & maintenance, however.

Foregone Revenue

For existing car parks, installing solar canopies may result in all or part of the car park being unusable during the installation period. This reduction in usable parking spaces will result in lower revenue during the installation period. For example, DESNZ is seeking comment on the estimate that an 80-space car park may incur foregone revenue of around £180,000 during the installation of solar canopies (2025 prices).

Familiarisation Cost

It will take time for new car park owners to understand and implement the new regulations or for existing car park owners to familiarise themselves with the requirements. This would include planning the installation. There is likely to be a cost associated with this. We would expect this cost to be lower per site for owners of multiple sites, since it should only be incurred once.

Maintenance Costs

There will be some cost associated with the maintenance of solar canopies once installed, from cleaning and repairs. For example, DESNZ is seeking comment on the estimate that an 80-space car park with solar canopies installed may incur an annual maintenance cost of around £1,400, including costs for cleaning and repairs (2025 prices).

Cost Variation for New Car Parks

Mandating solar canopies on new car parks would introduce unique challenges and costs that differ from retrofitting existing facilities. For new developments, compliance with the policy would require integration of solar PV systems into the design and construction phases.

The financial implications for developers include higher upfront construction costs due to the need for reinforced foundations, specialized materials, and advanced design work to accommodate solar installations. This applies especially to projects incorporating EV charging points. This could act as a deterrent for smaller developers or those operating on tight margins.

However, the policy could present an opportunity to standardise solar-incorporated designs for new car parks. This could reduce costs over the long term by agglomerating industry knowledge, fostering economies of scale, and streamlining regulatory processing points. Furthermore, installation costs could be lower for new car parks as developers can plan installation into the production process.

New car parks are also likely to experience lower or no foregone revenue, as they will not need to suspend operation of the car park to allow for the installation. Given the currently available evidence, this is expected to result in a significant reduction in upfront costs compared to existing car parks.

Questions

These are the costs that have been identified that could fall to car park owners to cover. The government would be interested to understand views on these potential costs.

10. Do you agree that we have identified all the major costs that could emerge to car park owners from the installation of solar canopies?
11. Do you agree with the estimated costs and assumptions relating to: installation, grid connection, missed revenue, familiarisation and maintenance?
12. How do you think these costs may differ between existing car parks and new car parks?
13. How would you cover the costs arising from the installation and maintenance of solar canopies? Please provide any relevant qualitative or quantitative evidence.
14. Would mandating the installation of solar canopies impact your decision to construct new car parks?
15. If you were looking to develop a new car park and solar canopies were mandated, would you look to install and manage the solar panels in-house, or sell/lease the car park area to another company?
16. Would mandating solar canopies on new car parks impact other planned investments such as building new housing or other solar/renewable generation installation (e.g. on the roof of adjacent buildings)?
17. How does the cost of solar canopy installation compare to installing solar elsewhere (e.g. on rooftops or in nearby solar farms)?
18. If solar were mandated on car parks, how long should the implementation period be, in order to reduce costs and disruption?