Solar canopies and electric vehicle charging

Infrastructure Limitations

Some new and existing sites may face spatial constraints that make it difficult to accommodate necessary electrical components, such as inverters and battery storage systems, alongside solar canopies. These technical challenges may add complexity and cost to the task of building new car parks or retrofitting existing ones. This could discourage investment without targeted incentives or regulatory support. Furthermore, the existing electrical infrastructure in many car parks may be inadequate to support the deployment of solar PV installations, as most car parks were not designed with renewable energy integration in mind.

Networks

Constraints on the distribution network can create difficulties for new generation projects. Significant upgrades may be required, including the installation of new substations, higher-capacity transformers, and advanced metering systems to manage bidirectional energy flow. The surge in demand for connections over the past few years has created a lengthy connection queue, which any uptake in solar canopies may add to. Timelines and costs could be affected further where transmission upgrades are required.

We are aware that different Distribution Network Operators (DNOs) take different approaches to connection offers. We are keen to gather evidence on the treatment of solar canopy connections to date.

DNOs must ensure that new solar generation projects can be accommodated, either by existing network infrastructure or by upgrading the network.

If car parks were required to install solar canopies, it is likely that they would be applying for new grid connections, or upgrades to existing connections, simultaneously. It is possible that, to offer timely connections to all eligible car parks, some DNOs would require export limitation for a period of time, potentially at zero. This may prevent car park operators from exporting electricity to the grid initially, limiting income for excess power generated.

Ofgem, the National Energy System Operator (NESO), and the DNOs are currently embarking on a suite of reforms, aimed at improving the process for connecting customers. We expect this work to be complete by the time any mandatory standards for solar canopies on car parks are introduced.

Export Tariffs

Some car park owners/operators with solar PV installed may want to export some or all of the generated electricity, rather than consume onsite/locally. There may be difficulties in securing an export tariff which the owner/operator deems sufficient to recoup the upfront costs. This could limit the financial case for solar generation.

Skills/Supply Chain Issues

Putting solar canopies on car parks will have an impact on demand for skilled installers, electricians, project managers, and engineers. If small businesses or individual installers predict greater returns from, for example, residential rooftop installations, it may be difficult to attract enough workers for car park canopy projects. There is a noted shortage of EPC companies, who provide end-to-end solar services, from design to procurement to installation and maintenance. The recruitment of structural engineers is particularly crucial since, unlike rooftop, ground mount, and floating solar installations, car park canopies often require concrete platforms as foundations. There is, however, the potential to use non-concrete foundations, including ground screws, helical piles and steel ballasts. The extent of flexibility will depend on site conditions and canopy design.

The solar panels and electrical components needed for solar canopies are very similar to the parts required for rooftop solar deployment. We are not aware of any significant issues with the solar supply chain that would hinder the additional level of rooftop solar deployment.  There is an abundant global supply of solar panels, with prices falling in recent years.  The overwhelming majority of panels installed in the UK are imported. China dominates solar PV manufacturing globally, but there is evidence to suggest that the solar manufacturing industry is experiencing diversification on a global scale, with burgeoning industries in the US, Europe, India, and elsewhere in the Far East.

There has also been reporting that some companies involved in the global solar supply chain may be linked to forced labour, including in the mining of polysilicon used in the manufacture of solar panels. The Government is committed to tackling this issue, and is already taking action, for example, through the Procurement Act 2023, the Solar Taskforce, and more recently, through our amendment to the Great British Energy Bill.

Permitted Development Rights (PDRs)

In December 2023, the government introduced a new PDR to allow for the installation of solar canopies in non-domestic, off-street car parks in England. This means that the canopies can be installed without an application for planning permission. The PDR is subject to various conditions and limitations to control impacts and protect local amenity. These include that the development can only be up to 4m in height, must be more than 10m from the curtilage of any nearby houses or blocks of flats, and that canopies may not be used for the display of advertisements.

There are some exclusions, including that car parks in the curtilage of a listed building or a scheduled monument do not benefit from the PDRs.

In all cases, developers must apply to their local planning authority to find out whether prior approval will be required for the project. Local planning authorities can consider the canopies’ siting, design, external appearance, and the impact of glare on the occupiers of neighbouring premises. In certain areas, such as conservation areas, National Parks and World Heritage Sites, the impact on the appearance of that land can also be considered.

Landlord/Tenant/Operator Stakeholder Interaction

The ownership and operating structures of car parks may present a significant challenge to the implementation of this proposal. The primary issue arises from the split between landowners, who hold decision-making authority, and operators, who manage the car park's day-to-day operations. Many car parks, particularly those in suburban retail parks or owned by large-box retailers, fall under this split model which makes it unclear which stakeholder will be most directly impacted by the proposal and which we should engage with.

On the other hand, for car parks owned and operated by the same entity, such as those managed by NCP or Q-Park, it is more straightforward to identify who will be most directly impacted. These companies are likely to be more receptive to renewable energy initiatives, given their direct control over operations. However, many of their sites are multi-storey car parks, the surface area limitations of which restrict the potential coverage of solar canopies. This reduces the overall impact and scalability of the policy.

Smaller operators with fewer resources may face significant barriers in terms of both funding and technical expertise, further complicating policy implementation. These structural issues highlight the need for tailored engagement strategies (and incentives) to ensure the policy’s success across different ownership models.

Questions

These are the barriers that have been identified that might hinder solar canopy uptake. The government is interested to understand views on these potential barriers.