Solar canopies on UK car parks: an innovative step along the road to net zero?

Net zero by 2050 and a decarbonised grid by 2030 are ambitious targets for the UK. Car parks present opportunities for innovative solutions to help achieve those targets.

There are around 40,000 – 50,000 private car parking sites and 20,000 council-run sites across Great Britain. These spaces offer an opportunity for renewable energy generation, providing effective use of land and a new revenue stream for owners.

Recognising this, DESNZ has opened a call for evidence on a proposal to mandate the installation of solar canopies on new outdoor car parks in England, Wales and Northern Ireland. Requiring deployment on existing car parks of a certain size is also being considered.

Canopies would provide localised power for EV charging points, shelter for cars, reduced electricity bills for owner/operators and the potential for revenue by selling surplus energy back to the grid under the Smart Export Guarantee (SEG) or a PPA. DESNZ estimates that an 80-space car park could generate around £22,000 per year exporting all energy generated via the Government-backed SEG scheme.

DESNZ is seeking to identify barriers to implementation, and cites cost, feasibility, maintenance, network constraints and the varied ownership and operating models of car parks as possible issues. The proposal also acknowledges the need for exemptions for certain sites, such as very small car parks and those in areas with poor grid infrastructure.

How can energy from solar canopies be utilised?

When generation exceeds demand, DESNZ suggests the sale of surplus power by the owner – but on-site battery storage is also an option. Battery storage offers a back-up source of power for any co-located sites with power demand, which is particularly useful given the intermittent nature of solar power. 

Locating solar generation on a car park, particularly with battery storage, could also boost the rollout of EV charging infrastructure. DESNZ estimates that there are 76,000 publicly available charging devices as of 1 April 2025, which needs to rise to 300,000 by 2030 to match forecast charging demand. Concurrently with the solar canopy proposal, the call for evidence requests feedback on whether the Government could amend planning regulations to facilitate greater roll out of EV charging infrastructure.

DESNZ notes the benefits of combining low carbon technologies with battery storage solutions and EV charging, for example in providing lower energy tariffs to EV owners. 

What should be considered when exporting solar power?

DESNZ says that solar canopies may provide a new revenue stream for owners who could sell the power to a nearby business through a private wire agreement. This bypasses the grid and avoids the associated cost and time-consuming process of connection. However, any owner seeking to enter into a private wire agreement may require specialist legal advice in relation to the contract itself and the applicability of licensing requirements under the Electricity Act 1989. 

Exporting the power to the national grid under a PPA would provide an alternative to a private wire agreement. However, lengthy wait times for connection may leave an exporter with excess power and no way to sell it.

Are solar canopies on car parks financially feasible?

Mandating solar canopies will impose a capex burden on car park owners/operators. DESNZ estimates that an 80-space cark park would incur an installation cost of £140,000, foregone revenue during the installation period of £180,000 and annual maintenance costs of £1,400. There are also costs associated with grid connection (for example, the need to construct or upgrade the necessary infrastructure) and the variation of design and construction phases for car parks which are yet to be built.

None of the questions posed by the DESNZ mention funding options or suggest that the Government is considering sharing the financial burden. There are currently no open grants available from central Government which could help private car park owners to cover the upfront costs. Owners may need to utilise third party funded solutions. 

How we can help

At Bird & Bird, our longstanding involvement in major UK and international solar projects forms part of our deeply rooted and widely recognised renewable energy practice. You can rely on our cross-practice team of lawyers with strong experience advising across all the contracts and project-related issues required for the design, build, finance, consenting, operation and offtake of solar projects. This expertise is what makes us trusted advisors to some of the industry's largest solar project developers, EPC contractors, banks, funders, manufacturers and suppliers.

If you’re interested in utilising property or land to develop solar power generation, whether installing solar canopies on a car park or otherwise, then don't hesitate to get in touch with the authors of this article.

Written by George Matthew, Senior Associate, and Eloise Barry, Trainee.