Business Model: Solar Carport

The solar carport model can be operationalised in two ways. In its simplest form, solar canopies can be installed over public car parking spaces to offset grid imported electricity at a nearby site. In a more complex system, EV charging points and battery storage can be integrated with solar to provide EV charging and other services. In this report, our research focuses on the latter.

This model can be enacted by local authorities as follows:

Local authority designs, builds and commissions solar, storage and EV charging assets at a site.
Solar energy may be used to provide renewable electricity to the site (if there is existing demand such as a building), to charge batteries and/or to provide EV charging services
If EV charging points are made available to the public, a billing solution will be required (this is discussed further in Section 6. Feasibility).
The local authority may generate additional revenue from exported energy from battery storage

This will require an additional commercial arrangement.

This model can be operationalised using two approaches:

Utilising public car parking and putting solar over the top
Providing EV charging services, integrated with solar and storage at the site

Requires an off-taker of sufficient size to make business case stack up
A solution will be required to bill EV users, most likely through a partner
An export connection required for any power not used on site and where storage is being used for flexibility services
More ambitious “charging hub” projects being explored by Dundee, Oxford and West Midlands Combined Authority

Key Benefits

Financial and CO2

Value is dependent on utilisation of EV chargers and battery
More EVs and reduced costs of storage will increase value in future

Other Benefits

Accelerating roll out of Net Zero by integrating solar and EV charging
Improved access to EV charging
Local skills and jobs
Improved air quality and impact on health

Risks and Considerations

Financial uncertainty – not a lot of real world data available
Requires a number of partners to maximise value (aggregator, charge point operator)
More technically complex to design and manage • Could be combined with business case to electrify public sector fleets
Very scalable – site capacity could be increased in future and business case will improve over time

Most Suitable for

Technology – solar, potentially supported by EV charging and storage
Urban areas where available sites / roof space for solar is more limited
Public car parking, especially multistorey car parking where top level can be used for installation
Public sector sites where parking is available, and they are looking to electrify fleets
Partnerships with other government departments (e.g., Transport and Healthcare) where large public car parking is situated

Contracts required

Delivery contractor – will need a multidiscipline installer who can support on the design and installation of the solution
Export connection – any excess electricity will need an export agreement in place with potential impacts on existing grid connection
Aggregator – if looking to earn revenue from flexibility services will need an energy partner or aggregator
Charge point operator – to maintain, operate and bill for an EV charging on site

Contractual Considerations

Need to consider how EV users will be charged and how revenue will be collected from the charge point operator – high utilisation of EV charging is crucial to business case.
Higher complexity for delivery contractor due to integrating multiple technologies – may require single specialist or a main contractor with the ability to sub-contract
More data would be required on availability of flexibility to enter into a contract with aggregator

Business Model: Solar Carport

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