It’s estimated that 5% of the United States is covered with parking lots. While many lots can support solar canopies, they are relatively rare. Parking lots have value for owners, but can also provide an environmental benefit. Below are some of the financial advantages that come with a solar canopy.
Income
Solar canopies have multiple avenues to serve as an income stream for the lot owner. Depending on the size and scale of the lot, the power can be sold to a third party or wired into the facility to be sold to tenants. Which option is better for the owner will depend on several factors, such as proximity to transmission infrastructure.
Lot owners can also secure tax advantages. Under the Inflation Reduction Act, for example, any facility with a maximum net output of less than 1 MW automatically qualifies for tax incentives, and many parking lots under 10 acres will be below this threshold. Many of these credits can be paid directly instead of being applied to tax burdens, or the credits can be sold to entities with higher tax liability.
Even those without these advantages, lot owners still report substantial income. In a report, Yale Environment 360, an environmental magazine, spoke with representatives of the Evansville Regional Airport https://e360.yale.edu/features/putting-solar-panels-atop-parking-lots-a-green-energy-solution, which reported a first-year return of $310,000 on a $6.5 million project. In other cases, the lot’s solar rights are simply rented to a third party, with no upfront cost for the lot owner.
Comfort and convenience for users
For the people using your lot, they get a direct benefit by parking under the panels. The shade and absorption of the sun’s heat keeps vehicles cooler. It also reduces overall temperatures or heat islands in the area by limiting the energy absorbed by concrete and asphalt.
The panels can also support electric vehicle (EV) charging. S&P Global Mobility estimates that EV market share is likely to reach 40% by 2030, with up to 7.8 million EVs on the road by 2025.
For tenants, this can bring more business to retail areas. For employees at an adjacent office building, a charging stations connect to solar canopies can be an employment a perk for workers with EVs or those considering upgrading their vehicles to an EV.
Favorable siting conditions
Parking lots have to meet specific civil engineering standards, and it can make the canopy installation process more efficient and cost effective. Lots are already graded, have been thoroughly investigated during the design process and already have infrastructure such as drainage.
If you’re considering a solar canopy, take the following steps:
- Check your jurisdiction’s tax incentives and permitting requirements.
- Evaluate the location of your lot to determine whether power can be connected to the grid or is better used at the facility itself.
- Locate any geotechnical reports and other documentation from the design and construction of the parking lot and the adjacent building. Foundation cost for solar canopies will vary.
- Find a solar canopy developer and start the process.
