Solar carports are becoming more popular around the world as carpark owners realise they are a great way to turn dead space into their own energy powerhouses and slash their carbon footprint.
Our Solar Savings Index collected data from 500 large businesses in the UK and revealed UK businesses could save more than £1.4 billion and 570,000 tonnes of carbon over the next decade by producing solar energy in their car park spaces.
The UK government is now considering following in our French neighbours’ footsteps where owners of carparks with more than 80 spaces now have to cover them with solar carports after issuing a call for evidence in May 2025.
Currently there are two popular options available to carpark owners wanting to install solar carports; Power Purchase Agreement (PPA) and buying them outright.
Power Purchase Agreement (PPA)
A PPA is simply an agreement between a solar panel company or a group of investors who provide the funding for the solar carports on your carpark over an average of 25 years.
You and the owner of the solar carports agree a fixed price for the electricity produced with any excess energy sold to the National Grid.
No maintenance costs and long-term price certainty
The advantage of PPAs over purchasing solar carports outright is the carports belong to the solar carport company or the investors and therefore they’re responsible for maintenance.
Not having to pay maintenance costs and knowing you have unlimited access to cheap, sustainable energy means your business can plan financially for the future without having to worry about the turbulent energy market and sudden hikes in prices.
Off balance accounting
Another advantage of leasing the solar carport through a PPA is that it is treated as an operating expense rather than a capital expense which is far more straightforward when it comes to accounting.
This gives you more financial flexibility and higher investor appeal because you don’t have the debt associated with capital expenditure when purchasing solar carports outright or through loans.
Purchasing solar carports
Some companies are fortunate enough to have the cash reserves to purchase solar carports outright so they will have a faster return on their investment.
Obviously, this is a great way of producing your energy without having to pay any interest on loans as well as accessing cheap sustainable energy while selling excess onto the National Grid for a profit.
Purchase through loans
Businesses and organisations can also take advantage of green loans to buy solar carports.
These are widely available from UK banks. British Business Banks, the development bank of the UK, provides guidance and a list of all the banks offering green loans.
Interest rates and maintenance
However, you will have to factor in the average cost of lending of between 7.5 to 8.5 per cent depending upon the size of your project and your credit risk.
Another disadvantage of owning the solar carports is you will be responsible for maintenance costs over the years.
Capital Allowances
However, purchasing a solar carport will mean you can claim capital allowances through the Annual Investment Allowance.
You will be able to deduct the full cost of the solar carport from the taxable profits in the first year, reducing how much corporation tax you pay.
A choice that suits your business or organisation
Whether you sign a PPA with carport company or a group of investors, or purchase solar carports outright or through a green loan, really depends on your financial circumstances, risk tolerance and long-term goals.
Solspan has been installing solar carports for many years and our team of experts will be more than happy to advise you on the best option and help you set up a PPA agreement if that’s the choice you end up making.
Our unique Solar Savings Calculator can also help you work out how much money you will save by installing solar carports.
If you’d like to find out more then please contact us.
