"Actionable Insights to Fuel Your Growth"
The global commercial solar carport market size was valued at USD 927.31 million in 2022. The market is projected to grow from USD 991.72 million in 2023 to USD 1,828.45 million by 2030, exhibiting a CAGR of 9.13% during the forecast period.
Solar carports use photovoltaic (PV) panels to convert sunlight into electricity. This clean, renewable energy source reduces businesses’ carbon footprint and helps combat climate change. By generating their electricity, users can reduce reliance on the grid and save on energy costs. Excess energy can even be sold back to the grid, potentially generating additional revenue. Solar carports provide shade and protection for vehicles parked beneath them. This can extend the lifespan of vehicles by protecting them from the elements and reducing exposure to harmful UV rays. Many governments offer financial incentives, tax credits, and rebates for businesses that invest in solar installations. They can significantly reduce the upfront costs and improve the return on investment (ROI).
COVID-19 Severely Impacted Commercial Solar Carport Market Due to Supply Chain Disruptions
The COVID-19 pandemic disrupted supply chains globally, affecting the production and delivery of solar panels, mounting structures, and other components necessary for solar carport installations. Delays in the supply chain led to project postponements and cost increases. The economic downturn caused by the COVID-19 led some businesses to postpone or cancel capital investments, including solar carport projects.
Uncertainty about the future made it challenging for companies to commit to long-term investments. With lockdowns and restrictions in place, many commercial properties witnessed reduced energy demand due to decreased occupancy. This reduced the financial incentive for businesses to invest in solar carports. Many construction projects, including solar carport installations, were delayed or postponed due to the pandemic. This further impacted the commercial solar carport market growth. The COVID-19 led to labor shortages in various industries, including the renewable energy sector. The availability of skilled labor for commercial solar carport installations was limited, leading to delays and increased labor costs.
Access to financing for commercial solar carport projects became more challenging during the pandemic as banks and investors became more risk-averse. Businesses faced difficulties securing the necessary capital to initiate or expand solar projects. Some businesses temporarily shifted their focus away from sustainability initiatives, including solar carports, in favor of immediate financial survival during the pandemic. On the positive side, the pandemic underscored the importance of energy resilience. Some businesses recognized the value of commercial solar carports with energy storage systems as a means to ensure a reliable power supply during disruptions.
Increased Adoption of Energy Storage to Drive Commercial Solar Carport Market
The increased adoption of energy storage is a significant driver for the market. Energy storage solutions, such as batteries, can enhance the value and effectiveness of solar carports in several ways, encouraging their adoption. Energy storage allows solar carports to store excess energy generated during the day for use during nighttime or when solar production is low. This helps maintain a reliable power supply, especially in regions with unreliable grid infrastructure or during power outages. Energy storage enables businesses to store surplus solar energy and use it during peak demand hours when electricity from the grid is more expensive. This can result in significant cost savings and a more predictable energy budget.
Commercial and industrial electricity consumers often face demand charges based on their peak electricity usage during specific times. Energy storage can help manage and reduce these charges by providing power during peak periods. As the technology and cost-effectiveness of energy storage solutions continue to improve, more businesses recognize the benefits of integrating energy storage with their solar carport installations. This trend is expected to drive the growth of the commercial solar carport market by making these systems more versatile, resilient, and economically attractive. Additionally, government policies and incentives supporting energy storage and renewables further boost the adoption of energy storage in commercial solar carport projects.
Request a Free sample to learn more about this report.
Rising Energy Costs to Drive Commercial Solar Carport Market Growth
As energy costs rise, businesses and organizations seek ways to reduce their operational expenses. Solar carports allow them to generate electricity from the sun, reducing their dependence on expensive grid electricity. This can lead to substantial cost savings over time. Commercial solar carport installations offer businesses a fixed and predictable source of energy. With solar power, they can stabilize their energy costs, making budgeting and financial planning more reliable. Solar carports are designed to be long-lasting, with typical lifespans of 25-30 years or more. This long-term investment provides businesses with a secure and stable source of energy, insulating them from future energy price fluctuations. The financial returns from solar carports can be significant, especially when coupled with incentives and tax benefits. As energy prices increase, the ROI from commercial solar carports becomes more attractive.
In addition to the cost of electricity, businesses may also face other charges, such as demand charges and grid infrastructure fees. Solar carports can help reduce or eliminate these costs by generating on-site power. Solar carport systems can be designed to match a business's specific energy needs. This means they can generate the amount of energy required to offset a significant portion of a business's energy consumption, helping to control costs.
Outstanding Benefits of Solar Carports over Alternative Technologies Likely to Drive Market Growth
According to the International Renewable Energy Agency (IRENA), the installation of solar carports is gradually increasing, and various parameters are propelling market growth. Cost is one of the significant factors, as the application is moving out of the niche and into the mainstream, with electric vehicle (EV) adoption playing a major role. The price difference between solar carports and rooftop PV continues to narrow, making them an attractive and economically viable proposition in many markets.
Increased commercial-scale application is also being propelled by utilities, which are embracing distributed generation to enhance grid dependability. Finally, space-saving is another important characteristic, as carports better utilize already-developed land instead of using open land. A study by Callum Watts at the University of California, Davis, displayed that the 30 largest commercial buildings in the U.S. have a total parking lot area of more than eight million square meters. If all covered with solar canopies, this would produce around 15,000 MWh yearly.
Upper Costs of Solar Carports to Hinder Market Growth
Building a garage can be a costly venture for consumers who operate personal vehicles daily. Carport shades, with the addition of solar technology for clean energy to commercial buildings, can also incur significant expenses. The cost of a solar carport increases due to various factors such as the cantilever, the weight of the structure, taller vehicles, and guttering systems.
Solar carports become more expensive with additional steel required for the cantilever, high installation costs due to the weight of the structure, potential need for electrical equipment to be located outside the carport structure to protect it from accidental damage, requirement for parking bays to be orientated between south-east and south-west, extra steel needed for accommodating taller vehicles, and the complexity of designing and installing the guttering system.
Furthermore, the cost of the solar carport and associated services is primarily determined by the complexity of the structures. Consequently, the high cost of commercial solar carports acts as a barrier to market growth.
As per the data of Forbes 2023, the initial cost for installing a solar carport system can range between USD 18,000 and USD 25,000. A non-solar carport is much more inexpensive, somewhere between USD 4,000 and USD 10,000. Depending on how much consumers pay in electricity bills, however, it may easily overcome the cost difference in a matter of two or three years.
Furthermore, many projects have to access grid connection at an early stage, as many projects fail to obtain sufficient connection capacity at a cost that makes them financially viable. Additionally, in developing countries, the lack of technology to store solar energy owing to high upfront investments is also negatively influencing the market growth.
Two-Row Dual Slope Vehicle Arrangement Carport Segment to Dominate with Optimized Use of Available Space
Based on type, the global market is segmented into one-row vehicle arrangement carport, two-row vehicle arrangement carport, and two-row dual slope vehicle arrangement carport.
The two-row dual slope vehicle arrangement carport segment is projected to lead the commercial solar carport market share. The two-row dual slope arrangement optimizes the use of available space, allowing more vehicles to be parked in a smaller footprint. This is particularly advantageous in settings with limited space, such as urban areas, commercial properties, and institutions. The dual-slope design provides ample shade for parked vehicles. This protects the vehicles from the elements, such as rain, snow, and keeps the interior of the vehicles cooler, reducing the need for air conditioning and extending the lifespan of the vehicles.
The two-row vehicle arrangement in the car is a single roof supported by a row of beams. This structure is simple yet very effective. This car can be extended from an existing building with a wall attachment.
Above 1 MW Segment Holds Dominance as Its Offers Resilience to Electrical Grid
Based on capacity, the market is segmented into less than 500 kW, 500 kW to 1 MW, and above 1 MW.
The above 1 MW is the dominant segment in the global market. Solar carports with capacities above 1 MW can contribute to the stability and resilience of the electrical grid. They can inject a significant amount of clean energy into the grid, reducing strain during peak demand periods. The less than 500 kW segment is expected to grow at a significant CAGR during the forecast period. The increasing development of sub-500kW solar canopies for electric vehicle charging applications is driving segment growth.
To know how our report can help streamline your business, Speak to Analyst
T-frame Structures Segment Leads Market due to Its Cost-Effectiveness
Based on design, the global market is segmented into T-frame structures and V-frame structures.
The T-frame structures segment is the dominant segment in the global market. T-frame structures are often more cost-effective to manufacture and install compared to other carport designs. Their simpler design and reduced material requirements can result in cost savings for both suppliers and customers. T-frame structures are versatile and can be adapted to different site conditions and parking layouts. They are well-suited for both small and large parking areas, and they can accommodate single or double rows of vehicles.
V-shaped awnings have two structural support posts instead of one, providing additional support and stability. This makes them an ideal choice for larger commercial installations. Thus, the adoption of semi-cantilever solar awnings in applications such as large parking lots, educational institutions and corporate campuses will drive the growth of the segment.
The global market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Europe Commercial Solar Carport Market Size, 2022 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Europe holds the largest market share in the global market. Many European countries have implemented supportive policies and incentives to promote renewable energy, including solar power. These policies include feed-in tariffs, tax credits, and subsidies, making solar carports an attractive investment.
European countries have a strong commitment to environmental sustainability and reducing carbon emissions. This has driven the adoption of renewable energy sources, including solar carports, as part of efforts to combat climate change. Several European countries have set ambitious energy transition and renewable energy targets. Solar carports play a role in helping these countries achieve their renewable energy goals.
North America is one of the well-established regions due to several positive factors. Along with technological advancement, parking lots are an untapped opportunity for solar installations across North America, especially in the U.S. North America will be the dominating segment in the coming years, driven by the crucial awareness factors regarding current energy demand in the region.
The market in Asia Pacific is boosting due to the increasing adoption of electric vehicles and rising commercial sector applications. The demand for commercial solar carports has rushed in recent years to reduce the dependence on renewable energy sources. The increasing adoption of electric vehicles by private and government bodies is expected to be an important trend driving the demand for commercial solar carports.
The Latin America and the Middle East & Africa is expected to contribute significantly to the market growth during the forecast period. Many solar projects are under construction in this region due to the clean energy projects.
Tata Power Secures India's Largest Solar and Battery Storage Project, Completes 150 MW Solar PV Project in Rajasthan
In December 2021, Tata Power was awarded India’s largest Solar and Battery Storage Project from Solar Energy Corporation of India Ltd. (SECI). The project includes the building of a 100 MW EPC Solar project along with a 120 MWh Utility Scale Battery Energy Storage System (BESS). The total project cost is approximately USD 12.7 million (INR 945 Crore) and is expected to be executed in 18 months.
Tata Power Renewable Energy Ltd., a subsidiary of Tata Power, announced the successful commission of a 150 MW Solar PV Project at Loharki, Rajasthan, India. The project is spread across 756 acres of land with the installation of approximately 656,700 modules.
The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.
An Infographic Representation of Commercial Solar Carport Market
To get information on various segments, share your queries with us
CAGR of 9.13% from 2023 to 2030
Value (USD Million)
As per the Fortune Business Insights study, the market size was USD 927.31 million in 2022.
The market is likely to grow at a CAGR of 9.13% over the forecast period (2023-2030).
The two-row dual slope vehicle arrangement carport segment is expected to lead the type segment in the market.
The market size of Europe stood at USD 529.88 million in 2022.
Rising energy costs and outstanding benefits of solar carports are the key factors driving market growth.
Some of the top players in the market are Tata Power, SunPower Corporation, FlexiSolar, Quest Renewables, Inc., Cenergy Power, Antai Technology Co., Ltd, and others.
The global market size is expected to reach USD 1,828.45 million by 2030.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry