A new SPV - Solar power value
The potential solar photovoltaics (PV) energy generation opportunities for the UK from car parks and rooftops.
3 minutes to read
To have any hope of reaching net zero, harnessing solar power will be critical and car parks and rooftops could be part of that solution. Beyond reducing emissions during operation, this renewable energy source offers property owners income opportunities, as well as energy cost stability and savings. Delving into the solar potential on these surfaces, we uncover how the UK might achieve its ambitious 70 GW capacity target.
Leveraging grey, not just green space
In 1883, Charles Fritts made history by coating a thin layer of selenium with an ultra-thin layer of gold, laying the groundwork for the first solar cell. Now, 140 years later, global solar photovoltaics (PV) boast a staggering capacity generation exceeding 1 terawatt (TW). The UK contributes around 1.5% of the global total, equivalent to 15 gigawatts (GW) of capacity. However, the ambition reaches far beyond, with plans to quintuple this capacity to 70 GW within the next 12 years.
Our report, A New SPV – Solar Power Value, delves into how the UK can achieve this goal without overwhelming the countryside. Drawing inspiration from France and Germany, where solar panels are mandatory for car parks, the UK could nearly double its capacity with an additional 12 GW (on top of the current 15 GW) — enough to power 8 million households.
But that's not all. If 35% of UK households act on their consideration to install solar panels, as indicated by the Knight Frank Residential Sentiment Survey, capacity could increase by 26.2 GW. We also explore newer, larger industrial units that could add 1.7 GW. Factoring in those awaiting or under construction, the UK's capacity could reach a remarkable 67 GW.
For property owners considering rooftop or car park PV, there are a considerable number of factors to consider, such as suitability, sunlight, cost, and grid connectivity. The last point has been a huge impediment to renewable deployment, as we previously outlined. However, there has been a lot of positive momentum here recently. Chancellor Jeremy Hunt outline announced in the Autumn Statement plans to improve grid connection, which will 'cut grid access delays by 90%'. This comes as Ofgem approved proactive queue management (from 27 November), which should remove stalled projects and 'allow ready-to-go generation and storage to enable net zero' to be 'fast-tracked.' The National Grid has already begun accelerating some projects.
In the report, we outline possible benefits and income streams, with the largest logistics owners showing a potential average annual return of £180,000 to £1.25 million, depending on size, consumption and export options. For the average size explored, the potential annual income is up to £114,000 and would have a payback period ranging between 7 and 20 years, with an internal rate of return (IRR) of up to 16%. Additionally, we highlight the potential for almost 50,000 fast EV charge points through car parks alone — a crucial component for futureproofing properties in response to occupier demands.
Ultimately, our report showcases numerous opportunities for property owners and developers to expand renewable capacity, future-proof properties, and tap into revenue streams. A prime example is the development of a 1.1 MWp solar car park aimed at powering Eastbourne District General Hospital, reducing emissions, and providing 10 EV charge facilities for staff.
This report underscores the imperative of exploring innovative approaches to enhance the UK's solar energy capacity. While grid infrastructure is a pivotal component, optimising built-up spaces, including car parks and rooftops, emerges as a strategic alternative to relying solely on rural landscapes with competing land use demands. This not only holds the potential to catalyse development but also opens up new revenue streams for property owners, aligning with the imperative to future-proof assets against evolving demand requirements.
For more on the opportunities for solar and EV, read the full report here.