Are Solar Canopies and Carports Worth it?

Solar canopies and solar carports are structures that support solar panels while providing usable, shaded space for homes  or commercial parking lots. They allow homeowners and businesses to harness Arizona's most abundant natural resource to reduce electrical expenses, while maximizing use of available space. 

Solar canopies can be especially useful in situations where homes or businesses don’t have a suitable roof for solar panels, whether due to shading, obstructions, or insufficient surface area. In this guide, we’ll share all you need to know about solar canopies and carports, including their benefits and drawbacks, what’s involved in the costs, and eligibility for solar incentives and rebates. 

What is a solar canopy?

Solar canopies are custom-built outdoor structures designed to support solar panels. They offer the dual benefit of generating solar energy while providing shelter or shaded areas for the space underneath.

The term ‘solar canopy’ can refer to several types of solar structures, including:

  • Solar carports
  • Solar pergolas
  • Solar gazebos. 

The main advantage of solar canopies is that they’re designed to keep the space beneath solar panels usable. This added functionality is what sets them apart from traditional rooftop or ground-mounted solar systems, which generate energy without providing multipurpose space. 

Building solar canopies isn’t as simple as attaching solar panels to any type of frame or structure. They need to be purpose-built using strong, durable materials that can safely support the weight of panels for the long-term, while providing wire management for the many electrical connections needed for solar panels. Solar canopies and carports are also specifically engineered to withstand a range of weather conditions, including heavy rain, snow, and high winds.  

Solar canopies can be applied in both commercial and residential settings, although they’re far more common in commercial applications. For schools and businesses, solar canopies provide a way to invest in infrastructure while also improving energy efficiency. Students, employees, and customers can benefit from additional shaded areas while schools and businesses lower energy costs and reduce their environmental impact. 

What are solar carports?

Solar carports, also called solar parking canopies or solar parking lots, are the most popular type of solar canopy. These structures provide a covered parking area that generates solar energy through a canopy made of photovoltaic (PV) panels. Many solar carport installations these days also include electric vehicle (EV) charging stations, allowing drivers to power their vehicles with renewable energy generated on-site. 

Solar carports can be customized to meet both commercial and residential needs. Commercial solar carports generally cover entire parking lots, making them ideal for businesses, schools, and shopping centers, while residential carports can be as small as a single parking space. 

How does a solar carport work?

Solar carports work similarly to ground-mounted PV systems, only they’re elevated high enough off the ground to allow vehicles to park underneath. This allows homeowners and businesses to benefit from the same solar benefits while maximizing use of available space. 

Solar carports can be especially useful in situations where rooftop solar isn’t suitable. This could be due to: 

  • Excessive shading from trees or nearby buildings
  • Limited roof space because of chimneys, gables, or vents
  • Roofs with improper orientation for solar energy production
  • Aging roofs.

Commercial solar carports

Commercial solar carports are becoming increasingly popular in outdoor parking lots attached to malls, supermarkets, corporate campuses, and EV charging stations. For businesses, the advantages of installing commercial solar carports are numerous, including:

  • More efficient use of space: Because solar canopies are installed over existing parking spaces, no additional real estate is required. 
  • Alternative to rooftop solar: They provide a solution for buildings that are unable to install rooftop panels, either due to insufficient space, shading, or other factors.
  • Shaded parking for customers & employees: Providing welcome relief from the hot Arizona sun benefits customers and employees alike.
  • Demonstrated commitment to sustainability: Visible solar carports offer a way to demonstrate a company’s commitment to renewable energy. This in turn can improve brand reputation and customer loyalty. 

See More: 5 Top Benefits to Solar Carports For Your Company

Residential solar carports

While less popular than commercial installations, residential solar carports are becoming more common. For homeowners, the advantages of installing solar carports include:

  • Alternative to rooftop solar: Solar carports are a great alternative option for homeowners whose rooftops aren’t suitable for solar or for those who don’t like the look of rooftop panels. 
  • EV compatible: Solar carports can double as both a parking space and charging station, making them popular amongst EV owners looking to drive on sunshine.

Pros of solar canopies and carports

To understand whether solar canopies and carports are worth it, we need to explore both their advantages and disadvantages. Let’s start with the benefits of installing solar carports in both commercial or residential settings. 

1. Additional electricity & lower bills

The most obvious benefit of installing a solar carport is being able to access clean, renewable electricity through solar power generation. This extra power can be used to charge solar batteries and EVs, or simply offset more of your electricity bills. 

Naturally, generating your own electricity reduces your reliance on grid power. When you buy less power from the grid, you save more money on electricity bills. These cost savings are one of the major benefits for businesses and homeowners looking into solar power. 

See: Are Commercial Solar Panels Worth It?

2. Maximum efficiency for solar panels

Like ground-mounted solar systems, panels on a solar carport can be tilted in any direction to maximize sun exposure throughout the day. This means they can be oriented at the optimal angle for maximum efficiency and energy generation, increasing savings even further. 

Rooftop solar panels, on the other hand, are largely limited to the orientation and angle of an existing roof. While this is generally enough to meet the needs of most businesses and households, it’s always good to know your solar panels are operating at peak efficiency. 

3. Maximize use of space

One of the standout features of solar carports is their ability to maximize use of space. This is especially beneficial in commercial areas where real estate is valuable. Beyond providing an area for cars to park, parking lots don’t offer much to a commercial property owner. With a solar carport installation, parking lots are transformed into renewable energy power plants that generate electricity and cost savings for the business, all while promoting a sustainable future. 

4. Protect vehicles from the elements

Of course, solar carports are still carports at their core – they provide welcome shaded parking areas for vehicles to help protect them from the elements. In Arizona, where scorching summer days can make parking your car under the harsh sun unbearable, we know how much comfort a shaded parking lot can provide. Even on rainy days, solar canopies allow drivers to return to the safety of their cars while remaining dry. 

5. Compatible with EV chargers

Both residential and commercial solar carports can be equipped with EV-charging infrastructure to add yet another benefit. Homeowners with EVs can reduce  their environmental impact even more by charging their vehicles with renewable energy, rather than relying on fossil fuels or costly grid power. 

For companies, integrating EV-charging infrastructure provides numerous benefits, including attracting eco-conscious customers, additional revenue streams, and improved employee satisfaction.

Read More: The Benefits of EV Charging Stations for Businesses

6. Reduce urban heat islands

When large areas of pavement are left uncovered, they can contribute to what’s known as the urban heat island effect. This happens when daytime temperatures in urban areas become 1-7°F hotter than their surrounding areas. Unsurprisingly, commercial parking lots are one of the major sources of uncovered pavements - and therefore the heat island effect here in Arizona.

Installing solar carports over commercial parking spaces can mitigate this effect by shading parking spaces, reducing heat buildup, and converting sunlight into usable energy instead of letting it reflect back into the environment. 

Cons of solar canopies and carports

We’ve covered the numerous benefits of installing solar canopies and carports, but what are some potential drawbacks? Below are some things to consider when planning a solar canopy installation.

1. Higher costs

One of the major drawbacks of installing a solar carport versus rooftop solar is the additional cost of the canopy structure itself. These structures often require custom engineering, durable support columns, and additional materials to ensure proper solar panel orientation. Additional permitting is typically required as well. Depending on your situation and energy consumption habits, the benefits of installing solar canopies can outweigh the initial costs, making them worth it in the long-term. 

2. Installation takes longer

Solar canopies require more  time to install compared to rooftop solar arrays. This is especially the case if the solar installation company is less experienced with assembling solar carports. For a fast, efficient, and high-quality installation, look for a reputable solar installer with demonstrated experience installing solar canopies – particularly if you’re planning a large-scale commercial project.

Keep Reading: Things to Know About the Commercial Solar Installation Process

3. Additional design & engineering considerations

Solar carports and parking canopies are complex structures that require additional design and engineering considerations to ensure they’re structurally sound and able to handle a wide range of weather conditions. This can lengthen the design process compared to rooftop installations, but it means you’re getting a high-quality installation that’s durable and long-lasting. 

4. Permits may be needed

Permits are often needed for commercial solar canopy projects, which can sometimes be complex and time-consuming to obtain. This is another reason to choose an installer with specific experience in solar canopies – they’ll often have relationships with authorities having jurisdiction, including HOAs, utilities, and permit offices. 

How much do solar canopies and carports cost?

Every solar canopy and carport project is different, and it’s hard to give a blanket cost estimate without knowing your unique requirements, location, and energy consumption habits. Generally, solar canopy costs will vary depending on the quality of materials used, the size of structure needed, and how many solar panels are required. 

For a reliable, customized cost estimate, contact our team at Sun Valley Solar Solutions for a free, no-obligation consultation. 

See: What to Know About Commercial Solar Panels

Are there incentives for solar carports?

Yes, solar canopies and carports are eligible for solar incentives and tax credits. 

For eligible businesses, commercial solar canopies can qualify for the federal solar investment tax credit (ITC), which offsets up to 30% of a solar purchase. Every commercial solar system also qualifies for the Modified Accelerated Cost Recovery System (MACRS) method of depreciation. For agricultural producers, the USDA also provides a grant under the Rural Energy for America Program (REAP). This is only available in select towns across the country and covers 25% of a solar investment up to $500,000 for qualifying businesses. 

For eligible homeowners, the same federal solar ITC offsets up to 30% of the cost of a solar system. Additionally, there is no sales tax charged on solar equipment in Arizona, and eligible homeowners can receive a state income tax credit of up to $1,000 for a solar purchase. 

These incentives can significantly reduce the upfront costs involved with solar canopy installations. Your solar installer can provide more guidance about what solar incentives you’re eligible for and how they can help offset upfront costs.

Summary: Are solar canopies and carports worth it?

By now, you should have a solid understanding of the benefits and considerations of installing solar canopies compared to rooftop solar panels. If you’re still not sure whether they’re the right choice for you, our team at Sun Valley Solar Solutions will be happy to provide further guidance. 

With 17+ years experience working with some of the biggest businesses in Arizona, we've made a name for ourselves as one of the top solar carport and canopy installation companies in the state. We can develop a customized solar carport solution for your organization, regardless of your energy goals or the available space in your parking lot. Contact us now to see how we can transform your parking spaces into a money-saving asset that not only benefits your business, but your customers and employees too. 

Interested in a residential solar canopy? Contact us for a free, no-obligation consultation to discuss whether a residential solar carport is suitable for your home. 

About the Author

Kyle Ritland, Marketing and Customer Experience

Kyle Ritland, Marketing and Customer Experience

After working in technology marketing throughout the Pacific Northwest and Silicon Valley for more than 20 years, Kyle opted to follow his heart and focus his talents in solar energy.

As the head of Marketing at Sun Valley Solar Solutions, Kyle works hard to demystify the ever-changing solar landscape in Arizona and across the country. He especially enjoys helping people separate fact from fiction by presenting solar transparently and accurately, rather than relying on hype or deceptive marketing tactics that are far too common with some solar companies.

When not touting the benefits of solar, encouraging his friends to opt for paper over plastic, or growing his own vegetables, Kyle is generally found hiking with his pointer Bravo or preparing a home-cooked meal for friends.

“If you truly understand how solar works it’s easy to see through the gimmicks. The opportunity for savings is very real when you have the correct information”