The solar carport market is estimated to be valued at USD 606.1 Bn in 2024 and is expected to reach USD 1,173.6 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2031. Strong growth of the solar carport market can be attributed to increasing awareness about renewable energy sources and the environmental benefits of solar power.

Market Driver - Reduced Solar Panel Costs

The costs of solar panels and associated components have declined drastically over the past decade. Solar panels today cost around 89% less than they did ten years ago which has made installing solar carports a very attractive proposition. The upfront installation costs, which were previously a major barrier for adoption, have come down tremendously. This has lifted one of the biggest roadblocks for businesses and homeowners who were reluctant to invest in solar earlier due to high initial capital outlay.

As solar panel production has increased massively worldwide, manufacturers have been able to reduce costs by leveraging automation, supply chain efficiencies and incremental innovations. Also, Chinese manufacturers entering the solar carport market in a big way have led to cut-throat competition which has continually pushed panel prices southwards.

All these factors have aligned to bring the levelized cost of solar electricity at par with or even below than grid power prices in many areas. For solar carport owners, the low costs mean they can recover their investment in a shorter time period through energy savings. This contributes to making solar carports a very attractive long term investment proposition.

Market Driver - Government Policies and Incentives

Government policies around the world have played a pivotal role in boosting the adoption of solar energy solutions like carports. Major countries have introduced attractive demand incentives, project subsidies, tax credits and renewable portfolio standards to drive the transition to clean energy.

In the United States, the Federal Investment Tax Credit provides a 26% tax credit for commercial and residential solar installations which includes carports. This helps lower the upfront costs significantly. Many state governments also provide additional incentives in the form of rebates, property tax exemptions, low interest loans etc. These types of incentives have encouraged widespread deployment of solar carport projects.

For businesses, the tax credits can help maximize returns on solar carport investments. The supportive policy environment assures return on investments and creates long term certainty for wider adoption. As policies strengthen renewable energy goals over time, the solar carport market continues to grow from strength to strength.

Market Challenge - Land Use and Space Limitations

One of the key challenges faced by the solar carport market is lack of available land and space for large scale installations. As solar carports require substantial horizontal surface area for panel installation, they consume significant real estate space. This becomes a major hindrance especially in densely populated urban areas where availability of unused land is limited.

Property owners often hesitate to set up carports due to concerns over sacrificing existing parking or garden areas. High population densities also mean more compact property sizes with little to no additional space for renewable structures. Addressing land use concerns and optimizing space utilization will be important for the long term growth of the solar carport market.

Manufacturers may need to explore innovative structural designs that minimize footprint without compromising on generation capacities. Local governments could also help by offering policy support and incentives and identifying appropriate public lands for commercial solar carport projects.

Market Opportunity - Modular and Scalable Designs for Better Adaptability

One significant opportunity available for solar carport manufacturers is to design their products and solutions in a modular and scalable way. Customers have varying needs based on factors like location, budget, required capacity and available space.

A key way to make carports more appealing for these diverse application scenarios is to develop flexible, modular solutions that can be easily adapted. Panthers need to offer standardized building blocks and framing systems that allow for customized configurations. Individual rows or sections should be capable of being added or removed depending on the installation area. Power outputs too must be scalable through incorporating the right number and type of panels.

Modular designs will empower customers to right-size their carports and invest in renewable energy in a phased manner. They also improve transportability and speed of installation. This adaptability can help carports gain wider acceptance across different segments of the solar carport market.

Strategy 1: Partnering with property developers and commercial builders

A successful example is SolarCity which partnered with large property developers and builders to install solar carports in their developments.

Strategy 2: Offering affordable financing options

SunPower, one of the leading players, offers solar carports through a zero-down financing program where customers pay only for the power generated. About 65% of their commercial customers opt for long term power purchase agreements or leases.

Strategy 3: Focus on large commercial and industrial clients

Sunrun focuses on selling multi-megawatt commercial solar systems and solar carports to large companies. In 2018, they completed a 5 MW project for Anthropic which included solar panels installed on carports and the facility rooftop.

Strategy 4: Strategic acquisitions to grow markets

In 2019, SolarEdge acquired amodule manufacturer and an inverter manufacturer to further vertical integration. This helped expand into the electric vehicle charging market as their products are now compatible with EV charging.

Insights, By Application: Convenience and Return on Investment Drive Commercial Adoption

In terms of application, the commercial segment contributes 76.3% share of the solar carport market in 2024, owning to the convenience and return on investment it provides to businesses. Commercial properties such as warehouses, manufacturing facilities, shopping malls, and big box retailers have large parking lots that are well-suited for solar carports.

By installing solar carports, commercial businesses gain a reliable source of on-site power generation without consuming valuable rooftop or ground space. Furthermore, many commercial customers see solar carports as a long-term investment that reduces their electricity bills over 15-20 years.

By leveraging federal and local incentives, the upfront capital costs of installing commercial solar carports can often pay for themselves within 5-7 years through savings on energy bills. As electricity prices continue rising and more commercial customers recognize these benefits, demand within this segment is expected to experience steady growth.

Insights, By Type: Structural Integrity and Design Flexibility Fuel T-Shape Carport Dominance

In terms of type, T-shape solar carports contributes 42.2% share of the solar carport market. Unlike other carport designs, the three-sided T-shape structure provides sturdy support on all sides of parked vehicles like two rows of columns would. This makes T-shape carports suitable for handling heavier snow or wind loads compared to cantilever or semi-cantilever designs. The horizontal beam at the top also distributes any weight from solar panels across multiple support columns.

At the same time, the open front of T-shape carports allows them to accommodate vehicles aligned in either perpendicular or angled parking configurations. Overall structural reliability and versatile applications have made T-shape the preferred solar carport type for withstanding varied weather conditions and parking arrangements.

Insights, By Vehicle Arrangement: Space Optimization Drives One-Row Carport Dominance

In terms of vehicle arrangement, one-row vehicle arrangement carports contribute the highest share in the solar carport market due to better optimizing limited parking space. Properties with space constraints commonly require Stack parking to maximize the number of vehicles parked in a given area. However, two-row carport design would allocate more space than needed between rows of parked cars, reducing the total capacity.

One-row solar carports instead position the vertical support columns efficiently along either side of a single centered row of vehicles. This optimizes usage of horizontal space underneath. With one unified solar panel canopy spanning the length, one-row carports also present a uniform aesthetic better suited for settings where appearance matters. Their linear structure construction is simpler versus two-tier designs as well. One-row solar carports are projected to remain the preferential arrangement for locations where packing in parking spaces as densely as possible underneath is paramount.

• The solar carport market is witnessing significant growth driven by declining solar panel costs and increasing adoption by the commercial sector.
• With over 76% share of the global solar carport market in the commercial application and the promising adoption of electric vehicles, solar carports have become a sustainable energy solution. Modular and scalable designs are pivotal in addressing spatial limitations, making them viable in urban and semi-urban regions.
• The residential segment is also gaining traction in the global solar carport market due to rising awareness and government incentives.

The major players operating in the solar carport market include SunPower Corporation, SolarCity (Tesla), Martifer Solar, Schletter Inc., Envision Solar, Solar Electric Supply, Solaire Generation, Orion Solar Racking, Hanwha Q Cells, Phoenix Solar AG, Quest Renewables, Kokam Co., Ltd., Ecolibrium Solar, Carport Solar, and Premier Carports.

• In April 2024, The Port Authority of New York and New Jersey partnered with TotalEnergies to initiate New York's largest solar carport project at JFK International Airport. This project, developed in collaboration with the New York Power Authority, involves erecting a solar canopy in one of JFK's long-term parking lots.
• In June 2022, Maruti Suzuki India Limited inaugurated a 20 MWp solar power plant at its Manesar facility in Haryana, India. This installation, recognized as Asia's largest carport-style solar plant, is designed to generate 28,000 MWh of electricity annually.

• By Application
  • Commercial
  • Residential
  • Others
• By Type
  • T-shape Solar Carports
  • Cantilever Solar Carports
  • Semi Cantilever Solar Carports
  • Others
• By Vehicle Arrangement
  • One-row Vehicle Arrangement Carports
  • Two-row Vehicle Arrangement Carports