Report

The United Kingdom solar power market is expected to grow at a CAGR of 4.50% between 2025 and 2034.

United Kingdom Solar Power Market Growth

Solar power functions by transforming thermal energy from the sun into electricity. Solar power is a clean and infinite source of energy that produces zero harmful greenhouse gas emissions. One of the most crucial advantages of using solar energy is that it eliminates the use of fossil fuels. By 2020, more than 1 million roofs in the UK had solar panels installed. It is projected that by 2030, solar power will account for 20% of the UK's electricity generation, further boosting the United Kingdom solar power industry growth.

Rising electricity prices due to volatile fossil fuel costs, inflation, and geopolitical tensions, coupled with the growing adoption of renewable energy, are aiding the United Kingdom solar power market demand. Advancements and developments in better storage technology are also stimulating the United Kingdom solar power market growth. With the decline in the cost of energy storage, many households and businesses are adopting solar battery storage systems as they offer enhanced reliability and flexibility.

United Kingdom Solar Power Market Analysis

The implementation of multiple initiatives and policies by the UK government to encourage the adoption of renewable energy sources is aiding the growth of the United Kingdom solar power industry. For instance, policies like Feed-in Tariffs and Renewable Heat introduced by the UK government have encouraged businesses and homeowners to adopt alternative renewable energy systems.

The United Kingdom market dynamics and trends are being enhanced by its goals to achieve a fully decarbonised power system and a fivefold increase in solar generation by 2035. Consequently, businesses across the UK are collaborating to advance solar power systems. For example, in May 2023, Enso Energy and Cero Generation inaugurated a 49.9 MW solar plant, marking the UK's first PV solar array to supply electricity to the transmission network directly.

United Kingdom Solar Power Industry Outlook

As per the International Renewable Energy Agency, the solar energy capacity in the UK witnessed remarkable growth from 2011 to 2020. In 2011, the capacity was 1,000 MW. This figure almost doubled to 1,753 MW by 2012. The development continued with a significant increase to 2,937 MW in 2013. By 2014, the capacity more than doubled again, reaching 5,528 MW. The upward trend persisted, with the capacity hitting 9,601 MW in 2015. The period from 2016 to 2020 saw consistent growth. In 2016, the capacity was 11,914 MW, which increased to 12,760 MW in 2017. The capacity climbed to 13,073 MW in 2018 and reached 13,346 MW in 2019. The UK's solar energy capacity culminated at 13,563 MW in 2020. In 2020, the installed capacity reached to 27,300 MW in 2020. By 2021, the solar capacity reached 28,000 MW. From 2011 to 2021, the UK's solar capacity grew at an average annual rate of 29.6%. This increase in solar capacity is fuelling the growth of the United Kingdom solar power market revenue, supported by government incentives, heightened investment, and the environmental advantages of solar energy.

According to Solar Energy UK, the commercial-scale solar capacity in the United Kingdom is set for considerable growth across various deployment scenarios. In 2020, the capacity stood at 1.9 GW. By 2030, under the Net Zero scenario, it is expected to surge to 6.8 GW. The Moderate Ambition scenario predicts a capacity of 5.3 GW, reflecting a robust but slightly less aggressive expansion. In the Low Ambition scenario, a capacity of 4.8 GW is expected, reflecting steady growth. In contrast, the Business-as-usual scenario forecasts an increase to 3.6 GW by 2030. This anticipated boost in commercial-scale solar capacity, fuelled by advancements in infrastructure and technology, is a key factor driving the United Kingdom solar power industry revenue.

Strong policies and targets, like achieving a fully decarbonized power system by 2035, boost market confidence and investment.

- Major projects, such as the UK's first PV solar array feeding directly into the transmission network, demonstrate advanced capabilities.
- Increased commitment to sustainability from both the public and corporations is fuelling the United Kingdom solar power demand growth.

Solar power relies on weather conditions, causing variability in energy supply.

- Significant upfront investment for solar technology and installation.
- Managing and integrating large solar outputs into the existing grid infrastructure can be complex.

Advances in solar technology could enhance efficiency and reduce costs.

- Increasing demand for renewable energy opens new business and investment prospects.
- Opportunities to innovate and improve solar energy storage and distribution methods.

Potential changes in government policies or subsidies could impact market stability.

- Economic downturns could affect investment in solar projects and technologies.
- International competition and advancements in other renewable technologies could challenge the United Kingdom solar power market growth.

Key Players in the United Kingdom Solar Power Market and Their Key Initiatives

MAK Energy Ltd.

- Launched advanced solar panel cleaning drones.
- Introduced a financing option for commercial solar systems.

Lightsource bp Renewable Energy Investments Limited.

- Launched a 100 MW solar project in Kent to meet the growing demand of the United Kingdom solar power market.
- Partnered with UK schools to install solar panels.

Oxford PV

- Launched a commercial perovskite-silicon solar cell pilot.
- Achieved a world record efficiency of 28.6% for a perovskite-silicon tandem cell.

Ecotricity Group Limited

- Completed two new solar parks to enhance green energy capacity.
- Launched a green gas mill near Reading.

United Kingdom Solar Power Industry Segmentation

"United Kingdom Solar Power Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

- Photovoltaic System
- Concentrated

Market Breakup by Solar Module

- Monocrystalline
- Polycrystalline
- Cadmium Telluride
- Amorphous Silicon Cells
- Others

Market Breakup by Application

- Residential
- Commercial
- Industrial

United Kingdom Solar Power Market Share

In the residential sector, solar panels are increasingly deployed to lower monthly utility bills, enhance home value, and reduce greenhouse gas emissions. As per Solar Energy UK, in 2023, over 50,700 solar arrays were installed between January and March in households in the UK, driven by the looming energy crisis, rising electricity costs, and growing awareness regarding the benefits of solar panels.

The increasing launches of residential solar marketplaces in the country are also propelling the demand of the United Kingdom solar power market. For instance, in February 2023, Otovo, a European residential solar marketplace, launched its operations in the UK to provide a platform for customers to receive personalised insights regarding the benefits of switching to solar power.

Leading Companies in the United Kingdom Solar Power Market

Key players in the market are investing in research activities to reduce the costs of solar panel installation and maintenance.

- MAK Energy Ltd.
- Lightsource bp Renewable Energy Investments Limited.
- Oxford PV
- Ecotricity Group Limited
- Octopus Energy Ltd.
- Renewables First Ltd.
- Good Energy Ltd.
- UKSOL Ltd.
- Tongwei Co., Ltd.
- Maxeon Solar Technologies, Ltd.