UK Solar Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 18.53 gigawatt |
| Market Volume (2029) | 53.12 gigawatt |
| CAGR (2024 - 2029) | 23.45 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UK Solar Power Market Analysis
The UK Solar Power Market size in terms of installed base is expected to grow from 18.53 gigawatt in 2024 to 53.12 gigawatt by 2029, at a CAGR of 23.45% during the forecast period (2024-2029).
- In the medium period, factors such as supportive government policies and demand for renewable energy sources to decrease dependency on fossil fuels and carbon footprints are driving the UK solar power market during the forecast period.
- On the other hand, factors such as limited land and increasing adoption of alternative renewable energy sources are expected to hinder the growth of the UK solar power market during the forecast period.
- Nevertheless, the country has ambitious solar power targets to reach 40GW installed capacity by 2030. Such factors are expected to create opportunities for companies operating in the market during the forecast period.
UK Solar Power Market Trends
The Residential Segment is Expected to Witness Significant Growth
- The United Kingdom has witnessed significant solar PV installations over the past decade, supported by the government's incentives, which can be credited to the increasing demand for clean electricity.
- As of 2023, the United Kingdom registered 15,993 MW of solar capacity, which accounted for 4.8% of total electricity generation. This is an increase of 9.1% compared to the previous year. As per the report, the growth in solar PV has been dominated by numerous installations of less than 50 kW, including 172,000 new domestic installations in 2023, the most in a calendar year since 2015.
- In the United Kingdom, an average home consumes between 3 kWh and 6 kWh of energy daily, and accordingly, system sizes may vary. One of the most common system capacities installed is a 4 kW system, which is suited to satisfy the energy needs of a household of 3-4 people. However, a 5 kW solar system is typical for a home with 4-5 people, while a 6 kW solar panel system is suggested for a home with over five residents. Thus, most residential PV systems have a capacity below 10 kW.
- The primary factor driving the growth of the residential segment is the increasing energy prices in the domestic market. It is estimated that due to the recent energy crisis, energy prices have nearly tripled since 2000. Due to this significant rise in energy prices, many homeowners are turning toward solar to reduce home energy costs.
- With technological advancements and the increasing adoption of smart home technologies, the demand for solar power is expected to increase in the residential sector during the forecast period.
Declining Small Scale Solar PV Installation Costs is Driving the Demand in the Market
- The declining cost of small-scale solar PV systems and their installation has been one of the major factors driving the distributed solar power generation market in the United Kingdom for the past few years. The average cost of solar PV generating equipment, installing and connecting to electricity supply, and VAT of the systems between 0 kW and 4 kW declined between 2013 and 2023.
- This trend has led to a growth in the total number of solar PV installations in the residential, commercial, and industrial sectors in the United Kingdom. In FY 2022-3023, the country's total number of solar PV installations with a system size of less than 4 kW (primarily residential) stood at 1,15,648 systems, representing the highest number this year.
- Solar PV systems under 4 kW are majorly deployed as rooftop systems in the residential sector. Systems between 50 kW and 5 MW are deployed as rooftop and ground-mounted systems in large housing communities and commercial and industrial (C&I) sectors.
- Although supportive government policies, subsidies, and incentives supported the growth of small-scale and distributed solar PV markets in the United Kingdom until 2023, the declining cost of solar PV and associated systems are expected to drive the market during the forecast period.
- The average installation costs of small-scale solar photovoltaic systems in the United Kingdom fluctuated during the study period. Solar installation costs in the 0-4 kW range began to rise in April 2022, exceeding increases in the 4-10 kW range. The 0-4 kW band prices peaked at 2,622 British pounds per kilowatt installed in January 2023. With technological developments, solar PV installation cost is expected to decrease during the forecast period.
- Thus, owing to the above points, declining small-scale solar PV installation costs are expected to drive the market.
UK Solar Power Industry Overview
The UK solar power market is moderately fragmented. Some of the major players in the market are Electricite de France SA, Ecotricity Group Ltd, Renewable Energy Systems Ltd, Lightsource BP, Renewable Energy Investments Limited, and Hive Energy.
UK Solar Power Market Leaders
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Electricite de France SA
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Lightsource BP Renewable Energy Investments Limited
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Hive Energy
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Renewable Energy Systems Ltd
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Ecotricity Group Ltd
*Disclaimer: Major Players sorted in no particular order
UK Solar Power Market News
- September 2023: Ørsted announced that the company entered its first solar project in the United Kingdom. The project, which will have a capacity of 740 MW, is located in Nottinghamshire near the border of Lincolnshire and is being co-developed with PS Renewables.
- June 2023: The UK Government approved the construction of the country's largest solar farm, large enough to power about 60,000 households, on farmland near Chelmsford. Longfield Solar Farm, which spans 380 hectares of intensive arable farmland near Terling, has the potential to generate enough electricity to supply four times the energy needs of all new dwellings planned for Chelmsford over the next 13 years.
- June 2023: AMPYR Solar Europe announced the acquisition of a 390 MWp Solar PV + BESS portfolio from Tyler Hill, which includes sites across the United Kingdom. The five projects have grid security and are being presented for planning approval. AMPYR Solar Europe will work with Tyler Hill to bring the assets to a "ready-to-build" level before beginning construction in 2024.
UK Solar Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Solar Power Installed Capacity and Forecast in GW, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Government Policies and Demand for Renewable Energy Sources
4.5.1.2 The Declining Costs of Solar Technologies
4.5.2 Restraints
4.5.2.1 Limited Land and Demand for Alternative Renewable Energy Sources
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION - BY END USER
5.1 Residential
5.2 Commercial and Industrial
5.3 Utilities
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 First Solar Inc.
6.3.2 Electricite de France SA
6.3.3 Ecotricity Group Ltd
6.3.4 Renewable Energy Systems Ltd
6.3.5 Lightsource bp Renewable Energy Investments Limited
6.3.6 Hive Energy
6.3.7 Ameresco Inc.
- *List Not Exhaustive
6.4 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Ambitious Solar Power Targets to Reach 40 GW by 2030
UK Solar Power Industry Segmentation
Solar energy is heat and radiant light from the sun that can be harnessed with technologies such as solar power (which is used to generate electricity) and solar thermal energy (which is used for applications such as water heating).
The UK solar power market is segmented by end user. By end user, the market is segmented into residential, commercial and industrial, and utilities. For each segment, the market sizing and forecasts were made based on installed capacity.
UK Solar Power Market Research FAQs
How big is the UK Solar Power Market?
The UK Solar Power Market size is expected to reach 18.53 gigawatt in 2024 and grow at a CAGR of 23.45% to reach 53.12 gigawatt by 2029.
What is the current UK Solar Power Market size?
In 2024, the UK Solar Power Market size is expected to reach 18.53 gigawatt.
Who are the key players in UK Solar Power Market?
Electricite de France SA, Lightsource BP Renewable Energy Investments Limited, Hive Energy, Renewable Energy Systems Ltd and Ecotricity Group Ltd are the major companies operating in the UK Solar Power Market.
What years does this UK Solar Power Market cover, and what was the market size in 2023?
In 2023, the UK Solar Power Market size was estimated at 14.18 gigawatt. The report covers the UK Solar Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UK Solar Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What key trends are positively influencing the UK Solar Power Market growth?
The key trends are positively influencing the UK Solar Power Market growth are a) Growing demand for renewable energy b) Decreasing solar panel costs and advancements in solar panel technologies
Which sectors are expected to dominate the United Kingdom Solar Power Market in the forecast period?
The residential sector is expected to dominate the United Kingdom Solar Power Market share, followed by the commercial and industrial sectors.
UK Solar Industry Report
The United Kingdom solar power market is experiencing significant growth, driven by rising electricity prices, advancements in solar technology, and supportive government initiatives. The market is segmented into residential, commercial, and industrial applications, with the residential sector expected to dominate due to increasing energy costs and growing awareness of the benefits of solar panels. The adoption of solar battery storage systems is increasing, offering enhanced reliability and flexibility. The commercial and industrial sectors are also seeing a surge in solar panel installations, driven by the demand for clean energy and efforts to reduce carbon footprints.
Overall, the solar market in the UK is poised for continued growth, supported by favorable policies and a shift towards renewable energy sources. Solar companies in the UK are at the forefront of this expansion, leveraging innovations and cost reductions to meet the growing demand. The solar forecast for the UK remains positive, with the solar industry in the UK expected to play a crucial role in the country's energy transition. Statistics for the UK solar power market share, size, and revenue growth rate are provided by Mordor Intelligence™ Industry Reports. The UK solar power analysis includes a market forecast outlook and a historical overview.
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