United Kingdom Solar Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Application (Residential, Commercial, and Utilities)

Market Snapshot

United Kingdom Solar Power- Market Summary
Study Period: 2016 - 2026
Base Year: 2021
CAGR: >5 %

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Market Overview

The United Kingdom solar power market is expected to grow at a CAGR of more than 5% during the forecast period of 2020-2025. Factors such as encouraging government policies and pressure to meet power demand using renewable to decrease dependency on fossils to decrease carbon footprints are significant contributors to the growth of the market. The declining costs of solar technologies are becoming competitive with fossil fuel sources, and additional subsidies on solar systems are driving the solar power market further. On the other hand, factors such as absence of any new initiatives and limited land and limited power capacity by variable renewable energy sources are expected to hinder the growth of the solar power market in the United Kingdom in the coming years.

  • Solar PV projects at utility-scale have been growing in the entire United Kingdom, with massive acceptance in all counties. Many ambitious photovoltaic projects are lined up in the forecast period that will be driving the solar market in the coming years.
  • According to a report by Solar Trade Association, solar power installed capacity can reach more than 25000 MW by the end of 2030. Such estimated growth will create vast opportunities for solar power market players.
  • The introduction of Feed-in Tariff (FIT) provided a boost to solar installations till mid-2019. Later with an increment of VAT from 5% to 20% on Photovoltaic solar panels, the growth can be hampered.

Scope of the report

The United Kingdom solar power market report include:

Application
Residential
Commercial
Utilities

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Key Market Trends

Upcoming Solar Photovoltaic (PV) Projects to Drive the Market

  • Solar Photovoltaics (PVs) are arrays of cells containing a solar photovoltaic material that converts solar radiation or energy from the sun into direct current electricity. They consist of a variety of semiconductors, usually silicon and highly conductive wire, to reduce any current loss, which makes them expensive. But the operational cost is so low that they are expected to become cost-free after a period of 25 years according to estimation in 2018.
  • From a mere 16 MW capacity of solar energy in 2006 to more than 13 GW in 2019, the United Kingdom has undergone rapid growth in acceptance of solar power and still increasing its presence in the market.
  • Highly ambitious projects in North Kent with a capacity of 350 MW and in Suffolk and Cambridge shire with a massive capacity of 500 MW under planning are expected to be in operation in the forecast period.
  • By the end of 2020, the United Kingdom government is aiming to deploy PV panels in 2 million households, 24000 commercial rooftops, and 2000 solar farms. With this achievement, the share of solar energy will intensify significantly.
  • With several projects under operation and others in the planning and construction phase, the United Kingdom is driving towards becoming a primary solar energy market.
United Kingdom Solar Power Market-Solar Energy Generation

Varying Policies of the United Kingdom Government

  • The United Kingdom regulated Feed-in Tariff in 2010, through which payments are given by energy suppliers if a property or organization generates its own electricity using a renewable source like wind or solar. This boosted the installation of solar panels at a tremendous rate. But in March 2019, the government closed this scheme, and this, in turn, is expected to affect the growth of the solar market in the United Kingdom.
  • Solar energy holds a significant share in electricity production of the United Kingdom. Owing to different policies and initiatives, the United kingdom installed more than 13000 MW of solar power by the end of 2018.
  • With the discontinuation of Feed-in Tariff, the government introduced Smart Export Guarantee (SEG) modifying the FIT, which makes the energy suppliers pay the customers for every unit they are going to feed in the grid, although the energy suppliers are free to decide the rate for exported power.
  • From October 2019, the United Kingdom government increased the Value added tax (VAT) on Energy Saving Materials (ESM) by 15%. With incremented VAT, the customers must pay a 20% tax on solar and storage affecting installers, which is going to increase net installation cost significantly. Considering the recent 20% VAT on the high installation cost of solar, public interest in the solar market can be affected negatively.
  • The United Kingdom government’s policies and regulations are one of the significant factors that will be deciding the future of the solar market in the United Kingdom. These different strategies can drive the market growth in either way.
United Kingdom Solar Power Market-Solar Power Installed Capacity

Competitive Landscape

The United Kingdom solar power market is fragmented. Some of the major companies include Electricite de France SA, Ecotricity Group Ltd., Renewable Energy Systems Ltd., Lightsource BP Renewable Energy Investments Limited, and Hive Energy Ltd.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Installed Capacity and Forecast in GW, till 2025

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Residential

      2. 5.1.2 Commercial

      3. 5.1.3 Utilities

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 First Solar Inc.

      2. 6.3.2 Electricite de France SA

      3. 6.3.3 Ecotricity Group Ltd.

      4. 6.3.4 Renewable Energy Systems Ltd.

      5. 6.3.5 Lightsource BP Renewable Energy Investments Limited

      6. 6.3.6 Hive Energy Ltd.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The United Kingdom Solar Power Market market is studied from 2016 - 2026.

The United Kingdom Solar Power Market is growing at a CAGR of >5% over the next 5 years.

Electricite de France SA, Ecotricity Group Ltd., Renewable Energy Systems Ltd., Lightsource BP Renewable Energy Investments Limited, Hive Energy Ltd. are the major companies operating in United Kingdom Solar Power Market.

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