With the current energy crisis, many businesses and commercial properties have been switching to renewable energy sources, such as solar power, as they seek alternatives to conventional energy. To make informed decisions about how to futureproof a business, it’s crucial to stay updated with the latest advancements in solar energy technology and initiatives.
In this article, we will explore how solar power is shaping the future of energy in the UK, looking at the beginnings of solar energy, current trends, and future predictions. This offers an insight into the potential of clean, renewable energy for solar-powered businesses.
The Beginnings of Solar Energy
Before examining current trends and future possibilities for solar power, let’s first explore the journey of solar energy roll-out in the UK.
2010
Before 2010, there were few solar power installations in the UK. Solar energy initiatives began to take off with the introduction of feed-in tariffs (FIT), a government-mandated subsidy paid for by electricity consumers. This policy was designed to increase investment in renewable energy technologies by supporting renewable energy providers.
Over the next few years, the price of photovoltaic cells dropped, making them more accessible to purchase and install. Likewise, tariff rates for new installations fell, encouraging more people to take advantage of the scheme.
2013
From 2013 to 2015, solar energy saw significant investment as private equity-backed developers identified potential solar farm locations and applied for planning permission. Farmland close to grid connections was particularly appealing to developers, offering around £8,200 per acre to farmers, making it a highly attractive offer that many accepted.
2016
Although the FIT scheme began to decline in 2016, before closing to new applications in 2019, the total UK solar capacity surpassed 10,000 MW. From April to September 2016, solar power produced more energy than coal, marking a significant milestone for a renewable energy source.
2020
On 1st January 2020, the UK government introduced a replacement for the FIT scheme. The Smart Export Guarantee (SEG) was launched to encourage homes and businesses to generate solar power and other renewable energy, offering payment for energy exported back to the national grid.
2023
In 2022, Document L was released, outlining a set of environmental regulations for constructing new homes. As of 15 June 2023, this legislation mandates that all new homes submitted for planning after this date must produce 31% fewer CO₂ emissions than homes built under previous regulations, further promoting the uptake of renewable power and reducing reliance on fossil fuels.
Current Trends
In 2024, we have witnessed significant advancements in the efficiency of solar panel technology and energy management solutions since solar power was introduced in the UK. Let’s look at some of these improvements in more detail.
Government Targets
The UK government has set ambitious solar energy targets, aiming for capacity to reach 40GW by 2030 and 54GW by 2035. By setting these goals, the UK is working towards decarbonising its power use and reducing reliance on fossil fuels. This commitment to maximising the potential of solar power as a renewable energy source is crucial for achieving its environmental commitments.
Solar Panel Technology
One of the key factors driving solar power’s potential in the UK is the continual advancement of solar panel technology. Researchers and manufacturers are developing increasingly sophisticated solar cells that enhance their ability to absorb sunlight and convert it into electricity. Innovations, including developments in perovskite solar cells, are enabling solar power to reach higher generation capacities at reduced costs.
Power Storage
New technology in power storage has revolutionised the way solar energy is stored and used. Innovative energy storage solutions allow solar power generators to store excess energy generated during the day, which can then be used during periods of low sunlight or at night. These advancements in energy management systems enable homes and businesses to store solar energy for when it’s needed, reducing reliance on grid-supplied power.
The Energy Crisis
Harnessing and storing solar energy to power electric vehicles and smart grids is seen as a key strategy in addressing the current energy crisis. The UK solar market saw remarkable growth, with installed solar generation increasing by 10.7% in 2023, reaching 17.6 GW of electricity, one-third of which was generated by rooftop solar PV panels. This shift towards solar energy offers a cheaper, more stable alternative to fossil fuels.
Building Legislation
Following on from Document L, the UK’s Future Homes and Buildings Standard will be enforced from 2025. This legislation aims to ensure that new homes produce 75-80% fewer carbon emissions than those built previously. For commercial buildings, such as shops and offices, emissions will be reduced by 27%. These regulations are critical to helping the UK meet its carbon reduction targets and promote the adoption of renewable energy sources.
Predictions for 2025 and Beyond
With continued government investment in solar power and an emphasis on using renewable energy to power homes and futureproof businesses, solar energy usage is expected to continue its steady growth. Let’s explore some solar power predictions for 2025 and beyond.
Rising Demand for Solar Energy
The demand for solar energy in the UK is expected to maintain its upward trajectory through 2025 and beyond. This is due to rising energy costs, government incentives and increased awareness of environmental issues. With the UK’s goal of achieving net-zero carbon emissions by 2050, solar power is being promoted as a key energy solution for residential and commercial properties.
Solar Capacity Targets
The solar industry’s capacity is expected to more than double over the next decade in accordance with the UK government's target of increasing its solar capacity to at least 100GW by 2050. This target is essential for gaining energy independence and supporting the country’s climate commitments. To meet these goals, policy changes across residential, commercial and utility-scale markets will be required.
Strategic Initiatives
To meet net-zero targets, many strategic initiatives are required to increase their solar power generation. Programs such as the Smart Export Guarantee (SEG) will continue to reimburse homes and businesses for exporting excess solar energy back to the grid, making solar installations financially beneficial for UK populations.
Additional initiatives such as business rates reform and removing VAT on solar energy systems are encouraged. These reforms aim to encourage solar-powered businesses to run their operations using solar as their primary renewable energy source.
Improving building standards and retrofitting solar technologies on homes and public buildings are also recommended actions to increase solar deployment.
Increased Affordability
Solar panel installation costs have steadily decreased since their introduction, making them more accessible to a wider audience.
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