The UK solar sector is a major success story. 2021 was potentially the most significant year to date for the industry – the whole market is now seeing stable growth, and last year saw record subsidy-free deployment. More than 730 MW of new capacity was installed around the country, and it is likely we will see 1 GW or more deployed on an annual basis from now on.

This is unsurprising when you consider the benefits of solar. It is the fastest of all energy technologies to deploy. It can support the resilience of individual homes, and the entire national energy system. It provides the most affordable electricity in history. And, of course, it is zero carbon. 

Solar can therefore make a huge contribution to UK energy security and national self-sufficiency, while addressing climate change head on. Last year’s deployment brings total installed capacity in the UK to 14.6 GW, split between residential rooftop, commercial scale, and ground-mounted (utility scale) systems. There is so much capacity that at times solar can already supply around 30% of the UK’s electricity demand. This is a colossal achievement for an industry which is less than two decades old.

Set a deployment target and follow through
However, with fossil fuel energy markets in turmoil, consumers suffering as a result, and the impact of climate change becoming starker by the year, we need to do more to accelerate the roll-out of renewables such as solar. There are several things the government can do. 

First, now is the time for the UK to follow all other major economies and formally adopt a solar deployment target consistent with achieving net zero by 2050. Solar is extremely popular – 90% of the British public support it – and there is growing cross-party political support to speed up the roll-out of clean energy in the UK. 

Energy Secretary Kwasi Kwarteng has spoken of the need to supercharge renewable deployment, and the government should commit to the solar industry’s target of trebling capacity to 40 GW by 2030, with further growth in the decade beyond.

Committing to this deployment figure would provide the signal needed for the industry to make long-term decisions on investment that will unlock the potential of solar around the country. It will help reduce the cost of the energy system, while increasing its security and self-sufficiency – and also creating thousands of green jobs. 

Second, there needs to be major investment in the electricity grid. Ofgem, the UK market regulator, needs to support network operators to accelerate upgrades to distribution and transmission networks to enable the delivery of more solar and renewable energy. Solar Energy UK is aware of more than 45 utility-scale projects that are currently being blocked by a lack of grid infrastructure. That equates to over 4 GW of clean energy and £1.6bn in private investment which cannot be deployed. 

Third, the government should ensure that building regulations raise the energy performance requirements of new non-domestic properties so they incentivise the installation of onsite renewable generation, such as solar, as standard. This would follow the precedent set for domestic properties, which will make a significant contribution to decarbonising the UK’s housing stock. 

Finally, VAT should be removed on residential solar and energy storage installations. This would come at very low cost to the Treasury, while providing a major incentive for homeowners and occupiers to retrofit their homes, reduce the impact of the energy cost crisis, and further stimulate what is already a thriving low carbon home improvement industry. 

Time to shine – the potential of solar

Even on a business-as-usual trajectory, solar capacity is expected to double in the next decade. But in light of the urgency of the climate crisis, and the need to increase clean, homegrown energy, we need to move faster. Making the changes above would help unlock new growth. 

This would benefit everyone. Utility-scale solar will provide the lowest-cost power the UK grid has ever seen, according to the government, while 40 GW of solar could meet at least 10% of the UK’s entire annual electricity demand. Companies which invest in onsite solar do so knowing that it is a proven way to reduce their energy expenditure and meet their sustainability targets. 

And there is a compelling case for homeowners and occupiers to invest in residential rooftop systems. Solar Energy UK research, with modelling carried out by the University of Cambridge and sustainability consultant Think Three, shows that installing solar can increase the value of a typical home in the UK by £1,800, and reduce annual energy bills by more than £300. 

And this figure was calculated before the huge spike in energy prices caused by a system dependent on volatile fossil fuels. The savings will have gone up substantially.

Installing solar is therefore good for consumers, good for business, and good for the country. Now is the time to commit to 40 GW of solar capacity by 2030. Solar Energy UK, and the entire industry, is ready and willing to help deliver it. 

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The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.