United Kingdom Distributed Solar Power Generation Market Report and Forecast 2024-2032

United Kingdom Distributed Solar Power Generation Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom distributed solar power generation market size was approximately USD 3.88 billion in 2023. Aided by increasing environmental awareness and technological advancements, the market is projected to grow at a CAGR of 10.9% in the forecast period of 2024-2032, reaching a value of around USD 9.85 billion by 2032.

Distributed solar power generation refers to the decentralised production of electricity from solar energy sources, typically installed close to the point of use, such as residential homes, commercial buildings, and industrial facilities. This model contrasts with centralised solar power plants that generate large amounts of electricity at a single location and distribute it through the grid.

The United Kingdom distributed solar power generation market is experiencing a period of significant growth and transformation, driven by technological advancements, supportive government policies, and increasing environmental awareness. Distributed solar power generation, which involves producing solar energy at or near the point of use rather than at a large, centralised facility, is gaining traction as an integral part of the UK’s renewable energy strategy.

One of the most significant United Kingdom distributed solar power generation market trends is the advancement in solar technology. Innovations in photovoltaic (PV) materials and system components have led to higher efficiency rates and lower costs. The development of high-efficiency solar panels, improved inverter technologies, and enhanced energy storage solutions are making distributed solar systems more viable and attractive to both residential and commercial users. These technological advancements are reducing the overall cost of solar installations and increasing the return on investment, thereby driving the market growth.

Government policies and incentives are playing a crucial role in enhancing the United Kingdom distributed solar power generation market growth. The UK government has implemented several initiatives to encourage the adoption of solar energy, including the Smart Export Guarantee (SEG), which allows small-scale solar generators to sell excess electricity back to the grid. Additionally, the reduction of VAT on solar panel installations for residential properties and grants for renewable energy projects are providing financial incentives for homeowners and businesses to invest in solar power. These supportive policies are crucial in making solar energy more accessible and affordable, fostering the growth of the market.

Environmental sustainability and the urgent need to reduce carbon emissions are major drivers aiding the United Kingdom distributed solar power generation market expansion. As part of its commitment to achieving net-zero carbon emissions by 2050, the UK is increasingly focusing on renewable energy sources. Distributed solar power, with its potential to reduce reliance on fossil fuels and lower greenhouse gas emissions, is seen as a key component of the country’s clean energy transition. The increasing awareness of climate change and the environmental benefits of solar energy are motivating individuals and organisations to adopt distributed solar solutions.

The rise of smart grids and digital technologies is also increasing the United Kingdom distributed solar power generation market value. Smart grid technologies enable better integration and management of distributed energy resources, including solar power. Advanced metering infrastructure, real-time monitoring systems, and automated control systems allow for more efficient and reliable operation of distributed solar installations. These technologies facilitate the seamless integration of solar power into the existing energy infrastructure, enhancing grid stability and reliability. The adoption of digital solutions is therefore enhancing the feasibility and attractiveness of distributed solar power generation.

The commercial and industrial sectors are increasingly boosting the United Kingdom distributed solar power generation market, driven by the need for cost savings and corporate sustainability goals. Businesses are recognising the financial benefits of generating their own electricity through solar power, which can significantly reduce energy bills and provide a hedge against rising energy costs. Additionally, many companies are committing to sustainability initiatives and renewable energy targets as part of their corporate social responsibility (CSR) strategies. Distributed solar power generation enables businesses to demonstrate their commitment to environmental stewardship, enhance their green credentials, and meet their sustainability targets.

Residential solar power generation is also on the rise in the UK, supported by growing consumer interest in renewable energy and the financial benefits of solar installations. Homeowners are increasingly installing rooftop solar panels to reduce their electricity bills and decrease their carbon footprint. The availability of affordable solar financing options, such as solar loans and leases, is making it easier for consumers to invest in solar power. Furthermore, the development of home energy management systems and smart home technologies is enabling homeowners to optimise their solar energy usage and maximise the benefits of their solar installations.

The development of community solar projects is another notable trend driving the United Kingdom distributed solar power generation market development. Community solar projects allow multiple households or businesses to share the benefits of a single solar installation, making solar power accessible to those who may not have suitable rooftops for solar panels. These projects are particularly beneficial for urban areas where space for individual solar installations may be limited. Community solar initiatives are fostering a sense of community ownership and participation in renewable energy, contributing to the broader adoption of solar power.

The financial landscape of the United Kingdom distributed solar power generation market is evolving, with increasing investment from both public and private sectors. Financial institutions and investors are recognising the long-term potential of distributed solar projects and are providing funding and financing options to support their development. The growing availability of green bonds and other sustainable finance instruments is facilitating the flow of capital into the solar sector. This influx of investment is enabling the expansion of distributed solar infrastructure and accelerating the market growth.

Market Segmentation

The United Kingdom distributed solar power generation market can be divided based on solar module, type, installation, and end use.

Market Breakup by Solar Module

• Monocrystalline (Mono-Si)
• Polycrystalline (p-Si)
• Amorphous Silicon (A-Si)
• Others

Market Breakup by Type

• Rooftops
• Ground-Mounted

Market Breakup by Installation

• On-Grid
• Off-Grid

Market Breakup by End Use

• Residential
• Commercial and Industrial

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the United Kingdom distributed solar power generation market. Some of the major players explored in the report by Expert Market Research are as follows:

• Canadian Solar Inc.
• Jinko Solar Co., Ltd.
• UKSOL Ltd
• Anesco Limited
• Trina Solar Co. Ltd.
• EDF RE Group
• Eco2Solar ltd
• Solarsense UK Ltd
• EvoEnergy Limited
• Entire Services Ltd.
• Sungift Solar Limited
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.