2021
9
UK Solar Panels Market Report 2021
2021-09-17T04:19:09+01:00
OX1050039
1495
142507
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Report
en_GB
“The outlook for the UK solar panels market is bright, fuelled by the decarbonisation agenda across the public, commercial and residential sectors. Market growth is anticipated to be initially driven…

UK Solar Panels Market Report 2021

£ 1,495 (Excl.Tax)

Description

The UK Solar Panels report identifies consumer attitudes towards the solar panel market, subsidies, domestic and commercial solar panels, and key market trends in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Solar Panels market in the UK. 

Current Market Landscape 

The impact of COVID-19 on the solar panels market has been relatively short-lived. The crisis disrupted deployment between March and May 2020, but solar PV installs have returned to pre-COVID levels by September, with the recovery driven by large-scale solar PV deployment

  • The UK cumulative installed capacity exceeded 14GW by the end of March 2021.
  • Subsidy-free solar PV in the UK now exceeds 1GW, or 7.3% of total installed capacity.

While the pipeline for large-scale ground-mounted sites capacity is strong, recent increases in module prices due to global supply chain trends could put on-site build activity on hold in 2021.

Future Market Trends in Solar Panels 

UK businesses are starting to show increased interest in solar PV systems. As commercial and industrial companies increasingly look to decarbonise their operations, solar PV offers an attractive route to zero-carbon electricity. This is supported by the reduced cost of electricity through self-consumption and the increased availability of innovative finance options. An increasing number of local authorities are also looking to solar PV to decarbonise and progress towards net zero targets, with solar PV deployment on public buildings and social housing set to accelerate.

In the residential sector, upcoming changes to the Building Regulations and the 2025 Future Homes Standard promise strong growth potential in the new build sector. In the retro-fit sector, demand is expected to be driven by more compelling offers for customers in terms of financing and installation of solar-plusstorage systems, as well as a growing EV market.

Read on to discover more details or take a look at all of our UK Industrial market research.

Quickly understand

  • How the impact of COVID-19 on the UK solar panels market was relatively short-lived.
  • How the market has performed since all subsidies have been removed.
  • The key drivers for domestic roof-top, commercial and large-scale, ground-mounted solar PV deployment.
  • Key market trends across the solar panels market.
  • How the market is expected to develop over the next five years.

Covered in this report

Brands: Lightsource BP, Solarcentury, Statkraft, EvoEnergy, SAS Energy, Joju Solar, SunGift Energy, Custom Solar.

Expert analysis from a specialist in the field

This report, written by Claudia Preedy, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The outlook for the UK solar panels market is bright, fuelled by the decarbonisation agenda across the public, commercial and residential sectors. Market growth is anticipated to be initially driven by subsidy-free, large-scale, solar deployment and commercial installations. With solar PV set to be included in the next CfD allocation round, due to open in December 2021, this could provide a further boost to large-scale solar PV deployment.

In the residential sector, upcoming changes to the Building Regulations and the 2025 Future Homes Standard promise strong growth potential in the new build sector. In the retro-fit sector, demand is expected to be driven by more compelling offers for customers in terms of financing and installation of solar-plus-storage systems, as well as a growing EV market. Solar PV deployment on public buildings and by local authorities looks also set to accelerate.

Claudia Preedy
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • COVID-19 impact on UK solar PV sector has been relatively short-lived
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on UK energy industry, 10 September 2021
    • The market
    • UK solar PV installed capacity exceeds 14GW
      • Figure 2: Photovoltaic installations in the UK, 2013-20
    • Subsidy-free, large-scale solar PV market takes off
    • Residential rooftop market to be driven by solar-plus-storage systems and growing EV market
    • Solar PV deployment in commercial sector to be driven by PPA-backed projects
    • Solar PV market expected to be driven by large-scale installations over the next five years
      • Figure 3: Forecast new photovoltaic capacity installed in the UK, 2021-25
    • Companies and brands
    • Major UK solar developers seek acquisition and partnerships to accelerate growth
    • Installers are diversifying into other green tech sectors
  3. Issues and Insights

    • Large-scale solar PV shows strong subsidy-free pipeline
    • Solar companies are turning their attention to new build sector and local authorities
    • Solar industry reports high level of engagement with businesses
  4. The Market – Key Takeaways

    • UK solar PV installed capacity exceeds 14GW
    • Residential solar PV market to be driven by solar-plus-storage systems and growing EV market
    • Subsidy-free, large-scale solar PV market takes off
    • Businesses are showing increased interest in solar PV
  5. Market Size

    • Introduction
    • Short-, medium- and long-term impact of COVID-19 on the solar panels market
    • COVID-19 impact on UK solar PV sector has been relatively short-lived
      • Figure 4: Short-, medium- and long-term impact of COVID-19 on UK energy industry, 10 September 2021
    • UK installed solar PV capacity reaches 13.5GW, according to official statistics
    • But actual deployment is higher as government data fails to capture subsidy-free schemes
    • Roof-top installations drive solar PV deployment in Q2 2021
      • Figure 5: Photovoltaic installations in the UK, 2015-21
      • Figure 6: Photovoltaic installations in the UK, 2013-20
  6. Market Segmentation

    • Overview
      • Figure 7: Photovoltaic installations in the UK, by capacity of installation, 2016-21
    • Solar PV installations by accreditation scheme
      • Figure 8: Photovoltaic installations in the UK, by accreditation scheme, 2016-21
      • Figure 9: Photovoltaic installed capacity in the UK, by size, as of June 2021
    • Residential solar PV market
    • Residential solar PV deployment stalls following closure of FiT scheme
      • Figure 10: Residential photovoltaic installation capacity installed in the UK, 2016-21
    • Post subsidy market to be driven by solar-plus-storage systems and growing EV market
    • New finance options are required to boost post-subsidy domestic market
    • Smart Export Guarantee (SEG) tariffs are not seen as a significant incentive to install solar PV
    • Commercial (building-mounted) solar PV market
    • Solar industry reports high level of engagement with businesses
      • Figure 11: Building-mounted photovoltaic installation capacity installed in the UK (MCS and ROO-FIT accredited installations only), 2016-21
    • High business rates for on-site renewable assets amongst a number of policies that present a barrier to commercial PV solar uptake
    • Temporary tax incentives to encourage capital spending provide a positive impetus for commercial solar PV uptake
    • PPA-backed projects set to become more popular
    • Public Sector Decarbonisation Scheme set to boost solar PV uptake in public sector buildings
    • Ground-mounted solar PV market
    • Subsidy-free, large-scale solar PV market takes off
    • Emergence of PPAs presents growth opportunities for ground-mounted solar PV installations
    • Over 1,150 solar farms (over 1MW) operational as of June 2021
      • Figure 12: Ground-mounted and large-scale photovoltaic installation capacity installed in the UK (excludes subsidy-free installations), 2014-19
    • Community solar PV installations
    • Policy landscape presents the main barrier to the take-off of the community energy sector
    • New opportunities starting to emerge
      • Figure 13: Community solar PV generation capacity across England, Wales and Northern Ireland, 2016-20
  7. Regional Trends

    • Regional development
    • London mayor is targeting 1GW of solar deployment in the capital by 2030
      • Figure 14: Household penetration of photovoltaic installations in Great Britain, by region, 2015-19
      • Figure 15: Regional distribution of photovoltaic installations in Great Britain, by type and region, cumulative as of March 2019
  8. The European/World Context

      • Figure 16: World, Europe and UK cumulative photovoltaic installations, 2016-20
      • Figure 17: World development of photovoltaic installations, 2014-20
  9. Market Forecast

    • Market drivers and assumptions
      • Figure 18: Key economic drivers affecting MBD’s market forecast, 2019-25 (prepared on 9 July 2021)
    • Forecast methodology
    • Calls for UK to deploy 40GW of solar PV by 2030 to achieve net zero target
    • UK solar panels market set for sustained growth
      • Figure 19: Forecast photovoltaic installed capacity in the UK, 2021-25
      • Figure 20: Forecast new photovoltaic capacity installed in the UK, 2021-25
  10. Market Trends

    • Battery storage and growing EV market set to drive residential rooftop PV deployment
    • Energy suppliers tap into residential solar and storage market
    • Large-scale battery storage market is taking off
    • Bifacial modules raise the efficiency of solar farms
    • Solar companies are turning their attention to new build sector and local authorities
    • Growing interest in roof integrated PV systems in new build sector
    • Water industry, which has set ambitious targets for self-generation, offers opportunities for solar developers
    • Growth in EVs and Net Zero commitments are set to drive development of solar carports
    • Tech and renewable trade associations enter partnership to stimulate PPA market
  11. Government Policy and Legislative Environment

    • Future Homes Standard aims to make new homes “zero carbon ready” by 2025
    • Government commits to reach net zero by 2050 and slash carbon emissions by 78% by 2035 compared to 1990 levels
    • UK makes good progress in decarbonising power sector, but current government policies fall short of the level of ambition required to meet net zero
    • Support mechanisms and policies to decarbonise electricity
    • Renewables Obligation
    • Contracts for Difference
    • Solar PV will be able to bid for CfDs in 2021 for the first time since 2015
    • Feed-in Tariffs
    • Drastic cuts to FiTs in 2016 cause rooftop solar PV deployment to plummet
    • FiT scheme closed in April, 2019, with the Smart Export Guarantee now the only type of roof-top solar PV support scheme available
    • Capacity Market
  12. Market Drivers

    • New build sector offers huge growth potential for solar PV
      • Figure 21: housebuilding expenditure, 2015-25
    • Rented sector offers growth opportunities
      • Figure 22: Residential dwelling stock in England, by tenure, 2015-20
    • Number of non-domestic properties
      • Figure 23: Number of non-domestic rateable properties in England & Wales, by sector and region, 2020 (000s and % of total)
      • Figure 24: Number of non-domestic rateable properties in England & Wales, by property type, 2021
    • Solar PV has witnessed remarkable decreases in cost since 2010
      • Figure 25: small scale solar PV average cost, by size of installation, 2014-21
    • Large-scale solar PV is now the cheapest electricity generating technology
    • Closure of FiT scheme increases payback period for residential rooftop solar systems
    • Electricity generation fuel mix shifts to renewables
      • Figure 26: Analysis of electricity generation the UK, by type of fuel used, 2016-20
      • Figure 27: Proportional importance of fuel source in UK electricity generation, 2016 and 2020
      • Figure 28: Renewable electricity generation in the UK, 2016-20
    • Energy storage will play a key role in the transition to a clean electricity supply system
    • The UK climate
    • Other factors
  13. Companies and Brands – Key Takeaways

    • Major UK solar developers seek acquisition and partnerships to accelerate growth
    • Installers are diversifying into other green tech sectors
  14. Industry Structure

    • Solar PV sector sees rapid decrease in employment levels
      • Figure 29: Employment and number of companies active across UK solar PV supply chain, 2014-20
      • Figure 30: UK solar PV sector turnover, 2013-18
    • Key industry players
    • Installers are diversifying into other green tech sectors
    • Solar companies are looking for international expansion
  15. Company Profiles

    • British Solar Renewables
    • BSR seeks acquisition to fulfil its potential as a global owner of renewable assets
    • Financial performance and outlook
      • Figure 31: Financial analysis of British Solar Renewables, 2016-20
    • EvoEnergy
    • Lightsource BP Renewable Energy Investment
    • Lightsource Labs – the company’s in-house digital innovations arm
    • Strategy
    • Financial performance
      • Figure 32: Financial analysis of Lightsource BP Renewable Energy Investment, 2016-19
    • Solarcentury Holdings (now part of Statkraft)
    • SolarCentury acquired by Statkraft
    • Solarcentury sells residential business to Svea Solar
    • Company review and outlook
      • Figure 33: Financial analysis of Solarcentury Holdings, 2016-20
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  17. Further Sources and Contacts

    • Trade associations
    • Trade magazines
    • Trade events

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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