The UK is projected to add 2.5 GW of new solar capacity in 2025, following a remarkable 5.5 GW of installations in 2024, according to a report by Solar Energy UK and Solar Media. While this forecast points to continued progress, the market is also navigating the complexities of maturation, grid limitations, and shifting risks, painting a nuanced picture for the year ahead.
Record Growth for UK solar 2025
The UK’s solar market reached a historic milestone in 2024, with a record-breaking 5.5 GW of new solar capacity installed. This growth was primarily driven by utility-scale projects, which accounted for an impressive 73% of the total new capacity. The remaining 27% came from small-scale solar installations. This surge in solar adoption reflects the increasing demand for renewable energy solutions and a deeper understanding of the basics of solar panel manufacturing and deployment.
In 2023, the UK added 3.5 GW of solar capacity, bringing the total installed capacity to 20.7 GW. The additional 5.5 GW in 2024 marked the highest annual increase on record. This unprecedented growth was fueled by a combination of favourable policies, technological advancements in the solar panel manufacturing process, and increasing awareness of the benefits of renewable energy.
Outlook for UK solar 2025: Growth Meets Reality
Despite the record growth in 2024, the projected addition of 2.5 GW in 2025 signals a moderation of pace. This slowdown can be attributed to several factors inherent in a maturing market. Key among these are significant grid connection delays and bottlenecks, which have become a primary hurdle for new projects coming online. Industry experts note that as the market has matured, the primary challenges have shifted towards “execution risk”—the sheer capacity within the market to deliver the vast pipeline of projects.
In response, significant grid reforms are underway. The National Energy System Operator (NESO) and Ofgem are implementing changes to prioritize “shovel-ready” projects and clear the queue of speculative applications, which could help unblock capacity and accelerate the energy transition. While new installation figures might be lower, 2025 has already seen record solar generation thanks to increased existing capacity and favourable sunshine hours.
This growth will continue to be driven by both large-scale and small-scale solar installations. Utility-scale solar projects will remain significant, but small-scale installations are expected to contribute a larger share of the new capacity in the coming years.
Residential Solar Installations on the Rise in UK solar 2025
The report highlights the growing popularity of residential solar installations in the UK. In 2024, nearly 200,000 new solar systems were installed across the country, with 150,000 of these being residential systems. Rooftop solar installations accounted for 27% of the total new capacity in 2024, indicating a strong and sustained demand for renewable energy solutions among homeowners.
The growth in residential solar installations is further supported by initiatives like the Solar Skills London programme, which has trained over 2,000 people in solar installation and maintenance. This is crucial for addressing the skills gap in the solar industry and ensuring the sector has the workforce needed for continued growth.
Policy Support for UK solar 2025
The UK government has set an ambitious target to achieve 70 GW of installed solar capacity by 2035. In support of this goal, the government has introduced several measures to encourage the adoption of solar energy. From April 2024, all new homes in England are required to include solar panels. Additionally, landlords will be mandated to install solar panels on all rental properties by 2026.
These policy measures are expected to drive further growth, particularly in the residential sector. Meeting the 70 GW target will require a massive industrial effort, from sourcing solar panel raw materials to deploying advanced solar panel manufacturing machines. As the UK scales up, it’s interesting to observe how other European nations are developing their own capabilities, with markets like Croatia’s solar panel manufacturing sector also showing signs of growth. Understanding the investment required, such as a detailed solar panel manufacturing plant cost breakdown, is key to appreciating the scale of this transition.
As the UK continues to expand its solar capacity, it is well-positioned to work towards its 2035 target. The combination of strong policy support, technological advancements, and increasing public awareness will ensure that the UK remains a key player in the global transition to renewable energy.
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