United Kingdom Solar Report

United kingdom’s total solar capacity installed as of 2023 was 15,657MW.⁵

The UK aims to expand solar capacity to up to 40 GW by 2030, according to government and industry projections.⁶

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Solar: UK large-scale solar PV projects have an average LCOE of $57.74 USD/MWh

Hydropower: UK hydropower has an average LCOE of $65.61 USD/MWh.

Wind: UK wind energy LCOE: onshore $57.74 USD/MWh, offshore $74.80 USD/MWh.

Nuclear  power plant: UK’s nuclear power average levelized cost is approximately$124.67 USD/MWh, significantly higher than renewables.

Gas plant: UK new combined-cycle gas plant LCOE: $52.49 USD/MWh, competitive with renewables.

The various percentage of electricity generation sources in the UK are:¹⁰

• Gas 26.5%
• Wind 13.6%
• Nuclear 18.3%
• Import 23.7%
• Biomass 10.7%
• Solar 4.0%
• Hydro 1.8%

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The United Kingdom enjoys almost 24 hours of electricity supply, but according to a survey conducted in August 2023 it was found that 23% of respondents experienced annual power outages, while 10% had power cuts every 6-11 months, 4% dealt with disruptions every 2-3 weeks and some areas experience electricity disruption about 25-30 minutes based on the utility company.

The worst-affected areas included Glasgow, with outages lasting up to 3 hours, and London and Cardiff, where outages lasted up to 2.9 hours.

As of April 2023, there are approximately 1.4 million homes in the UK with solar panel installations.¹²

There are about 2,335 solar farms installed and projected in the United Kingdom.¹³

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The demand for off-grid solar panels in the UK has been growing steadily. There are currently around 150,000 off-grid homes in the UK. This trend is driven by the desire for energy independence, environmental concerns, and the rising cost of energy.

The future demand for off-grid solar panels in the UK is expected to grow significantly with solar energy accounting up to 20% of the UK’s total electricity generation by 2030. This growth is supported by decreasing costs, technological advancements, and increasing demand for clean energy.

Current Capacity: There are presently 15.6GW installed solar PV capacity in the UK.¹⁰

Projected Demand: The UK’s solar power capacity is set to nearly triple from 15 gigawatts in 2023 to 43 gigawatts by 2028, with a projected compound annual growth rate of 23.53%.¹⁵

Solar engineer: UK solar engineer salaries range from $45,930.50 USD (entry-level) to $72,176.50USD (experienced) per year, with an average of $52,492 USD ($26.92 USD/hour).¹⁶

Solar Electrician UK solar electrician salaries range from $45,930.50 USD (entry-level) to $65,615 USD (experienced) per year, with an average of $52,137.68 USD ($26.73 USD/hour).¹⁷

The United kingdom’s population has reached approximately 69,214,832 million people as of 2024.¹⁸

The average overhead costs for solar panel production in UK includes:

Warehousing Costs ¹⁹:

• Rent/Lease: $6.55-$11.79 per square foot (average)
  Prime locations (e.g., London) has higher costs while long-term leases: potential savings
• Labor: $15.05/hour (average warehouse worker)
  Supervisors/Managers: higher wages
• Insurance: Liability, property
  Liability: $157-$393/year (average)
  Property: depends on size, location

Labor costs ³⁰:In the UK, labor fees differ significantly based on the type of work and the industry. For general laborers, the average daily rate ranges from approximately $138 to $444, while hourly rates typically span from $17 to $56.

Utility Cost ²⁰³³³⁴:

• Business electricity unit prices across the UK ranges from 0.333 USD/kWh (London) to 0.376 USD/kWh (North Wales, Merseyside, and Cheshire) in 2024.
• Natural Gas cost for industrial is approximately 0.0781 USD/kWh in 2024.
• Water: Generally, the cost of main water supply is around 1.74 USD per cubic meter (m³). However, when factors such as water treatment, storage, and disposal are added, the total cost can rise to approximately 5.75 USD per cubic meter (m³)

Waste management cost ³⁵³⁶: The average cost of waste management for industries in the UK can vary widely depending on several factors such as the type of waste, volume, location, and frequency of collection

Commercial Waste Collection and Disposal Fees:

• General Waste: $12.20 – $40.12 per bin lift (plus landfill tax and waste-specific charges).
• Recyclable Materials: $6.69 – $20.06 per bin lift.
• Hazardous Waste: $66.86+ per bin lift (dependent on specialized disposal requirements).
• Per Truck Load: If charged by the truck load, costs can range between $147.10 and $387.82.
• Per Cubic Yard: If charged by cubic yards, it could be $93.61 to $280.83.

Administrative expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically range from 10% to 20% of the total operational costs for solar companies.

Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections. The cost of quality control (QC) in the solar manufacturing industry can vary significantly based on several factors, including the size of the manufacturing facility, the complexity of the QC processes, and the specific standards being adhered to.

United kingdom’s energy infrastructure is a comprehensive system that includes generation, transmission, and distribution of electricity. Key data points about the infrastructure are as follows:

Total Installed Capacity ²¹:

• As of 2020, the total installed capacity in UK reached 101.1 GW, which includes various power generation plants (gas, solar, oil, nuclear, wind, hydro and other).

Electricity Generation ²²:

• In 2022, 323,910 GWh of electricity was produced , 39% came from natural gas, while 25% was from wind.

Electricity Consumption:

• The total electricity consumption in 2022 was 4.314 MWh/capita, with a share of 38% for residential consumption and 30% for industry.

Grid Infrastructure:

• The UK’s National Grid is a high-voltage transmission network connecting power stations and substations to meet demand. Investments in renewables, new infrastructure, and interconnectors with neighboring countries aim to:
  • Increase clean electricity transmission
  • Balance supply and demand
  • Enhance energy security
  • Support grid modernization and decarbonization goals
• The UK targets a fully decarbonized grid by 2035, reducing fossil fuel reliance and increasing renewable energy share.

Clean Energy Transition:

• UK aims to increase its clean energy production, with strategic investments and policies aimed at modernizing the grid and integrating renewable energy sources.

Investment in Renewable Energy:

• Mexico is making significant investments in renewable energy infrastructure, including a massive $11 billion investment to enhance its solar energy capacity.

The Waste Electrical and Electronic Equipment (WEEE) regulations ²³ are crucial for solar panel manufacturers, ensuring environmentally responsible practices in the UK. To comply, manufacturers must mark solar panels with the WEEE symbol, a crossed-out wheeled bin, indicating they shouldn’t be disposed of with regular household waste.

Key Requirements:

• Producer Responsibility: Manufacturers, importers, and rebranders must register with an approved Producer Compliance Scheme (PCS) and report the amount of electrical and electronic equipment (EEE) placed on the market.
• Record Keeping: Producers must maintain records for at least four years, detailing EEE amounts on the UK market, categorized under the regime.
• Recycling and Disposal: Regulations encourage recovery, reuse, and recycling to minimize WEEE incineration and landfill disposal.
• Compliance Schemes: Producers join approved PCSs, handling WEEE collection and recycling on their behalf, with data submission to the Environment Agency.

Microgeneration Certification Scheme (MCS)²⁴

Purpose: Quality assurance for small-scale renewable energy technologies, including solar panels.

Key Points:

• Ensures compliance with British Standards (BS) and International Electrotechnical Commission (IEC) standards.
• Certifies both products and installers.
• Provides consumer protection through certified professionals and products.
• Required for government incentives (e.g., Smart Export Guarantee).

Benefits:

• Quality assurance
• Market access
• Environmental compliance

Importance: MCS certification is crucial for solar panel manufacturers and installers in the UK, demonstrating commitment to safety, performance, and efficiency standards.

The Restriction of Hazardous Substances (RoHS) directive ³⁰

In Great Britain and Northern Ireland, electrical and electronic equipment (EEE) manufacturers must adhere to strict regulations to limit hazardous substances and protect human and animal health. The Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2012 (as amended) is the primary legislation governing this.

Key Requirements for Compliance:

• Technical Documentation: Manufacturers must maintain a technical file to demonstrate compliance.
• Declaration of Conformity: A declaration stating the product meets regulatory requirements.
• Labeling: Products must be labeled with required information.
• Conformity Marking: Display the UKCA mark for GB or CE mark for NI markets

Ecodesign regulations for energy-consuming products ³¹ aim to reduce environmental impact, improve energy efficiency, and cut greenhouse gas emissions.

Key Requirements:

• Technical Documentation (Technical File): Demonstrate compliance.
• Declaration of Conformity: Declare product meets regulations.
• Conformity Marking: Display UKCA mark (GB) or CE mark (NI).

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Tax Incentives: The UK government offers incentives for businesses to adopt solar energy, including the Enhanced Capital Allowances (ECAs) scheme. This allows businesses to claim the full cost of solar panel installations against taxable profits in the first year, accelerating depreciation and making solar energy a more financially attractive option with a quicker return on investment.

Renewable heat incentives: The UK’s Renewable Heat Incentive offers financial rewards to businesses generating heat from renewable sources, including solar thermal panels, providing a consistent income stream.

Feed- in- Tariff: The UK’s Feed-in Tariff (FiT) incentivizes businesses to generate renewable energy by allowing them to sell excess energy from their solar panels back to the grid, providing:

• A contribution to the overall energy supply
• An additional revenue stream
• Enhanced financial benefits

Encouraging businesses to adopt solar energy and reduce their reliance on traditional energy sources.

ECO4 Scheme: The UK’s EC04 scheme (2022-2026) aims to reduce energy costs and carbon emissions for low-income households. With £4bn allocated, the scheme provides funding for energy-efficient upgrades, including solar panels, to help households become 100% carbon neutral.

The Smart Export Guarantee (SEG): is a UK government scheme that rewards households using low-carbon energy sources, such as solar panels, by paying them for excess energy exported to the National Grid.

• Launched on 1 January 2020 and still active in 2024
• Replaced the Feed-in-Tariff (FIT) scheme
• Offers financial incentives for existing low-carbon technology, not installation subsidies
• Energy suppliers with over 150,000 customers must offer the tariff
• Similar to FIT, but with a mandatory supplier requirement.

Zero VAT on solar panel installation: The UK’s zero VAT scheme (April 2022 – March 2027) reduces the VAT burden on solar panel installations and other energy-saving technologies, including wind and water turbines.

• Zero VAT on solar panel materials and installations until March 2027
• VAT will increase to 5% after the scheme ends
• Typical households with rooftop solar panels can save over £2,300 in installation costs
• A valuable incentive among current solar energy grants

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Installed Projects

Llanwern solar farm:

• Location: Newport, Wales.
• Capacity: 76MW
• Commissioned in 2021 by NextEnergy Capital

South Lowfield solar farm

• Location: KirkbyFleetham, North Yorkshire
• Capacity: 49.9MW
• Operational in 2021

Shotwick solar park

• Location: Flintshire, Wales
• Capacity: 72 MWp
• Commissioned in March 2016

Lark’s Green solar farm

• Capacity: 49.9MW
• Commissioned May 2023 by Enso Energy
• Operational in 2024.

Lyneham Solar Farm

• Location: Bradenstoke, Wiltshire
• Capacity: 69.8MW

Owl’s Hatch Solar Park

• Location: Herne Bay, Kent
• Capacity: 49.9MW

Wroughton Airfield (Swindon Solar Park)

• Location: Swindon, Wiltshire
• Capacity: 50MW

Projected Projects ²⁷³⁷³⁸

Cottam Solar Project :

• Location: to be located east of Willingham by Stow in West Lindsey
• Capacity: 600MW
• Development Consent Order (DCO) was granted on Sept. 5, 2024.

Mallard Pass Solar Farm:

• Location: Rutland and Lincolnshire
• Capacity: Expected to generate around 350 megawatts (MW)
• Approval: The project received development consent on 12 July 2024.

Sunnica Solar Farm:

• Location: Border of Cambridgeshire and Suffolk in the UK
• Recently received development consent from the Secretary of State for Energy Security and Net Zero

Gate Burton Solar Farm:

Situated in Lincolnshire, this farm is also part of the recent approvals and will add substantial capacity

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Solarcentury: As a premier UK solar energy company, Solarcentury designs and delivers cutting-edge solar solutions for a diverse range of clients, from homeowners to businesses and industries. With a global portfolio exceeding 1 GW of installed solar capacity, Solarcentury has established a reputation for excellence, offering a comprehensive suite of services including solar PV, energy storage, EV charging, and beyond.

MAK Energy: MAK Energy Ltd, a UK-based solar energy company with over 10 years of experience, offers custom solar solutions for homes and businesses. Their expert team provides high-quality installations, battery storage, and maintenance using top-grade materials. Plus, they offer a 25-year warranty for added peace of mind.

Oxford Solar PV: Oxford Solar PV, based in Oxfordshire, is a specialist in solar panel installation for residential and commercial properties. They provide tailored solar energy solutions, including battery storage and EV charging, designed to meet clients’ specific energy requirements and budgets, backed by a team of experienced experts.

Light source BP: Lightsource BP is a pioneering solar energy company, driving the global transition to a low-carbon future through large-scale solar projects and tailored solutions for homes and businesses, with a portfolio of over 3 GW of installed capacity, aiming to make clean energy accessible and affordable for everyone.

Solarplicity: Solarplicity a UK-based solar energy specialist, makes solar power accessible to homeowners through affordable solutions, including solar PV systems, battery storage, and energy-efficient upgrades, all at competitive prices. Dedicated to sustainability and exceptional customer service, Solarplicity has established itself as a leading choice for residential solar installations.

Eco Energy World: Eco Energy World is a leading global renewable energy company with a significant UK presence, pioneering the development and construction of large-scale solar projects and delivering tailored solar solutions for homes and businesses. Through innovation and a commitment to sustainability, they’re driving the shift towards a low-carbon future.

EnergyMyWay: UK-based solar energy specialist, offers tailored renewable energy solutions, including solar panel installation, battery storage, and EV charging points. Their experienced team collaborates with clients to design and install customized solar systems, ensuring a perfect match for their energy requirements and budget.