What Is Driving the 223% Increase in Solar Panel Installations?

The energy industry in the UK is changing, and it is changing extremely quickly. Homeowners and business owners are investing in solar panels to provide power to their homes and businesses at a huge level.

Barbour ABI’s Home Improvement Index highlights a humongous increase of 223% in the installations of solar panels over just the past five years alone. This development shows how there has been a big shift in how UK homeowners want to power their homes.

This is not just a trend, either. It looks like this increase in solar-powered homes and businesses is likely to persist and even increase more rapidly as the UK government pushes towards a greener and more sustainable country. These figures indicate some major changes on the horizon for the UK energy industry.

Not that long ago, many people considered solar power to be expensive and unattainable. Fast forward to today, and it is very quickly becoming a much more realistic alternative to fossil fuel power for the majority of homeowners. This is mostly because of heightened environmental awareness, government support, and a sharp drop in installation costs.

Changing over to solar energy is not just good for helping homeowners save money, but it is also great for helping with the government's goal of achieving net-zero emissions. The recent increase in solar panel installations shows that homeowners are now becoming very aware of the effects of climate change and how sustainability plays a part in tackling this.

It also shows that, as a nation, we are collectively now moving further away from fossil fuels and, instead, adopting the more sustainable option of solar power.

And it is not just the UK that is heading in this direction. In a recent report released by SolarPower Europe, the global yearly installations of solar panels grew by 87% in 2023 compared to the year before.

This also shows how, as a whole, the world is becoming much more aware of climate change and what is needed to fight climate change.

For homeowners, the installation of solar panels can result in some substantial long-term savings when it comes to energy bills. With energy rates still on the rise, more people are finding that a switch to solar is much better for their finances. Plus, more solar homes equate to a cleaner future for everyone.

Market Data & Industry Growth

The UK government has a goal of achieving net-zero emissions by 2050, and solar energy is one of the biggest and most important steps that will help with achieving this. The government has now reactivated the Solar Taskforce. The task force aims to accelerate the deployment of solar energy across the UK.

The government has highlighted a very significant development in this respect - this was their recent approval of 2GW of nationally significant solar power projects within a span of just a few months.

This number is higher than the total approved in the last 14 years combined.

This reflects how actively the government is expanding solar capacity. They aim to focus their efforts on large-scale solar farms as well as solar rooftop panels for homes and businesses.

The government is evidently already aware of the significance of solar power in meeting their future climate goals. They are committed to simplifying and supporting the planning processes to ensure that the solar power market is the best possible.

The Solar Taskforce has an essential role to play in this as it brings together various experts from different fields to help foster innovation and deal with any challenges that pop up in the solar sector.

As the solar energy industry continues to expand and advance in the future, it will bring in some great things to the country, including new jobs and investment opportunities.

The government is very keen to promote these benefits, and the Solar Taskforce is looking at new ways to achieve the most from them. They are looking to ensure that the UK remains one of the leading countries in the global solar revolution.

Roof solar panel installations are very important for the growth of the industry. We can already see that solar panel installations are becoming more popular.

This is mostly due to the fact that solar panels are cheaper now and also because homeowners are now becoming more aware of the benefits of generating their own energy.

The UK solar market has seen a huge transformation in recent years. Large-scale solar farms used to dominate the solar industry. However, we are now seeing a lot more homes and businesses that also making this transition by installing solar panels for power on their roofs.

As everyone is now becoming more aware of climate change, homeowners across the nation are looking for better ways to make their homes more sustainable for the future.

Investing in solar power and getting solar panels installed is one of the leading things that homeowners can do to play their part in helping to fight climate change.

Key Drivers Behind the Surge

Here are some of the key drivers behind the rise:

Falling Costs of Solar Technology

Solar panels are a lot cheaper now than they once were. GreenMatch reports that the cost of solar panels has fallen by 90% globally over the past decade.

That's a huge decrease, and means that solar panels are now more accessible than ever before to homeowners who want to make the switch over to this renewable energy source.

Solar panels are no longer just an expensive and unachievable dream for UK homeowners. Instead, it is now a much more realistic option and a great way for homeowners to save money on their energy bills while also contributing to a greener future.

Also, we are now seeing some modern advancements in battery storage technology, which means that solar panels are now more beneficial than ever for homeowners. Lithium-ion batteries are becoming more efficient and lower in costs.

The batteries allow homeowners to store any excess solar energy that is produced by the panels, which can then be used at peak hours or at night. This allows homes to make even more use of their own solar energy instead of having to rely on the national grid.

As solar technology becomes more and more affordable, more homeowners will likely want to make the investment and switch over to solar energy as their primary source of electricity.

Government Incentives & Policies

The UK government is fully committed to achieving its goal of net-zero emissions by 2050. With this in mind, they have launched some incentives targeted precisely at helping to convince homeowners to invest in solar panels for their homes.

One example is the Smart Export Guarantee (SEG). Under this scheme, homeowners are paid for any surplus electricity that is exported to the national grid. Ofgem reports that thousands of UK households are already benefiting from the SEG.

So, not only can homeowners now get hold of solar panels for a much lower cost, allowing them to save money on their energy bills, but they can now also make some money back by selling their unused energy.

This is why solar panels are now becoming recognised as a worthwhile investment. As the cost of traditional electricity goes up and the cost of solar panels comes down, the return on investment for installations becomes even more attractive.

According to the Federation of Master Builders, some energy companies and local councils may offer limited solar panel grants or solar panel funding schemes.

These schemes are usually targeted at low-income homes or only apply to certain areas of the UK. It is worth contacting your local council and your energy supplier to see if there are any potential grants or funding options available to you.

Homeowners may also want to consider some other financing options. Green mortgages are one example. They offer better interest rates for energy-efficient home improvements, such as installing home solar panels.

Also, some energy companies might offer special discounts or financing options for solar panels. It is worth doing a bit of research before you buy them to see if you have any options that could help you financially.

Additionally, a large majority of new-build homes now come with solar panels already installed. So, new homebuyers can enjoy the benefits of solar power without needing to make the investment or have the work carried out.

Rising Energy Costs & Inflation

Energy prices are rising at a rapid pace. Plus, we are also in the middle of a cost-of-living crisis. So, with this in mind, homeowners are currently more desperate than ever to save money in any way possible.

This could be an incentive that makes homeowners more inclined to get solar panels at home because of the long-term savings that come with them. Solar power allows people to be less reliant on the national grid, which means lower energy bills.

According to a survey carried out by the Office for National Statistics, around 4 in 10 adults (41%) who pay energy bills have found it somewhat difficult to afford them.

The survey further discovered that 44% of adults in Great Britain are now cutting down on their fuel, such as gas or electricity, usage at home because of the rising cost of living.

And it’s not just energy that is rising in cost. Inflation sees most things increase in cost year after year. It is becoming more and more difficult to afford things in the UK and across the world as things become more expensive.

With all of these collective increases in costs, there is really no better time than now to consider investing in solar power for the long-term savings involved. Despite the initial investment, due to the lower costs of installations, it now takes much less time for the investment to pay off than it would have done in the past.

Environmental Awareness & Sustainability

Homeowners in the UK are becoming more and more aware of climate change and its effects and environmental issues and are realising where sustainability comes into play.

According to a recent survey by YouGov, 60% of Britons agree that climate change is the biggest threat to civilisation.

The survey shows how most UK residents now appreciate the importance of sustainability. As a nation, we now have a far better understanding of environmental issues, particularly climate change.

So, Brits are now realising the urgent need to reduce their carbon footprint, and solar panels are a great way for homeowners to start reducing their carbon footprint.

With greater awareness comes a greater sense of responsibility. This is one of the driving factors that more homeowners want to invest in solar energy. Younger generations, in particular, such as Gen Z, are committed to much more sustainable practices at home. As the generations shift, it’s likely that we will see more and more homes with solar panels.

Corporate & Institutional Investments

The Logical Group has found that UK businesses are now taking up solar energy at a growing pace. This increase is driven by rising energy costs and corporate sustainability goals.

Commercial solar installations have increased by an estimated 25% in 2024 compared to 2023. Business companies are now realising both the financial and environmental benefits of generating their own energy.

Factories, warehouses and office complexes are leading the way in the corporate world. Additionally, in this space, we are also seeing some modern innovations and new, unique styles of solar panels, such as floating solar panels on reservoirs and bifacial panels.

These new solutions help to maximise solar energy potential in places where there may be limited space. The growth of large-scale solar farms and commercial solar projects is also contributing significantly to the total solar capacity in the UK.

As more and more businesses begin joining the solar power trend, other businesses will also feel the pressure to live up to their competitors’ sustainability efforts. This will likely lead to a chain effect of more and more businesses adopting the power of solar energy.

Challenges & Potential Barriers

Although there is currently rapid growth in solar panel installations, there are still a lot of challenges in the industry. For example, we are currently seeing some delays in installations. These delays are mostly due to supply chain problems and global events, which have affected the prices and availability of solar panels.

Another issue is the fact that the ageing grid system is in dire need of upgrades to accommodate the increased solar energy generation. This will require a lot of planning and investment. Misinformation and misconceptions about the efficiency and cost of solar panels could also make people less likely to install solar panels.

This is why the government is working on promoting incentives so that homeowners can realise the advantages of solar upgrades.

The National Grid reports that there is a need for substantial investment in grid upgrades to cope with the increased renewable input.

They explain that, as the UK moves further away from fossil fuel reliance and increases cleaner energy production, we will be using a lot more electricity than ever before. It is expected that demand for electricity will increase by 50% by 2035 and will double by 2050. This is why new major infrastructure is needed to connect the cleaner energy source from where it is being generated to where it needs to go.

Future Outlook

The future of the solar industry looks very promising. Solar energy has the potential to play a big role in the UK's transition to a low-carbon economy. We have already seen huge growth in the solar market, and there is no sign of it slowing down.

According to Solar Power Portal, searches for the phrase "Are solar panels worth it?" were up by nearly 350% between 10-21 September 2024 compared to the eight weeks from early February to late March of the same year.

This shows just how much people are becoming more interested in solar energy and how much people are now interested in solar panel news.

So, how many homes have solar panels in the UK? Well, according to Sunsave Energy, there are now more than 1.4 million households in the UK that currently have solar panels.

That's 5% of the UK's 28.4 million households that have now switched to solar. As recently as December 2020, there were less than a million UK homes with solar panels, which shows just how far we've come as a nation in quite a relatively short space of time.

In the future, certain trends and opportunities will help shape the solar energy market in this country. One of the key areas for this is the continued advancement of energy storage technologies, such as battery storage technology.

The rollout of these modern storage technologies, along with solar installations, will result in increased flexibility and reliability. This means homes and businesses will be able to maximise their use of self-generated solar energy and be less dependent on the national grid.

Another important trend is the increasing integration of solar energy along with other technologies. A few examples include electric vehicles (EVs) and heat pumps. For example, intelligent electric vehicle charging systems can now be synchronised with solar energy. So now, owners of electric vehicles can charge their cars and vans with clean, affordable energy.

Similarly, heat pumps powered by solar energy now offer a far more sustainable solution than traditional heating systems.

Government policies that support and encourage the adoption of solar panels, such as the Smart Export Guarantee (SEG), have been crucial in the increased installations of solar panels. Continuation of this level of government support will play a very important role in unlocking the full potential of solar power in the UK.

Investments in grid infrastructure are also essential in helping to support the increasing amounts of solar power that are now being generated and to ensure we are able to handle this increase. It is extremely important that some upgrades are made to the grid to promote the efficient and reliable transmission of solar power across the country.

We need to ensure that the solar energy that is being generated can be transferred from place to place easily and efficiently. We need to make sure stored energy can transfer from where it is generated to where it needs to be. This is why some upgrades are needed to help support this.

Solar energy has the potential to become the main energy source in the UK. In the near future, it is expected that solar power will contribute significantly to the country's net-zero ambitions and unlock various new economic opportunities, such as new jobs and investment opportunities.

In order to achieve this, we will need continued innovation, supportive policies, and strategic investments in the grid.

While the number of homes that have solar panels is still quite low when looking at the bigger picture, the rapid growth over the past few years is a good indication of the direction that it is headed in. It is expected that this rapid growth will only increase in speed as the years go by, resulting in a much higher percentage of homes with solar panels year after year.