Sunnier outlook for solar
1 May 2026
After a heavily-subsidised boom in the early 2010s, the UK solar market spent a prolonged period in the doldrums before reduced production costs and spiralling energy prices combined to spark something of a revival.
Records suggest that March this year saw the biggest monthly deployment of solar installations since 2012 (see page 6 of this month’s issue), while total solar capacity across the UK surpassed 2 million for the first time.
With the country facing the dual pressures of rising electricity prices and energy security perils, investment in solar offers a compelling solution, providing environmental, economic and strategic benefits. Although the UK is not known for constant sunshine, modern photovoltaic technology is highly efficient even in cloudy conditions. Countries with similar climates, such as Germany, have successfully integrated large amounts of solar energy into their grids, demonstrating that weather is not a limiting factor. Solar power is also inherently decentralised. It can be generated on rooftops, in communities, and across rural areas, thereby reducing the vulnerability of the energy system to large-scale disruptions and creating a more resilient grid.
When compared to many other European countries, the UK has some catching up to do when it comes to investment in solar energy. As it stands, solar typically contributes a single-digit percentage of annual electricity generation – often around 4 to 6% depending on the year and weather – while providing more than 10% of electricity for Germany in recent years. However, as part of a broader push to decarbonise electricity, the current government has committed to expanding solar deployment at scale.
Several nationally significant solar projects have been approved, including some of the largest in UK history, as part of a wider effort to rapidly expand renewable capacity. The figures suggest, though, that it’s the domestic market that is leading the way, with two thirds of installations being new solar panels on homes. It may be early days in terms of assessing demand, but the introduction of ‘plug-in’ solar systems is likely to further add to capacity, as more homeowners take up the option of low cost panels which can be installed without professional assistance.
Such easy-to-fit options are helping to democratise energy generation, while advances in battery technology and energy storage should mean that more businesses and commercial enterprises will start to respond to the investment opportunity. The rooftops of factories and warehouses are potentially valuable energy assets, which can be utilised to help reduce a company’s energy costs and ensure an element of resilience in the event of interruptions in supply.
At a time when the country’s economic outlook is distinctly cloudy, it surely makes sense to look favourably at a potential energy-generating solution that could provide a level of protection for years to come.
Chris Jones is managing editor of EIBI
