Keir Starmer announced that the UK will cut emissions by 81% compared with 1990 levels. To reach such an ambitious target, the UK will rely in the rapid and safe deployment of a wide range of net zero technologies, both emerging and established ones.
With more than 16GW of generation capacity installed, solar energy – which involves converting sunlight into electricity using photovoltaic (PV) panels, either fitted on rooftops or ground-mounted on land – is an essential technology.
And with less than 5% of UK’s industrial and commercial (I&C) rooftops currently equipped with solar panels, it is anticipated that a “solar rooftop revolution” would be “unleashed” to triple capacity by 2030.
Record high solar installs
UK installed solar capacity is at record levels at 16.7GW, nearly 3.5 times more than 10 years ago.
The solar market can be broadly split into four indicative segments by installed capacity…
- Small-scale generation of less than 4kW is most likely to be representative of residential properties and make up 23% of the market.
- Installations with a capacity of between 4 to <50kW are likely to be on small and medium sized enterprises (SME) premisses. This segment accounts for 14% of the market.
- Solar installations with a capacity of between 50kW and 5MW are likely to be located at warehouses and larger I&C sites.
- Installations of more than 5MW are likely to be located in rural areas and be ground mounted. These are often referred to as solar farms and can vary in size from a few acres to hundreds of acres. Currently these account for 41% of the market.
Solar predicted to triple by 2050
According to energy market consultants Aurora Energy Research, solar capacity in the UK is forecast to reach 46.8GW by 2050.
Taking a very conservative stance, where installations at SME premises remain at 14% of the total size of the market, capacity in this segment is also likely to almost triple by 2050.
Therefore, SMEs are expected to play an increasingly important role in the deployment of solar capacity and ultimately in the transition to net zero.
Solar PV investment
A survey of 750 executives involved in energy-decision making across industries conducted by management consultants PwC, found that almost every participant has committed to reducing their carbon emissions to net zero.
However, over a third (37%) said that high energy costs have delayed their progress on decarbonisation.
In truth, says PwC, the two (cost and carbon) are complementary.
Reducing consumption and improving efficiency both insulates organisations from energy price volatility and reduces emissions.
– PwC UK Energy Survey 2024
There are four main options to reduce energy-related emissions…
- Reduce own energy consumption
- Invest in on-site generation (e.g. solar PV)
- Switch to a renewable energy contract
- Sign a Power Purchase Agreement with a renewable generator
Most respondents have fully adopted or have started to adopt these measures to reduce the carbon emissions from their energy usage.
In particular, 63% of businesses have invested or are in the process of investing in on-site renewable generation such as solar PV.
Start generating extra income
Solar PV offers businesses the additional benefit of generating extra income by selling unused and eligible electricity to the grid. Read our blog Maximise savings and sustainability with business solar panels.
Solar funding options
There is a wide range of funding options and incentives available to SMEs to support them with their solar PV projects, both from central and local government as well as from the private sector.
This is a summary of the main type of options…
- Government funding
These are targeted at specific sectors and are often available in “funding rounds” – limited periods. These can be provided as loans or grants and can cover some of the cost of purchasing the panels or the installation or both. Examples include The Industrial Energy Transformation Fund, DEFRA Farm Productivity Grants, the Energy Resilience Fund, Scottish Growth Scheme and Green Business Loan Scheme (Wales). - Regional or local authority schemes
For example, The Net Zero Grant Programme run by Birmingham City Council, Chamber Low Carbon Gran for eligible businesses in Lancashire, The Peak Innovation SME Innovation grant in Derby, The West Kent Green Business Grant Scheme, New Anglia’s Business Transition to Net Zero Grant, The Rushcliffe Accelerator in Nottingham and many more. - Bank/Building Society funding
Many high-street banks offer so-called Green Loans to support SMEs with their on-site renewable projects including solar PV. A few examples include NatWest Green Loans, Barclays Bank Green Loan, HSBC Go Greener SME Reward and The Co-Op Bank Renewable Energy Funding Scheme.
Do you have a Solar project in mind?
Ready to take the first step to transform your unused roof or ground space into a source of renewable energy? Read about the benefits of solar installation for your business and complete the form to get a quote from our partner Aztec Solar.
For large scale solar solutions see Centrica Business Solutions.
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