Solar Comeback – Policy and Market Forces Drive UK Solar PV Growth #2

Following the closure of the Feed in Tariff scheme in 2019, the UK’s solar PV market experienced a period of reduced growth. In recent years, however, the sector has regained momentum. In 2024, the UK added approximately 2.35 GW of new PV capacity which represents the highest annual addition since 2015.

This growth is being driven by several segments:

• Residential rooftop installations, supported by the Smart Export Guarantee, zero percent VAT on solar panels, and elevated electricity prices.
• C&I rooftop deployment, underpinned by corporate sustainability commitments and the pursuit of long-term energy cost stability.
• Utility scale projects, facilitated through the Contracts for Difference scheme and bilateral PPAs, with around 4 GW of capacity currently under construction.

Key policy and regulatory measures are strengthening this momentum:

• The Clean Power 2030 Action Plan sets an ambition of 45 to 47 GW of installed solar capacity by 2030, with potential for higher deployment if rooftop uptake accelerates.
• The UK Solar Roadmap 2025 emphasizes a nationwide “rooftop revolution,” supported by Great British Energy funding, the Future Homes Standards requiring solar PV on all new builds, and reforms to grid connections and planning frameworks.
• Annual CfD auctions provide predictable support for large scale PV projects, with more than 7 GW awarded since 2021.

Importantly, the UK is currently the only market in Europe to register year on year growth in the residential PV segment in 2025 reflecting both strong consumer economics and supportive policy frameworks.

With clear targets and strengthened regulatory support, solar PV will remain central to the UK’s pathway to Net Zero by 2050, the delivery of a fully decarbonized power system by 2030, and the creation of a more resilient and affordable energy system.

This September, we attended Solar & Storage Live UK and met industry members from this dynamic market. We brought back valuable impressions from the showfloor – so get ready for Interviews and Booth Walkthroughs!

Want to learn more about the UK market? Make sure to check out EUPD Research‘s GET-Matrix, Market Leadership Study Europe ©: Last Mile Distributed Solar and Energy Storage, and PV InstallerMonitor © | EES InstallerMonitor.

If you have any questions, book a 1:1 meeting here.