The future of UK solar: Key industry updates you need to know
By Stuart Spiers | 25-2-25
The UK’s solar energy sector is evolving rapidly, with major developments shaping the future of renewable power. From advancements in battery storage and the rise of zero-energy-bill homes to regulatory challenges and government initiatives, the industry is at a turning point. While innovation is driving progress, developers still face hurdles that could impact the speed and scale of solar adoption.
In this blog, we explore the latest industry news, key trends, and what they mean for the future of solar energy in the UK. Whether you’re an investor, developer, or just passionate about renewables, here’s what you need to know.
Battery Storage Advancements
Battery storage is undergoing a significant transformation, becoming more cost-effective and efficient. The Bramley Battery Energy Storage System in Hampshire exemplifies this progress, with the capacity to power 44,000 homes for a day. The International Energy Agency anticipates that battery storage capacity will surpass new fossil fuel power plants by 2030. However, adapting market structures and regulations is essential to support these investments.
Zero Energy Bill Homes
In the South East of England, over a hundred new homes are being constructed to offer zero energy bills for at least five years. Developer gs8, in partnership with Octopus Energy, is leading this initiative at the Carpenter’s Yard estate in Thornwood, Epping, Essex. These homes are equipped with heat pumps, batteries, and solar panels, with prices starting at around £550,000. Shared ownership and affordable rent options are also available. Octopus Energy aims to expand this model, targeting 100,000 such homes by 2030.
Policy and Regulatory Discussions
The UK government is considering reforms to decarbonize the electricity grid by 2030, including “zonal” or “locational” pricing for electricity. However, trade unions and business groups have expressed concerns that such changes could lead to higher household bills and deter investment in heavy industries. They argue that the uncertainty surrounding these reforms is already delaying investments and could substantially increase costs for consumers.
National Grid’s Strategic Shift
National Grid has sold its US renewable energy assets to Brookfield Asset Management for $1.735 billion. This move aligns with National Grid’s strategy to focus on its core energy network operations and a significant £60 billion, five-year infrastructure investment program in the UK and the US. The sale is seen as a move to fund its primary operations and projects, with National Grid’s shares seeing a rise following the announcement.
Challenges in Solar Farm Development
Solar power developers in Britain face significant delays and costs due to archaeological trenching requirements before receiving planning consent. For instance, Low Carbon’s Gate Burton Energy Park experienced a six-month delay and over £1 million expense to dig 777 trenches, with findings of minimal value. Developers argue that these requirements create unnecessary financial risks and hinder progress, proposing that trenching should occur post-approval to reduce costs and avoid wasted efforts if projects aren’t approved.
Government Initiatives
The reactivated Solar Taskforce held its first meeting to boost solar energy’s role in the UK’s 2030 clean power mission. A new solar roadmap is set for release, focusing on ethical supply chains and a skilled workforce to scale up installations. This follows the government’s approval of 2GW of nationally significant solar power projects in a few short months, exceeding the total from the past 14 years combined.
The UK’s solar energy sector is at a pivotal moment. The future looks promising with advancements in battery storage, the push for zero-energy homes, and ongoing government initiatives. However, planning delays and regulatory uncertainty continue to slow progress.
As the industry moves forward, collaboration between policymakers, developers, and investors will be crucial in ensuring that solar power reaches its full potential. At Solar Group Utilities, we’re committed to staying ahead of these changes and driving the transition to a cleaner, more sustainable energy future.
