The Solar trend for 2024

Historically in the first quarter of 2022, solar energy in the United Kingdom had experienced some notable trends:

1. Renewable Power: Approximately 43% of the country’s electricity comes from renewable sources, including solar energy ¹.
2. Solar Contribution: Solar power accounts for 28% of the UK’s renewable energy generation ¹.
3. Coverage Potential: To power the entire UK, solar panels would need to cover approximately 12% of the country ¹.
4. Generation Increase: In the first quarter of 2022, solar generation witnessed a 22% increase compared to the same period in 2021 ¹.

These trends indicate a growing interest in solar energy and its potential to contribute significantly to the UK’s energy mix. Additionally, the UK’s solar sector has rebounded after changes in subsidies, and it is expected to continue growing throughout the year. The solar energy trends from 2022 to 2023 were quite interesting. Let’s delve into the details:

1. Increased Solar Capacity: During this period, the UK witnessed a significant increase in solar capacity. Research by Rystad Energy revealed that the rate of solar installations tripled, with 2.9 GW of domestic and utility-scale solar installed between 2022 and September 2023. This brought Britain’s total solar capacity to 18.1 GW ¹².
2. Record Solar Generation: Solar generation rose by a remarkable 26% during this time. The higher average sun hours contributed to this growth. However, hydro generation experienced a decline of 13%, likely due to lower average rainfall ³.
3. Clean Electricity Mix: By the end of 2023, the UK achieved its cleanest electricity mix in 66 years. Solar played a crucial role in this achievement, accounting for nearly 10% of the country’s electricity mix ².
4. Overall Energy Trends: While solar thrived, other energy sources faced challenges. Coal and oil production hit record lows, and nuclear output was down. Wind, solar, and hydro reached record highs, contributing to the overall energy landscape ³.

In summary, solar energy made significant strides in the UK during this period, contributing to a cleaner and more diverse energy mix. The early part of 2024 saw:

1. Record Solar Generation: Despite lower average daily sun hours in 2023, solar generation increased by 4.1%, reaching 13.8 TWh—the highest level in the time series. This growth reflects the increased adoption of solar energy ³.
2. Solar Roadmap for 2024: The UK government is set to unveil a solar roadmap in 2024. The focus will be on driving rooftop solar panel installations, reducing costs for households and businesses interested in adopting solar power. The goal is to make solar energy more accessible and affordable, ultimately leading to significant reductions in energy bills ⁴.
3. Low Carbon Generation: Solar, along with wind and hydro, contributed to a record high share of 61.5% in low carbon generation. Additionally, renewables’ share of electricity generation increased to a record 47.3%

As we can see Solar uptake has been massive in the last two years. the solar Market and way in which solar integrates into the home life is much more effective that FIT and SEG.
The surge in solar energy adoption in the United Kingdom between 2023 and 2024 can be attributed to several key factors:

1. Energy Price Surge: The Russian invasion of Ukraine led to a significant increase in energy prices. As a result, there was heightened interest in alternative energy sources, including solar power ¹.
2. Contract-for-Difference Auctions: Annual contract-for-difference auctions provided incentives for solar projects. These auctions encourage investment by ensuring stable revenue for renewable energy generators ¹.
3. Falling Panel Costs: The cost of solar panels continued to decrease, making solar installations more financially viable for both residential and commercial users ¹.
4. Liberalization of Planning Rules: Ongoing efforts to liberalize planning rules streamlined the process for obtaining permits and approvals for solar projects ¹.
5. Decarbonization Efforts: The UK’s commitment to reducing carbon emissions drove interest in clean energy sources. Solar energy played a crucial role in achieving this goal

The UK’s solar power market is expected to expand further, with installed base capacity projected to reach 53.12 gigawatts by 2029.

2022 installation figures 130,596
2023. saw a further 139,826

In 2023, the United Kingdom witnessed a surge in solar installations. Here are the key figures:

• Annual Record: A new annual record was set with 138,336 solar photovoltaic (PV) installations since 2022. This surpassed the previous year’s count of 137,926, marking a record for the post-subsidy solar industry ¹.
• Monthly Installations: In June 2023, there were 18,808 solar installations, contributing to a total solar capacity of 84 MW 

As of January 2024, the United Kingdom has witnessed a surge in solar installations. Here are the key figures:

• Total Solar Capacity: The UK’s total solar capacity stands at 15.7 GW (gigawatts) ¹². This represents an increase of 6.6% compared to the previous year.
• Monthly Installations: In January 2024, 58 MW (megawatts) of solar PV capacity were installed across the UK ².

The cost of solar panel installation in the United Kingdom has evolved over the years. Let’s explore how it has changed between 2020 and 2024:

1. 2020:
   • The average cost of solar panel installation in the UK ranged from approximately £4,000 to £8,000 ¹.
   • Factors influencing costs included system size, type of solar panels used, and installation complexity.
2. 2024:
   • As of 2024, the most common system size is the 4kW solar system, which typically costs between £9,000 and £10,000 ².
   • This system can save an average household around £770 per year, assuming decent sunlight hours and installation on a south-facing roof.
   • The estimated average yearly savings with a 4kW solar panel system range from £515 to £1,175 ².
   • The payback period for this investment is approximately 12 years, considering the system’s lifespan of about 25 years ².
3. Variability:
   • The price of solar panels can vary based on several factors, including system size, panel type, and installation specifics.
   • The standard cost for solar panels in the UK typically ranges from £5,000 to £10,000 for a 2–4 kW system ²³.