Common sense tells us that a country like Britain, famous for its drizzly climate and cloudy skies, would struggle to be considered a global solar superpower. Yet current deployment rates, national targets and investments suggest this is the direction we are heading.
In fact, our solar sector is booming, with 15.8 GW currently deployed and aiming to reach 70 GW by 2035 (an almost fivefold increase from where we are today). While it’s an ambitious target, it’s also achievable when you consider the size of the current UK solar industry, which saw a record-breaking increase in rooftop solar by 2023.
Becoming a leader in the solar race
Anyone who has enjoyed a British summer can tell you that countries like Australia have a distinct advantage over Britain in the sunshine race – sunshine. With the sunny climate – and therefore the high irradiation – it is no wonder that solar energy became economical very early.
The country’s early mover status saw solar power become a staple of Australian households, with one in three homes hosting rooftop solar, putting the country on the map for one of the highest solar penetration rates energy for households.
Today, however, Australia’s solar sector is slowing down. A recent report from the Clean Energy Council pointed to a solar downturn in Australia by 2023. The report cited “particularly poor” investment in large-scale plants, causing financial approvals for new solar farms to fall by more than a third.
Recent figures suggest the Australian government’s ‘Powering Australia’ plan is starting to turn the tide, but 2030 targets to deliver an additional 32 GW of renewable capacity are in doubt with just five projects in the first quarter of this year reached financial commitments, with a total of 895 MW of new capacity. capacity.
What makes Britain’s sunny outlook possible?
Solar energy is the cheapest and most common energy source currently available.
This makes solar the obvious focus for clean energy investments worldwide, reflected in its increase from $127 billion in 2013 to $382 billion in 2023, surpassing all other generation technologies combined.
However, many will not find it difficult to believe that the UK’s solar potential took longer to catch on. With its lower irradiation rate, Britain had to wait longer than sunny countries like Australia before the cost of solar energy fell to a level where its deployment was economically justified.
In recent years, Britain has faced record energy costs, with bills soaring due to high inflation and geopolitical tensions with Russia following Putin’s invasion of Ukraine. This peaked in 2022, with household energy bills reaching a 50-year high. These price rises and the resulting cost of living crisis have exposed how vulnerable the UK energy system is to changes in the global fossil fuel market. As a result, energy security has become a key concern for UK citizens, policymakers and businesses, resulting in a shifting narrative and focus on home-grown renewables.
These key trends have led to a positive outlook for solar energy deployment in Britain. Innovation and investment have meant that the cost of solar energy has continued to decline, falling by almost 90% between 2013 and 2023.
Policy momentum is also growing as the UK government plans to form a UK Solar Taskforce, with a roadmap to 70 GW due to be published soon. Not to mention that with the election approaching, we’ve seen even more ambition, as parties like the Labor Party aim to bring forward national clean energy targets by five years, to 2030, a to become a clean energy superpower and a national utility called Great British Energy.
If we link our national ambition to the global investment and innovation landscape, there is huge potential for UK solar to punch well above its weight – even when compared to countries whose solar conditions may look like as if they are better than ours.
The status quo in Australia
Looking around the world, despite slower growth last year, Australia is also deploying solar energy at an impressive pace. The country currently has an average of 2.5 solar panels per Australian, and small-scale rooftop solar panel systems outperformed coal, supplying a record-breaking 14% of the country’s energy needs in the summer of 2022/2023. The recent Energy Savings Package also aims to mobilize more than $1.6 billion for energy efficiency improvements, including solar energy, to revive the green industry.
While both countries are focused on their solar energy goals, Britain’s commitment to renewable energy has allowed the country to punch above its weight, but it must continue to capitalize on investment and focus on the renewable energy revolution if it wants to compete.
The role of companies in securing our solar future
As we look to our net zero future, businesses in Britain have a vital role to play, with 44% implementing a climate action plan and the most popular actions focusing on energy saving measures, including increased use of renewable energy such as solar (48% ). And the potential for commercial rooftop solar in Britain is huge, with almost 2.5 billion square feet of south-facing commercial roofs in Britain.
Some of the country’s largest companies are already taking advantage of this potential and powering their operations through renewable energy. In many cases, this option is made possible and financially feasible through Power Purchase Agreements (PPAs).
According to Bloomberg, a record number of companies across Europe used PPAs last year, with volume in Europe growing by 74%, as companies combat energy price increases through long-term, affordable clean energy contracts that provide control over source, pricing and supply. Atrato’s work with companies such as Tesco, M&S and Britvic has helped them streamline their energy generation and reduce their bills by 20-30% per year.
Securing our clean energy future
Today, solar energy has become a no-brainer when it comes to reducing emissions and energy costs, for countries with and without a sunny reputation. This is particularly true in Britain, where the country’s solar energy trajectory for both residential and commercial rooftops – supported by increased investment, regulatory frameworks and impressive innovation – has the potential to rival the sunniest countries in the world, such as Australia.
While you may note the UK’s growth in solar energy in the residential sector, Britain’s sheer potential to harness commercial rooftop solar is what will put Britain on the world stage as a solar energy superpower. Through PPAs, companies are in an exceptionally strong position to unleash the potential and reap the benefits of running on cleaner and cheaper UK energy, whilst increasing the country’s renewable capacity.
With goals and commitment on a similar scale to Australia’s sun-drenched shores, Britain and its companies are poised to take the title of global solar superpower.
