How will the UK's 'rooftop revolution' boost solar power?

Egret Solar has more and more customers in UK, so we would like to have one analysis of the UK rooftop solar market.

Solar panel installations tripled in the UK thanks to incentives, analysis shows.

It’s election year in Europe, and with it come big promises - including help for voters in greening their homes.

The Labour Party’s UK victory heralds a new era for climate action with a “rooftop revolution” aiming to triple solar power in the country by 2030.

As well as approving three huge solar farms in east England that had previously been blocked by the Conservatives, the new government is offering grants and low interest loans to support solar panel installation on millions of homes.

But, with green energy subsidies historically hard to understand or access for many, do they really make a difference?

The Labour Party’s UK victory heralds a new era for climate action with a “rooftop revolution” aiming to triple solar power in the country by 2030.

As well as approving three huge solar farms in east England that had previously been blocked by the Conservatives, the new government is offering grants and low interest loans to support solar panel installation on millions of homes.

But, with green energy subsidies historically hard to understand or access for many, do they really make a difference?

Solar subsidies cause installations to triple

Analysis of data from the past 15 years shows that subsidies do have a significant impact on people’s willingness to install solar panels.

Introduced when the Labour Party was last in power in 2010, the Feed-in Tariff (FIT) scheme aimed to encourage the uptake of solar by paying homeowners for the electricity they generated.

Under the scheme, solar panels saw unprecedented growth: installations reached over 800,000 in five years. When FIT subsidies were cut in 2016, this figure fell 74 per cent to 224,000 in the same timeframe, according to the analysis by Independent Advisor.

When it was replaced with the Smart Export Guarantee in 2020, which offered similar perks, installations tripled back to their previous levels.

What solar panel subsidies are available to UK homeowners?

Various help is available for homeowners looking to install solar panels in the UK.

The Energy Company Obligation (ECO4) obliges energy companies to fund energy efficiency improvements for low-income households. It applies to homes with low energy ratings of D to G and will run until March 2026.

In England, homes without a gas boiler may be eligible for a Home Upgrade Grant to deliver energy efficiency improvements like solar panels for free. It also applies to homes with energy ratings of D to G. For most postcodes, it is only available to households with an annual income of £36,000 (€42,000) or less.

For neighbourhoods interested in going green, the Solar Together scheme makes PV and battery storage installation more affordable by offering group discounts.

If you sign up for Smart Export Guarantee payments, solar panels could cut your bills by as much as £600 per year, according to the Energy Saving Trust. The average domestic solar panel system costs around £7,000 to install, meaning it could pay for itself - and even start earning you money - within approximately 12 years.

Solar panels could also help you cut your annual carbon outputby around one tonne - the equivalent of driving almost 6,000 kilometres.It is a promising market for the solar rooftop.