Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Solar PV installations collapse in 2016 and 2017 following government policy change
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- Figure 1: Photovoltaic Installations in the UK, 2010-17
- Ground-mounted sector moves into post-subsidy phase
- Availability of cheaper and more efficient solar-plus storage systems to drive roof-top solar PV sector
- Solar companies are turning attention to the new build sector and local authorities
- Largely untapped commercial sector offers huge growth potential
- Overall solar PV deployment set for modest growth between 2018 and 2022
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- Figure 2: Forecast new photovoltaic capacity installed in the UK, 2018-22
- Companies and brands
- Abrupt government policy changes result in many companies exiting UK solar PV sector
- Installers are diversifying into energy storage, energy efficiency and EV charging
- The consumer
- 41% of respondents would consider having solar panels installed if a solar company/installer proved the cost savings to them
- Nearly a third of homeowners would consider having solar panels installed if more cost-effective energy storage systems become available
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- Figure 3: Reasons for considering having solar panels installed, May 2018
- What we think
Issues and Insights
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- Commercial sector offers huge growth potential for solar PV despite some barriers to deployment
- The facts
- The implications
- Growing number of companies are moving into nascent solar-plus storage market
- The facts
- The implications
The Market – What You Need to Know
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- UK sees dramatic fall in solar PV installs in 2016 and 2017 following government policy change
- Future growth in residential rector to be driven by ‘paid-for’ solar plus storage systems
- Solar PV still offers an attractive and viable option for commercial sector
- Ground-mounted sector moves into post-subsidy phase
Market Size
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- Introduction
- Nearly 13GW of solar PV installed in UK
- UK sees dramatic fall in solar PV installs in 2016 and 2017 following government policy change
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- Figure 4: Photovoltaic installations in the UK, 2011-18
- Figure 5: Photovoltaic installations in the UK, 2010-17
Market Segmentation
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- Overview
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- Figure 6: Photovoltaic Installations in the UK, by capacity of installation, 2012-18
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- Figure 7: Photovoltaic installations in the UK, by accreditation scheme, 2012-18
- Figure 8: Photovoltaic installed capacity in the UK, by size, as of June 2017
- Residential solar PV market
- Drastic cuts in FITs in early 2016 result in slump in residential solar PV installations
- ‘Free solar’ versus paid-for installations
- Future growth to be driven by ‘paid-for’ solar plus storage systems
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- Figure 9: Residential photovoltaic installation capacity installed in the UK, 2012-18
- Building-mounted solar PV market
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- Figure 10: Building mounted photovoltaic installation capacity installed in the UK, 2012-18
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- Figure 11: Building mounted photovoltaic installed capacity in the UK, by size, mid 2018
- Companies continue to face barriers to deployment in commercial solar PV market
- Commercial roof-top market damaged by sharp business rate hikes in April 2017
- But solar PV still offers an attractive and viable option for commercial sector
- Ground-mounted solar PV market
- Ground-mounted sector moves into post-subsidy phase
- Emergence of PPAs present growth opportunities for ground-mounted solar PV installations
- 8.3 GW installed capacity across 1,122 solar farms operational
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- Figure 12: Ground mounted and large scale photovoltaic installation capacity installed in the UK, 2012-18
- Community solar PV installations
- New business models starting to emerge
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- Figure 13: Number of community FIT energy installations, Q2 2013-Q1 2018
Regional Trends
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- Regional development
- London aims to boost solar PV deployment as part of the capital’s environment strategy
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- Figure 14: Household penetration of photovoltaic installations in Great Britain, by region, 2014-18
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- Figure 15: Regional distribution of photovoltaic installations in Great Britain, by type and region, cumulative as of June 2018
The European/World Context
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- Figure 16: World, EU and UK cumulative photovoltaic installations, 2012-17
- Figure 17: World development of photovoltaic installations, 2010-16
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Market Forecast
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- Drastic government policy changes prove highly detrimental to solar PV sector
- Solar PV subsidy cuts contribute to significant fall in UK clean energy investment
- Ground-mounted sector moves into post-subsidy phase
- Increased availability of affordable and efficient solar-plus storage systems to drive take-up of roof-top solar PV
- Solar companies are turning their attention to new build sector and local authorities
- Largely untapped commercial sector offers huge growth potential
- Overall solar PV deployment set for modest growth between 2018 and 2022
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- Figure 18: Forecast photovoltaic installed capacity in the UK, 2018-22
- Figure 19: Forecast new photovoltaic capacity installed in the UK, 2018-22
Market Trends
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- Growing number of companies are moving into nascent solar-plus storage market
- Advancements in building-integrated photovoltaics (BIPV) make solar PV more aesthetically pleasing
- Utility sector offers opportunities for solar firms
- Solar carports represent an emerging market
Government Policy and Legislative Environment
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- UK committed to reducing carbon emissions by 80% below 1990 levels by 2050
- UK currently on track to miss emission reduction targets between 2023 and 2032
- Policies to decarbonise electricity
- Renewables Obligation
- Contracts for Difference
- Feed-in Tariffs
- Drastic cuts to FITs cause roof-top solar PV deployment to plummet over 2016 and 2017
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- Figure 20: UK feed in tariff levels, 1 July 2018-30 September 2018
- Capacity Market
Market Drivers
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- New housebuilding sector offers huge growth potential for solar PV companies
- Social rented sector attracts interest from solar PV companies
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- Figure 21: RESIDENTIAL dwelling stock in Great Britain, 2011-16
- Number of non-domestic properties
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- Figure 22: Number of non-domestic rateable properties in England & Wales, by sector and region, as at 1 April 2017
- Figure 23: Number of non-domestic rateable properties in England & Wales, by property type, as at 31 March 2015
- PV prices falling rapidly
- Anti-dumping duty on China solar panels
- Tax breaks for solar panels and battery systems
- Government commits funding for research and innovation in battery storage technology
- UK energy mix and growth in renewable energy sector
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- Figure 24: Analysis of electricity generation the UK, by type of fuel used, 2013-17
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- Figure 25: Proportional importance of fuel source in UK electricity generation, 2013 and 2017
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- Figure 26: Renewable electricity generation in the UK, 2013-17
- The UK climate
- Other factors
Companies and Brands – What You Need to Know
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- Government policy change results in many companies exiting UK solar PV sector and job losses
- Solarcentury and IKEA team up to offer residential solar systems and home batteries in UK
- BSR launches behind-the-meter energy storage solutions provider
- BP invests in Lightsource to drive global solar expansion
Industry Structure
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- Abrupt government policy changes result in many companies exiting UK solar PV sector
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- Figure 27: Employment and number of companies active across UK solar PV supply chain, 2012-17
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- Figure 28: UK solar PV sector turnover, 2012-17
- Key industry players
- Installers are diversifying into energy storage, energy efficiency and EV charging
- Solar companies are looking for international expansion
Company Profiles
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- British Solar Renewables
- BSR launches behind-the-meter energy storage solutions provider in 2017
- Company strategy and outlook
- Financial performance
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- Figure 29: Financial analysis of British Solar Renewables
- EvoEnergy
- Company strategy
- Financial performance
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- Figure 30: Financial analysis of EvoEnergy, 2012-17
- Lightsource Renewable Energy Investment
- BP invests in Lightsource to drive global expansion
- Strategy
- Recent UK company developments
- Financial performance
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- Figure 31: Lightsource Renewable Energy Investments, 2016-17
- Solar Century Holdings
- Solarcentury and IKEA team up to offer residential solar systems and home batteries in UK
- Solarcentury focusses on international expansion as UK market is hit by green cuts
- Company review and outlook
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- Figure 32: Financial analysis of Solar Century Holdings, 2014-18
The Consumer – What You Need to Know
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- Strong support for solar PV among UK public
- 41% of respondents would consider having solar panels installed if a solar company/installer proved the cost savings
- Nearly a third of homeowners would consider having solar panels installed if more cost-effective energy storage systems become available
Ownership
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- Ownership levels of solar panels remain low
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- Figure 33: Ownership of solar panels, May 2018
- Most people who have solar panels on their roofs have paid for them themselves
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- Figure 34: Payment of household’s solar panels and installation, May 2018
Attitudes towards Solar Panels
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- 73% would like to see all new homes fitted with solar panels where suitable
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- Figure 35: Attitudes towards solar panels, May 2018
- 56% of homeowners would be interested in purchasing a solar-plus-battery storage system
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- Figure 36: Attitudes towards solar panels, May 2018
Future Intentions
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- Solar companies need to accurately prove cost savings to homeowners to drive sales in residential solar PV market
- Nearly a third of homeowners would consider having solar panels installed if more cost-effective energy storage systems become available
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- Figure 37: Reasons for considering having solar panels installed, May 2018
- More than a third of people say they would not consider solar panels as they can’t afford them
- One in four put off from installing solar panels because of aesthetic reasons
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- Figure 38: Reasons for not considering having solar panels installed, May 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- British Photovoltaic Association
- Energy Networks Association
- Energy Industries Council
- Energy UK
- SolarPower Europe
- European Solar Thermal Industry Federation
- Micropower Council
- Office of Gas and Electricity Markets (Ofgem)
- Office of Gas and Electricity Markets - Scotland (Ofgem Scotland)
- Renewable Energy Association
- Solar Trade Association
- Trade magazines
- Renewable Energy Focus
- Solar Business Focus
- Solar UK
- Solar International
- Trade events
- All-Energy Exhibition & Conference Aberdeen
- Future Resource Expo
- Solar & Storage Live
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