The UK’s solar sector is experiencing a surge not seen since the golden era of 2014–2016. In 2024, the country added approximately 2.3 GWp-dc of new solar capacity, exceeding expectations and marking a 20% increase from 2023. With forecasts suggesting a further 3 to 3.5 GWp-dc of deployment in 2025, the stage is set for one of the strongest years on record.
At Arc Renewables, we are proud to support businesses during this exciting period, helping them harness the benefits of cleaner, more cost-effective energy solutions.
Why Is Solar Deployment Booming in the UK?
Government Incentives
Support from the UK Government has been a major driver behind the solar boom. Contracts for Difference (CfD) rounds, such as AR4 and AR5, have injected fresh momentum into large-scale solar projects. Together, they accounted for nearly 850 MW of the capacity added in 2024. Additionally, businesses investing in renewable technologies like solar panels can benefit from the Annual Investment Allowance (AIA), allowing them to deduct the full cost of installation from their taxable profits.
Lower Technology Costs
Technological advancements have dramatically reduced the cost of installing Solar PV systems. Panels are now more efficient and affordable, making clean energy a viable option for businesses of all sizes. As installation prices drop, the return on investment becomes even more attractive.
Corporate Sustainability Goals
More businesses are setting ambitious Environmental, Social, and Governance (ESG) targets. Installing Solar PV offers a highly visible, measurable contribution towards achieving net zero goals, improving brand reputation, and strengthening relationships with eco-conscious investors and customers.
Energy Price Volatility
Rising and unpredictable energy prices have made energy independence a strategic priority. Generating your own power with Solar PV helps businesses stabilise operating costs and protect themselves from future market fluctuations.
Planning Reforms
Recent planning regulation changes have opened new doors for commercial rooftop solar installations. Project size thresholds have increased from 1MW to 5MW, making it simpler and more financially viable for businesses to install larger, more impactful solar arrays without complex permissions.
UK Solar Growth Snapshot
| Year | Capacity Added (GWp-dc) | % Growth YoY | Notes |
|---|---|---|---|
| 2022 | 1.9 GW | – | Rebound after COVID-19 pandemic |
| 2023 | 1.9 GW | 0% | Stability with minor growth in rooftops |
| 2024 | 2.3 GW | +20% | Strong ground-mount push in late 2024 |
| 2025 (Forecast) | 3–3.5 GW | +50% | Driven by NSIP projects, rooftop reforms, and CfDs |
What This Means for Businesses
The growth in solar installations is not just a statistic – it represents a major opportunity for UK businesses.
1. Lock in Energy Cost Savings
Solar PV provides long-term protection against fluctuating energy prices. By generating your own power, you reduce exposure to market volatility and stabilise your operating costs.
2. Improve ESG and Net Zero Credentials
Installing solar is a clear, measurable step towards net zero. It strengthens Environmental, Social, and Governance (ESG) positioning, an increasingly important factor for investors, customers, and supply chain partners.
3. Benefit from Financial Incentives
With schemes like the Annual Investment Allowance (AIA), businesses can deduct the full cost of their Solar PV systems from their taxable profits, enhancing return on investment.
4. Increase Property Value
Buildings with embedded renewable energy systems tend to attract higher valuations and appeal to eco-conscious tenants and buyers.
How Arc Renewables Supports Your Transition
At Arc Renewables, we provide end-to-end solutions to help businesses capitalise on the UK’s solar boom:
- Consultancy and Feasibility Studies: Helping you plan solar installations tailored to your site and needs.
- Project Delivery and Installation: Seamless deployment using industry-leading technologies.
- Asset Management and Monitoring: Protecting your investment long term.
- Net Zero Strategy Development: Integrating solar within wider carbon reduction plans.
FAQs About Solar Growth and Business Opportunities
Q: Is it still worth investing in solar panels in 2025?
A: Absolutely. With costs lower than ever, strong government support, and growing corporate pressure to hit sustainability targets, 2025 is one of the best times in recent history to invest.
Q: How long does it take for a Solar PV system to pay for itself?
A: Payback periods typically range from 4 to 7 years, depending on system size, usage patterns, and available tax incentives such as the AIA.
Q: Can I install a large solar array on my business without complex planning permission?
A: Many commercial installations under 5MW now benefit from simplified planning processes, making deployment faster and more straightforward.
Tip: Have a chat with one of our expert consultants to learn the best options for you.
Q: How does Arc Renewables help with solar financing or grants?
A: We assist clients in exploring financing options, grants, and government incentives to maximise affordability and return on investment.
Ready to Capitalise on the UK Solar Boom?
The solar revolution is here, and the businesses that act early stand to reap the biggest rewards. Whether you are looking to cut costs, enhance sustainability, or future-proof your operations, Arc Renewables is your trusted partner.
Contact us today to discuss how we can design a bespoke solar solution tailored to your business needs.