UK Renewable Energy Market Size, Share & Trends Analysis Report By Product (Bioenergy, Hydropower, Wind Power, Solar Energy), By Application (Industrial, Residential, Commercial), And Segment Forecasts, 2024 - 2030

UK Renewable Energy Market Size & Trends

The UK renewable energy market size was estimated at USD 20.25 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 20.3% from 2024 to 2030. The growing demand for renewable energy is attributed to the high living standards of consumers and rapid economic growth. The shift towards low-carbon fuels and the presence of stringent environmental regulations in UK have greatly boosted the renewable energy industry in the country.

Another growth factor responsible for the rising demand of renewable energy in the country is several economic benefits and opportunities provided by solar energy projects in the UK. With PV modules becoming cheap, the installation rates have gone up in the country, and the upgradation of old power plants is expected to drive the market. Notable solar companies present in the country include first4solar and Maxeon Solar Technologies, Ltd. The use of solar panels in the country is increasingly attributed to the strategic geographical location of the country as it is exposed to the maximum amount of sunlight throughout the year.

Increasing construction of hydropower plants in the country is also expected to foster the demand of the UK hydropower market during the forecast period. Increasing construction of micro and increase in spending on mini hydro power plants fuels the demand of the overall hydropower market in the country in the near future.

The high initial investment to produce renewable energy restrained the growth of the global renewable energy market. Similar trend is expected to be seen in the UK market for renewable energy. The cost of renewable energy production comprises land, materials, equipment, and labor. Financial assistance is required for the development and expansion of biogas plants. The process of procuring and converting raw materials is costly and time-consuming. Regulation and financial assistance are required for sorting, collecting, processing, supplying, and distributing the feedstock; the construction & operation of the plant; and the sale & distribution of renewable energy. Plant output needs to be sufficient and consistent to cover installation and operating costs.

Market Characteristics & Concentration

The market is highly fragmented, and the key players are focusing on market expansion via collaborations and partnership while reducing competition. The pace of the market is accelerating, and growth is high.

As electricity demand increases in the UK, government is designing and implementing policies to scale up and catalyze renewable energy. There is a significantly positive regulatory trend for the market. The government is releasing grants to promote the use of solar power in residential properties. Solar technologies are a critical component of this expanded deployment and has experienced unprecedented growth in recent years.

Players are collaborating to access the required knowledge or expertise in a particular operation or business to pave way for innovation and growth. For instance, Cubico Sustainable Investments has acquired Peel NRE’s 50% stake in Peel Cubico Renewables. The strategic investment focused on developing more renewable energy projects in the UK.

Growing environmental concerns, superior properties, and excellent performance displayed by renewable energy is expected to keep the threat of substitutes low over the forecast year.

Product Insights

The wind power segment dominated the market with a revenue share of over 37% in 2023. A substantial increase in demand for renewable energy is expected to drive the growth of the wind energy market. Wind energy is cost-effective and one of the cheapest renewable energy sources, costing 1-2 cents per KWh. Wind energy is a renewable energy source used to generate electricity from kinetic energy. Wind turbines transform the energy into kinetic energy, which is further converted into electrical energy by a generator. Wind energy can be generated both onshore and offshore. Onshore wind energy is associated with onshore turbines located on land, while offshore wind turbines are located in the ocean. However, offshore wind turbines are more efficient than onshore wind turbines due to the constant wind currents. These factors coupled with environmentally friendly technology over the use of fossil fuels are expected to drive the demand for wind energy over the forecast period.

The solar energy power segment is expected to witness the fastest CAGR of 21.5% in 2023. Grid electricity has a lot of blackouts, even hydropower is prone to blackouts during transmission, but solar systems are much more efficient at transmission. This is the major driving factor for the segment. Furthermore, it is low in cost and provides a company green label and minimizes power outages. Hence, organizations are shifting to solar power over conventional electricity. For instance, the UK government allocated a budget of GBP 4 billion for a period of 2022 to 2026. The grant is to aid the installation of solar panels in residential buildings. The government also introduced 0% VAT scheme on solar panels as a product as well as its installation.

Application Insights

The industrial segment dominated the UK renewable energy industrty with a revenue share of over 59% in 2023. Increasing demand for clean electricity is expected to enlarge the number of utility projects and drive the growth of the photovoltaic module market across the industrial sector. Furthermore, the long-term adoption of renewable energy sources in industrial applications is expected to make up approximately 21% of the energy consumption in the manufacturing sector as feedstock by 2050.

The residential segment is anticipated to witness the fastest CAGR during the forecast period. The rapid growth of the solar energy in the residential segment is attributed to numerous benefits such as lower carbon footprints, lower electricity bills, and higher home values. With the help of solar systems consumers are eligible for tax credits introduced by governments. The launch of solar PV panels in residential applications is expected to increase product demand over the forecast period. For instance, Solaria introduced a black solar panel for residential applications with a power output of 430 W. The new panel is dubbed PowerXT 430R-PL and has a power conversion efficiency of 20.40% along with the size 1,076×1,957x35mm and weight of 21.3 kg.

Key UK Renewable Energy Company Insights

The market is extremely competitive with key participants involved in collaboration and expansion to increase their renewable energy production capacity. The players are continuously involved in adopting various organic and inorganic strategies to expand their global footprint and energy production capacities. The most adapted strategy is collaboration and partnership to minimize competition and focus on expansion of the market.

Recent Developments

• In February 2023, General Electric received a contract from WPD for the supply of 16 onshore wind turbines to 3 wind farms located in Landkreis Uelzen, Niedersachsen, Germany. Together, the wind farms will be able to produce enough power to supply electricity to the equivalent of about 90,000 households per year allowing the company to expand its consumer base.

• In December 2023, Invenergy announced that the company is developing Leading Light Wind, a 2.4GW offshore wind project. The company has submitted a bid to the state of New Jersey for building the needed setup required for offshore wind and transmissions.

• In April 2023, Siemens Gamesa Renewable Energy announced the creation of GreenTower, a wind turbine tower made of more sustainable steel. The tower is expected to a lower CO₂ equivalent emission by 63% in tower steel plates production as compared to conventional steel plants.

UK Renewable Energy Market Report Scope 

UK Renewable Energy Market Report Segmentation

This report forecasts volume and revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global UK renewable energy market report based on product, and application:

• Product Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)

  • Hydropower

  • Wind Power

  • Solar Power

  • Bioenergy

  • Others

• Application Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)

  • Industrial

  • Residential

  • Commercial