Ready for a bright future?

 

By 2015, PwC estimates that the UK’s solar photovoltaic (PV) energy capacity could grow over 30 times to reach 1,000 MW. To date the widespread roll out of solar PV in the UK has been slowed by a number of factors such as the lack of incentives for small scale domestic installations, complexity of funding, and planning restrictions.

To stimulate demand, ‘feed in tariffs’ in continental Europe have driven rapid increases in solar PV installations, with annual increases in excess of 300% in many countries during the first year of the tariffs availability. Following the coalition government’s recent announcement of plans to implement a full programme of feed-in tariff systems in the UK, what are the risks and opportunities facing those who operate in this rapidly changing market?

 

Key findings

  • Current installed solar capacity is small - Britain is a decade behind the leading European countries
  • Some important building blocks for growth are now falling into place - although some barriers remain
  • PwC expects significant growth in capacity in the medium term
  • The UK’s industry - particularly downstream - is immature and fragmented
  • In order for the UK industry to fully benefit from the solar potential significant investment in training, scale and professionalisation is necessary

 

The industry will transform from a cottage industry, driven by consolidation and new entrants