Solar Energy and Battery Storage to Boost UK Economy by £5.1 Billion Annually by 2035
The solar energy and battery storage sectors are poised to become major economic drivers in the UK, with their annual contribution projected to rise from £1.9 billion in 2024 to an impressive £5.1 billion by 2035. This growth reflects the increasing importance of renewable energy in supporting the UK’s economy, creating jobs, and advancing its net-zero goals.
How Are Solar Energy and Battery Storage Transforming the UK Economy?
Solar energy and battery storage have already made a significant impact on the UK economy. In 2024, these sectors contributed £1.9 billion in gross value added (GVA), with over 630,000 people employed across various roles in ‘green jobs’, from installation to engineering. By 2035, employment in these industries is expected to more than double, reaching over 40,000 jobs, while their combined economic contribution will nearly triple.
A report by BiGGAR Economics highlights that jobs in these sectors currently generate an average GVA of nearly £90,000 per employee—40% higher than the national average—making them highly valuable contributors to both local and national economies. This growth is not only creating opportunities for skilled workers but also supporting supply chains and regional development.
What Are the Projections for Solar and Battery Capacity?
The UK’s solar generation capacity stood at approximately 20 GW at the end of 2024, distributed across residential rooftops (4.2 GW), commercial-scale installations (4.2 GW), and ground-mounted solar farms (11.5 GW). Battery energy storage systems (BESS) added another 7.5 GW of capacity, including residential, commercial, and grid-scale installations.
By 2035, solar capacity is projected to soar to 90 GW—15.3 GW each for residential and commercial systems and a staggering 59.3 GW from solar farms. Battery storage is expected to grow in parallel, reaching a total of 49.9 GW across all scales. This expansion will ensure that renewable energy can be stored efficiently and used when needed, enhancing grid stability and energy security.
How Will Job Creation Evolve in These Sectors?
Employment in solar energy and battery storage is set to grow significantly over the next decade:
Solar Energy - By 2035, the sector alone is expected to support nearly 28,700 jobs, contributing £3.5 billion in GVA annually.
Battery Storage: Expanding BESS installations will add another 13,900 jobs by 2035, generating £1.6 billion in GVA.
These figures underscore the potential for these industries to become major employers while driving innovation in clean energy technologies.
What Are the Benefits for Rural Economies?
The expansion of solar farms is already having a positive impact on rural communities. In 2024, payments to farmers hosting solar installations amounted to £61 million—a figure projected to exceed £300 million by 2035. This income diversification is helping farmers remain financially viable while contributing to the UK’s renewable energy goals.
Moreover, rural areas are benefiting from increased investment in infrastructure and job creation associated with large-scale solar projects. These developments are revitalising local economies and providing new opportunities for businesses.
Why Is Policy Support Critical for Growth?
The rapid growth of solar energy and battery storage has been facilitated by supportive government policies and investment incentives. Initiatives such as renewable energy auctions and subsidies for residential installations have played a key role in driving adoption.
To sustain this momentum, policymakers must continue to prioritise renewable energy development through measures like:
- Streamlining planning processes for large-scale projects.
- Increasing funding for research into advanced storage technologies.
- Expanding training programs to address workforce shortages.
Such policies will ensure that the UK remains a global leader in clean energy while maximising the economic benefits of these sectors.
What Are the Environmental Impacts?
Beyond economic benefits, solar energy and battery storage are crucial for reducing greenhouse gas emissions and combating climate change. Solar power is already one of the cheapest and most scalable renewable energy sources available, making it an attractive option for decarbonising electricity generation.
By integrating battery storage systems, the UK can store excess renewable energy during periods of high generation and use it during peak demand or low-sunlight conditions. This flexibility enhances grid reliability while reducing reliance on fossil fuels.
How Can Businesses and Homeowners Benefit?
The growth of solar energy and battery storage presents significant opportunities for both businesses and homeowners:
For Businesses: Installing commercial-scale solar PV systems can reduce operational costs while demonstrating a commitment to sustainability.
For Homeowners: Residential solar panels combined with battery storage can lower electricity bills and increase energy independence.
Atlantic Renewables offers tailored solutions for residential and commercial customers looking to harness the benefits of solar power. Contact our team today at 0161 207 4044 to explore how we can help you achieve your renewable energy goals!
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If you’re ready to invest in solar PV or battery storage systems or need expert advice on upgrading your existing setup, Atlantic Renewables is here to help! Call us on 0161 207 4044 today to learn more about our services and start your journey toward a greener future!
