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What New Carbon Budget Plans Mean for Transport and Buildings in 2025

What New Carbon Budget Plans Mean for Transport and Buildings in 2025

The UK government is actively updating its Net Zero Strategy and Carbon Budget Delivery Plan, aiming to accelerate decarbonisation across major sectors, including transport and buildings. Central to these updates is the ongoing commitment to phase out new petrol and diesel car sales by 2030, a policy designed to drastically cut emissions from one of the largest carbon-contributing sectors. Alongside this, new measures are anticipated to boost electric vehicle (EV) adoption and decarbonise heating in homes and businesses, with significant implications for solar energy and battery storage solutions.

For homeowners and businesses, these policy shifts mean greater incentives and support for adopting renewable technologies such as solar PV systems, battery storage, and heat pumps. As the UK moves closer to its net zero targets, integrating solar energy and battery storage is becoming not just an environmental choice but a financially savvy one, especially with rising energy costs and increased government backing.

If you’re considering upgrading your property with solar PV or battery storage, Atlantic Renewables’ team of experts can guide you through the latest incentives and installation options. Contact us today to future-proof your energy needs.

How Will the 2030 Petrol and Diesel Car Phase Out Impact UK Transport?

The 2030 ban on new petrol and diesel car sales remains a cornerstone of the UK’s Net Zero Strategy, reaffirmed in the latest policy updates. This bold move is expected to significantly reduce transport emissions, which currently account for around 26% of the UK’s total greenhouse gas output. By prioritising electric vehicles, the UK aims to cut millions of tonnes of CO₂ annually, aligning with its legally binding carbon budgets.

To support this transition, the government is expanding EV charging infrastructure and offering grants for both vehicles and home charging points. The growth of the EV market is also driving demand for home solar and battery storage systems, allowing drivers to charge vehicles with clean, self-generated power and reduce reliance on the grid. This synergy between solar PV, battery storage, and EVs is a key trend shaping the future of UK transport.

Atlantic Renewables can help you integrate solar panels and battery storage with your EV charging setup, maximising savings and sustainability. Learn more about our EV solutions.

What Are the Latest Policies for Decarbonising UK Buildings?

Buildings are responsible for roughly 17% of the UK’s greenhouse gas emissions, mainly due to heating and inefficient energy use. The updated Carbon Budget Delivery Plan is expected to introduce stricter standards for new builds and major retrofits, with a focus on low-carbon heating technologies such as air source and ground source heat pumps, as well as enhanced insulation.

Government grants and financing schemes are being expanded to make these upgrades more accessible. Solar PV systems, often paired with battery storage, are increasingly being promoted as part of whole-home decarbonisation packages. These systems not only cut emissions but also shield households from volatile energy prices, a growing concern amid global energy market instability.

Our engineers at Atlantic Renewables are experts in designing and installing solar and battery solutions tailored to your property’s needs.

Why Electric Vehicle Adoption Is Crucial for Net Zero?

Electric vehicles are pivotal to the UK’s net zero ambitions. As of 2025, EV registrations have surged, with over 1.5 million electric cars now on UK roads—a 30% increase year-on-year. This rapid adoption is driven by a combination of government incentives, manufacturer commitments, and growing consumer awareness of environmental benefits.

EVs, when charged with renewable electricity—especially from on-site solar—offer near-zero emissions driving. Battery storage further enhances this by allowing users to store excess solar energy during the day and charge vehicles overnight, reducing grid strain and energy costs. The integration of solar, batteries, and EVs is central to creating a resilient, low-carbon transport network.

If you’re looking to install an EV charger alongside solar panels, Atlantic Renewables can provide a seamless, future-proof solution. Contact our team for a tailored consultation.

What Are the Main Challenges in Decarbonising Heating?

Decarbonising heating is one of the UK’s most complex net zero challenges. Most UK homes still rely on gas boilers, but the updated strategy is pushing for widespread adoption of heat pumps and hybrid systems. The government aims to install 600,000 heat pumps annually by 2028, supported by grants and regulatory changes.

However, barriers remain, including upfront costs, property suitability, and the need for skilled installers. Solar PV and battery storage can play a complementary role, providing clean electricity to power heat pumps and offsetting increased electricity demand. This integrated approach is essential for meeting both carbon budgets and energy affordability goals.

Atlantic Renewables offers comprehensive packages combining solar, battery storage, and heat pump integration, ensuring your property is ready for a low-carbon future.

UK Solar and Battery Storage Market Growth in 2025

The UK solar and battery storage market is experiencing robust growth, fuelled by policy support and rising consumer demand. In 2024, the UK added over 1.2 GW of new solar capacity, with domestic installations accounting for nearly half of this growth. Battery storage adoption is also accelerating, with installations up 40% year-on-year as more households and businesses seek energy independence and resilience.

Innovations in smart grid technology and flexible tariffs are making it easier for solar and battery owners to maximise returns, participate in demand response schemes, and support grid stability. For those considering solar, now is an ideal time to invest, with technology costs falling and government incentives at an all-time high.

For more insights on the latest solar and battery trends, explore Atlantic Renewables' commercial solutions.

How Can Homeowners and Businesses Benefit from the New Net Zero Policies?

The updated Net Zero Strategy and Carbon Budget Delivery Plan offer significant opportunities for homeowners and businesses to reduce emissions, cut energy costs, and future-proof their properties. Key benefits include:

  • Access to grants and low-cost financing for solar PV, battery storage, heat pumps, and EV charging.
  • Enhanced property value and marketability through improved energy performance.
  • Reduced exposure to energy price volatility by generating and storing your own clean power.
  • Contribution to national carbon reduction targets and a more sustainable energy system.

Atlantic Renewables’ team of accredited installers can help you navigate the latest incentives and design a bespoke renewable energy system that meets your needs and budget.

Get in touch

Ready to take advantage of the UK’s latest net zero policies? Whether you want to install solar panels, battery storage, or integrate EV charging and heat pumps, Atlantic Renewables is here to help. Our engineers offer expert advice, quality installations, and ongoing support to ensure you get the most from your investment. Call us on 0161 207 4044 or Contact us online to start your journey towards a low-carbon, energy-independent future today!

Atlantic Renewables

Atlantic Renewables are a solar PV design and installation company, providing affordable solutions in Manchester, Cheshire and throughout the North West.