The UK government’s latest budget announcement has marked a turning point for clean energy, with solar power at the forefront of this green revolution. As the country strives to meet its ambitious net-zero targets, investments in renewable energy have taken centre stage. For homeowners, businesses and the environment, this renewed focus on solar energy brings tangible benefits.
In this blog, we break down the key solar-related decisions from the budget and explore how they contribute to a cleaner, more sustainable future. From record-breaking funding for clean energy to policy changes favouring large-scale solar farms, these updates could transform the energy landscape whilst saving money.
1. Historic Renewable Energy Investment
Labour’s 2024 budget commits £12 billion over five years to renewable energy, including solar, wind and hydrogen. A significant portion of this funding will be overseen by GB Energy, the new publicly-owned energy company, which aims to develop the infrastructure needed to decarbonise the UK’s power grid by 2030.
Key allocations include:
- £185 million for established renewable technologies such as solar panels
- £300 million in grants and low-interest loans under the Warm Homes Plan to help households install solar systems
- Funding to expand solar capacity to 70 GW by 2035, doubling the current capacity
This investment not only accelerates the green transition but also creates approximately 250,000 green jobs, many of which will focus on solar panel manufacturing, installation and maintenance.
2. Financial Incentives for Home Solar Adoption
The Warm Homes Plan provides financial incentives for renters to adopt solar power with help on installation costs, making rooftop solar panels more accessible to low and middle-income households. Combined with low-interest loans, this initiative aims to double the number of rooftop solar installations by 2030.
Not only could this result in a £450 reduction in energy bills per year, but it also provides our nation with greater energy independence, which is particularly important during periods of intense electricity prices, as well as contributing to a greener, more sustainable future by cutting carbon emissions.
3. Committing to large-scale solar farms
The budget has greenlit several large-scale solar farms, with a combined capacity of 2.5 GW—enough to power more than 1.2 million homes annually! These projects are made up of a £1.1 billion investment and are expected to reduce carbon emissions by 1.4 million tonnes per year. Large-scale solar farms play a critical role in supplying affordable, clean energy to the national grid, so it’s a significant step that will get the UK closer to our net-zero emissions target.
4. The financial benefit of solar farms
The 2024 budget underscores the cost-competitiveness of solar power, reaffirming it as the UK’s most affordable source of electricity. Large-scale solar farms currently deliver energy at £40/MWh, significantly undercutting gas-fired electricity at £140/MWh. As more solar capacity is added, energy prices are expected to stabilise further, benefiting households and businesses alike.
5. Driving Innovation in Solar Technology
A further £50 million has been allocated to research and innovation in solar energy. This funding will support the development of cutting-edge technologies, such as perovskite solar cells and advanced energy storage systems, which promise to improve solar panel efficiency by up to 25% by 2028. Advancements in storage technology will also enable better integration of solar energy into the grid, reducing reliance on fossil fuels during periods of low sunlight.
Conclusion
The latest budget is a clear signal that the UK is doubling down on its commitment to renewable energy, with solar power playing a leading role. From increased funding and simplified planning processes to financial support schemes and large-scale projects, these developments bring exciting opportunities for individuals, businesses and the environment.
Now is the perfect time to join the solar revolution. With solar energy offering unparalleled savings and environmental benefits, why wait? Contact Project Solar today to become a part of the rooftop revolution.