Solar energy in the United Kingdom could be up to 50% cheaper by 2035, according to a study by researchers at the University of Surrey. The team estimated the levelized cost of electricity (LCOE) for various sizes of photovoltaic (PV) systems in the country, taking into account current and future electricity pricing and efficiency improvements. Large-scale PV systems were found to be cheaper than wholesale electricity in 2021, with prices at £51/MWh, while the cost of smaller systems was estimated at £149/MWh.
The research group predicted that in the most optimistic scenario, LCOE for large-scale PV systems in the UK could reach as low as £17/MWh by 2035. For smaller systems, the study suggested that the cost of generating electricity from small-scale PVs would be lower than wholesale electricity by 2027. At this point, the researchers said that many households and businesses may consider installing even small-scale solar panels to cut costs and reduce their carbon footprint.
Currently, the UK has a capacity of 13.5 GW, making it the 10th largest solar energy market in the world and the third in Europe. The study predicted that capacity will increase to around 21 GW in 2025 and 29 GW in 2030, due to efficiency improvements and cost reductions. To speed up the adoption of solar technology, the researchers suggested that the government should support developers and investors by facilitating land purchases for PV farms and offering preferential loans with low-interest rates to expedite PV system development.
The study, titled “Levelized cost estimates of solar photovoltaic electricity in the United Kingdom until 2035,” was recently published in the journal Patterns. The researchers said that greater government support could help the UK transition more quickly to a carbon-free future.
