UK Renewable Energy Market Size, Trends & Forecast

UK Renewable Energy Market Size & Trends

UK renewable energy market size was estimated at USD 23.86 billion in 2024 and is expected to grow at a CAGR of 20.6% from 2025 to 2030.

UK Renewable Energy Market Size, Trends & Forecast

Size, byProduct, 2024 - 2032{USD Billion}

CAGR: 20.60%

The UK renewable energy market size was estimated at USD 23.86 billion in 2024 and is expected to grow at a CAGR of 20.6% from 2025 to 2030. request a free sample copy

Increasing construction of hydropower plants in the country is also expected to foster the demand for renewable energy in the UK hydropower market during the forecast period. The increasing construction of micro hydropower plants, along with a rise in spending on mini hydropower plants, will fuel the demand for the overall hydropower market in the country in the near future.

The high initial investment to produce renewable energy restrained the growth of the global renewable energy market. We anticipate a similar trend in the UK renewable energy market. The cost of renewable energy production comprises land, materials, equipment, and labor. Financial assistance is required for the development and expansion of biogas plants. The process of procuring and converting raw materials is costly and time-consuming. Regulation and financial assistance are required for sorting, collecting, processing, supplying, and distributing the feedstock; the construction & operation of the plant; and the sale & distribution of renewable energy. Plant output needs to be sufficient and consistent to cover installation and operating expenses.

Estimated at USD 23.86 billion in 2024, the UK renewable energy market size is predicted to rise at a CAGR of 20.6% from 2025 until 2030. Fast economic development and excellent living standards among consumers help explain the increased demand for renewable energy. The move to low-carbon fuels and the UK's strict environmental laws have substantially accelerated the expansion of the renewable energy sector there. Another growth factor responsible for the rising demand for renewable energy in the country is the economic benefits and opportunities provided by solar energy projects in the UK. With PV modules becoming cheap, the installation rates have gone up in the country, and the upgrading of old power plants is expected to drive the market. Notable solar companies present in the country include First4Solar and Maxeon Solar Technologies, Ltd. The use of solar panels in the country is increasingly attributed to its strategic geographical location, as it is exposed to the maximum amount of sunlight throughout the year.

Drivers, Opportunities & Restraints

Environmental commitments, technological advancements, and supportive government policies drive the UK renewable energy industry. The country's legally binding net-zero emissions target and ongoing efforts to reduce greenhouse gas emissions significantly push the demand for clean energy. Additionally, declining costs of renewable technologies, such as wind and solar power, have made them increasingly competitive compared to traditional fossil fuels. The UK's natural resources, especially in offshore wind, provide a solid foundation for expanding renewable capacity. Furthermore, research and innovation, supported by institutions focused on renewable energy technologies, continue to enhance the efficiency and feasibility of green projects.

The UK's renewable energy sector presents substantial opportunities, particularly in offshore wind, battery storage, and green job creation. Offshore wind, in particular, is poised to become a global leader, supported by extensive coastal resources and advanced turbine technology. Battery energy storage is also gaining momentum, driven by the need to stabilize the grid amidst growing renewable input. Furthermore, as the UK transitions to a low-carbon economy, significant employment opportunities are emerging, with green jobs revitalizing regions historically dependent on fossil fuels. The government's focus on clean energy initiatives offers a promising innovation, investment, and sustainable growth landscape.

Despite positive developments, the UK renewable energy market faces several challenges. Infrastructure limitations, particularly grid congestion, have led to inefficiencies and occasional underutilization of renewable resources. Policy uncertainties, including debates over energy pricing and regulatory frameworks, sometimes hinder investment and project continuity. Additionally, inflation and supply chain disruptions increase project costs, leading to potential delays in implementation. The intermittent nature of renewable sources also poses a challenge, necessitating advancements in energy storage and grid management to ensure a consistent power supply. To maintain growth, addressing these issues requires coordinated policy, infrastructure investment, and continued technological innovation.

Report Coverage & Deliverables

The PDF report & online dashboard will help you understand

• Competitive benchmarking
• Historical data & forecasts
• Company revenue shares
• Regional opportunities
• Latest trends & dynamics

Product Insights

The wind power segment dominated the UK renewable energy industry with a revenue share of over 36.0% in 2024. We expect a substantial increase in demand for renewable energy to propel the growth of the wind energy market. Wind energy is cost-effective and one of the cheapest renewable energy sources, costing 1–2 cents per kWh. Wind energy is a renewable energy source used to generate electricity from kinetic energy. A generator further converts the kinetic energy from wind turbines into electrical energy. Wind energy can be generated both onshore and offshore. Onshore wind energy is associated with onshore turbines located on land, while offshore wind turbines are located in the ocean. However, offshore wind turbines are more efficient than onshore wind turbines due to the constant wind currents. These factors, along with environmentally friendly technology replacing fossil fuels, are expected to drive the demand for wind energy over the forecast period.

We expect the solar energy power segment to experience the fastest CAGR of 21.8% in 2024. Grid electricity frequently experiences blackouts, and hydropower is also susceptible to outages during transmission; however, solar systems are significantly more efficient in their transmission capabilities. more efficient in their transmission capabilities. This is the major driving factor for the segment. Furthermore, it is low in cost, provides a company green label, and minimizes power outages. Hence, organizations are shifting to solar power over conventional electricity. For instance, the UK government allocated a budget of GBP 4 billion from 2022 to 2026. The grant is to assist in the installation of solar panels in residential buildings. The government also introduced a 0% VAT scheme on solar panels as a product as well as their installation.

Application Insights

The industrial segment dominated the UK renewable energy industry with a revenue share of over 59% in 2024. Increasing demand for clean electricity is expected to increase the number of utility projects and drive the growth of the photovoltaic module market across the industrial sector. Furthermore, the long-term adoption of renewable energy sources in industrial applications is expected to make up approximately 21% of the energy consumption in the manufacturing sector as feedstock by 2050.

The residential segment is anticipated to witness the fastest CAGR during the forecast period. The rapid growth of solar energy in the residential segment is attributed to numerous benefits such as lower carbon footprints, lower electricity bills, and higher home values. With the help of solar systems, consumers are eligible for tax credits introduced by governments. Over the forecast period, we expect the launch of solar PV panels in residential applications to increase product demand. For instance, Solaria introduced a black solar panel for residential applications with a power output of 430 W. The new panel is dubbed PowerXT 430R-PL and has a power conversion efficiency of 20.40%, along with a size of 1,076×1,957×35 mm and a weight of 21.3 kg.

Key UK Renewable Energy Company Insights

The market is extremely competitive, with key participants involved in collaboration and expansion to increase their renewable energy production capacity. The players are continuously involved in adopting various organic and inorganic strategies to expand their global footprint and energy production capacities. The most adapted strategy is collaboration and partnership to minimize competition and focus on the expansion of the market.

Key UK Renewable Energy Companies

• ABB
• Acconia
• Enel Spa
• General Electric
• Invenergy
• Schneider Electric
• Siemens Gamesa Renewable Energy
• Suzlon Energy Ltd.

UK Renewable Energy Market Report Scope

UK Renewable Energy Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the subsegments from 2018 to 2030. For this study, MIR has segmented the UK renewable energy market report based on product and application

• Product Outlook (Volume, TWh; Revenue, USD Million, 2018-2030)

  • Hydropower

  • Wind Power

  • Solar Power

  • Bioenergy

  • Others

• Application Outlook (Volume, TWh; Revenue, USD Million, 2018-2030)

  • Industrial

  • Residential

  • Commercial