United Kingdom Renewable Energy Market

UK renewable energy market, worth USD 24 Bn, is set to expand with 70% renewable grid goal by 2030, led by offshore wind and solar, amid rising sustainability demand.

Region:Europe

Author(s):Rebecca

Product Code:KRAB0286

Pages:94

Published On:August 2025

About the Report

Base Year 2024

United Kingdom Renewable Energy Market Overview

  • The United Kingdom Renewable Energy Market is valued at USD 24 billion, based on a five-year historical analysis. This growth is primarily driven by government policies promoting sustainability, rapid expansion in wind and solar capacity, and increasing public awareness of climate change. The shift towards cleaner energy sources has led to significant investments in wind, solar, and bioenergy sectors, supported by the Contracts-for-Difference scheme and major grid upgrades .
  • Key hubs for renewable energy development in the UK include London, Manchester, and Edinburgh, which benefit from strategic locations, robust infrastructure, and supportive local government policies. These cities have become focal points for renewable energy projects, attracting investments and fostering innovation in the sector .
  • In 2023, the UK government advanced its Energy Security Strategy, aiming to increase the share of renewable energy in the national grid to 70% by 2030. This strategy includes financial incentives for renewable energy projects, streamlined planning processes, and major investments in grid infrastructure to facilitate new energy development .
United Kingdom Renewable Energy Market Size

United Kingdom Renewable Energy Market Segmentation

By Type:The market is segmented into Wind Power (Offshore & Onshore), Solar Photovoltaics, Bioenergy (including Biomass & Biogas), Hydropower, Marine Energy (Tidal & Wave), Geothermal, and Hydrogen & Emerging Technologies. Among these, Wind Power—particularly offshore—has emerged as the dominant segment due to the UK's extensive coastline, favorable wind conditions, and large-scale investments in offshore wind farms. Solar photovoltaics and bioenergy also represent significant shares, driven by declining technology costs and supportive policy frameworks .

United Kingdom Renewable Energy Market segmentation by Type.

By End-User:The end-user segmentation includes Residential, Commercial, Industrial, and Government & Utilities. The Commercial and Government & Utilities segments currently lead the market, driven by large-scale procurement of renewable energy and aggressive decarbonization targets. The Residential segment is growing steadily due to increased adoption of rooftop solar and energy-efficient technologies, supported by financial incentives and rising energy costs .

United Kingdom Renewable Energy Market segmentation by End-User.

United Kingdom Renewable Energy Market Competitive Landscape

The United Kingdom Renewable Energy Market is characterized by a dynamic mix of regional and international players. Leading participants such as Ørsted A/S, SSE Renewables, E.ON SE, ScottishPower Renewables, RWE AG, Vattenfall AB, Engie SA, Octopus Energy Group, Centrica plc, EDF Renewables, TotalEnergies SE, Drax Group plc, BP plc, Siemens Gamesa Renewable Energy, Brookfield Renewable Partners L.P. contribute to innovation, geographic expansion, and service delivery in this space.

Ørsted A/S

1972

Fredericia, Denmark

SSE Renewables

1998

Perth, Scotland

E.ON SE

2000

Düsseldorf, Germany

ScottishPower Renewables

1990

Glasgow, Scotland

RWE AG

1898

Essen, Germany

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Installed Renewable Capacity (MW/GW)

Revenue from UK Renewable Operations (£/€/$)

Market Share in UK Renewable Sector (%)

Project Pipeline (Number & Capacity of Projects)

Capacity Addition CAGR (5-year)

United Kingdom Renewable Energy Market Industry Analysis

Growth Drivers

  • Increasing Government Support for Renewable Initiatives:The UK government allocated approximately £9.6 billion to support renewable energy projects, reflecting a commitment to achieving net-zero emissions by 2050. This funding is directed towards solar, wind, and biomass energy initiatives, which are expected to generate approximately 70% of the UK's electricity in future. Such robust governmental backing fosters investor confidence and accelerates the transition to renewable energy sources, driving market growth significantly.
  • Technological Advancements in Energy Storage:The UK has seen a surge in energy storage capacity, with over 3.8 GW of battery storage installed. Innovations in lithium-ion and flow battery technologies have reduced costs by approximately 30% since 2020, enhancing the viability of renewable energy sources. This advancement allows for better integration of intermittent energy sources like wind and solar, ensuring a stable energy supply and supporting the overall growth of the renewable energy market.
  • Rising Consumer Demand for Sustainable Energy:A survey conducted indicated that approximately 80% of UK consumers prefer renewable energy sources over fossil fuels, reflecting a significant shift in consumer behavior. This demand is driving energy suppliers to invest in renewable technologies, with over 1.5 million households adopting solar panels in the past year alone. The increasing consumer preference for sustainable energy solutions is a crucial driver for market expansion in the renewable sector.

Market Challenges

  • High Initial Capital Investment:The upfront costs for renewable energy projects remain a significant barrier, with average investments of approximately £1.8 million required for a typical wind farm. This high capital requirement can deter smaller investors and limit the pace of project development. Additionally, financing options can be limited, particularly for emerging technologies, which may slow the overall growth of the renewable energy market in the UK.
  • Regulatory Uncertainties:The renewable energy sector in the UK faces ongoing regulatory challenges, with frequent changes in policies affecting project viability. For instance, the recent adjustments to the Contracts for Difference (CfD) scheme have created confusion among investors. Such uncertainties can lead to delays in project approvals and deter investment, ultimately hindering the growth of the renewable energy market in the UK.

United Kingdom Renewable Energy Market Future Outlook

The future of the UK renewable energy market appears promising, driven by increasing investments in innovative technologies and a strong policy framework. The government’s commitment to achieving net-zero emissions by 2050 will likely spur further advancements in energy efficiency and storage solutions. Additionally, the integration of smart grid technologies is expected to enhance energy management, facilitating a more resilient energy infrastructure. As consumer preferences shift towards sustainability, the market is poised for significant growth in the coming years.

Market Opportunities

  • Expansion of Offshore Wind Farms:The UK has the largest offshore wind capacity globally, with over 14 GW installed. Continued investment in this sector presents a significant opportunity, as the government aims to increase capacity to 40 GW in future. This expansion will create jobs and stimulate economic growth while contributing to the country’s renewable energy targets.
  • Development of Smart Grid Technologies:The UK is investing heavily in smart grid technologies, with approximately £630 million allocated for research and development in future. These technologies will enhance energy distribution efficiency and reliability, enabling better integration of renewable sources. As smart grids become more prevalent, they will facilitate the transition to a more sustainable energy system, presenting substantial market opportunities.

Scope of the Report

SegmentSub-Segments
By Type

Wind Power (Offshore & Onshore)

Solar Photovoltaics

Bioenergy (including Biomass & Biogas)

Hydropower

Marine Energy (Tidal & Wave)

Geothermal

Hydrogen & Emerging Technologies

By End-User

Residential

Commercial

Industrial

Government & Utilities

By Investment Source

Domestic

Foreign Direct Investment (FDI)

Public-Private Partnerships (PPP)

Government Schemes & Grants

By Application

Grid-Connected Utility-Scale

Distributed Generation (Rooftop & Community)

Off-Grid & Remote Installations

Energy Storage Integration

By Policy Support

Subsidies & Incentives

Tax Exemptions

Renewable Energy Certificates (RECs)

By Distribution Mode

Direct Sales

Online Sales

Distributors & Installers

By Price Range

Low

Medium

High

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Department for Business, Energy & Industrial Strategy)

Energy Suppliers and Utility Companies

Renewable Energy Project Developers

Environmental NGOs and Advocacy Groups

Local Authorities and Municipal Governments

Energy Storage Solution Providers

Grid Operators and Transmission Companies

Players Mentioned in the Report:

rsted A/S

SSE Renewables

E.ON SE

ScottishPower Renewables

RWE AG

Vattenfall AB

Engie SA

Octopus Energy Group

Centrica plc

EDF Renewables

TotalEnergies SE

Drax Group plc

BP plc

Siemens Gamesa Renewable Energy

Brookfield Renewable Partners L.P.

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. United Kingdom Renewable Energy Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 United Kingdom Renewable Energy Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. United Kingdom Renewable Energy Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Government Support for Renewable Initiatives
3.1.2 Technological Advancements in Energy Storage
3.1.3 Rising Consumer Demand for Sustainable Energy
3.1.4 Investment in Infrastructure Development

3.2 Market Challenges

3.2.1 High Initial Capital Investment
3.2.2 Regulatory Uncertainties
3.2.3 Competition from Traditional Energy Sources
3.2.4 Supply Chain Disruptions

3.3 Market Opportunities

3.3.1 Expansion of Offshore Wind Farms
3.3.2 Growth in Energy Efficiency Solutions
3.3.3 Development of Smart Grid Technologies
3.3.4 Increasing Adoption of Electric Vehicles

3.4 Market Trends

3.4.1 Shift Towards Decentralized Energy Systems
3.4.2 Integration of AI in Energy Management
3.4.3 Rise of Community Energy Projects
3.4.4 Focus on Circular Economy Practices

3.5 Government Regulation

3.5.1 Renewable Energy Guarantees of Origin (REGO)
3.5.2 Feed-in Tariffs (FiTs)
3.5.3 Contracts for Difference (CfD)
3.5.4 Net Zero Strategy Compliance

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. United Kingdom Renewable Energy Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. United Kingdom Renewable Energy Market Segmentation

8.1 By Type

8.1.1 Wind Power (Offshore & Onshore)
8.1.2 Solar Photovoltaics
8.1.3 Bioenergy (including Biomass & Biogas)
8.1.4 Hydropower
8.1.5 Marine Energy (Tidal & Wave)
8.1.6 Geothermal
8.1.7 Hydrogen & Emerging Technologies

8.2 By End-User

8.2.1 Residential
8.2.2 Commercial
8.2.3 Industrial
8.2.4 Government & Utilities

8.3 By Investment Source

8.3.1 Domestic
8.3.2 Foreign Direct Investment (FDI)
8.3.3 Public-Private Partnerships (PPP)
8.3.4 Government Schemes & Grants

8.4 By Application

8.4.1 Grid-Connected Utility-Scale
8.4.2 Distributed Generation (Rooftop & Community)
8.4.3 Off-Grid & Remote Installations
8.4.4 Energy Storage Integration

8.5 By Policy Support

8.5.1 Subsidies & Incentives
8.5.2 Tax Exemptions
8.5.3 Renewable Energy Certificates (RECs)

8.6 By Distribution Mode

8.6.1 Direct Sales
8.6.2 Online Sales
8.6.3 Distributors & Installers

8.7 By Price Range

8.7.1 Low
8.7.2 Medium
8.7.3 High

9. United Kingdom Renewable Energy Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Installed Renewable Capacity (MW/GW)
9.2.4 Revenue from UK Renewable Operations (£/€/$)
9.2.5 Market Share in UK Renewable Sector (%)
9.2.6 Project Pipeline (Number & Capacity of Projects)
9.2.7 Capacity Addition CAGR (5-year)
9.2.8 Power Purchase Agreements (PPAs) Signed
9.2.9 Average Project Completion Time (months)
9.2.10 Return on Capital Employed (ROCE) (%)
9.2.11 Operational Efficiency Ratio
9.2.12 Customer Retention Rate (%)
9.2.13 Investment in R&D (£/€/$)
9.2.14 Emissions Reduction Achieved (tCO?e/year)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Ørsted A/S
9.5.2 SSE Renewables
9.5.3 E.ON SE
9.5.4 ScottishPower Renewables
9.5.5 RWE AG
9.5.6 Vattenfall AB
9.5.7 Engie SA
9.5.8 Octopus Energy Group
9.5.9 Centrica plc
9.5.10 EDF Renewables
9.5.11 TotalEnergies SE
9.5.12 Drax Group plc
9.5.13 BP plc
9.5.14 Siemens Gamesa Renewable Energy
9.5.15 Brookfield Renewable Partners L.P.

10. United Kingdom Renewable Energy Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Business, Energy & Industrial Strategy
10.1.2 Department for Environment, Food & Rural Affairs
10.1.3 Department for Transport

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Energy Companies
10.2.2 Construction Firms
10.2.3 Technology Providers

10.3 Pain Point Analysis by End-User Category

10.3.1 High Energy Costs
10.3.2 Regulatory Compliance Challenges
10.3.3 Reliability of Supply

10.4 User Readiness for Adoption

10.4.1 Awareness of Renewable Options
10.4.2 Financial Incentives
10.4.3 Infrastructure Availability

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 Scalability of Solutions
10.5.3 Long-term Contracts

11. United Kingdom Renewable Energy Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Cost Structure Evaluation

1.5 Key Partnerships Exploration

1.6 Customer Segmentation

1.7 Channels of Distribution


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Engagement

2.4 Digital Marketing Tactics

2.5 Community Outreach Programs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups

3.3 E-commerce Integration

3.4 Logistics and Supply Chain Management


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments

5.3 Emerging Trends


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service

6.3 Customer Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Competitive Advantages


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government reports on renewable energy policies and targets
  • Review of industry publications and market analysis reports from energy think tanks
  • Examination of statistical data from the UK Department for Business, Energy & Industrial Strategy (BEIS)

Primary Research

  • Interviews with key stakeholders in renewable energy firms, including CEOs and project managers
  • Surveys targeting energy analysts and consultants specializing in the UK market
  • Field interviews with local government officials involved in renewable energy initiatives

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including market reports and expert opinions
  • Triangulation of quantitative data with qualitative insights from industry experts
  • Sanity checks through peer reviews and expert panel discussions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total renewable energy capacity based on national energy consumption statistics
  • Segmentation of market size by energy source (solar, wind, biomass, etc.)
  • Incorporation of government incentives and subsidies impacting market growth

Bottom-up Modeling

  • Collection of data on installed capacity and generation from leading renewable energy providers
  • Operational cost analysis based on project-level financials and investment trends
  • Volume x cost calculations for energy production and sales forecasts

Forecasting & Scenario Analysis

  • Multi-variable regression analysis incorporating economic growth, technological advancements, and policy changes
  • Scenario modeling based on varying levels of government support and market adoption rates
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Solar Energy Providers100CEOs, Project Managers, Technical Directors
Wind Energy Developers80Operations Managers, Business Development Executives
Biomass Energy Firms50Procurement Managers, Sustainability Officers
Government Energy Policy Makers40Policy Advisors, Regulatory Affairs Managers
Energy Consultants and Analysts60Market Analysts, Research Directors, Energy Economists

Frequently Asked Questions

What is the current value of the United Kingdom Renewable Energy Market?

The United Kingdom Renewable Energy Market is valued at approximately USD 24 billion, reflecting significant growth driven by government policies, investments in wind and solar capacity, and increasing public awareness of climate change.

What are the main types of renewable energy in the UK?

Which cities are key hubs for renewable energy development in the UK?

What is the UK government's target for renewable energy by 2030?

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