Real Estate UK has released data showing that the UK’s potential solar capacity could equate to that of nearly 20 nuclear power stations
Rooftop solar capacity in real estate could be a significant factor in the UK’s net zero, but is currently being underutilised, says RE:UK.
More than 90% of suitable commercial roof space is currently unused, the data says, but if used, it could provide enough power for around 20m homes.
Using the space could also benefit government goals
The energy generated from currently underutilised solar deployment could equate to 60GW, more than 10 times the amount needed to meet the expected amount needed to power the UK’s AI data-centres by 2030, and nearly 20 times the amount to be generated by Hinkley Point C.
Alongside this, it would help achieve the UK’s net zero goals, lower bills for the average person, reduce the need to deploy solar on agricultural land, and bring further energy security.
The report draws data from 70 real estate organisations, and shows that less than 10% of suitable commercial building roofspace has been utilised for solar generation, equating to just 3-5GW of solar capacity.
In order to utilise the remaining 90%, financial, regulatory, and legal frameworks would need to be put in place, but the business case for doing so is strong. A typical 300 kWp solar installation, with a capital expenditure of £250k could generate a 20% Net Yield in its first year for a tenant-funded installation, and be paid back in just 5.5 years.
The report makes recommendations to secure this opportunity
The report lays out several recommendations to take advantage of this potential, including:
- Remove tax and regulatory barriers by clarifying REIT rules for solar investment; broadening the REIT regime to include renewable energy; extending the business rates exemption for solar investment beyond 2035; and improving capital allowance reliefs.
- Standardise legal and commercial frameworks such as PPAs and lease clauses to reduce complexity, cost and delays.
- Introduce consistent insurance standards for rooftop solar to reduce design risk and avoid projects being downsized or abandoned.
- Strengthen export revenues through more predictable long-term pricing mechanisms, making larger solar installations viable.
- Accelerate grid reform and investment to improve connection times, increase capacity and provide clearer information for developers.
- Provide long-term policy certainty, including clear implementation of MEES to support investment and make solar a standard feature of commercial buildings.
- Maximise existing solar projects by increasing the 50kW cap on permitted development regimes with prior approval with local planning authorities
Rob Wall, assistant director at Real Estate:UK, said: “Solar energy has a critical role to play in the UK’s energy transition, and commercial real estate has the potential to be a major player in the generation of rooftop solar.
“However, as our research shows, deployment of solar on commercial buildings is slow and we are still some way off from delivering that long promised rooftop revolution. There is ambition – with 85% of real estate professionals expecting solar power generation from commercial buildings to increase over the next 24 months – but for that to happen we need a series of policy reforms as set out in today’s report.”
Download and read the full RE:UK report here.
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