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Key takeaways from the new UK Solar Roadmap

Key takeaways from the new UK Solar Roadmap

A review of the latest government action and policies on solar energy for real estate developers, owners, and investors

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10 mins read

The UK government has been highly active in the renewables sector, introducing initiatives such as GB Energy, the UK Modern Industrial Strategy, the Clean Power 30 Action Plan, and multiple reforms to grid connections and planning processes. The recent , and , signals a step-change in ambition. However, the forthcoming Strategic Spatial Energy Plan (SSEP), which is expected in late 2026, will be pivotal, providing a national blueprint for energy infrastructure deployment. For real estate investors, owners, and developers, there are clear messages to stay ahead and maximise opportunities. Here, we focus on one element, the Solar Roadmap.

The government has committed to trebling solar capacity from around 18 GW (as of April 2025) to 45 – 47 GW by 2030. The Solar Roadmap aims to create a more predictable, opportunity-rich environment for investors and developers. Key takeaways include:

- Regulatory easing opportunities: The threshold for Transmission Impact Assessment (TIA) has increased from 1 MW to 5 MW, reducing barriers for smaller solar projects and unlocking significant opportunities in the 1–5 MW range. Domestic rooftop solar limits are also under review, potentially allowing larger installations and expanding the market.
- Maximising grey space: The UK Solar Roadmap emphasises using grey space, such as rooftops and car parks, to maximise solar deployment. Upcoming standards (Future Homes and Buildings Standards) will require solar on most new builds, and expanded permitted development rights make it easier to install solar on car parks.
- The upside:  Solar installations can deliver substantial cost savings (up to 40–80% reduction in electricity costs for warehouses), generate new revenue streams (via Smart Export Guarantee and PPAs), and enhance property values and tenant appeal. For households, solar can cut annual bills by around £500, with further savings from integrated systems like battery storage and EV charging.
- Evolving models: Falling installation costs and new financing options (including zero-outlay third-party models and grants) are making solar more accessible. Investors are increasingly requiring onsite renewables, and streamlined lease structures and standardisation are helping to overcome traditional barriers in commercial real estate.
- Future-proofing and engagement: With policy and market dynamics evolving rapidly, it is critical for real estate owners and developers to assess their portfolios for solar potential, stay engaged with regulatory changes, and act early to capture both financial and reputational benefits. Enhanced recognition of solar in property valuations and EPC reforms will further support adoption and value creation.

Removing barriers

With many system blockages already being addressed, such as planning and grid connections, the Roadmap brings this neatly together and offers a few other action points. Previously alluded to the Transmission Impact Assessment (TIA) threshold has risen from 1 MW to 5 MW, meaning projects below 5 MW face fewer hurdles. Projects in the 1 – 5 MW band could unlock significant opportunity. Currently around one fifth of solar capacity is met by projects of 50 kW – 5 GW, the closest breakdown by capacity available from the Department for Energy Security & Net Zero (DESNZ), with the average in this size band of 834 kW. In addition, it is noted that projects below the TIA threshold do not need to align with Clean Power Capacity Ranges, potentially increasing activity in this segment and allowing for more deployment.

For domestic rooftops, the current 3.68 kW limit for DNO approval is under review, with some DNOs already raising this to 5kW. Ofgem has proposed an obligation for DNOs to review this threshold, which could enable larger domestic installations. However, around one-fifth of UK households are flats, making rooftop solar more challenging. The Roadmap commits to assessing plug-in solar options for flats, as seen in Europe, though these are not yet permitted in the UK.

Grey not green space

The Roadmap recognises the need to balance land use. Currently, only 0.1% of UK land has solar panels, with a forecast of up to 0.4% in the most optimistic scenario. The SSEP, developed alongside the Land Use Framework, will ensure food production and nature restoration are considered alongside other land uses such as renewables.

As we noted in , green spaces are not the only way to achieve ambitious solar targets. While installations are small there are considerable opportunities to use grey space. The Roadmap begins to acknowledge this, highlighting the long called for ā€˜rooftop revolution’ which should include:

- Public buildings: In March 2025, Great British Energy (GBE) announced its first major project, which will enable around 200 schools and up to 200 hospitals in England to install rooftop solar power and complementary decarbonisation technologies. On , Interim CEO of GB Energy stated there may be upto £1 billion for grants and community projects.

- The Future Homes Standard: Due in Autumn will ā€˜ensure solar panels are installed on the vast majority of new build homes once it comes into force, saving households hundreds of pounds a year on their energy bills.’

- The Future Buildings Standard: Two options proposed at consultation stage, both of which would lead to solar deployment on new non-domestic buildings. The UK Government is currently considering the proposals and feedback from the consultation and will publish a response this Autumn. The European Performance of Buildings directive already adopts the position of new builds to be solar ready although implementation at national level may vary.

- Car parks: ā€˜Outdoor carparks also provide great potential to deploy solar canopies. These provide clean electricity, as well as potential for electric vehicle charging and shelter for cars.’ We identified some 29,000 car parks in the UK over 2,000 sqm (approximately 80 space) which, if 50% were covered, which is the legal requirement in France, could add 12 GW of capacity. A separate for the EV charging potential, which in our report we identified that 48,000 EV charge points could be deployed across food retailer carparks alone.

For developers and asset owners, it is vital to future-proof existing buildings for solar. Our found that around 30% of investors require some onsite renewable generation for acquisition. In addition, expanded permitted development rights now make it easier to install solar car ports on commercial parking without full planning permission, turning car parks into power-generating assets.

The upside to solar

There are considerable revenue opportunities from utilising rooftops and car parks. For non-domestic properties, large and new industrial units alone could generate £112–205 million in annual income, though this depends on feasibility, size, efficiency, and power agreements. One such income route is through the Smart Export Guarantee (SEG), which provides payments for surplus solar energy exported to the grid, available to those with a smart meter or a half-hourly export-capable meter.

Solar also offers significant cost savings, making properties more attractive to tenants and investors. , potentially saving the warehouse sector £3 billion per year. PV integration can also increase property value, either through explicit income or higher rents.

Further gains could be made by the action to work with the UKWA and wider logistics, real estate and solar industries to: streamline rooftop solar installation on leased commercial buildings; address challenges in traditional lease structures; and develop guidance for contractual agreements between landlords and tenants to accommodate rooftop solar.

On the domestic side, the Roadmap notes that solar can reduce typical household bills by around £500. Savings could be amplified with integrated systems such as battery storage or EV charging, for example Octopus Energy’s ā€œzero bills homesā€ initiative aims for .

The Roadmap identifies ways in which there could be enhanced value recognition from solar for domestic properties. The first is through the proposed EPC reforms which will introduce a ā€œsmart readinessā€ metric to assist in identification and make clear value and these will come in from 2026. In addition, Government and Industry will work with Royal Institution of Chartered Surveyors (RICS) to ensure that solar is valued properly on residential properties.

Cost and finance

Historically, cost and finance have slowed solar deployment. For domestic properties, the cost of a typical 3.5kW rooftop installation has fallen from around £9,000 in 2013/14 (adjusted to 2024 prices) to £6,500 in 2024/25, but this remains a significant outlay. The Green Finance Institute is working with government and industry to facilitate rooftop solar finance for all suitable customers.

For commercial owners and landowners, solar is now one of the cheapest forms of electricity generation globally. However, upfront costs for large-scale commercial installations can still be substantial, often ranging from £600 -£1,000 per kW installed, depending on scale, site conditions, and grid connection requirements. There are also size factors to consider with larger installations benefitting from economies of scale, but adding complexities on grid. In terms of value added to properties, there is no explicit mention to standardise the valuations process for commercial solar, unlike for domestic. However, with greater clarity, streamlining of installation on leased buildings and standardisation on how agreements can accommodate, this may become clearer.

In terms of the capital expenditure required, there are some options for zero-outlay solutions working with third-parties such as Atrato. Within any viability it is imperative to assess the revenue models available - direct consumption, PPAs, or leasing roof/land space to third-party operators - around a quarter of investors in our Survey with onsite power include renewables in rent, while 26% use power purchase agreements (PPAs) - as well as adequate allowances for ongoing maintenance.

One action highlighted in the Roadmap is for the National Wealth Fund (NWF) to ā€˜explore potential structures to finance solar projects or portfolios pursuing innovative business models, including those entering into PPAs with sub-investment grade counterparties.’ There are other national and localised finance and grant options such as UK Shared Prosperity Fund, West Kent Green Business Grant and Net Zero Grant Programme, among others.

The UK Solar Roadmap marks a significant step forward, but the landscape will continue to evolve. Real estate and renewable owners, developers, and investors should stay engaged with policy developments (notably the SSEP), assess their portfolios for solar potential, leverage streamlined planning and grid reforms, and consider both the financial and reputational benefits of early action.

Market view: Charlie Singer, Associate in 51ĀŅĀ×’s Energy, Sustainability & Natural Resources team

Landlords and occupiers are increasingly deploying solar PV across their assets to provide significant operational cost savings, boost EPC ratings, reduce scope 2 emissions for reporting requirements and improve asset values.

Over the last five to 10 years, the UK commercial real estate market has unlocked these opportunities through decreasing capital costs, relaxing of planning requirements, corporate objectives to proactively decarbonise operations and improved structure to lease variations and power purchase agreements.

As the market evolves quickly, alternative commercialisation structures have become more prevalent, including third-party funded systems or rental uplift mechanisms.

It is critical to ensure that all options are evaluated and deployed to the highest quality and safety standards with robust operational, maintenance and monitoring contracts to ensure system reliability as well as clarity for stakeholders on carbon savings, energy savings and investment returns.

This requires end-to-end delivery on commercial PV schemes, from initial feasibility assessments to understand power requirements and optimise system designs, navigating the grid process and project managing the delivery of schemes.

There is not a ā€˜one size fits all’ approach but increased standardisation of guidance, reforming of the grid process and reinforcement, together with potential legislative requirements for PV on new commercial assets, will help drive the ā€˜rooftop revolution’ further.

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