UK Rooftop Solar Growth Slowed by Lack of Guaranteed Export Tariff

The expansion of rooftop solar installations across the United Kingdom is being hindered by the absence of a government-backed fixed export price for surplus electricity, deterring commercial property owners, businesses, and landlords from investing in solar photovoltaic (PV) systems.

Anthony Maguire, Managing Director of Longevity Power, emphasized that this policy gap is undermining the rollout of commercial and industrial (C&I) solar and causing the UK to lag behind European nations like Germany, the Netherlands, and France.

“The single biggest barrier to scaling solar in the UK is the lack of a clear and stable policy from Westminster,” Maguire said. “There’s no fixed export tariff, no net metering mechanism, and no infrastructure supporting mid-sized, community-level solar deployment.”

He added that solar doesn’t require direct subsidies in the UK, but what’s missing is long-term pricing certainty—something that current Smart Export Guarantee (SEG) schemes from energy suppliers fail to offer.

Maguire’s comments follow Energy Secretary Ed Miliband’s announcement last month introducing a regulation that will require nearly all new homes in England to be equipped with solar panels as part of the upcoming Future Homes Standard, expected this autumn.

Back in March, the UK Government committed £180 million to solar installations on hundreds of schools and hospitals, delivered via the new public energy entity Great British Energy.

However, Maguire warns that the government is overlooking the vast potential of rooftop solar on commercial infrastructure such as office buildings, warehouses, factories, retail spaces, and parking facilities.

“Right now, the business case simply doesn’t stack up for companies or landlords,” he noted. “Without a guaranteed export price, owners of properties with low onsite consumption can’t count on meaningful returns for the surplus electricity their systems generate.”

He stressed that this lack of financial incentive has left rooftop solar as more of a "nice-to-have" feature rather than a strategic investment for UK businesses.

To address this, Maguire proposed additional measures to drive solar adoption in the commercial sector. One idea is to implement a community solar model similar to that seen in the United States, where large rooftops and unused land host medium-scale solar systems developed by private companies. These systems deliver energy to offsite residential and business subscribers.

Another policy shift would be a mandatory rooftop solar regulation, akin to France’s 2022 law requiring a minimum percentage of solar coverage on all new and existing commercial roofs and car parks. “This is how solar moves from optional to essential,” Maguire said.

In closing, Maguire acknowledged recent progress by the UK Government but cautioned that stronger policy support is needed to meet the country’s Clean Power 2030 Action Plan target of 47 GW of solar capacity by 2030.

“Introducing a guaranteed multi-year export tariff would give the long-term stability investors need to commit to solar,” he concluded, “and ensure a fair return that makes the economics of rooftop solar viable.”