UK Solar Market Report 2026:
Record Installations, Falling Costs

The Biggest Year on Record

2025 was a landmark year for UK residential solar. 178,947 MCS-certified solar PV installations were completed across the country — an 18.5% increase on 2024 and a new all-time record, surpassing the previous high of 167,246 set in 2023.

To put that in context: more homes installed solar panels in October 2025 alone (16,816) than in many entire months before the market accelerated. The UK now has over 856,000 MCS-certified solar homes.

Year	Solar Installations	Change
2022	112,144	—
2023	167,246	+49.1%
2024	151,017	-9.7%
2025	178,947	+18.5% ✦ Record
2026 (Jan–Feb)	23,508	Tracking ~141k annualised

The 2024 dip was a market correction after the 2023 energy-crisis-fuelled spike. 2025's recovery shows that solar demand is now structurally embedded — not just a panic response to high energy prices.

2026 has started more slowly (seasonally normal — January and February are always the quietest months), but if the pattern holds, summer months will drive the annual total well above 140,000 again.

Solar Costs Have Fallen 25% from Their Peak

This is perhaps the most important finding for anyone considering solar in 2026. The average cost per kilowatt has dropped from £2,234 in January 2023 to £1,664 in February 2026 — a 25.5% reduction. In real terms, a typical home system that would have cost over £10,400 at the peak now costs around £8,191.

Period	Cost/kW	Avg System Cost	vs Peak
Jan 2023 (peak)	£2,234	£10,401	—
Jan 2024	£2,002	£9,275	-10.8%
Jan 2025	£1,685	£7,546	-27.5%
Feb 2026	£1,664	£8,191	-21.2%

The slight increase from the November 2024 low (£7,409) to the current £8,191 suggests that the price floor has likely been reached. Installer margins have compressed as far as they can go. Waiting for further reductions is not a rational strategy.

Battery Storage Is the Fastest-Growing Product

While solar PV grabs the headlines, battery storage is quietly becoming the most explosive growth story in UK residential energy. 39,400 battery systems were installed in 2025 — up 97% from 20,041 in 2024.

To appreciate how fast this market is moving: in 2023, fewer than 5,000 battery systems were installed in the entire year. Two years later, that number has grown nearly tenfold.

Year	Battery Installs	Change
2023	4,913	(emerging)
2024	20,041	+308%
2025	39,400	+97%
2026 (Jan–Feb)	6,700	Tracking ~40k annualised

Where in the UK Is Solar Most Popular?

Wales dominates. The Isle of Anglesey leads the entire UK with 14.11% of households now having MCS-certified solar — that's roughly one in seven homes. Ceredigion (12.52%), Powys (10.01%), and Gwynedd (8.46%) follow close behind.

Local Authority	Installations	% of Households
Isle of Anglesey	4,347	14.11%
Ceredigion	3,870	12.52%
Powys	6,026	10.01%
Aberdeenshire	10,681	9.09%
Pembrokeshire	4,960	8.94%
South Hams	3,507	8.92%
Boston	2,613	8.89%
Gwynedd	4,321	8.46%
Mid Suffolk	3,732	8.42%
Dumfries & Galloway	5,622	7.96%

These aren't just high-penetration areas — they're also the fastest growing. Anglesey added 6.48% more solar households in February 2026 alone. The pattern is clear: once a critical mass of neighbours install solar, the community effect accelerates adoption.

The Urban Gap

At the other end of the spectrum, some of London's wealthiest boroughs have among the lowest solar penetration in the country:

Borough	Installations	% of Households
Kensington & Chelsea	158	0.24%
Tower Hamlets	299	0.25%
Westminster	262	0.28%
Hammersmith & Fulham	307	0.38%
Islington	406	0.42%

This reflects structural barriers — high-rise flats, listed buildings, leasehold restrictions — rather than lack of interest. But even in Islington, 406 homeowners have found a way. If you live in an urban area and assume solar isn't for you, it's worth checking.

Who's Installing Solar? Property and Tenure Data

Detached homes lead at 37% of all installations (316,196 homes), but semi-detached properties are close behind at 30% (255,556). Terraced homes account for a surprisingly strong 20%, and even flats represent 12.8% of all installs — over 109,000 flat and apartment installations across the UK.

Owner-occupiers account for 70.1% of all installations. This is the core market. But 14.5% are social housing (driven by local authority energy upgrade programmes) and 13.7% are private rented — a segment growing as EPC regulations push landlords to improve energy efficiency.

The Mid-Tier Opportunity — Where Solar Is Growing Fastest in England

For homeowners in southern and central England, the sweet spot is areas with 4–8% penetration — enough installed base to prove the concept, with plenty of room to grow. These areas tend to combine high homeownership, above-average incomes, and competitive installer markets:

Area	Installations	Penetration
South Cambridgeshire	5,294	7.90%
Winchester	3,667	7.09%
East Hampshire	3,183	6.04%
Herefordshire	4,855	5.86%
Chichester	3,126	5.78%
Wealden	3,876	5.67%
North Lincolnshire	3,904	5.33%
Rutland	830	4.97%