The head of the Confederation of British Industry, Tony Danker, warned in January that the UK risks squandering the vast economic opportunities available to nations investing in the energy transition. 

Christophe Williams, CEO of solar thermal company Naked energy, concurs and outlines some of the immediate steps Rishi Sunak’s government must take to position solar thermal and photovoltaics at the centre of a green revolution.

The government must invest in the nation’s renewable energy infrastructure at every opportunity. To keep up with the rest of the world and meet UK net-zero targets, we must implement a technology-neutral strategy to accelerate the energy transition and level the playing field for all renewable energy technologies. This is especially important for overcoming the most significant barrier to net zero: the energy consumption required to heat and cool buildings and industrial processes. 

These activities account for roughly fifty per cent of the worldwide energy demand. Renewables meet only 10% of this.

In light of the magnitude of the problem, a detailed strategy and specific targets for sector-by-sector decarbonisation are required. Historic inconsistencies in policy and deployment targets have slowed the adoption of renewable energy in the UK. We design and manufacture solar thermal collectors to decarbonise heat at Naked energy. Solar thermal deployment in the UK is significantly lower than in our European neighbours. Germany and Austria have ten and twenty-five times more solar thermal capacity per capita than the UK.

In 2021, solar thermal adoption in Italy increased by 83% due to the government’s “super bonus” tax deduction of 110%. The dramatic increase in solar thermal adoption in Italy is evidence that businesses and consumers are eager to drive forward the energy transition – all that is required are the conditions to enable a bottom-up approach.

A national goal of 

This is a tall order, but grant programmes such as the Public Sector Decarbonisation Scheme, which has done so much to reduce emissions at UK public bodies, and the revival of the Green Homes Grant, which was cut after only six months and offered households up to £5,000 for insulation and £10,000 for low-carbon heating, make it possible.

Reliable and long-term funding for renewables infrastructure will significantly boost investor and business confidence, encourage the development of innovative green technology, and ultimately assist those struggling to pay their energy bills while protecting the nation from future shocks. Simple regulatory measures in the residential sector go a long way.

Tenants and landlords will benefit from stringent building regulations that require new construction to meet the highest energy efficiency standards and incorporate renewable energy technologies, such as photovoltaics, solar thermal, and heat pumps.

The 2025 Future Homes Standard, which will go into effect in that year, must be adhered to by incorporating solar energy as a key means to meet decarbonisation goals; and building energy performance certificates should be updated to include information on how well-installed, low-carbon technology is performing.

Green economics

Last but not least, green consumer finance and mortgage products that incentivise the purchase of solar-powered properties will also drive much-needed change. The effects of solar heat extend beyond individual structures. Solar district heating is a powerful example of how large-scale infrastructure can decarbonise entire communities. 

When paired with seasonal storage technology, such as pit thermal energy storage systems, these networks supply 90 to 100% of the electricity required for hot water and space heating. This technology involves a large, insulated body of water that can be heated, and it is so successful in Denmark that it meets 60% of the country’s thermal demand. 

Additionally, systems have been installed in Germany and Austria.

Solar district heating networks provide cost-effective heat generation and significantly reduce strain on local power grids, allowing green electricity to be used for other purposes efficiently. Solar technology cannot deliver the energy transition alone, of course. The International Energy Agency (IEA) predicts a 15% increase in renewables for heat generation worldwide by 2027. However, they must grow by about 27% to achieve net-zero goals. There is much to be done.

The required investment level is substantial. The US implementation of the Inflation Reduction Act last year and the European Union’s formulation of a Green Deal Industrial Plan to strategically support local industry are not coincidental.

The energy transition presents a tremendous opportunity to build domestic supply chains, revitalise national industries, and mitigate climate change’s worst impacts.

Solar thermal should be integral to the UK’s energy transition. The IEA predicts that the number of solar thermal systems will increase from 250 million today to 1.2 billion in 2050 and will directly contribute to creating approximately 250,000 green jobs in Europe over the next decade.

According to a study published by the Deloitte Centre for Sustainable Progress last year, the price tag for failing to reach net zero over the next 50 years could reach £178 trillion.

Getting the UK back on par with its peers will not be cheap, especially considering we are playing catch-up.