Conventional wisdom is that the demand for solar panels in the UK is buoyant. Homeowners and businesses alike are, apparently, rushing to get solar panels installed on their roofs. But is the picture that straightforward? Concerns about the recyclability of solar panels, fluctuating returns, and the upfront expense at a time of squeezed household budgets have taken some of the shine off of going solar.
So, what is the current demand for solar panel installation, and what could be in store over the coming years?
The View From Belgium: Solar Panels Meet Public Electricity Demand
The outlook on solar from mainland Europe is somewhat contradictory. Take Belgium. On 27th April 2025, solar panels in Belgium generated nearly enough electricity to meet the country’s entire demand during the peak hour of 1 PM to 2 PM. This is an important milestone, highlighting the potential of solar energy to significantly contribute to national energy needs, especially during peak production periods. At the time, solar production reached 7 GW while national consumption was 8 GW, leading to a temporary electricity surplus and negative electricity prices (€-266 per megawatt hour)!
Declining Demand For Solar Panels In Germany
This recent example from Belgium seems to validate the positive outlook on solar panels among their advocates in the UK. However, is there such a thing as ‘too much solar?’ Just across the border from Belgium, in Germany, the solar panel industry is struggling due to declining demand. Demand has been hit by the cost of living crisis, high interest rates, and reduced government subsidies, among other reasons. Falling energy prices and competition from cheaper Chinese solar panels have further dampened consumer interest.
Ultimately, this is an issue of oversupply, and has led to a swathe of bankruptcies and consolidations among some German solar panel suppliers and contractors, raising concerns about the sector’s long-term viability as part of the EU’s climate goals. Despite this, however, there has been a rise in some smaller scale photovoltaic systems at the household level, as many consumers continue to adopt greener energy solutions piecemeal.
The View From Across The Atlantic: US Tariffs On Imported Solar Panels
US President Donald Trump’s trade war and the uncertainty about tariffs has also had an impact on the solar industry closer to home. Although the enormous reciprocal tariffs threatened in the spring are currently on hiatus, plans are still officially afoot to impose tariffs on all solar panels imported into the USA from Southeast Asian countries (e.g. Vietnam, Cambodia, Malaysia, and Thailand). These countries are among the world’s leading primary producers of solar products, creating components for American solar system producers for export to customers around the world. Tariffs could lead to higher costs for these American businesses, with knock-on effects for their international customers. Concerns have also been raised about the impact on energy security and the broader global solar industry, as increased costs may reduce demand for clean energy solutions among homeowners and businesses.
A Positive Outlook For The UK
Despite a tad of uncertainty in the industry, the long-term outlook for the UK remains positive. As the British industry grows and becomes more stable, it will become less reliant on imports from the USA, shielding it from tariff price fluctuations and other uncertainties. And while trends among our European neighbours are frequently a good canary in the cage for the UK market, it’s worth being cautious before drawing direct comparisons between the EU and the UK, due to the diverging regulatory and economic landscapes in the two areas.
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One thing is for sure, the solar industry needs a strong base of professionally trained and knowledgeable electricians to install, maintain, and troubleshoot all the commercial and domestic systems currently being implemented. This presents a strong opportunity for electricians to diversify their skills and career, especially in areas of the country where there is currently a skills shortage.
To find out about our specialist training courses for the renewables sector and how you can benefit, please contact PTT today by clicking here.
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