SS#1: 100k UK homes added solar in 2022!

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Woah! 100,000 UK homes installed solar in 2022!

The year of the comeback... UK residential solar market returned in a huge way. COVID-19 created havoc in the Solar supply chain and still nearly 3 years later the effects are still evident (ask any installer!). Plus: price increases on energy, the invasion of Ukraine, and inflation, it left many homeowners choosing to install Solar PV.

To cut a long story short, the sharp increase in demand was hard on the supply chain. But here we are in December, with snow on the ground and some interesting metrics. The data came from the new Microgeneration Certification Scheme Data Dashboard. You can access the stats anytime for free here, or you can keep reading my future emails.

I promised a breakdown of my findings - so here we go:

Total PV installs up by 101.1% in 2022That's around 100,000 new Solar PV systems this year alone, following installation of c.61,000 in 2021. In reality, this covers only installations registered at MCS. Typical exclusions: Self-installs and some 'New-build' homes.

Installation cost average (per kW installed) increased by 24.7%We compared the average installation costs per kW [Nov-21 to Nov-22] and saw the increases. In our personal and professional life we've seen the same, the solar supply chain is not immune. And dare I say, improved margins which helps to propel such an important industry in the future. And for 2023, the trend looks set to continue.

Average PV system size is 4.43kwOK this one surprised me too. For a long time, the default system size was 4kw. Perhaps as a legacy to the 'old' Feed-in tariff scheme [2010-2018 RIP] which 'capped' system sizes. But with significant increases in electricity cost (price cap anyone?) it's no surprise that homeowners are increasing their PV size. Note here that Storage isn't recorded by MCS. Anecdotally, installers shared estimates that 60-80% of new PV sales include storage.

440MW installed this year to UK homesThis is a staggering volume considering it the market size of the UK only a few years ago. In line with some of our European neighbours, but with no gov incentives or a supportive tax policy. Key driver: very high electricity cost but the wider sentiment is moving towards Energy Independence (F.. You Fossil fuels!), Electrification of heat and transport (EV).

596 new PV installer businesses in the UK this yearGiven the high-profile upturn in the UK market, it's no surprise that it left MCS with a large number of applications to join the Solar PV certification scheme. Many new installers are new entities (SMEs) but also many electricians, heat pump installers etc adding Solar PV to their portfolios. We see here that 596 new entities or individuals gained the accreditation.

Total number of PV Installers now 1,844, up 39.9% in 2022.This year there were several prominent installers in my network that quoted lead times for new installs of 4-6 months. They quoted enquiry levels jumping around 10x over previous years - in a nutshell they were inundated.

So, what's to come in 2023?Hold your horses! I want to thank everyone in the UK solar industry for holding huge composure throughout the year. 2023 is going to be equally challenging and will be a whole new post in itself...stay tuned for a future edition of 'Solar Saturday'.

Enjoy your Saturday!

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Sean