Renewable Energy in the UK: Business Opportunities Ahead

March 4, 2025

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Amid the global effort to switch to green energy, the UK has been criticized for not doing enough. Indeed, the country may not reach net zero emissions by 2030, as stipulated by the Paris Agreement.

Yet, it’s getting pretty close to it, and the “green industry” is rising fast here. The British government estimates that 50% of the energy consumed in the country will come from renewable sources by the end of 2025 and the net zero target by 2035.

Indeed, the green economy is booming in the UK, thanks to public investments and private companies like mantierogroup.com, which provides large-scale metal structures for photovoltaic panels.

Still, many other technologies are involved in this process, and there are plenty of business opportunities as well. Keep reading to find out more.

Table of Contents

Top 4 Renewable Energy Sources in the UK

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Despite the urgency of eliminating fossil fuels in energy generation, switching to renewable sources still presents many challenges. It’s necessary to get rid of landfills, but it requires solutions in waste management, for instance.

That’s when the green economy, with companies competing to provide the most efficient and cost-effective solutions.

Here are the main sources of green energy in the UK today.

1. Wind

Wind is still the country’s primary source of green energy, accounting for nearly 30% of its production. Actually, the rainy island is ahead of the curve when it comes to wind power. Instead of building land-based wind farms, the Brits decided to build them offshore to reduce their impact in surrounding areas. Indeed, it has the largest offshore wind farm worldwide.

2. Biomass

Burning organic corresponds to 5% of green energy production. The so-called “biomass” is a combination of animal waste, crops, wood, and organic materials from plants. Environmentalists claim that burning biomass is just as bad for the environment as burning coal, producing nearly the same amount of carbon. While biomass burning does release CO2, scientists claim it’s a carbon-neutral option since this amount of CO2 can be absorbed by growing plants.

3. Solar

Relying on solar power in a place where the weather is grumpy most of the time sounds almost like a joke. Still, solar power comes right behind biomass, generating 4.9% of the green energy output. Solar power structures are rising fast here, and the UK is already the largest market for solar power in Europe.

4. Hydropower

Hydropower, including tidal sources, accounts for only 1.8% of the UK’s green energy. However, it is the oldest source of green energy, and it has been used in the country since the 19th century. Given the UK’s geography, generating hydropower is quite challenging, as not many rivers are voluminous enough for the task. That’s why most of its hydropower plants were built in Scotland and Wales. Even so, the country is still struggling to keep a consistent output.

Green Economy and Its Opportunities

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The “green economy” involves offering goods and services with minimal to zero emissions. Examples include carbon capture technologies, electric vehicles, and solutions that may improve energy efficiency. Climate change doesn’t wait: 2025 already had the hottest month in human existence, right in January.

This means that innovative solutions to protect the environment have never been in higher demand, and there’s a fortune to be made for those who nail the task. British entrepreneurs know this very well, and in 2023, thousands of net zero companies opened their doors in the country. This has resulted in a 9% growth in this market. Yet, the number of net zero businesses grew much further: from 4,000 to nearly 24,000 in a single year.

The staggering growth of net zero companies also has very beneficial side effects. For once, it creates new job positions that require highly skilled professionals, and the salaries are handsome. Green jobs pay up to GBP 10,000 yearly compared to regular jobs, boosting economic activity, especially in deprived areas.

Still, there’s a lot to be done. The UK still lags far behind European countries like Norway or the Netherlands. In Norway, 66% of homes are heated by renewable energy, against only 1% of British homes. Similarly, only 5% of British homes have solar panels installed, against 16% in the Netherlands. So, there’s a huge potential for UK’s green economy!

Author Profile

Manuela WillboldOnline Media & PR Strategist

Senior Online Media & PR Strategist at ClickDo Ltd. | Editor in Chief at LBN | Summer Course Student at the London School of Journalism and passionate Digitalist.