Sunshine - A global power not taking sides

Critical infrastructure goals

 

With oil tankers such in the Strait of Hormuz as the conflicts with Iran continue, wholesale gas prices have surged. Whilst the UK does not heavily rely on oil from the Middle East, it still buys energy on the global markets, and hence the government are working on a series of short-term initiatives to address the impact of rising energy prices on homeowners. These initiatives are part of a broader suite of plans including floating infrastructure, offshore cable development and nuclear plants and small modular reactors to ensure the UK is self-sufficient for energy. 

 

Plug-in Solar Panels announcement 

 

Today the government has issued a press release promoting initiatives to make ‘Plug-in solar’ available within months, stating:

‘Retailers like Lidl and Amazon, alongside manufacturers such as EcoFlow, are working with Government to enable them to be brought to the UK market.’

Such appliances will be available in shops with the goal of significantly cutting energy bills. The announcement follows January’s statement committing £15 billion under the ‘Warm Homes Plan’, an initiative aiming to bring up to one million families out of energy poverty.

Plug-in solar is expected to lower the barriers to entry for homeowners. Previously equipment had to be ordered following a roof assessment and design phase before being installed by a specialist technician. Going forward, the plug-in panels can be bought on the high street and plugged into the wall. Once left out in the sun, they can then supply energy to the grid through a house’s mains supply.

 

Why not before?

 

Plug-in solar panels were not permitted under UK electrical safety rules and building regulations. Previously, there were concerns that plug-in solar panels would overload the circuit and that the inverters in those products on the market did not comply with UK standards, meaning a risk of overheating and fire. New safety standards including power limits and approved inverters for manufacturers will bring these risks down to an acceptable level.

 

Electric heat pumps reduce dependency on gas

 

The plug-in solar panel initiative works hand in hand with electric heat pumps. Such pumps absorb heat from outside air and compress it to raise the temperature before using a heat exchanger to transfer into radiators and underfloor systems. 

A key aspect of the government’s announcement is that developers will be required to fit solar panels and heat pumps to all new homes. From 2028, no new homes will be on the gas network and must have solar panels on the roof covering an area equivalent to 40% of the ground floor space.

 

Impact for Infrastructure services 

 

Over time, there is also the potential for these initiatives to drive changes in how the grid is used and therefore the infrastructure that is needed. Traditionally, electricity has flowed one way, but if homes are increasingly supplying energy to the grid, further work on grid capacity may be required. 

There is also a mismatch to deal with in that the summer will be low demand for energy (as the heat pumps won’t need to be used as much) but the solar panels will have a higher yield. Similarly, net daytime consumption will be lower, therefore reducing daytime electricity sales and flattening demand curves. 

There is likely to be a broader knock-on effect on the utilise market and the creation of alternative business models which support smarter grid management including an increased adoption of smart meters, real time voltage control, dynamic tariffs, AI forecasting tools and automated response systems.

All of this is potentially great news for MEP contractors and specialist service providers addressing the utilities market, particularly as there are signals that similar government initiatives can be expected for commercial and industrial energy consumption. 

 

Near term delays on projects

 

Whilst the breadth and depth of initiatives addressing UK infrastructure needs is compelling, but this is yet to fully translate into order books of Infrastructure Services providers. 2025 has seen delays in major projects, often held up by decisions delayed by legal challenges and deteriorating project economics. Such delays appear to be across the board and include challenges on wastewater and transportation infrastructure. 

Whilst announcements like today’s approach for plug-in solar are unlikely to be impacted by such issues, this initiative alone is not enough. Energy Infrastructure goals have the potential to impact upon the UK’s National Security and success (hopefully) should not be impacted by bureaucracy.