New Analysis: Welsh homes winning the solar race beating England and Scotland, shielding bills from the Iran crisis

As bills are about to rise again due to the lingering energy crisis, growing numbers of Welsh homes turn to solar power and heat pumps.

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By Alasdair Johnstone

info@eciu.net

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As bills are about to rise again in July under Ofgem’s energy price cap, new analysis has found that Wales is outpacing both England and Scotland in the speed at which homes are installing solar panels and electric heat pumps, and is now leading Britain’s transition to energy independent homes.
 
Original analysis by the Energy and Climate Intelligence Unit (ECIU) using data from MCS (Microgeneration Certification Scheme), the UK's quality mark for small-scale renewables energy technologies, has found that in 2025, there were around double the number of solar panel installations in Wales, at 13 per every 1000 homes – compared to 7 in Scotland and just 6 in England.
 
Meanwhile, electric heat pump installations in Wales beat those in both England and Scotland at 5 air source heat pumps per 1000 households, nearly twice that in Scotland (at 3 per 1000 households) and 2.5 times the number in England, which was just 2.
 
Commenting, Laura Dunn, Senior Associate at the Energy and Climate Intelligence Unit, said:

“Welsh households were hit hard by the last energy crisis, which cost Wales an extra £5.6 billion. They’re now leading the way in switching away from gas and embracing net zero technologies, replacing boilers with electric heat pumps and putting solar panels on roofs. This means they’re more energy self-sufficient and better placed to weather the storm of more volatile prices resulting from the US-Iran conflict.”
 
Wales has had the fastest rate of growth of solar panel installations in Great Britain since 2023 and overtook Scotland to have the highest number of cumulative heat pump installations per 1000 households in 2025. There was a pronounced increase in the rate of installations in 2022, supported by the launch of the Boiler Upgrade Scheme (BUS) in England and Wales, which provides grants to support households with the costs of replacing gas boilers with electric heat pumps. It also coincided with the energy price shock which followed the Russian invasion of Ukraine, and which the ECIU has estimated cost every house in Wales on average £2,285 (1).
 
As gas prices remain volatile due to the US-Iran war, in the UK the typical dual-fuel bill is set to rise by around 13% in July under Ofgem price cap. Demand for net zero technologies like solar rose under the Ukraine-Russia war and interest has surged in recent months related to the Middle East too.
 
Ian Rippin, CEO at MCS, said: “It’s great to see that installation volumes continue to go from strength to strength in Wales, as more people than ever before turn to small-scale renewables to heat and power their homes.
 
“MCS certification has a key role to play in continuing to drive confidence as volumes rise, by providing assurance that technologies such as solar panels and heat pumps are installed to industry-recognised standards, and are underpinned by strong consumer protection.”
 
As the conflict in Iran continues to drive instability in international energy markets, reviving fears of a repeat of the last energy crisis, installers are reporting soaring levels of consumer interest in solar panels. In March, renewables specialists Green Glow reported that demand had risen by 182% year-on-year as households scramble to protect themselves from future price hikes (2).
 
Commenting, Marc Evans of Anglesey Solar and Electrical Limited in Anglesey, North Wales, said: “We have been fortunate to be busy with installs for a number for years now but there has certainly been a sharp upturn in the last three. Anglesey in particular tops the MCS charts for increase installs in Wales. Increased household costs and the current situation in the Middle East are driving people to consider microgeneration schemes. It makes complete sense for a homeowner to be able to produce their own power and have more autonomy of their energy profiles. This way they are not held to ransom by energy companies generating vast amounts of profits at the expense of the homeowner. We are also seeing a greater demand for system that have the ability to power a home off gird. It’s likely this will increase in the coming years as consumers seek energy security. Whilst being completely off grid without the balance of wind to compliment the solar is tricky, we will see arise in “grid-light” homes —people staying connected but dramatically reducing reliance on it.”
 
Installation rates have been particularly pronounced in rural areas in North and West Wales, with almost 10% of houses in Ceredigion having installed an air source heat pump. Ceredigion also saw the fastest rate of new solar panel installations in the UK in 2025, with Anglesey, Powys, Gwynedd, and Denbighshire also seeing very high levels of installations. Many communities in these areas have a high proportion of properties which rely on heating oil to stay warm. These households lack the protections of the Energy Price Cap and have seen costs soar since the initial Iranian blockade of the Strait of Hormuz, leading the UK Government to announce £3.8 million in funding to help Welsh households with rising costs (3).
 
In April, the Energy and Climate Intelligence Unit published analysis warning that without urgent action to scale up large-scale renewable generation, Wales risked falling behind the rest of Britain and becoming more dependent on imported gas and electricity from England (4). However, Wales has had considerable success in deploying renewables on homes. In 2026, Wales became the first country in the UK to mandate that all new builds will be required to have solar panels and low-carbon heating systems like heat pumps fitted as standard, beginning in 2027 (5). Cumulatively, the total capacity of solar installed on Welsh homes reached 397 Megawatts in 2025 and installed capacity per 1000 households is now 50% higher than either England or Scotland.