Renewable energy isn’t just better for the planet – it can also give the economy a boost. When the new government pledged to make Britain a ‘clean energy superpower’, it said the benefits would include lower bills, greater energy independence and 650,000 new high-quality jobs1. Let’s take a closer look at how investment in renewable energy projects can have a positive impact on the UK economy.
How will renewable energy impact the job market?
The use of renewable energy sources, such as wind and solar power, have grown rapidly in the UK. So far this year, renewable energy makes up 50.9% of electricity generated across the country. That’s more than triple what we were generating a decade ago2.
This rapid growth has had a positive impact on the job market. And it’s not just technical roles either. Yes, there’s a healthy demand for the engineers, project managers and technicians who design, install and maintain renewable energy systems. But there’s also an increasing number of roles for professionals in fields like marketing, sales, customer service and finance, to support this booming sector.
However, there are concerns that these jobs are not evenly distributed across the country. In total, PwC’s latest annual Green Jobs Barometer found that there were around 250,000 green roles being advertised in the UK in 20233. However, one-third of these roles were based in London and the south-east3. If everyone is to feel the benefits of the green economy, then the impact on the job market needs to be nationwide.
Thankfully, there are positive signs that green jobs are distributed across the UK to some extent. After London and the South-East, the areas with the highest numbers of green jobs advertised are Scotland and the North-West. Scotland, which has the lion’s share of the UK’s onshore and offshore wind farms, also has the highest proportion of green jobs of anywhere in the UK3.
How will renewable energy lead to lower bills?
People can also take advantage of renewable energy in their own homes, thanks to renewable energy technology. For example, upgrading to a heat pump is up to 4 times more efficient than gas boilers4. And solar panels can help customers save up to £1,391 a year5. So while the initial cost of installation can be high, renewable technology can generate savings and lead to lower bills in the long run. Plus, you can also get government grants and schemes to improve your home’s energy efficiency.
Not only are these savings beneficial for customers, renewable technology can also make customers’ homes more appealing to prospective buyers, which in turn helps to increase their property value. As the UK government strives to meet its net zero target by 2050, demand for energy-efficient properties is likely to rise. Homes equipped with solar energy systems and heat pumps could be seen as more future-proof, as they align with the country’s environmental goals.
How will renewable energy lead to greater energy independence?
Renewable energy means the UK doesn’t need to rely on other countries for fossil fuels like oil, coal, and gas. The vast majority of our fossil fuels are imported from abroad, so the UK doesn’t control the cost. This also means the price of fossil fuel energy can be impacted by international events, like the recent energy crisis. When events like this happen, it leads to higher energy bills for households across the country.
On the other hand, renewable energy gives the UK government – and households – more control over their energy supply. When households install heat pumps and solar panels, they can generate more of their own power. This also applies on a national level. Investing in renewable sources, like wind turbines, geothermal energy, and solar farms, means there’s no need to buy fossil fuels – avoiding additional costs and unnecessary price inflation. Over time this could help to lower energy bills for everyone.
How does renewable energy lead to fewer climate shocks?
One of the most important economic benefits of renewable energy is that it helps to avoid future costs caused by climate change. Emissions caused by burning fossil fuels can significantly worsen the air and water quality, as well as causing health problems for society, all of which take a toll on the economy.
On the other hand, most forms of renewable energy produce little to no carbon emissions to generate electricity. Even if you were to factor in the entire lifecycle process of manufacturing, shipping, installation and decommissioning, electricity generated by solar panels still results in 96 percent fewer emissions than the same unit of electricity generated by coal-fired power plants6. Similarly, wind power produces 99% lower carbon emissions than coal-fired generation7.
Climate change creates a number of environmental challenges for the UK, impacting agriculture and ecosystems – and the economy in turn. Recent research suggested that, unless significant action is taken, the total cost of climate change damages to the UK could increase from 1.1% of GDP to 3.3% by 20508. This highlights the need to keep investing and innovating in the renewable energy sector in order for the country to meet its net zero target – creating a healthier environment, and a stronger economy too.
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