Start your renewable energy business in the UK in 2024

The UK is a global leader in renewable and green energy, making it an attractive destination for entrepreneurs looking to launch a business in this sector. Nearly 40% of the electrical output in the UK roots from renewables. The UK government’s commitment to reducing carbon emissions and investing in sustainable energy solutions creates a favorable environment for renewable energy startups. The compound annual growth rate (CAGR) for the renewable energy sector in the UK is expected to be approximately 7-8% from 2020 to 2024. If you’re a foreign entrepreneur, here’s an overview of the steps involved in starting a renewable energy business in the UK, with insights into the market and immigration considerations.

The UK renewable energy market is diverse, encompassing wind, solar, biomass, and hydropower. Offshore wind energy, in particular, is a significant focus, with the UK hosting some of the world’s largest offshore wind farms. More so, solar energy made up for 11% of the UK’s renewable energy production in 2023. The government’s target to achieve net-zero carbon emissions by 2050 further bolsters opportunities in this sector. Understanding these market dynamics is crucial for identifying where your business can fit and how it can contribute to the renewable energy landscape.

Here are some industry insights to help you get started-

Exploration of green hydrogen as a renewable energy source for hard-to-decarbonize sectors.

Identifying the gaps in the market and defining your business model to suit the needs of the market is the first step. Determine whether your focus will be on energy production, technology development, consulting services, or another area within the renewable energy sector. This clarity will guide your business plan, helping you navigate your immigration journey and comply with regulatory requirements.

Here are some prospects that can help you draw a detailed business plan-

As a foreign entrepreneur, selecting the appropriate visa is essential for starting your business in the UK. Consulting with a UK immigration lawyer can be beneficial at this stage.

The SmartMove2UK can not only provide you with tailored advice and streamline the application process, but also advise you as to the viable ways to set up your business and effective ways to represent your business before endorsing bodies, if you are opting for a category such as the Innovator Founder visa. In case your priorities also include moving to the UK, our team can also help you register your business and apply for a sponsor license to proceed with the UK Self-sponsorship route.

There are several visa routes that you can consider to start business in UK:

Launched in May 2022, the High potential individual visa permits the holder to start any business in the UK.

This visa route is perfect for concept testing entrepreneurs when they are testing out a new idea – the premises can be rented, not have equipment worth more than £5,000 and you do not have any employees.

This visa route is perfect for concept testing entrepreneurs when they are testing out a new idea – the premises can be rented, not have equipment worth more than £5,000 and you do not have any employees.

This visa caters to entrepreneurs with innovative, viable, and scalable business plans. You’ll need experience in the chosen field and an endorsement from a UK-authorized body. Similar to the Expansion Worker Visa, you can bring your family with you.

If you’re looking to establish a new business in the UK or already have one there, you might qualify for a Skilled Worker visa through self-sponsorship. Your own UK company can sponsor your visa application. This has mapped out to be the most favorable given the current UK immigration landscape.

Global talent visa holders can establish a new business and also be eligible for accelerated settlement.

Young entrepreneurs can make their foray in the renewable energy business and scale the opportunities to new heights.

The first substantial step is naturally the registration of your business with Companies House. This step also involves complying with UK tax laws and obtaining necessary permits and licenses specific to the renewable energy industry.

Choosing the right location for your business is critical. Places like Brighton, Portsmouth, and Bristol are hubs for renewable energy innovation, offering access to research institutions, scope for green technology, and industry networks. Additionally, proximity to potential sites for renewable energy projects, such as coastal areas for wind farms, can be advantageous.

Funding is also another crucial aspect of launching your renewable energy business. The UK offers several funding avenues, including venture capital, government grants, and green investment funds. Schemes like the Renewable Energy Investment Fund (REIF) and the Green Investment Group can provide the financial support needed to kickstart your project.

Compliance with UK regulations is vital for operating in the renewable energy sector. This does not only include the employee regulatory compliances but also obtaining necessary licences from bodies such as Ofgem (Office of Gas and Electricity Markets) and adhering to environmental standards. Ensuring compliance not only legitimises your business but also builds trust with investors and customers. Investing in the right technology and infrastructure is key to the success of your renewable energy business. Luckily, the UK has state-of-the-art equipment for energy production. Staying updated with technological advancements in renewable energy can give your business a competitive edge.