Interview: Ross Grier discusses the UK Solar opportunity
With the UK Government aiming to nearly triple solar capacity over the next four years, we explore how the sector can rise to the challenge.
The UK solar industry is entering a new phase of maturity. The UK Government’s Clean Power 2030 Action Plan calls for almost a tripling of operational solar capacity to 50GW and a four-fold increase in battery energy storage to 27GW. This isn’t aspiration — it’s policy-backed transition that requires significant funding, and it’s creating a deployment opportunity unlike anything the UK solar sector has seen before.
Achieving these growth targets is central to the UK Government’s ambitions to deliver energy security, lower costs for consumers, and decarbonise the grid.
Ross Grier, NextEnergy Capital’s (“NEC”) Chief Investment Officer, sat on the UK Government’ssolar taskforce that helped develop the 2025 Solar Roadmap – the government strategy that underpins its renewable energy targets.
A determined government
“The taskforce gave me a good degree of confidence in the government’s determination to drive the energy transition,” Grier says. “This isn’t aspiration – it’s policy-backed transition that requires significant funding.”
One of the policies supporting the 2030 push is the extension of Contract for Difference (CfD) contracts from 15 to 20 years. This gives investors decades of stable revenues, and visibility over cashflows which can provide greater certainty for the market as a whole.
Meanwhile, planning and grid connection reforms aim to accelerate deployment timelines. “As major reforms start to align with project level opportunity, it’s creating exciting momentum,” says Grier.
Electricity demand is also set to surge – from the electrification of public, transport EVs, heating such as heat pumps, and even the anticipated future deployment of data centres driven by AI. As the global political environment remains febrile, domestic energy security is set to remain high on the political agenda.
“There is a massive opportunity to scale at the moment,” says Grier. “at NEC we’re aiming to commit over £1bn to the UK markets across our funds in the coming years”.
How solar can rise to the challenge
While the government targets are ambitious – an extra 29GW of operational solar capacity and as much as 20GW more energy storage – solar can be rolled out at pace.
Compared with other renewables, solar is a stable technology – its onshore, easily accessible and with no moving parts. “It’s among the fastest and lowest cost renewable technology to deploy in any market globally, particularly in the UK,” says Grier.
But to deliver the targeted growth, billions each year will need to be unlocked.
Listed renewable investment companies like NESF are essential for mobilising capital from a broad range of investor types towards the energy transition.
NESF has been at the forefront of the growing solar movement since it launched in 2014.
“In the UK, the same team have taken the company from when we put the first panels in the ground through to today,” says Grier. “They know the technology, the market and how to maximise the opportunity in incredible depth – so investors get access to a team that lives and breathes solar while being laser focussed on driving long-term returns”
NESF’s investment adviser, NextEnergy Capital (NEC) is part of NextEnergy Group that is made up of 400 professionals. The Group includes a development Company, Starlight, and Wise Energy, the world’s largest solar-focused asset manager, that looks after the daily operation of assets. The pooled knowledge of the Group enables a full end-to-end understanding of the solar value chain, so we can influence outcomes in ways less specialised funds could not.
What Clean Power 2030 (“CP30”) means for NESF
By continuing to drive innovation and professionalism, NESF aims to keep growing in line with the government’s target of nearly trebling solar capacity, says Grier.
“The governments CP30 Action Plan gives us more tailwind than ever before,” he says. “It’s an exciting opportunity for NESF to keep evolving its asset base, and increase its market size, stability and confidence. CP30 will also drive demand for our assets; and help us continue to deliver sustainable long-term returns for our shareholders.”
While there are challenges in the path to delivering on the UK’s clean power targets, such as capital raising over the last few years, downward shifts and volatility in power prices and unlocking investment, Grier is positive about the industry’s ability to deliver.
“Overall, the market is in a good place to combat these challenges and make significant strides towards achieving our renewable energy goals,” says Grier. “There’s a smart industry involved. Government is pointing in the right direction. The desire and momentum are there.”
As these factors drive momentum, NEC intends to keep reinvigorating the fund to harness this exciting growth journey.
Disclaimer:
This document is issued by NextEnergy Capital Limited (“NEC”), which is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with registered number 471192.
This document is not an offer to sell, or a solicitation of an offer to acquire, securities of the NextEnergy Solar Fund Limited (the “Fund”) in the United Kingdom or in any other jurisdiction. Neither this document nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.
The information contained in this document has been prepared in good faith but it is subject to updating, amendment, verification and completion. This document and any terms used herein are a broad outline of the Fund only.
The Fund is incorporated in Guernsey, Channel Islands and is a registered closed-ended investment scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, and the Registered Collective Investment Scheme Rules 2008. The Fund is not an Authorised Person under the UK Financial Services and Markets Act 2000 (“FSMA”) and, accordingly, will not be registered with the FCA. The Fund will therefore only be suitable for professional or experienced investors, or those who have taken financial advice.
