Beyond that, growth is set to stall, with only 22.4 GW of additional large-scale solar systems expected by 2035. Battery storage will also slow significantly, increasing to 27.1 GW in 2035 but only adding 1.6 GW beyond that. "The industry faces the prospect of developers working on projects with grid connection offers for 2031, 2032, and 2033, only to be told that their green, low-cost projects exceed policy limits," the letter warns.
A Government Miscalculation Industry leaders argue that the 2035 capacity limits were set without prior consultation, denying stakeholders the opportunity to provide feedback before CPAP"s publication.Moreover, the letter states that current targets repeat past planning errors made by the National Energy System Operator (NESO), which could lead to higher energy costs.
The industry insists that these projects are essential for the UK"s energy security, ensuring competition in Contracts for Difference (CfD) auctions and offsetting potential delays in other renewable technologies. "We do not believe these factors have been considered in NESO"s advice or in the Government"s CPAP," the letter states.
A Call to Action: Lifting Limits and Expanding Subsidies To mitigate these risks, the industry proposes two key measures:- Lifting the 17 GW cap on solar energy connected to the transmission grid by 2035.
- Expanding subsidies for battery energy storage systems (BESS).
However, the sector fears that this timeline is too tight to avoid a significant investment slowdown. The next grid connection offers will be granted in Q3 2027, leaving very little time for project approvals, procurement, and construction before 2035. "This will cause an immediate investment pause and delays in project connections in the early 2030s," the letter warns.
Limited Opportunities to Correct Course NESO is set to implement the 2035 capacity limits as strict constraints for utility-scale solar projects from May this year. This leaves very little time to adjust policies and prevent a severe slowdown in the industry. Industry Remains Committed to Collaboration Despite these challenges, the UK solar industry remains optimistic about its future. Industry stakeholders are eager to collaborate with the Government to unlock the full potential of solar energy and battery storage, ensuring a sustainable and cost-effective energy transition. Solar Energy UK urges Miliband to take immediate action to revise capacity limits, ensure adequate subsidies, and enable the continuous growth of the solar and energy storage sector. Without prompt government intervention, the UK risks losing £26 billion in investment and compromising its leadership in the global energy transition.