Carbon Price Support Removal

NextEnergy Solar Fund Limited

17 April 2026

 

LEI:  213800ZPHCBDDSQH5447

17 April 2026

NextEnergy Solar Fund Limited

("NESF" or "the Company")

Carbon Price Support Removal

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, notes yesterday's statement from the UK Government that it will legislate to remove Carbon Price Support ("CPS") with effect from April 2028.

What is CPS?

CPS is a tax on fossil fuels used in electricity generation, introduced in 2013. It acts as a top-up to the UK Emissions Trading Scheme ("ETS") ensuring that power generators pay a minimum carbon price per tonne of CO₂ emitted.

What is ETS?

The UK ETS is a market-based policy tool designed to reduce greenhouse gas emissions. It works by setting a cap on the total level of emissions allowed and distributing permits or allowances for emissions up to that cap. Companies can buy and sell these allowances, providing an economic incentive to reduce emissions. Similar schemes exist in other markets, and they play a central role in the decarbonisation of the UK market.

Why is the UK Government removing CPS?

The UK Government has stated that it considers the CPS to have met its original objectives and no longer to be required. Coal generation has largely exited the UK power mix, and the UK ETS is now established, with a tighter cap intended to strengthen decarbonisation incentives for electricity generators. In this context, the Government has set out an intention to simplify the existing tax and carbon pricing framework. The removal of CPS has also been presented as a measure that would partially offset the costs to billpayers associated with the British Industrial Competitiveness Scheme, which is designed to reduce electricity costs for manufacturing sectors.

When will this happen?

The Government has indicated it will legislate for the removal of CPS in a future Finance Bill, ahead of April 2028.

How does CPS affect power prices?

The Company uses multiple third-party providers for its UK power price forecasts, which form a key input into the NAV model. The Company's valuation assumptions already reflected an expectation that CPS rates would be phased out in the 2030s. In addition, CPS was expected to have a diminishing influence on electricity prices in the longer term as UK renewable generation capacity increases and fossil fuel generators set the marginal price less frequently. The announcement made yesterday accelerates this anticipated trajectory.

Potential impact on NESF

Initial analysis indicates that the removal of CPS in 2028 would have an impact on the electricity price assumptions used in the NAV model, with wholesale power prices estimated to be approximately £4-5/MWh lower from April 2028 to the early 2030s, and around £2-3/MWh lower thereafter.  The impact on solar capture prices will be lower, reflecting the fact that gas does not set prices in all hours when renewables are generating.

The preliminary assessment is that the removal of CPS will potentially reduce the Company's NAV by 0.8p-1.9p per Ordinary Share.

When will NESF provide more information on this?

The Company's Investment Adviser is engaging with its power price forecasters to assess their revised assumptions. Further detail will be provided in the Company's forthcoming Q4 NAV & Operating Update RNS, scheduled for release in mid‑May 2026.

For further information:  NextEnergy Capital	020 3746 0700
Michael Bonte-Friedheim	[e-mail]
Ross Grier
Stephen Rosser
Peter Hamid (Investor Relations)
RBC Capital Markets	020 7653 4000
Matthew Coakes
Kathryn Deegan
Cavendish	020 7908 6000
Robert Peel
H/Advisors Maitland	020 7379 5151
Neil Bennett
Finlay Donaldson
Ocorian Administration (Guernsey) Limited	01481 742642
Kevin Smith

Notes to Editors ¹:

About NextEnergy Solar Fund

NextEnergy Solar Fund is a specialist solar energy and energy storage investment company that is listed on the Main Market of the London Stock Exchange.

NextEnergy Solar Fund's investment objective is to provide Ordinary Shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of utility-scale solar energy and energy storage infrastructure assets.  The majority of NESF's long-term cash flows are inflation-linked via UK government subsidies.

As at 31 December 2025, the Company had an unaudited gross asset value of £997m.  For further information please visit www.nextenergysolarfund.com

Article 9 Fund

NextEnergy Solar Fund is classified under Article 9 of the EU Sustainable Finance Disclosure Regulation and EU Taxonomy Regulation.  NextEnergy Solar Fund's sustainability-related disclosures in the financial services sector are in accordance with Regulation (EU) 2019/2088 and can be accessed on the ESG section of both the NextEnergy Solar Fund and NextEnergy Capital websites.

About NextEnergy Group

NextEnergy Solar Fund is managed by NextEnergy Capital, part of the NextEnergy Group.  NextEnergy Group was founded in 2007 to become a leading market participant in the international solar sector which now employs over 400 professionals.  Since its inception, NextEnergy Group has been active in the development, construction, and ownership of solar assets across multiple jurisdictions.  NextEnergy Group operates via its three business units: NextEnergy Capital (Investment Management), WiseEnergy (Operating Asset Management), and Starlight (Asset Development).

·    NextEnergy Capital: has over 18 years of specialist solar expertise having invested in over 530 individual solar plants across the world.  NextEnergy Capital currently manages four institutional funds with a total capacity in excess of 4GW and has funds under management of c.$4.8bn.  More information is available at www.nextenergycapital.com   

·    WiseEnergy®: is a leading specialist operating asset manager in the solar sector.  Since its founding, WiseEnergy has provided solar asset management, monitoring and technical due diligence services to over 1,600 utility-scale solar power plants with an installed capacity in excess of 3.5GW.  More information is available at www.wise-energy.com

·   Starlight: has developed over 100 utility-scale projects internationally and continues to progress a large pipeline of c.12GW of both green and brownfield project developments across global geographies.  More information is available at www.starlight-energy.com

Notes:

^1: All financial data is unaudited at 31 December 2025, being the latest date in respect of which NextEnergy Solar Fund has published financial information.

 

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