Solar Media Market Research senior analyst Josh Cornes weighs this year's progress in the UK solar market.
The United Kingdom's solar sector demonstrates robust investor confidence through sustained merger and acquisition activity, diversifying commercial pathways, and increased construction momentum, though it simultaneously faces ongoing hurdles related to planning frameworks and grid connection timelines.
New planning applications have dropped sharply in 2026, totaling 4GWp compared to 12.5GWp during the same period in the prior year. This decrease follows a massive wave of submissions, including 10GWp filed between March and August 2026 and a significant surge in December 2025, driven by developers rushing to meet upcoming grid reform deadlines. Nationally Significant Infrastructure Projects account for 2.7GWp of this year's filings, highlighting a clear industry pivot toward larger installations.
Planning approvals have also declined, dropping from 9.1GWp across more than 180 sites down to 7.5GWp across slightly over 100 sites so far in 2026. This trend underscores a broader consolidation toward larger projects, which includes five newly approved Nationally Significant Infrastructure Projects, raising that category's total approved count to 20. Meanwhile, local planning authorities are taking longer to render decisions, with average processing times for developments exceeding 5 MWp reaching a record 60 weeks in 2026, up from 51 weeks in 2025. Additionally, local rejection rates persist at roughly 23% to 25%, creating heightened risks for developers navigating strict grid connection milestones.
Contracts for Difference continue to serve as the primary route-to-market strategy, covering 65% of all assets entering construction since 2023 across 368 projects spanning 370 sites. However, strains are emerging as 15 projects have terminated their agreements and others have declined awards, with four of those terminating projects currently under construction and one already operational. Low strike prices in recent allocation rounds are driving developers to seek alternative revenue models, such as Corporate Power Purchase Agreements, which major entities like Severn Trent, Liberty Global, and Atrato favor for their flexibility and potential for higher returns.
Merger and acquisition activity remains vigorous, with more than 100 assets representing 6.2GWp changing hands since the beginning of 2026. Joint ventures are increasingly prevalent, highlighted by Aura Power and Verdant Energy combining operations—including Aura Power entering the CVC DIF 7 asset portfolio—as well as Qualitas Energy acquiring Cero Generation along with 1.3GWp of approved and in-construction solar assets.
Construction metrics indicate that 8.1GWp has broken ground over the past three years, with 4GWp finished and 4.7GWp actively under construction. After a lull between July 2025 and April 2026 where only 1.8GWp commenced building due to grid connectivity uncertainties, activity surged in the third quarter of 2026 with 1GWp starting construction. This acceleration was prompted by developers receiving definitive 2027 connection dates, though upcoming bottlenecks loom as transmission- and distribution-connected projects awaiting 2028 dates face delays in receiving firm schedules.
Originally reported by Solar Power Portal on Sep 16, 2026.
