REG - NextEnergy Solar Fnd - Carbon Price Support Removal

NextEnergy Solar FundAnnouncement

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RNS Number : 9938A  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
(https://questions-statements.parliament.uk/written-statements/detail/2026-04-16/hcws1519)
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 CO(2) 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                       ir@nextenergysolarfund.com (mailto:ir@nextenergysolarfund.com)
 Ross Grier
 Stephen Rosser
 Peter Hamid (Investor Relations)
                                               020 7653 4000

 RBC Capital Markets
 Matthew Coakes
 Kathryn Deegan
                                               020 7908 6000

 Cavendish
 Robert Peel
                                               020 7379 5151

 H/Advisors Maitland
 Neil Bennett
 Finlay Donaldson

                                               01481 742642

 Ocorian Administration (Guernsey) Limited
 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
(http://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
(https://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
(https://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
(https://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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