Unlocking value from a growing capacity base
In the UK, the combination looks set to be rolled out at pace. Despite the country’s reputation for grey skies, installed solar capacity has reached 22.1GW as of March this year, according to data from the Department of Energy Security and Net Zero. It’s forecast to continue growing strongly, with analysts expecting 5–5.5GW of new solar capacity in 2026 alone.
As more solar connects to the system, generation concentrates around midday and supply can outrun demand, pushing prices very low or even into the negative.
Standalone batteries are changing the equation by taking the surplus and carrying it into peak periods, converting low-value solar output into dispatchable capacity aligned with system need.
Co-location takes these benefits even further. By combining solar and battery storage behind a single grid connection, developers can reduce infrastructure costs while maximising the performance of both technologies.
The opportunity is not limited to new developments either; batteries can also be retrofitted onto existing solar sites. Even where import capacity is constrained, ‘green’ BESS projects (where batteries charge exclusively from on-site solar generation) can unlock significant value. While grid reform still needs to catch up to fully support this approach, it’s a highly attractive opportunity that is now being reflected in the plans of UK and European portfolio owners.
These dynamics are a key reason why solar-plus-storage is emerging as a critical component of the future energy system. Both technologies are modular, scalable and fast to deploy, while also supporting a more distributed and resilient grid.