The closure of GB renewable subsidies puts asset values at risk
Published on 6th August 2026
The commercial consequences of decommissioning accredited renewable energy assets are permanent and often underestimated
At a glance
Subsidy income streams carry significant value for asset owners with onsite generation but this is at risk with various subsidy regimes coming to an end.
Repowering, battery co-location and power purchase agreements offer routes to sustain revenue beyond the subsidy period.
Knowing the exact accreditation end date is an essential starting point for any commercial strategy or transaction involving renewable assets.
Two of Great Britain's most historically significant renewable energy support schemes are winding down. The Feed-in Tariff (FIT) closed to new applicants in 2019. The Renewables Obligation (RO) closed to new generating capacity in 2017, with a formal backstop of 2037 applicable to subsidy support.
Installations already accredited under both schemes continue to receive payments, but that clock is ticking with some project's accreditation end date coming round very soon. For owners of commercial property with renewable energy assets on site, the urgent question is when the accreditation period comes to an end, what happens to the value of those assets? And are operators surrendering subsidy-backed assets prematurely, without fully understanding what they are giving up?
No way back
Decommissioning an accredited installation carries a permanent. Under the FIT scheme, if all generating plant is permanently removed, accreditation ends. The operator cannot re-join the scheme as it is now closed. The same logic applies under the RO: permanent removal means accreditation is withdrawn, and there is no way back in.
In property transactions, rooftop solar operators are increasingly being asked to surrender leases early so that a seller can offer vacant possession to a buyer. Those negotiations turn largely on the remaining value of the subsidy income stream, and the operator's leverage is significant, because they cannot simply relocate. Accreditation is tied to a specific geographical site; move the installation, and eligibility is lost.
Any surrender premium needs to reflects the operator's total loss of remaining subsidy income, not merely the unexpired lease term in isolation. Landlords and buyers who approach these negotiations without understanding this start at a disadvantage.
Market responses
The most commercially astute operators are not rushing to the exit. Instead, we are seeing three broad responses across the market.
Repowering is one route. Replacing older panels with higher-efficiency technology extracts greater value from the remaining subsidy period. Under both the FIT scheme and the RO, generating equipment can be replaced without affecting accreditation, provided the installation uses the same eligible technology, stays within applicable capacity limits, and is not relocated.
Adding battery storage is another. Co-locating battery storage has become an increasingly popular way to improve revenues both during and after the subsidy period. Under the FIT scheme, battery storage can be added to an accredited installation without affecting its status, provided metering requirements continue to be met.
A further response is to undertake early planning for the post-subsidy transition. Power Purchase Agreements (PPAs), including with on-site occupiers via private wire, are increasingly being used to replicate some of the income certainty that subsidies previously provided. For FIT generators, the Smart Export Guarantee (SEG) offers a route to export payments post-FIT, but operators cannot claim FIT export payments and SEG payments simultaneously; they must opt out of FIT export payments before switching across.
Osborne Clarke comment
Timing matters. The accreditation end date is a natural starting point for any review. The duration of FIT support is set out in the operator's Statement of FIT Terms, which must include the eligibility date and eligibility period. Under the RO, support ends on the earlier of the 20th anniversary of the accreditation date or 31 March 2037. Some projects will start rolling off in the near term. For any transaction involving a site with a renewable energy asset, obtaining the exact end date at the outset is essential, as it can be the foundation of commercial negotiations.
Changes to accredited installations also require careful handling. Any material change to an accredited installation, whether structural, operational or ownership-related requires prompt notification to Ofgem. Under the RO, the window is within two weeks of the change occurring. Failure to notify puts accreditation at risk. Legal advice before any changes are made is particularly important where a transaction is in prospect.
For RO-accredited installations, the 2037 backstop is closer than it may appear. Operators who begin mapping their post-subsidy strategy now through PPAs, battery co-location, repowering or renegotiated lease arrangements, will be better placed than those who treat the subsidy end date as someone else's problem.
The end of the subsidy era does not have to mean the end of the asset's commercial life, but it does require a plan: and the time to make that plan is before the subsidy runs out, not after.
If you would like to discuss how these issues affect your assets or a transaction you are working on, please contact Giles Herring, Hannah Wooderson or your usual Osborne Clarke contact.
