NextEnergy Solar Fund flags modest NAV hit from early end to UK carbon price support

The latest announcement is out from NextEnergy Solar Fund Limited ( (GB:NESF) ).

NextEnergy Solar Fund has responded to the UK Government’s plan to remove the Carbon Price Support tax on fossil fuels used in power generation from April 2028, a move intended to simplify the carbon pricing framework now that coal has largely exited the system and the UK Emissions Trading Scheme has matured. The company notes that CPS was already expected to diminish in relevance as renewables grow and fossil fuel plants set prices less often, but the government’s decision accelerates this trend.

The fund’s initial analysis suggests that the earlier removal of CPS will push down wholesale electricity price assumptions by about £4-5/MWh from 2028 into the early 2030s and by roughly £2-3/MWh thereafter, with a smaller effect on solar capture prices. As a result, NextEnergy Solar Fund estimates a potential reduction in its net asset value of 0.8p-1.9p per ordinary share and will provide more detailed guidance after updating its power price forecasts in its Q4 NAV and operating update due in mid-May 2026.

The most recent analyst rating on (GB:NESF) stock is a Buy with a £65.00 price target. To see the full list of analyst forecasts on NextEnergy Solar Fund Limited stock, see the GB:NESF Stock Forecast page.

Spark’s Take on NESF Stock

According to Spark, TipRanks’ AI Analyst, NESF is a Neutral.

The score is primarily held back by sharply deteriorating operating results (collapsing revenue and two years of net losses) and weak technical momentum (below key moving averages with negative MACD). These negatives are partly offset by strong, improving operating cash flow, a debt-free balance sheet in 2025, and a very high dividend yield, but not enough to outweigh the earnings and trend weakness.

To see Spark’s full report on NESF stock, click here.

More about NextEnergy Solar Fund Limited

NextEnergy Solar Fund Limited is a London-listed investment company focused on utility-scale solar energy and energy storage assets. Its objective is to deliver attractive risk-adjusted returns, mainly via regular dividends, from a diversified portfolio whose long-term cash flows are largely inflation-linked through UK government subsidies. As of 31 December 2025, the fund had an unaudited gross asset value of £997m and is classified as an Article 9 fund under EU sustainable finance rules, reflecting its dedicated focus on sustainable solar infrastructure.

Average Trading Volume: 2,979,708

Technical Sentiment Signal: Sell

See more data about NESF stock on TipRanks’ Stock Analysis page.