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When policy catches up to technology: a quiet shift with big potential

Back in 2008, the UK introduced a 50MW planning threshold for solar projects. Anything above that was treated as a Nationally Significant Infrastructure Project (NSIP), triggering a more complex approval process.

That made sense then.
Solar technology was less mature. Projects were smaller. The regulatory framework reflected the realities of the time.

But over the years, something changed.

Developers got smarter.
Solar panels have gotten better.
And suddenly, that 50MW cap started to look like a ceiling rather than a guidepost.

In recent years, many projects have quietly clustered just below the 50MW mark, not because it made technical sense, but to avoid a cumbersome planning process.

This isn’t just a planning issue. It’s a constraint on progress.

Now, the government is proposing to change that.

What’s new?

The Department for Energy Security and Net Zero has submitted an Impact Assessment (IA) proposing updates to how large-scale renewables are classified under the NSIP regime. And the Regulatory Policy Committee (RPC) has reviewed the case and rated it “Fit for Purpose.”

Two key proposals:

• Raise the NSIP threshold for solar from 50MW to 100MW

• Reintroduce onshore wind into the NSIP regime at a threshold of 100MW

At first glance, this is a technical change.
But in practice, it means fewer barriers for mid-sized solar projects, and a clearer path for very large onshore wind developments.

Why now?

The RPC opinion confirms something industry insiders have seen for years:
The old thresholds are out of step with current capabilities.

The 2008-era planning rules don’t reflect:

• Improvements in solar panel efficiency

• The increasing average size and height of onshore turbines

• The emergence of a strong pipeline of mid-sized projects that now feel squeezed by legacy regulation

The data shows it too: developers have been building just under the 50MW threshold, evidence of a system that encourages workarounds rather than scaling.

What the RPC found

The RPC’s review pulls no punches. While they approve the overall direction, they highlight areas where the IA could go further.

Here’s a breakdown of the findings:

✅ Proposal and Justification

• The IA presents a strong case that the existing cap distorts the market, inflating costs and delaying mid-scale solar projects.

• It shows that raising the threshold will reduce unnecessary administrative burden and better align with modern technology.

⚖️ Economic Impacts

• The proposal may result in up to £9 million in savings per solar project by avoiding the NSIP process.

• The monetised Net Present Social Value is -£0.3 million, but the RPC agrees that the non-monetised benefits (e.g. emissions reductions, cost savings, streamlined planning) outweigh that figure.

🏗️ Impacts on Small and Micro Businesses (SMBs)

• Deregulatory for solar = mostly positive

• Mixed for onshore wind (brought into NSIP but at a high enough threshold to limit burden)

• Suggests more analysis is needed on indirect impacts, such as effects on small farms, tourism, and local planning authorities

🧭 Wider Issues & Caveats

The RPC recommends the Department look more closely at:

• Grid infrastructure and energy storage implications

• Visual and land use impacts, especially for rural or agricultural communities

• Monitoring & Evaluation – the current framework doesn’t fully align with SMART objectives

• Impact on the farming sector and food security, given increased competition for land

Why this matters

Policy and technology are often out of sync.
But when they align, even through small, targeted changes, the impact can be meaningful.

This isn’t about fast-tracking projects at all costs. It’s about making sure our planning rules reflect today’s reality, not yesterday’s assumptions.

And if it means more affordable, scalable, clean energy?
That’s a shift worth watching.

What This Means for Your Business: 7 Opportunities to Watch

1. Bigger solar projects are now easier to build
Raising the threshold from 50MW to 100MW removes a key bottleneck. Developers can now scale mid-sized solar farms without triggering the costly NSIP process, making 50–100MW projects more attractive.

2. Demand for planning and legal support will shift
Planning consultancies and legal teams should prepare for new demand, both from developers avoiding NSIP for solar and those re-entering it for large onshore wind. The mix of needs is changing.

3. Construction and EPC firms can target untapped project sizes
With more mid-sized projects now viable, there’s a growing delivery gap between 60–90MW. Firms that can offer cost-effective builds in this range will have a competitive edge.

4. Suppliers should prepare for more volume and scale
Panel makers, battery providers, and turbine manufacturers should align their offerings with larger-capacity projects and be ready for increased procurement activity.

5. Local grid operators and landowners will be key players
Larger projects mean more demand on the grid and more interest in viable land. Engaging early with utilities and landowners will be critical for developers and partners.

6. Community engagement isn’t optional
With bigger projects come bigger local concerns — visual impact, land use, noise. Businesses that invest in meaningful consultation early on will face fewer planning risks.

7. New pipelines are opening — time to revisit stalled projects
If you shelved a 55–95MW idea in the past, now might be the time to bring it back. The new thresholds open the door to reconsidering feasibility and securing investment.

Until Next Time!

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