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The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted

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Renewable Energy Trends For 2026

27th October 2025

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Discover how the future of renewable energy is set to reshape industries, economies, and daily life in 2026.

Game-Changing Innovations Powering the Green Revolution

 

The renewable energy sector is undergoing a period of unprecedented innovation, fundamentally altering the dynamics of global power generation and consumption. Among the most significant developments are the rapid advancements in solar and wind technologies, which are now outpacing traditional energy sources in terms of deployment and impact. Solar energy, in particular, is projected to account for approximately half of the additional global electricity demand through 2025, solidifying its role as a cornerstone of the clean energy transition.

Key technological breakthroughs, such as the implementation of perovskite solar cells and bifacial photovoltaic panels, are driving notable improvements in energy conversion efficiency and cost-effectiveness. These innovations are lowering barriers to entry for a broader array of users, making solar solutions an increasingly viable choice for businesses, local authorities, and entire communities seeking to decarbonise their operations.

In parallel, the emergence of floating solar arrays and offshore wind farms is addressing the critical challenge of land scarcity. These solutions provide scalable options for expanding renewable generation capacity without placing additional pressure on agricultural or urban spaces. As a result, energy providers and commercial operators can access significant additional capacity while supporting sustainable land use practices.

Collectively, these advancements are propelling global decarbonisation agendas and opening up new avenues for bespoke asset finance solutions. Progressive finance packages—tailored to the unique cash flow profiles and capital expenditure needs of energy projects—are enabling developers and businesses to invest in next-generation technologies, diversify asset portfolios, and future-proof their operations within a rapidly evolving energy landscape.

 

How Policy Shifts Are Accelerating Clean Energy Adoption

Policy frameworks and regulatory incentives are playing a critical role in accelerating the adoption of renewable energy across global markets. Governments are implementing ambitious decarbonisation agendas, incentivising investments in renewables through grants, tax benefits, and favourable financing structures. These measures are reducing the barriers to entry, empowering more businesses to transition to sustainable energy solutions while preserving their working capital.

UK Government grants for renewable energy technology provide a substantial catalyst for the decarbonisation of infrastructure across sectors. Businesses and organisations investing in solar panel installations, energy storage systems, heat pumps, and other sustainable technologies can access a variety of national and local funding schemes designed to offset the initial capital expenditure and accelerate clean energy adoption.

Programmes such as the Smart Export Guarantee (SEG), Boiler Upgrade Scheme (BUS), and Local Authority Delivery (LAD) funds offer direct financial incentives, reducing the payback period for qualifying projects and making renewable infrastructure upgrades more accessible to SMEs and large enterprises alike. By combining these grants with flexible asset finance solutions, businesses can optimise project affordability while meeting evolving sustainability targets and enhancing their long-term energy resilience.

Additionally, the integration of carbon capture and storage (CCS) technologies, along with continued support for bioenergy and hydropower, reflects a comprehensive approach to cleaner energy. Financial institutions and asset finance brokers are increasingly aligning their offerings to support regulatory compliance and capitalise on available incentives, ensuring that clients can access the funding required to upgrade or diversify their assets.

Emerging Markets Leading the Charge in Renewables

Emerging markets are at the forefront of the global renewable energy transition, leveraging abundant natural resources and international investment to rapidly scale up solar, wind, and energy storage capacities. These regions are benefitting from asset finance solutions that enable local businesses to deploy new technologies without the burden of significant upfront costs, thus supporting economic growth and energy independence.

The proliferation of renewable projects in emerging economies is also driving innovation in project finance and risk management, creating robust opportunities for investors seeking diversification. By partnering with specialised asset finance providers, businesses in these markets can access flexible, tailored financing packages that align with local regulatory frameworks and operational realities.

The Integration of Smart Technology and Clean Energy

 

The convergence of artificial intelligence (AI), the Internet of Things (IoT), and advanced energy management systems is fundamentally transforming the deployment, monitoring, and optimisation of renewable assets across global energy networks. Sophisticated smart grids and microgrids, built on interconnected digital platforms, are creating more resilient and adaptable energy infrastructures that seamlessly integrate variable renewable resources such as solar and wind. These intelligent networks enable operators to respond instantaneously to fluctuations in demand, enhancing grid reliability while supporting the widespread adoption of clean energy sources.

At the heart of this innovation is the rapid advancement of battery energy storage systems (BESS), which are set to overtake traditional pumped hydro storage in global installed capacity. BESS technologies play a critical role in stabilising the grid by providing fast-reacting reserve power and enabling greater flexibility in when and how renewable electricity is stored and dispatched. This dynamic storage capability ensures that surplus renewable generation can be retained for periods of peak demand, improving the overall efficiency and reliability of renewable energy utilisation.

Asset owners and operators are leveraging real-time data and predictive analytics to achieve higher operational efficiency, proactively identify and address maintenance needs, and drive informed investment decisions—significantly reducing downtime and enhancing asset performance. Financially, these operational gains are reinforced by access to specialist finance solutions designed to support digital infrastructure upgrades, smart technology integration, and the expansion of energy storage capabilities. These bespoke financing packages are tailored to the specific needs of renewable projects, enabling organisations to optimise capital allocation, strengthen return on investment, and accelerate progress toward sustainability goals within a rapidly changing energy landscape.

What the Rise of Renewable Energy Means for Businesses and Consumers

 

The rapid rise of renewable energy is creating transformative opportunities for both businesses and consumers, marking a turning point in how energy is sourced, financed, and utilised. For organisations, the adoption of renewables delivers significant strategic advantages—reducing operational energy costs over the long term, bolstering environmental, social, and governance (ESG) credentials, and decreasing reliance on volatile fossil fuel markets. With the support of asset finance solutions, businesses can initiate large-scale renewable energy projects such as solar installations, battery storage, or electric vehicle fleets, without depleting essential working capital. This approach not only ensures operational resilience but also allows for flexible upgrades and expansion as technologies evolve. Asset finance aligns repayment terms with expected benefits and cash flow cycles, enabling companies of all sizes to pursue sustainability at scale while safeguarding liquidity.

For consumers, the proliferation of renewable generation, combined with the integration of smart technologies, ushers in a new era of accessible, dependable, and environmentally responsible energy choices. Households can increasingly benefit from solutions such as rooftop solar, home battery storage, and electric vehicles, made attainable through bespoke finance packages. Flexible financing options—including multi-year solar panel schemes and tailored electric vehicle leasing—remove barriers to adoption by spreading costs over manageable terms, widening participation, and ensuring affordability for a broader range of users. As renewable technologies continue to advance and prices become more competitive, the resulting growth in accessibility will directly enhance quality of life, support lower household energy bills, and accelerate the collective transition to a more sustainable future. Ultimately, comprehensive and adaptable finance solutions will be instrumental in unlocking these opportunities, empowering both businesses and consumers to contribute meaningfully to the UK’s net zero ambitions.

 

If you’re planning a new renewable energy project, speak to our asset finance experts about how we can support your golas.


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