Space-Based Solar Power Moves Closer to Commercial Reality, UK Report Suggests

A UK government-commissioned feasibility study suggests that electricity generated from space-based solar power (SBSP) systems could become economically competitive by 2040, positioning the technology as a potential complement to terrestrial renewable energy.

The study, titled Feasibility of Small-Scale Space Based Solar Power (SBSP) Systems for Early Market Adoption, indicates that falling launch costs, improved technology performance, and stronger commercial viability could significantly reduce the cost of electricity generated from solar plants in orbit.

Falling Costs Signal Competitive Potential

According to the analysis, the levelized cost of electricity (LCOE) for small-scale space solar plants is expected to decline sharply over the next decade. Estimates suggest LCOE could drop from between GBP 0.0335 ($0.0455)/kWh and GBP 0.0595/kWh in 2030 to approximately GBP 0.0087/kWh to GBP 0.0129/kWh by 2040.

At these levels, space-based solar could compete with established low-carbon technologies such as nuclear and tidal power, the report noted.

How Space-Based Solar Works

Space-based solar systems generate electricity in orbit using photovoltaic panels, convert the direct current (DC) power into radio frequency signals, and transmit that energy to Earth. Receiving antennas then convert the transmitted energy back into DC electricity for grid use.

Developers argue that the technology could help address intermittency challenges associated with land-based conventional renewables by providing more consistent generation. However, high launch costs remain a key barrier to commercial deployment.

Small-Scale Systems by the 2030s

The feasibility assessment focused on smaller proof-of-concept systems that could be deployed during the 2030s. Researchers compared existing SBSP designs and modelled scenarios using 2024 cost assumptions.

The reference design evaluated receiving stations located in Aberdeen in the United Kingdom, Edmonton in Canada, and Sapporo in Japan. Findings indicate that solar panels placed in high elliptical orbit could supply power to the UK for approximately 95.7 percent of the year. Continuous supply could be achieved when paired with battery energy storage at the receiving site.

Launch Costs Remain the Largest Driver

The report identified launch expenses as the single most significant cost factor, accounting for more than half of LCOE variation. Cost modelling was based on anticipated specifications for Starship, the large launch vehicle under development by SpaceX.

The study assumes low-Earth orbit launch costs of around GBP 550 per kilogram in an optimistic 2040 scenario and GBP 770 per kilogram in a conservative case. It also assumes Starship will provide at least 100 tonnes of payload capacity to low-Earth orbit and that launch costs will decline by roughly 30 percent between 2030 and 2040.

The UK Department for Energy Security and Net Zero (DESNZ) commissioned the report to evaluate the technical and economic feasibility of small-scale space solar as a lower-risk pathway toward larger deployments. 

The study was conducted by Fraser-Nash Consultancy, Space Solar Engineering Ltd, and Imperial College London.

Global SBSP Scenario

Nations and private companies are investing heavily in SBSP research, according to a World Economic Forum. In the United States, Caltech has successfully tested a prototype, demonstrating wireless power transmission in space for the first time. China has announced plans for a kilometre-scale array by 2028, while Japan remains a long-term leader in the field. In Europe, the European Space Agency (ESA) has studied its feasibility through the SOLARIS initiative.

The UK has also established the Space Energy Initiative, a powerful coalition of over 90 organizations from industry, academia and government.