Foresight Solar Fund (LSE:FSFL), which invests in solar and battery storage assets, is rolling out a programme to replace ageing panels and inverters across nine UK sites.
The works cover more than 150 MW of capacity, about 20% of the Company's UK portfolio, and are due to finish by summer 2027.
Once complete, the upgrades are expected to generate up to £2.5 million in annual revenue and add about 0.05x to dividend cover.
At the current 8.10p per share target, the Investment Manager calculates the dividend will be covered 1.1 times in 2026.
Two early projects point to the potential gains. At the 7 MW Pen Y Cae site, new panels helped the plant post its best-ever monthly output in July, producing 1,195 MWh, enough to power 443 UK homes for a year. And, at the 8 MW Abergelli site, older inverters were replaced to restore performance.
Across the wider programme, the company expects generation to rise by up to 14 GWh a year, roughly a 2% increase on current output in its core UK market, equivalent to powering 5,321 homes annually and avoiding more than 4,850 tonnes of carbon dioxide equivalent.
The upgrades also prepare assets for life beyond their Renewables Obligation subsidy periods, which expire over the next decade.
"By drawing on maintenance reserves to finance the works, when possible, we're able to realise upside with minimal extra cash requirements", said Will Morgan, Foresight Solar's Lead Investment Manager, noting the UK portfolio has outperformed budgets in nine of the last 12 years.
News Intelligence what this means for the company
Foresight Solar is deploying a £2.5 million annual revenue uplift across 20% of its UK portfolio (150+ MW) through panel and inverter replacements at nine sites, finishing by summer 2027. The programme adds ~0.05x to dividend cover, lifting it to 1.1x in 2026 at the 8.10p target, and is being financed largely from maintenance reserves with minimal new cash outlay—a self-funded productivity gain on assets that have outperformed budget nine of the last twelve years.
The upgrade programme materially strengthens near-term dividend sustainability without material capital drain, while extending asset life beyond subsidy expiry over the next decade. Early-stage results (Pen Y Cae's record monthly output, Abergelli's restored performance) validate the technical case, though execution risk on a 150+ MW, multi-site rollout through summer 2027 remains.
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