Foresight Solar Fund (LSE:FSFL) says the UK government's decision to remove the Carbon Price Support (CPS) from April 2028 will have only a small effect on the company's net asset value.
Based on the investment manager's analysis the change is expected to reduce NAV by between 0.5p and 1.0p per share, and for context, on 31 December 2025 that NAV per share was 99.2p.
"The change will have no impact on FSFL's dividend target and expected 1.1x dividend cover for 2026," Foresight Solar added.
The renewable energy investment company points to several mitigating factors: active hedging (it has contracted 87% of forecast global revenues for 2026, 75% for 2027 and 63% for 2028), a blended power price view from three independent consultants (two of which had already modelled a CPS reduction) and geographic diversification, with roughly 25% of capacity outside the UK.
Foresight Solar noted that the impact is expected to be concentrated between 2028 and 2030 with minimal effect on near-term cashflows, and the NAV estimate remains subject to review as independent forecasters update their models.
