Foresight Solar Fund (LSE:FSFL) reported a net asset value of £511.1 million, at 30 September, down from £517.9 million at 30 June, as a higher discount rate offset stronger power price forecasts and operational performance.
The London-listed renewable energy fund, which invests in UK and Northern European solar and battery storage assets, reported NAV per ordinary share of 93.8p, down from 94.9p three months earlier.
The main drag came on paper, from the discount rate, after the Investment Manager raised the UK levered solar discount rate by 25 basis points to 8.50% and the Spanish portfolio rate by 50 basis points to 7.78%, reflecting higher government bond yields during the quarter, a move that cut NAV by 1.8p per share.
That was partly offset by updated power price forecasts, which added 0.5p per share on higher UK wholesale price expectations, and by higher inflation assumptions, which added a further 0.5p per share after UK RPI and CPI forecasts for 2026 were raised to 4.5% and 3.5% respectively.
Interim dividends paid reduced NAV by 2.0p per share, while other movements, including working capital, share buybacks, foreign exchange and a £3 million provision for interest on disputed tax payments, cut a further 0.7p per share.
Global portfolio generation ran 9.8% above budget in the third quarter, with the UK and Australia driving the outperformance against weaker results in Spain, and earnings before interest, tax, depreciation and amortisation came in 8% above budget for the nine months to 30 September.
Contracted revenues cover 81% of forecast revenues for 2026, 82% for 2027 and 65% for 2028, at average UK power prices of £71.40/MWh, £73.68/MWh and £79.60/MWh respectively, with the UK portfolio's realised price of £74.78/MWh in the quarter running 16.9% above budget.
Read more about Foresight Solar Fund
- 18/08/26Foresight Solar targets 14 GWh output boost from upgrade programme
- 06/05/26Foresight Solar impacted by lower than forecast January and February sun
- 21/04/26Foresight Solar flags small NAV hit from UK Govt policy changes
Gross asset value stood at £893.5 million at 30 September, down from £908.0 million at 30 June, with total outstanding debt of £382.4 million representing 42.8% of GAV, little changed from 43.0% three months earlier.
The Investment Manager is assessing two UK government consultations published on 28 October and 3 November, covering a proposed Wholesale Contract for Difference scheme and a replacement for tradable Renewables Obligation Certificates with inflation-linked Fixed Price Certificates from April 2028, for their implications on revenue certainty and hedging strategy.
Separately, the fund said one of its targeted asset sale negotiations has moved into exclusivity, with a further market update to follow in due course.
