Foresight Solar Fund reported a Q1 2026 trading update and an unaudited net asset value of £543.0 million at 31 March, down from £545.9 million at 31 December 2025 while NAV per Ordinary Share remained 99.2p.
Lower-than-expected UK irradiation in January and February, together with curtailment in Spain, cut electricity generation and reduced NAV by 0.3p per share, with better March weather improving production but associated revenues recognised after the period end.
Updated independent power-price forecasts, reflecting the conflict in the Middle East, raised UK price expectations and, alongside weaker short-term Spanish forecasts due to record hydro and a high share of renewables, contributed a net +0.1pps to NAV.
Higher short-term inflation assumptions, RPI 4.0% and CPI 3.0% for 2026, added 0.4pps while longer-term inflation assumptions were left unchanged.
The Company deployed approximately £55 million of its £60 million share buyback programme in Q1, adding 0.2pps in the quarter and delivering a cumulative NAV uplift of 3.3pps since repurchases began.
Other movements including foreign exchange, power price hedges and minor portfolio adjustments subtracted 0.3pps and the investment manager has not yet adopted the UK Carbon Price Support removal into forecasts, estimating its eventual NAV impact at between 0.5pps and 1.0pps pending forecaster updates.
Operationally, global production was 11.2% below forecast for the quarter and solar resource 5.9% under expectations, partly offset by above-budget output in Australia.
The manager reported active hedging, with contracted revenues of 87% for 2026, 75% for 2027 and 63% for 2028 of forecast revenues and average UK prices of £75.76/MWh, £70.51/MWh and £74.27/MWh for those years respectively.
Gross asset value stood at £931.5 million, total outstanding debt was £388.5 million representing 41.7% of GAV and seasonal working-capital needs pushed the RCF draw to £86.7 million, all within the Company's 50% gearing limit.
The investment manager reiterated that the announced policy changes are not expected to affect Foresight Solar's 8.10p per share dividend target or its anticipated 1.1x dividend cover for 2026.
Will Morgan has joined Foresight Group as a Managing Director to lead the investment management team, bringing more than 20 years' renewables experience and over £1.5 billion of equity deployed across solar and wind.
