Foresight Solar Fund Limited GBP: Trading Update and Q3 2026 Net Asset Value

Foresight Solar Fund Limited

04 November 2026

 

4 November 2026

Foresight Solar Fund Limited

(“Foresight Solar”, “FSFL” or the “Company”)

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Trading Update, Q3 2026 Net Asset Value

Foresight Solar, the fund investing in solar and battery storage assets to generate income and deliver long-term growth, announces its unaudited net asset va­­lue (NAV) was £511.1 million at 30 September 2026 (30 June 2026: £517.9 million). This results in a NAV per ordinary share of 93.8 pence (30 June 2026: 94.9 pence).

Summary of key changes to NAV

Power price forecasts

Updated power price forecasts increased NAV by 0.5 pence per share (pps), primarily because of higher UK wholesale price forecasts. The increase was partly offset by revised near term capture price discounts, which reflect the portfolio’s lower expected realised price relative to the elevated wholesale market prices.

Inflation assumptions

The stronger energy price environment was reflected in both the power price outlook and in higher near-term inflation expectations. UK RPI and CPI for 2026 were increased to 4.5% and 3.5%. Mid- to long-term assumptions remained unchanged. In Spain, the 2026 rate increased from 2.0% to 4.0%. Together, these changes increased NAV by 0.5pps.

Discount rate adjustment

The Investment Manager regularly reviews discount rates against market conditions, taking into account the premium above the risk-free rate and independent third-party advice, among other factors. Reflecting higher government bond yields during the quarter, the UK levered solar discount rate increased by 25 basis points to 8.50%, while the Spanish portfolio discount rate increased by 50 basis points to 7.78%. The resulting adjustment reduced NAV by 1.8pps.

Project actuals

Strong operational and financial performance against the Company’s valuation models, including the timing of cash receipts and payments, resulted in a 0.2pps increase in NAV.

Other movements

Other valuation movements reflected working capital, share buybacks, foreign exchange and a £3 million provision for interest on tax payments1. As disclosed in the half-year report and accounts, the Investment Manager is working with the Company’s tax advisor to contest certain penalties and interest charges.

Trading update

Global portfolio generation for the third quarter was 9.8% above budget, supported by solar resource 10.7% ahead of expectations. The UK and Australia were the principal drivers, as above-budget generation helped more than offset weaker performance in Spain.

The UK result was achieved against higher production targets introduced following an independent review of the portfolio’s long-term energy yield commissioned in 2025.

For the nine months to 30 September 2026, global portfolio generation was 0.8% below budget, while solar resource was 4.3% ahead of expectations. Financial performance was strong, with earnings before interest, tax, depreciation and amortisation (EBITDA) 8% above budget.

The Investment Manager continued to actively manage the Company’s power price hedging strategy. Contracted revenues across the portfolio represent 81% of forecast revenues for 2026, 82% for 2027 and 65% for 2028. Average contracted UK power prices for those years are £71.40/MWh, £73.68/MWh and £79.60/MWh, respectively.

This active approach to power price management provides revenue visibility while maintaining exposure to market upside, which is especially beneficial in periods of volatile wholesale energy prices. The realised price for the UK portfolio in the third quarter was £74.78/MWh, 16.9% above budget for the period.

Gearing

The gross asset value (GAV) at 30 September 2026 was £893.5 million (30 June 2026: £908.0 million). Total outstanding debt was £382.4 million, representing 42.8% of GAV (30 June 2026: £390.1 million and 43.0%).

Policy update

On 28 October, the UK government published its consultation on the proposed Wholesale Contract for Difference (WCfD), a voluntary scheme allowing eligible low-carbon generators like Foresight Solar to exchange variable wholesale power revenues for a fixed strike price. This was followed on 3 November by a consultation to replace tradable Renewables Obligation Certificates (ROC) with Fixed Price Certificates (FPC), providing a centrally determined, inflation-linked price for RO support from April 2028. The government argues that, together, the proposals could provide greater visibility over wholesale power revenues and RO support for UK energy producers.

The Investment Manager is assessing the proposals, including their interaction with the Company's existing PPA and hedging arrangements, and the potential implications for revenue certainty, future WCfD bidding strategy and shareholder returns.

Divestment update

The Investment Manager is progressing with targeted sales. One of the negotiations it has been working on has moved into exclusivity. The Company will update the market in due course.

- Ends -

1 The current NAV excludes interest on tax returns which are yet to be filed and disputed penalties on appeal with HMRC.

About Foresight Solar

Foresight Solar Fund Limited (FSFL) is a London-listed closed-end investment company investing in the energy transition to generate income and deliver long-term growth. The trust has approximately £900 million deployed into solar and battery storage assets, managing roughly 1 GW of renewable energy infrastructure and a proprietary pipeline. Foresight Solar’s strategy combines steady income today with the potential for capital growth in the future, delivering value through the acquisition, development, construction and operation of utility-scale projects predominantly in the UK. Underpinned by a dividend, the business model provides the optionality to hold or sell assets, generating profits and capturing financial gain for shareholders. FSFL is managed by Foresight Group, a specialist global manager with £13.0 billion in assets under management and offices in the UK, Europe and Australia.

For more information, follow Foresight Solar on LinkedIn or contact:

LEI: 213800VO4O83JVSSOX33

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