25/03/26
Foresight Solar Fund Limited
Trading Update, Q1 2026 Net Asset Value
Foresight Solar, the fund investing in solar and battery storage assets to build income and growth, announces its unaudited net asset value (NAV) was £543.0 million at 31 March 2026 (31 December 2025: £545.9 million). This results in a NAV per Ordinary Share of 99.2 pence (31 December 2025: 99.2 pence).
Summary of key changes to NAV
| Item | p/share movement |
| NAV on 31 December 2025 | 99.2 |
| Interim dividends paid | -2.0p |
| Time value | +1.9p |
| Project actuals | -0.3p |
| Power price forecasts | +0.1p |
| Inflation assumptions | +0.4p |
| Share buyback programme | +0.2p |
| Other movements | -0.3p |
| NAV on 31 March 2026 | 99.2p |
Lower-than-expected irradiation in the UK in January and February led to below-budget electricity generation. However, better weather in March improved production, and the associated revenues will be recognised after the period end due to the timing of cash receipts. Curtailment in Spain also weighed on output. Taken together, these factors reduced NAV by 0.3 pence per share (pps).
Power prices increased during the period, reflecting the impact of the conflict in the Middle East. Updated forecasts from independent consultants captured these changes, with higher price expectations in the UK to 2028. In Spain, the record hydro availability and the high share of renewables in the energy mix led to lower short-term price forecasts. Overall, these movements contributed 0.1pps.
Short-term inflation assumptions also moved higher, with RPI and CPI now expected to be 4.0% and 3.0% for 2026, respectively. This resulted in a positive NAV impact of 0.4 pence per share. Longer-term assumptions remain unchanged: RPI is forecast at 3% between 2027 and 2030 and 2.25% from 2031, while CPI is expected to be 2.5% between 2027 and 2030, easing to 2.25% from 2031.
The Company continued to buy back its shares, adding 0.2pps to NAV in the first quarter of 2026. Approximately £55 million of the £60 million programme has been deployed, delivering a cumulative NAV uplift of 3.3pps since repurchases began.
Other movements, including foreign exchange, power price hedges and minor portfolio adjustments, resulted in a net negative impact of 0.3pps.
Policy changes
The investment manager reiterates its expectation that the removal of the Carbon Price Support (CPS) mechanism will have a limited effect on NAV, estimated between 0.5pps and 1.0pps. A more precise assessment will be available once independent forecasters update their power price assumptions in the second quarter. The move has, therefore, not been adopted in this update.
The UK government’s announced changes to the Electricity Generator Levy do not impact Foresight Solar’s NAV since the net power price the Company expects to receive for its electricity production is lower than the established threshold.
The investment manager awaits details on the Wholesale Contracts for Difference mechanism and will continue to assess the potential for further revenue optimisation, as well as engage with industry groups and the government to deliver the best possible outcome for shareholders.
As previously announced, the policy changes as stated so far are not expected to affect Foresight Solar’s 8.10pps dividend target or its anticipated 1.1x dividend cover for 2026.
Trading update
Lower irradiation in the UK during the first quarter – a seasonally weaker period for generation – was partly offset by better weather and above-budget output in Australia. Overall, global production was 11.2% below forecast, with solar resource 5.9% under expectations.
The investment manager continued to actively manage the Company’s power price hedging strategy during the period. Global contracted revenues are now 87% for 2026, 75% for 2027 and 63% for 2028 of forecast total revenues for each year, with average UK prices at £75.76/MWh, £70.51/MWh and £74.27/MWh for those years, respectively.
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