NextEnergy Solar Fund Limited

(“NESF” or “the Company”)

Unaudited Quarterly Net Asset Value & Operational Update

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, announces it has today published its Q3 Net Asset Value and Operational Update for the period ended 31 December 2024.

Key Highlights

Financial:

· Net Asset Value (“NAV”) per Ordinary Share of 97.4p (30 September 2024: 97.8p).

· Ordinary Shareholders’ NAV of £565.7m (30 September 2024: £572.2m).

· Gross Asset Value of £1,071m (30 September 2024: £1,104m).

· Financial debt gearing (excluding Preference Shares) of 28.6% (30 September 2024: 30.2%).

· Total gearing (including Preference Shares and total look-through debt) of 47.2%
(30 September 2024: 48.2% ).

· Weighted average cost of debt (including Preference Shares) of 4.9% (30 September 2024: 4.9%).

· Weighted average cost of capital of 6.6% (30 September 2024: 6.6%).

· Weighted average discount rate across the portfolio of 8.0% (30 September 2024: 8.0%).

Dividend:

· The Board is pleased to reaffirm its full-year dividend target guidance of 8.43p per Ordinary Share for the financial year ending 31 March 2025.

· The full-year dividend target per Ordinary Share is forecast to be covered in a range of 1.1x – 1.3x by earnings post-debt amortisation.

· Total Ordinary Share dividends paid since IPO of £346m.

· As at 19 February 2025, the Company offers an attractive dividend yield of c.12%.

Portfolio:

· 101 2 operating assets (30 September 2024: 102 ).

· Total installed capacity of 934MW 2 (30 September 2024: 983MW ).

· Remaining weighted asset life of 25.0 years (30 September 2024: 25.6 years).

Share Buyback Programme:

· As at 31 December 2024, the Company had purchased 10,089,403 Ordinary Shares for a total consideration of £7.8m through its up to £20m Share Buyback Programme, producing a NAV uplift of 0.4p per Ordinary Share.

· As at 19 February 2025, 12,484,767 Ordinary Shares have been purchased for a total consideration of £9.4m and are currently being held in the Company’s treasury account.

Capital Recycling Programme:

· As at 19 February 2025, the Capital Recycling Programme has:

o Sold three asset sales totalling c.145MW of capacity from the 245MW Programme.

o Raised £72.5m total capital.

o Added a total estimated Net Asset Value uplift of 2.76p per Ordinary Share.

· The remaining 100MW in the Programme is progressing through a competitive sales process to third-party buyers. The Company will publish further updates about Phase IV of the Programme in due course.

Capital Structure:

· As at 31 December 2024:

Debt facilities

Original size (£m)

Amount outstanding (£m)

Long-term amortising debt

£212.5m

£148.6m

Short-term revolving credit facilities

£205m

£134.4m

· Short-term revolving credit facilities drawn of £134.4m (30 September 2024: £153.4m).

· Long-term amortising debt paid down by £60.4m (30 September 2024: £52.4m). The remaining outstanding long-term debt of £148.6m is on track to fully amortise in line with the remaining subsidy life of the portfolio’s government subsidies.

· Of the Company’s total debt of £481.4m :

o 72% remains at a fixed rate of interest (including the Preference Shares).

o 28% remains at a floating rate of interest via the short-term revolving credit facility.

· Total look-through debt of £23.6m (30 September 2024: £23.5m). This represents the total combined short and long-term debt in the Company’s investment into NextPower III LP, and its two co-investments (Agenor and Santarem) on a look-through equivalent basis. This is included in the Company’s total gearing ratio of 47.2%.

ESG & Sustainability:

· Published its first Nature Strategy Report in November 2024 outlining the Company’s strategic plan for nature and nature targets, which includes commitments to strong nature-related governance, evidence-led action plans, use of Science-Based Targets, and ongoing transparent disclosures.

Investment Manager Update:

· NextEnergy Group announced that it bolstered its leadership and senior management team with several key appointments and promotions. This adds significant expertise and experience to ensure its successful trajectory for NextEnergy Group’s next wave of anticipated global growth across the renewables sector.

o Ross Grier: Promoted to Chief Investment Officer of NextEnergy Capital.

o Andrew Newington: Appointed as Senior Advisor and Chair of the Investment Committee of NextEnergy Capital.

o Carrie Cushing: Appointed as Group Chief People Officer of NextEnergy Group.

o Armin Sandhövel: Appointed to NextEnergy Group’s Advisory Board.

o Zoey Carver: Appointed as Group Chief Technology and Information Officer

Management Fees:

· As part of its ongoing detailed dialogue around the future strategy of the Company, the Board is in discussion with the Company’s Investment Manager on its management fee structure. A further announcement in connection with this is expected to be made after the end of the Company’s financial year, 31 March 2025.

Helen Mahy, Chairwoman of NextEnergy Solar Fund Limited, commented:

“NextEnergy Solar Fund is pleased to report stable Q3 performance given the backdrop of financial markets, global politics, and adverse weather conditions. The Board and the Company’s Investment Manager have an acute focus on proactively narrowing the share price discount, making good progress over the quarter by purchasing c.4.5m shares from its up to £20m Share Buyback Programme, and raising £72.5m in total capital from its Capital Recycling Programme to date.”