Foresight Solar Fund Limited (LSE:FSFL) reported an unaudited net asset value (NAV) of £511.1 million at 30 September 2026, down from £517.9 million at the end of June, while third-quarter electricity generation exceeded budget by 9.8%.
NAV per ordinary share declined to 93.8 pence from 94.9 pence, reflecting changes in discount rates, dividend payments and other valuation adjustments.
NAV Movements and Valuation Assumptions
The fund reported a 1.8 pence per share reduction in NAV following increases in portfolio discount rates, reflecting higher government bond yields.
The UK leveraged solar discount rate increased by 25 basis points to 8.50%, while the Spanish portfolio rate rose by 50 basis points to 7.78%.
Higher power price forecasts and revised inflation assumptions each contributed 0.5 pence per share to NAV, while the passage of time added 2.2 pence. Interim dividend payments reduced NAV by 2.0 pence per share.
Other valuation movements included a £3 million provision for interest on tax payments. The investment manager is working with tax advisers to contest certain penalties and interest charges.
Electricity Generation and Financial Performance
Portfolio electricity generation exceeded budget by 9.8% during the third quarter, with solar resource 10.7% above expectations.
Operations in the UK and Australia contributed to the above-budget generation, offsetting below-budget performance in Spain.
For the nine months ended 30 September, generation was 0.8% below budget despite solar resource exceeding expectations by 4.3%. Earnings before interest, tax, depreciation and amortisation (EBITDA) were 8% above budget.
The UK portfolio achieved an average realised electricity price of £74.78 per megawatt-hour during the quarter, 16.9% above budget.
Revenue Hedging and Debt Position
Foresight Solar reported contracted revenues representing 81% of forecast revenue for 2026, 82% for 2027 and 65% for 2028.
Average contracted UK electricity prices stand at £71.40/MWh for 2026, £73.68/MWh for 2027 and £79.60/MWh for 2028.
Gross asset value declined to £893.5 million from £908.0 million at the end of June. Outstanding debt decreased to £382.4 million from £390.1 million, with gearing representing 42.8% of gross asset value, compared with 43.0% previously.
Regulatory Developments and Asset Sales
The investment manager is reviewing two UK government consultations covering a proposed Wholesale Contract for Difference scheme and the replacement of Renewables Obligation Certificates with Fixed Price Certificates from April 2028.
The review will consider potential implications for existing power purchase agreements, hedging arrangements and future shareholder returns.
Separately, Foresight Solar confirmed that one of its ongoing asset sale negotiations has entered exclusivity. The company said further updates would be provided in due course.
More About Foresight Solar
Foresight Solar Fund Limited is a London-listed investment company focused on solar generation and battery storage assets, primarily in the UK. Its portfolio comprises approximately 1 GW of renewable energy infrastructure, with around £900 million deployed across its investments.
The fund is managed by Foresight Group, which oversees £13.0 billion in assets under management.
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