Foresight Solar Fund Limited (FSFL), a London-listed closed-end investment company managing approximately 1 GW of solar and battery storage assets, has published its unaudited net asset value for the third quarter ending 30 September 2026. The fund's NAV fell to £511.1 million, equating to 93.8 pence per share, down from £517.9 million and 94.9 pence per share at 30 June 2026. The movement was primarily driven by a discount rate increase reflecting higher government bond yields, partially offset by improved power price forecasts and strong operational performance across the global portfolio.

Key Points

  • Foresight Solar Fund Limited (FSFL) — London-listed closed-end renewable infrastructure investment company
  • Q3 2026 unaudited NAV stood at £511.1 million, or 93.8p per share, as at 30 September 2026
  • Global portfolio generation was 9.8% above budget for Q3 2026; nine-month EBITDA was 8% above budget
  • Investors should watch the progression of asset disposals and the UK government's WCfD and FPC policy consultations

Discount Rate Rises and Dividend Payments Drive FSFL NAV Decline from 94.9p to 93.8p

The 1.1 pence per share reduction in NAV over the quarter reflects several competing forces. Interim dividends paid accounted for a 2.0 pence reduction, while a 25-basis-point increase in the UK levered solar discount rate to 8.50% and a 50-basis-point rise in the Spanish portfolio rate to 7.78% together reduced NAV by 1.8 pence per share. These discount rate adjustments responded to higher government bond yields observed during the quarter. Partially offsetting these headwinds, updated UK wholesale power price forecasts added 0.5 pence per share, higher near-term UK and Spanish inflation assumptions contributed a further 0.5 pence, and time value added 2.2 pence per share.

Q3 Portfolio Generation 9.8% Above Budget as UK and Australia Outperform

Operational performance across the global portfolio was notably strong during the third quarter. Solar resource came in 10.7% ahead of expectations, with the UK and Australia identified as the principal drivers of above-budget generation. The UK result was achieved against higher production targets introduced following an independent energy yield review commissioned in 2025. For the nine-month period to 30 September 2026, global generation was 0.8% below budget, though solar resource remained 4.3% ahead of expectations. EBITDA for the nine-month period was 8% above budget, underpinning the fund's income generation objectives.

FSFL's UK Power Price Hedging Strategy Delivers £74.78/MWh Realised Price in Q3

The fund's active power price hedging programme continues to provide significant revenue visibility. Contracted revenues represent 81% of forecast revenues for 2026, 82% for 2027, and 65% for 2028, with average contracted UK prices of £71.40/MWh, £73.68/MWh, and £79.60/MWh respectively. The realised UK portfolio price for Q3 2026 was £74.78/MWh, which the company states was 16.9% above budget. Total outstanding debt stood at £382.4 million, representing 42.8% of a gross asset value of £893.5 million at the quarter end.

FSFL Enters Exclusivity on Asset Sale as UK Government Launches WCfD and FPC Consultations

The announcement states that one divestment negotiation has moved into exclusivity, with the company noting it will update the market in due course. No financial terms were disclosed. Separately, the UK government published two policy consultations in late October and early November — one on a proposed Wholesale Contract for Difference scheme and another on replacing tradable Renewables Obligation Certificates with inflation-linked Fixed Price Certificates from April 2028. The fund's investment manager is assessing the potential implications of both proposals for revenue certainty, hedging strategy, and shareholder returns, representing a material policy development that investors may be watching closely.