Final Results
Summary by AI BETAClose X
LEI: 213800ZPHCBDDSQH5447
22 June 2026
NextEnergy Solar Fund Limited
("NESF" or "the Company")
Full Year Results & Annual Report
NextEnergy Solar Fund, a specialist investor in solar energy and energy storage, announces it has today published its full year results and annual report for the year ended 31 March 2026.
Tony Quinlan, Chair of NextEnergy Solar Fund Limited, commented:
"The past year has been tough for shareholders. The sector continues to suffer from share prices trading at persistent discounts to reported NAV. From a NESF perspective the strategic reset announced in March 2026 included a dividend policy change which was a difficult decision, but was necessary to put shareholder distributions on a more sustainable basis.
"The strategic reset aims to improve long-term total returns (shareholder distributions plus NAV growth) by rebalancing income and strengthening the balance sheet which over time will support disciplined reinvestment. Within this reset, the immediate priority is to dispose of assets profitably to reduce gearing.
"The underlying portfolio has continued to demonstrate robust operational performance. We believe the current valuation does not reflect the quality or resilience of the cashflows and the optionally within the portfolio.
"At the forthcoming AGM, in accordance with our regular policy, shareholders will be asked to vote on the continuation of the Company. A discontinuation of the Company would involve a forced sale of assets, which the Board believes is likely to be value-destructive in the current market and would not be in shareholders' best interests. Therefore, the Board will unanimously recommend voting against a discontinuation of the Company at the AGM.
"It's a particularly challenging time for the sector and, as always, we remain in active dialogue with our shareholders."
Annual Report:
· The Company's Annual Report for the year ended 31 March 2026 is now available in the Reports & Publications section of the Company's website here.
· A copy of the Annual Report has also been submitted to the FCA's National Storage Mechanism.
Full Year Results Presentation:
· The Company will livestream its full year results presentation via webcast for both investors and analysts and will be followed by a Q&A session.
o Time: 14:00 BST
o Date: Monday 22 June 2026
o Webcast link: NextEnergy Solar Fund Full Year Results Presentation
· The presentation will be hosted by:
o Tony Quinlan, Chair, NextEnergy Solar Fund
o Ross Grier, Chief Investment Officer, NextEnergy Capital, Investment Adviser
o Stephen Rosser, Investment Director, NextEnergy Capital, Investment Adviser
· A recording of the presentation and accompanying materials will be available on the Company's website shortly after the event.
Retail Shareholder Presentation:
· NextEnergy Capital, the Company's Investment Adviser, will also host a separate presentation for retail shareholders via the Investor Meet Company platform:
o Time: 14:00 BST
o Date: Tuesday, 23 June 2026
o Registration and webcast link: NextEnergy Solar Fund: Investor Meet Company
· Shareholders may register via the link above or through the Investor Meet Company website. Questions can be submitted in advance via the Investor Meet Company dashboard or during the live presentation. Shareholders already following NextEnergy Solar Fund Limited on the platform will automatically receive an invitation.
Key highlights (Confirming all results are as per the Q4 NAV and Operational Update)
Financial:
· Net Asset Value ("NAV") per Ordinary Share of 76.1p (31 March 2025: 95.1p).
· Ordinary Shareholders' NAV of £437.5m (31 March 2025: £547.4m).
· Gross Asset Value ("GAV") of £922m (31 March 2025: £1,061m).
· Total Income of £141.3m (31 March 2025: £135.5m).
· NESF Group Portfolio and Holdco EBITDA of £104.5m (31 March 2025: £96.9m).
· Cash income of £71.9m (31 March 2025: £67.1m).
· Amount available for Ordinary Share distribution of £56.2m (31 March 2025: £50.3m).
· Weighted average cost of capital of 6.9% (31 March 2025: 6.6%).
· Weighted average discount rate across the portfolio of 8.5% (31 March 2025: 8.0%).
Dividend:
· Total dividends declared of 8.43p per Ordinary Share for the twelve months ended 31 March 2026 (31 March 2025: 8.43p).
· Dividend cover for the twelve months ended 31 March 2026 was 1.2x (31 March 2025: 1.1x).
· Following the payment of the target dividend of 8.43p for the financial year ended 31 March 2026, the Company has transitioned from a progressive dividend policy to a percentage-based dividend policy, targeting a 75% distribution of operating free cash flows, post debt servicing and portfolio and fund operating expenses.
· The estimated dividend guidance range for the financial year ending 31 March 2027 is between 4.5p - 5.1p per Ordinary Share, subject to portfolio performance. This guidance is the equivalent to a dividend yield range of c.9% - c.11% based on the company's share price as at 19 June 2026.
· As a result of the 75% dividend payout policy mechanics on earnings post debt amortisation, this would translate to a 1.3x dividend cover.
· As at 31 March 2026, the Company had declared total Ordinary Share dividends of £443m since inception, the equivalent to 84.7p per Ordinary Share.
Portfolio:
· 991 operating assets (31 March 2025: 1011).
· Total installed capacity of 838MW2 (31 March 2025: 937MW2).
· Total electricity generation for the year ended 31 March 2026 of 844GWh2 (31 March 2025: 830GWh2).
· Generation against budget for the year ended 31 March 2026 of +2.0%3 (31 March 2025: -5.3%3).
· Irradiation against budget for the year ended 31 March 2026 of +6.7% (31 March 2025: +0.1%).
· Remaining weighted asset life of 22.3 years (31 March 2025: 24.8 years).
· Since inception the Company has generated 7.4TWh of electricity (31 March 2025: 6.6TWh).
· The Company's 50MW 1-hour duration standalone energy storage asset 'Camilla', continues to rank amongst the top-earning assets of its class on the GB grid and delivered 98% availability over the year and recorded a latest State of Health test of 54MWh versus a warranted level of 43MWh.
Strategic Reset:
· On 11 March 2026, the Company announced the outcome of the Board's comprehensive review and its strategic reset, which establishes a clear set of actions within the control of the Board and the Investment Adviser. The strategic reset provided a roadmap that is focused on capturing the intrinsic value of its high-quality, cash-generative portfolio, with a clear objective of stabilising and growing NAV over the long term while strengthening the balance sheet.
· Observing the disciplined capital allocation priorities the Company has set out, the self-funded roadmap is expected to deliver material value creation over time, with initial estimates indicating potential to generate c.£60m to c.£100m of additional value through initiatives including further asset-life extensions, hybridisation of a proportion of the portfolio and realisation of the value embedded in the Company's development pipeline.
· The Board believes that the current share price discount does not reflect the underlying value and potential of NESF's diversified portfolio of long-life solar and energy storage assets, which continue to deliver resilient operational performance and stable cash flows. In response, the Company has taken decisive action to unlock value embedded within the portfolio which is not reflected in the current share price and NAV. This approach is designed to enhance total returns, support a sustainable dividend, and position the Company to benefit from a future market recovery and structural growth opportunities in solar and energy storage.
Roadmap:
· The key value creation levers underpinning the roadmap are:
Crystallising and recycling embedded portfolio value:
o Targeted asset disposals under the expanded Capital Recycling Programme (up to 120MW) to realise value.
o Realisation of private fund investment and co-investments to generate additional capital for reinvestment.
o Track record of successful disposals demonstrating the ability to crystallise NAV and redeploy capital efficiently.
Reinvesting capital into higher-return opportunities:
o Deployment of capital into higher-yielding assets, including energy storage and repowering projects.
o Reallocation of capital towards opportunities that enhance long-term NAV growth and total return potential.
o Increasing exposure to energy storage (target c.30% of GAV4) to diversify and strengthen portfolio returns.
Enhancing value from the existing portfolio:
o Repowering assets to increase generation efficiency, extend asset life and drive NAV uplift.
o Active asset management and cost optimisation initiatives to improve operational performance and cash flow generation.
o Leveraging existing grid connections and infrastructure to deliver capital-efficient growth.
Strengthening financial resilience and flexibility:
o Transition to a 75% dividend payout ratio to retain capital and support reinvestment.
o Targeting a reduction in gearing to 40% - 45% of GAV through disciplined capital allocation.
o Prioritisation of debt reduction to enhance balance sheet strength and reduce financing risk.
Delivering sustainable long-term returns:
o Targeting total returns of 9% - 11% through a combination of income and NAV growth.
o Creating a clear pathway to stabilise NAV and deliver long-term compounding value for shareholders.
o Positioning the Company to benefit from a recovery in market conditions and a narrowing of the discount to NAV over time.
Roadmap Progress:
· The Company is already making solid progress in delivery of these initiatives:
o Following the successful completion of the fourth phase of its capital recycling programme in March, the Company repaid £25m of its Revolving Credit Facility ("RCF") (representing a net repayment of £18m over the year) and retained £21.2m for effective management of the balance sheet and to provide flexibility for the Company's capital allocation framework.
o The Investment Adviser is progressing discussions with potential buyers in respect of the first 45MW of the 120MW extended Capital Recycling Programme announced as part of the strategic reset;
o The Company is in the advanced stages of divesting a development asset in addition to the extended Capital Recycling Programme with proceeds expected to be used to make further repayments of the RCF;
o Lease extension negotiations have successfully concluded at four assets since announcement of the strategic reset, with live negotiations ongoing across a further one third of the portfolio, targeting extension of rights to up to 50 years;
o Engineering design and procurement for the Company's pilot repowering and hybridisation project are progressing on track in preparation for a final investment decision within FY27; and
o The Company has restructured arrangements on one of its development projects that is expected, over the course of the project, to result in savings of c.£10m.
Capital Recycling Programme:
· The final phase of the initial Capital Recycling Programme was successfully completed in the period with two assets with an installed capacity of 100MW being sold to a third party. This concluded the initial Capital Recycling Programme through which five solar assets totalling 245MW were sold raising c.£119m in total capital and delivering an aggregate NAV uplift of 2.44p per Ordinary Share.
· As per the strategic reset announcement in March, the Company has identified an additional 120MW of assets for disposal over the next 36 months.
Capital Structure:
· As announced on 3 June 2026, as at 31 March 2026, total gearing5, including Preference Shares, was 51.2% (31 March 2025: 48.4%). While this is above the Company's 50% debt to GAV target, the increase was driven by the reduction in NAV relative to existing debt, rather than any additional debt drawdown.
· Exceeding the 50% target does not impact the terms or covenants of the Company's debt facilities, it simply restricts the Company from drawing further debt, which it does not intend to do. As set out in the Company's recently published strategic reset and roadmap, NESF is targeting further asset sales to reduce gearing to a range of 40% - 45%.
· Weighted average cost of debt (including Preference Shares) as at 31 March 2026 was 4.8% (31 March 2025: 4.9%).
· The enterprise value gearing ratio applied to the Preference Shares held by USS ("USS Preference Shares") was 61.8% (31 December 2025: 60.1%). As outlined in the interim results, this does not impact the Company's current operations or the delivery of its strategic reset and roadmap. The Company continues to engage constructively with USS.
· During the year ended 31 March 2026, the Company has paid down approximately £12.8m of its long-term amortising debt (31 March 2024: £12.6m). The remaining outstanding long-term debt of £134.3m is on track to fully amortise in line with the remaining life of the portfolio's inflation-linked government subsidies.
· During the year, the Company repaid net £18m of its short-term RCF and reduced the size of its RCF commitment limit from £205m to £170m, supporting efficient treasury management.
· As at 31 March 2026, the Company held cash of £25.1m (31 March 2025: £3.2m) at an A+ credit rated financial institution for effective management of the balance sheet and providing flexibility over the Company's capital allocation framework.
|
Debt facilities as at 31 March 2026 |
Size (£m) |
Amount outstanding (£m) |
|
Long-term amortising debt |
£212.5m |
£134.3m |
|
Short-term RCF |
£170.0m |
£126.9m |
|
Total financial debt |
|
£261.2m |
|
Preference shares |
£200.0m |
£198.6m |
|
Total debt |
|
£459.8m6 |
Forecasted Total Revenue Breakdown:
· The Company runs an active Power Purchase Agreement ("PPA") programme where it locks in short-term PPAs over a rolling 36-month period with varying contract lengths, alongside longer-term PPAs with high-quality corporate off takers.
· This ensures visibility of future cash flows whilst mitigating the negative impact of short-term fluctuations in the power markets. Secured pricing comprises fixed price contracts and hedging under trading frameworks.
· This proactive strategy to risk mitigation helps secure and underpin the dividend whilst reducing volatility and increasing visibility of cash flows.
Forecasted Total Revenue Breakdown7,8:
|
As at 31 March 2026 |
FY26/27 |
FY27/28 |
FY28/29 |
FY29/30 |
FY30/31 |
|
Fixed |
c.88% |
c.66% |
c.62% |
c.62% |
c.62% |
|
- Fixed Subsidised Revenue |
58% |
61% |
61% |
61% |
61% |
|
- Hedged PPA Revenue |
30% |
5% |
1% |
1% |
1% |
|
Non-fixed |
c.12% |
c.34% |
c.38% |
c.38% |
c.38% |
|
- Unhedged PPA Available |
8% |
29% |
34% |
33% |
33% |
|
- Other revenue |
4% |
5% |
4% |
5% |
5% |
|
Total |
100% |
100% |
100% |
100% |
100% |
· The Company continues to capture some near-term upsides from the wholesale market volatility in response to the conflict in the Middle East and continues to lock in further power price hedges on a monthly basis.
· As at 31 March 2026, the table below shows the current fixed revenues attributable to PPAs.
Fixed revenue attributable to PPAs 9:
|
As at 31 March 2026 |
FY26/27 |
FY27/28 |
FY28/29 |
FY29/30 |
FY30/31 |
|
Hedged PPA % (676MW UK capacity) |
78% |
15% |
1% |
1% |
1% |
|
Hedged PPA Price £/MWh |
£71 |
£70 |
£78 |
£78 |
£79 |
Portfolio Optimisation:
· During the year:
o Kockworthy (4.6MW): Modules and inverters were replaced following identification of a systemic defect, successfully addressed via a warranty claim.
o Blenches (6.1MW) and Hook Valley (15.3MW): Inverters were replaced as part of the Company's rolling asset health programme, improving availability and generation performance.
· Programme progress:
o To date, module and inverter replacements have been completed at two sites, with inverter replacements across a further eight assets covering 62MW.
· Post period-end activity:
o Partial revamping of the inverters commenced at a fourth site.
· Forward plan:
o The Company anticipates inverter replacements at up to six additional assets (representing up to 65MW of capacity) over the next two years.
· Improvement plans:
o A total of 17 improvement plans were completed over the year to enhance system performance and reliability, security and asset integrity. Key actions included repairs and upgrades to inverters, transformers and security systems; restringing and preventative measures to address issues such as rodent intrusion, fire risk, corrosion, and equipment degradation.
· Spare parts management:
o The Company continues to run a proactive strategic spare parts management programme to mitigate the impact of component failures across the portfolio, prioritising items with extended lead-times or declining availability to protect asset availability and revenue. A dedicated holding entity was established within one of the Company's SPVs to centralise the management and enable the rapid deployment of key spare components.
Cost Optimisation:
· The Company benefitted from the Investment Management fee reduction that was negotiated in June 2025, providing a £0.6m saving over the year. The blended management fee also currently incentivises the Investment Adviser to close the share price discount.
· The Board, in conjunction with the Investment Adviser, successfully negotiated a reduction in the Operating Asset Management fee in the year. The new arrangement provides a 23% fee reduction, securing future cost reductions on the renewal of contracts. This resulted in an uplift in NAV of 1.3p per Ordinary Share and £7.4m in total.
· In August 2022, NESF conducted a market leading tender aiming to drive down costs of Operating and Maintenance ("O&M") contracts. The approach facilitates cost reductions whilst helping to further drive the leading performance of the assets. Since implementation, 67 contracts have been renewed covering 576MW, leading to an overall cost saving of 10%. This is equivalent to a total of £463k per year, or over £2m over the lifetime of the 5-year contracts. During the 12 months ended 31 March 2026, one further contract covering 5MW transitioned to this new approach.
Government policy changes:
· Post period, the UK Government announced several initiatives that have affected the Company. Firstly, the removal of Carbon Price Support ("CPS") with effect from April 2028. As already indicated by the Company here, the removal of CPS in 2028 would have an impact on the electricity price assumptions used in NESF's NAV model. The updated assessment is that the removal of CPS will potentially reduce the Company's NAV as at 30 June 2026 by 0.0p - 0.8p per Ordinary Share, although the Company's Investment Adviser, NextEnergy Capital, expects this impact to be towards the lower end of that range.
· Secondly, the UK Government announced changes to the Electricity Generator Levy, a tax on excess generation revenues. Although the Company falls within the scope of this levy, the current tax threshold is set at a level above that at which the Company has hedged power prices. This change is therefore not expected to affect the Company.
· Thirdly, the UK Government announced a public consultation on Wholesale Contracts for Difference. These are newly proposed voluntary long-term fixed-price contracts that the UK Government plans to offer existing low-carbon electricity generators that are not already on a traditional Contract for Difference (notably, Renewables Obligation assets). This approach could help address a long-standing issue in how electricity prices are set, particularly as low-cost renewable generators make up a larger share of the UK's power supply. The proposed voluntary Wholesale Contracts for Difference would give renewable generators the option to exchange exposure to volatile wholesale prices for a long-term fixed price, potentially delivering lower and more stable energy costs for consumers alongside predictable, inflation-linked income for investors. Importantly, participation would be voluntary, not mandatory, and the Company would only take part where it believed that it was in the best interests of its shareholders.
Share Buyback Programme:
· As at 31 March 2026, the Company had purchased 15,621,142 Ordinary Shares for a total consideration of £11.5m through its up to £20m Share Buyback Programme, delivering a NAV uplift of 0.5p per Ordinary Share. During the year, 495,800 Ordinary Shares were purchased for a total consideration of £339k.
· Shares purchased under the Share Buyback Programme are being held in the Company's treasury account.
· The Company has paused the remaining balance of £8.5m from the Share Buyback Programme to prioritise debt repayment. The Company's capacity to buyback shares is also currently restricted due to covenant restrictions under the USS Preference Shares.
ESG & Sustainability:
· The Company has today published its annual standalone Sustainability and ESG Report for the year ended 31 March 2026. This is available to download from the Sustainability & ESG Reports section of the Company's website or via the following link: 2026 Sustainability and ESG Report.
· Sustainability remains a core component of the Company's strategy, values and culture. The Company continues to maintain its Article 9 Fund classification under the EU Sustainable Finance Disclosure Regulation ("SFDR") and the EU Taxonomy Regulation. The Company and its Investment Adviser continue to deliver initiatives under the Approach to Nature strategy, supporting biodiversity enhancements across NESF sites, and remain active in promoting supply-chain sustainability, including through ongoing participation in the Solar Stewardship Initiative.
· During the period, the Company was successfully awarded the Natural Capital Fund designation by the Guernsey Financial Services Commission, a regulated recognition of its delivery of measurable positive environmental impact.
Ross Grier, Chief Investment Officer of NextEnergy Capital said:
"It has been a challenging year for the Company's share price, with the discount to NAV widening. In response, NESF has taken decisive action to protect long-term value, successfully completing its initial capital recycling programme, reducing debt and delivering a fully covered dividend. The strategic reset and new roadmap are focused on reducing gearing, narrowing the discount and positioning the platform for sustainable growth when appropriate. Whilst we believe these actions are firmly in shareholders' best interests and provide a clear path to delivering improved momentum and long-term total returns, this will take time to implement as we continue to work in partnership with the board in delivering value for shareholders."
NAV bridge / Key Assumptions:
Full Year NAV bridge:
As of 31 March 2026, the Company's NAV was £437.5m (31 March 2025: £547.4m), representing a NAV per Ordinary Share of 76.1p (31 March 2025: 95.1p). The decline in NAV during the year was driven by several factors highlighted in the below bridge. The Company's GAV was £922m (31 March 2025: £1,061m).
|
Breakdown |
NAV per ordinary share |
NAV |
|
At 31 March 2025 |
95.1p |
£547.4m |
|
Capital movements (no net NAV impact) |
|
|
|
New assets at cost |
+1.4p |
+£8.2m |
|
Cash on hand to fund investment and RCF repayment |
-4.5p |
-£26.2m |
|
RCF reduction |
+3.1p |
+£18.0m |
|
Time value |
+7.1p |
+£40.6m |
|
Project actuals |
+0.5p |
+£2.8m |
|
Solar power price forecasts |
-7.0p |
-£40.2m |
|
BESS revenue forecasts |
-1.0p |
-£5.6m |
|
Changes in short-term inflation |
+1.0p |
+£5.9m |
|
Revaluation of NextEnergy III LP investment and co-investments |
-1.1p |
-£6.3m |
|
Asset manager fee reduction |
+1.3p |
+£7.4m |
|
Cash dividends paid |
-10.1p |
-£58.0m |
|
Fund operations and maintenance |
-1.1p |
-£6.4m |
|
Asset disposal |
-0.3p |
-£1.9m |
|
ROC & FiT indexation change |
-2.0p |
-£11.7m |
|
Discount rate change |
-1.6p |
-£9.2m |
|
Revaluation of development asset |
-1.3p |
-£7.7m |
|
Other movements in residual value |
-3.4p |
-£19.3m |
|
Share buyback |
0.0p |
-£0.3m |
|
At 31 March 2026 |
76.1p |
£437.5m |
NAV movements:
· Time value: The time value reflects the change in the valuation as a result of changing the valuation date, prior to adjusting for any outflows of the Company. The increase in value is attributable to the unwinding of the discount applied to cash flows for the period when calculating the discounted cash flow.
· Project actuals: The project actuals figure was driven by generation out-performance vs. budget, which was impacted by higher than-expected irradiance levels in the year.
· Solar power price forecasts: A net decrease in the UK power price forecasts provided by third-party forecasters and a decrease in REGO price forecasts. Third-party UK power price forecasts have increased in the near term due to the Middle East crisis, however, these are offset by decreasing solar capture rates from 2029 onwards due to increased forecast offshore wind and solar PV build out as a result of the AR7 CfD allocation round.
· BESS revenue forecasts: A decrease in BESS revenue forecasts provided by a third-party consultant over the year in review.
· Inflation forecasts: The valuation incorporates revisions to short-term inflation forecasts from external third parties, independent inflation data from HM Treasury Forecasts and long-term implied rates from the Bank of England for its UK assets.
· Revaluation of NextEnergy III LP and co-investments: Movements in the fair value of the holding in NEIII and the two co-investments reflecting updates to power price and curtailment forecasts provided by third-party consultants.
· Cash dividends paid: The dividends paid during the period, including both Ordinary Share and Preference Share dividend payments.
· Asset manager fee reduction: The NESF Board in conjunction with the Investment Adviser successfully negotiated a reduction in future operating asset management cost forecasts resulting in an uplift in NAV of 1.3p per Ordinary Share and £7.4m in total.
· Asset disposal: Divestment of South Lowfield (50MW) and The Grange (50MW), both subsidy-free utility scale solar assets, that raised £46.2m. The transaction represented a 1.1x MOIC. As the disposal price was just below the assets combined valuation, there is a negative NAV impact associated.
· Renewable Obligation Certificate ("ROC") and Feed in Tariff ("FiT") indexation change: Movement resulting from the UK Government's switch to Consumer Price Inflation ("CPI") indexation from Retail Prices Index ("RPI") effective from April 2026. This has a direct impact on the ROC buy-out prices and FiT prices that the Company receives as part of its subsidised revenue streams impacting future cash flows.
· Discount rate change: An increase of 50bps used for UK unlevered projects to 8.00% (31 December 2025: 7.50%) driven by recent market volatility, increases in UK gilt yields and an increased cost of capital due to retroactive changes to the ROC and FiT schemes.
· Revaluation of development asset: The revaluation reflects an adjustment to the open‑market valuation of a development asset. The Company has entered a phase of exclusive negotiations for the disposal of this asset with the objective of crystallising value from a non-yielding asset and recycling capital to repay debt.
· Other residual value movements: Includes FX movements, incremental capex forecasts, planned outages, difference between forecast and actual tax payments plus changes to tax legislative rates and other immaterial changes.
Inflation Rate (UK RPI) Assumptions
|
Calendar Year |
31 March 2026 |
31 March 2025 |
|
2026/27 |
4.60% |
3.10% |
|
2027/28 |
3.30% |
3.30% |
|
2028/29 |
3.10% |
3.40% |
|
2029/30 |
3.00% |
3.00% |
|
2030/31 |
2.80% |
2.25% |
|
Onwards |
Unchanged |
2.25% |
Inflation Rate (UK CPI) Assumptions
|
Calendar Year |
31 March 2026 |
31 March 2025 |
|
2026/27 |
3.60% |
2.40% |
|
2027/28 |
2.20% |
2.20% |
|
2028/29 |
2.20% |
2.20% |
|
2029/30 |
2.10% |
2.10% |
|
2030/31 |
2.00% |
2.10% |
|
Onwards |
Unchanged |
2.25% |
Discount Rate Assumptions
|
|
|
31 March 2026 |
31 March 2025 |
|
Solar |
UK unlevered |
8.00% |
7.50% |
|
UK levered |
8.70% - 9.00% |
8.20% - 8.50% |
|
|
Italy unlevered10 |
9.50% |
9.00% |
|
|
Subsidy-free (uncontracted)11 |
9.00% |
8.50% |
|
|
Life extensions12 |
9.00% - 10.00% |
8.50% - 9.50% |
|
|
Energy Storage |
Uncontracted |
Unchanged |
10.00% |
|
Contracted |
Unchanged |
7.00% |
Power Curve Assumptions
31 March 2026: Blended Simple Average Power Curves (Capture Price)
· Methodology: For the UK portfolio, the Company uses multiple sources for UK power price forecasts. Where power has been sold at a fixed price under a Power Purchase Agreement (or PPA) (a hedge), these known prices are used. For periods where no PPA hedge is in place, short-term market forward prices are used. After two years, the Company integrates an equal weighted average of leading independent energy market consultants' long-term central case projections. The blend of forecasts reduces volatility, presenting a fair and balanced outlook consistent with pricing methodologies used for successfully divested assets and power price assumptions across the broader peer group.
· For the Italian portfolio, PPAs are used in the forecast where these have been secured. In the absence of hedges, a leading independent energy market consultant's long-term projections are used to derive the power curve adopted in the valuation.
Footnotes:
1. Includes two co-investments (Agenor and Santarém) and energy storage assets (Camilla), excludes the $50m commitment into private vehicle NextEnergy III LP ("NEIII", formerly "NextPower III LP" or "NEIII").
2. Including share in private equity vehicle (NextEnergy III LP ("NEIII"), formerly NextPower III LP or NPIII) and co-investments (Agenor and Santarém). Inclusion of NESF's 6.21% share of NEIII on a look-through equivalent basis increases total capacity by 48MW (2025: 46MW) and increases generation by 57GWh (2025: 51GWh). Inclusion of NESF's 24.5% share of Agenor increases total capacity by 12MW (2025: 12MW) and increases generation by 19GWh (2025: 14GWh). Inclusion of NESF's 13.6% share of Santarém on a look-through equivalent basis increases total capacity by 29MW (2025: 29MW) and increases generation by nil GWh (2025: nil GWh). Excludes the $50m commitment into private vehicle NEIII.
3. Subject to shareholder approval at the Company's upcoming AGM.
4. Total gearing is the aggregate of financial debt, and £200m of preference shares. The preference shares are equivalent to non-amortising debt with repayment in shares. Excludes total look-through debt of £24.3m since the Company does not have control over this debt for NAV based investments.
5. Excludes total look-through debt of £24.3m.
6. As at 31 March 2026, fixed revenues include subsidy income.
7. Figures are stated to the nearest 0.1% which may lead to rounding differences.
8. NESF minimises its merchant exposure through its active rolling PPA programme. The programme locks in PPAs in the liquid market to ensure maximum contracted revenues are achieved. Excludes Solis (Italian) portfolio.
9. Unlevered discount rate for Italian operating assets implying 1.50% country risk premium to 8.0%.
10. Unlevered discount rate for subsidy-free uncontracted operating assets implying 1.0% risk premium to 8.0%.
11. 1.0% risk premium added to UK unlevered (8.00%) and UK levered assets (8.70% - 9.00%) for cash flows after 30 years where leases have been extended.
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This announcement has been made by the Board of NextEnergy Solar Fund, the Investment Adviser, NextEnergy Capital Limited, and the Investment Manager, NextEnergy Capital IM Ltd, in good faith based on the information available to them at the time of this announcement.
This announcement is issued by NextEnergy Capital Limited, which is authorised and regulated by the UK Financial Conduct Authority ("FCA") with registered number 471192.
This announcement is not an offer to sell, or a solicitation of an offer to acquire, securities of the NextEnergy Solar Fund Limited in the United Kingdom or in any other jurisdiction. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.
The information contained in this announcement has been prepared in good faith but it is subject to updating, amendment, verification and completion. This announcement and any terms used herein are a broad outline of the Company only.
The guidance is provided herein is for illustrative purposes only and does not constitute a forecast, prediction or guarantee of future performance. It should be treated with caution due to the inherent uncertainties and risks, including economic and business factors, that underpin forward-looking information, particularly from a retail investor perspective.
The Company is incorporated in Guernsey, Channel Islands and is a registered closed-ended investment scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 2020, and the Registered Collective Investment Scheme Rules 2021. The Company is not an Authorised Person under the UK Financial Services and Markets Act 2000 ("FSMA") and, accordingly, will not be registered with the FCA. The Company will therefore only be suitable for professional or experienced investors, or those who have taken financial advice.
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For further information:
NextEnergy Capital
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020 3746 0700
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Michael Bonte-Friedheim |
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Ross Grier |
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Stephen Rosser |
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Peter Hamid (Investor Relations) |
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RBC Capital Markets |
020 7653 4000 |
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Matthew Coakes |
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Kathryn Deegan |
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Cavendish |
020 7908 6000 |
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Robert Peel |
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H/Advisors |
020 7379 5151 |
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Neil Bennett |
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Finlay Donaldson |
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Ocorian Administration (Guernsey) Limited |
014 8174 2642 |
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Kevin Smith |
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Notes to Editors 1:
About NextEnergy Solar Fund
NextEnergy Solar Fund is a specialist solar energy and energy storage investment company that is listed on the Main Market of the London Stock Exchange.
NextEnergy Solar Fund's investment objective is to provide Ordinary Shareholders with attractive long-term total returns, principally in the form of regular dividends, by investing in a diversified portfolio of utility-scale solar energy and energy storage infrastructure assets. The majority of NESF's long-term cash flows are inflation-linked via UK government subsidies.
As at 31 March 2026, the Company had an audited gross asset value of £922m. For further information please visit www.nextenergysolarfund.com
Article 9 Fund
NextEnergy Solar Fund is classified under Article 9 of the EU Sustainable Finance Disclosure Regulation and EU Taxonomy Regulation. NextEnergy Solar Fund's sustainability-related disclosures in the financial services sector are in accordance with Regulation (EU) 2019/2088 and can be accessed on the ESG section of both the NextEnergy Solar Fund and NextEnergy Capital websites.
About NextEnergy Group
NextEnergy Solar Fund is managed by NextEnergy Capital, part of the NextEnergy Group. NextEnergy Group was founded in 2007 to become a leading market participant in the international solar sector which now employs over 400 professionals. Since its inception, NextEnergy Group has been active in the development, construction, and ownership of solar assets across multiple jurisdictions. NextEnergy Group operates via its three business units: NextEnergy Capital (Investment Management), WiseEnergy (Operating Asset Management), and Starlight (Asset Development).
· NextEnergy Capital: has over 19 years of specialist solar expertise having invested in over 530 individual solar plants across the world. NextEnergy Capital currently manages four institutional funds with a total capacity in excess of 4GW and has funds under management of c. $4.8bn. More information is available at www.nextenergycapital.com
· WiseEnergy®: is a leading specialist operating asset manager in the solar sector. Since its founding, WiseEnergy has provided solar asset management, monitoring and technical due diligence services to over 1,600 utility-scale solar power plants with an installed capacity in excess of 3.5GW. More information is available at www.wise-energy.com
· Starlight: has developed over 100 utility-scale projects internationally and continues to progress a large pipeline of c.9GW of both green and brownfield project developments across global geographies. More information is available at www.starlight-energy.com
Notes:
1: All financial data is audited at 31 March 2026, being the latest date in respect of which NextEnergy Solar Fund has published financial information.
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