Solar

Solar Portfolio

We manage a range of solar funds, both listed and private, for both institutional and retail investors, including:

Foresight Solar Fund Limited (“FSFL”)

FSFL is a closed-end investment company listed on the London Stock Exchange (ticker: FSFL:LN).  It seeks to provide investors with a sustainable and inflation linked increasing dividend together with potential growth over the long-term by acquiring a portfolio of large operational ground based, solar power plants in the UK.  Fund highlights as at 30 June 2017 include:

  • 470MW operational portfolio
  • Market capitalisation: £432.8m
  • Gross Asset Value: £625.3m
  • Target IRR of 7-8%
  • Key investors include: Blackrock Investment Management, Newton Investment Management, Schroders Cazenove, Rathbone Investment Management, Baillie Gifford, Close Brothers, Legal and General and Henderson Global Investors

The Fund has met all dividend targets since IPO and has outperformed major equity indices.  It has also proven its ability to deliver uncorrelated returns to equity markets.

UK Retail Solar Platform

The UK Retail Solar Platform is a significant portfolio of UK solar assets held across five separate EIS funds, two VCT funds and Foresight’s ITS fund (together such funds being referred to here as the “Solar Retail Funds”).  The Solar Retail Funds are structured as tax efficient wrappers aimed at providing retail investors with exposure to Infrastructure assets.

This portfolio is one of the largest solar portfolios in the UK, with the following key highlights:

  • 295 MW operational portfolio
  • 45 separate projects

Long Term Future of UK Retail Solar Platform

The Solar Retail Funds are structured to give investors a liquidity option at certain points: in the case of EIS funds three to four years from the original investment, and in the case of VCT funds five to six years from the original investment. Foresight’s approach is to finance liquidity needs principally from debt refinancing. If additional liquidity is required in the future, a third party institutional investor may be brought in to invest alongside the UK Retail Solar Funds on a long-term basis; indeed in this respect the UK Retail Solar Platform represents an attractive seed asset for direct investment platforms and single managed account structures.

Retail Solar Fund Case Studies

Foresight’s performance managing the UK Retail Solar Platform can be illustrated through the following two case studies:

Case Study 1 – Foresight Solar and Infrastructure VCT Plc – Ordinary Share and ‘C’ Share (“Foresight Solar and Infrastructure”)

The Foresight Solar and Infrastructure VCT fund, launched in 2011, was designed to provide investors with low-volatility cash flow yield from operating solar plants.  The fund has performed ahead of expectations, with a successful track history of cash yield generation for investors in the Ordinary Share class of 6% per annum, ahead of the stated objective of 5% yield per annum.

As at November 2016 the fund had delivered a gross cash-on-cash multiple of 1.24x.  After factoring certain tax benefits attributed to the fund, the all-in return to investors was a 1.77x multiple and a 14.0% IRR over five years.

Case Study 2 – Foresight Solar EIS 1 (“Foresight Solar EIS 1”)

Foresight Solar EIS 1, also launched in 2011, acquired four UK ground-based solar power plants totalling 16MW of capacity, jointly owned with the Foresight Solar and Infrastructure VCT.  These plants each benefit from inflation-linked 25 year Feed-in-Tariffs (“FiT”) backed by the U.K. Government and generate predictable yield throughout the period with a relatively low level of operating risk.  The acquisition of these plants totalling £50 million was initially funded entirely by equity.

Once these projects were operational and delivering stable cash flows, Foresight embarked upon a refinancing strategy to optimise value for investors.  Foresight has a long track record of implementing innovative debt structures and in 2013 issued a listed RPI linked bond against these assets.  A UK pension fund and a UK based insurer underwrote the £60 million issuance which was the largest renewables bond in the UK market and acted as catalyst for a wave of subsequent UK renewable bond issuances.  The proceeds of the bond were invested on behalf of the original equity investors into additional UK ground-based solar power plants benefiting from the ROC subsidy scheme.  This refinancing was highly value accretive to the investors.  In March 2015, original investors in the EIS fund exited and realised a gross cash-on-cash multiple of 1.33x over a three year period and a 9.7% IRR; after factoring certain tax benefits attributed to investors, the all-in return to investors was a 1.90x multiple and a 23.1% IRR over three years.

Foresight's funds, including accounts managed on behalf of institutions and family offices, have invested in the following solar PV facilities.

To view the maps of Foresight's Solar Assets, please click on a country below:

Date of Investment Location MW Type
October 2017 Queensland (Oakey 2), Australia 70 Ground-mounted greenfield
October 2017 Queensland (Oakey 1), Australia 30 Ground-mounted greenfield
October 2017 Queensland (Longreach), Australia 17 Ground-mounted greenfield
September 2017 Victoria (Bannerton), Australia 110 Ground-mounted greenfield
July 2017 Alcacer do Sal (Vale Matanqas), Portugal 7 Ground-mounted greenfield
February 2017 Wiltshire (Sandridge), UK 50 Operating ground-mounted
February 2017 Queensland (Barcaldine), Australia 25 Operating ground-mounted
January 2017 Flintshire (Shotwick), UK 72 Operating ground-mounted
November 2016 UK-wide rooftop (Amphora), UK 7 Residential Rooftops
October 2016 Leicestershire (Basin Bridge), UK 5 Operating ground-mounted
September 2016 Leicestershire (Lindridge), UK 5 Operating ground-mounted
August 2016 Yorkshire (Misson), UK 6 Operating ground-mounted
August 2016 Kent (Abbeyfields), UK 5 Operating ground-mounted
June 2016 Staffordshire (Marchington), UK 5 Operating ground-mounted
April 2016 Nottinghamshire (Crow Trees), UK 5 Operating ground-mounted
April 2016 East Staffordshire (Dove View), UK 5 Operating ground-mounted
April 2016 1,909 sites UK-wide (Blackmead) 7 Residential Rooftops
March 2016 Wiltshire (Beech Farm), UK 4 Operating ground-mounted
March 2016 Devon (Balls Wood), UK 5 Operating ground-mounted
February 2016 Somerset (Hurcott), UK 10 Operating ground-mounted
January 2016 Bedfordshire (Manor Farm), UK 14 Operating ground-mounted
December 2015 Lincolnshire (Yarburgh), UK 8 Operating ground-mounted
November 2015 Warwickshire (Fields Farm), UK 5 Operating ground-mounted
November 2015 Suffolk (Playters), UK 9 Operating ground-mounted
October 2015 Shropshire (Hayford Farm 2), UK 8 Operating ground-mounted
September 2015 Berkshire (Membury), UK 16 Operating ground-mounted
September 2015 Cornwall (Roskrow), UK 9 Operating ground-mounted
August 2015 Wiltshire (Port Farm), UK 35 Operating ground-mounted
August 2015 Lincolnshire (Nowhere), UK 8 Operating ground-mounted
July 2015 Warwickshire (Southam), UK 10 Operating ground-mounted
July 2015 Kent (Paddock Wood), UK 9 Operating ground-mounted
July 2015 Warwickshire (Atherstone), UK 15 Operating ground-mounted
July 2015 Lincolnshire (Copley Farm), UK 30 Operating ground-mounted
July 2015 Wiltshire (Marsh Farm), UK 9 Operating ground-mounted
July 2015 Berkshire (Sheepridge), UK 5 Operating ground-mounted
June 2015 Hampshire (Field House), UK 6 Operating ground-mounted
June 2015 Gloucestershire (Upper Huntingford), UK 8 Operating ground-mounted
May 2015 Wales (Cuckoo Grove), UK 6 Operating ground-mounted
May 2015 California (Lancaster), USA 3 Operating ground-mounted
April 2015 Wales (Pen y Cae), UK 7 Operating ground-mounted
April 2015 Wales (Saron), UK 6 Operating ground-mounted
April 2015 Wales (Abergelli), UK 8 Operating ground-mounted
March 2015 Sittingbourne (New Kaine), UK 2 Operating ground-mounted
March 2015 Nottinghamshire (Gedling), UK 6 Operating ground-mounted
January 2015 Leicestershire (Stables), UK 2 Operating ground-mounted
December 2014 Nottinghamshire (Bilsthorpe), UK 6 Operating ground-mounted
December 2014 Dorset (Homeland), UK 13 Operating ground-mounted
December 2014 Oxfordshire (Landmead), UK 46 Operating ground-mounted
December 2014 Buckinghamshire (Turweston), UK 16 Operating ground-mounted
December 2014 Shropshire (Hayford Farm 1), UK 10 Operating ground-mounted
December 2014 Somerset (Tengore Lane), UK 4 Operating ground-mounted
December 2014 Devon (Tope), UK 3 Operating ground-mounted
December 2014 Buckinghamshire (Bulls Head), UK 6 Operating ground-mounted
October 2014 Colorado (Sterling/Grand Junction), USA 5 Operating ground-mounted
September 2014 Oxfordshire (Kencot), UK 37 Operating ground-mounted
September 2014 Dorset (Bournemouth), UK 37 Operating ground-mounted
September 2014 Cornwall (Trehawke), UK 10 Operating ground-mounted
July 2014 Oxfordshire (Steventon), UK 10 Operating ground-mounted
July 2014 West Sussex (Hunters Race), UK 11 Operating ground-mounted
June 2014 Nottingham (Welbeck colliery), UK 11 Operating ground-mounted
April 2014 Cornwall (Ford Farm), UK 5 Operating ground-mounted
April 2014 Carmarthenshire (Pentre Farm), UK 7 Operating ground-mounted
April 2014 Devon (Holsworthy), UK 16 Operating ground-mounted
April 2014 Essex (Stansted), UK 12 Operating ground-mounted
March 2014 Wiltshire (Swindon), UK 18 Operating ground-mounted
March 2014 Essex (Chelmsford), UK 12 Operating ground-mounted
March 2014 Wiltshire (Calne), UK 10 Operating ground-mounted
December 2013 Campania, Italy 7 Operating ground-mounted
November 2013 Leicestershire (Wymeswold), UK 34 Operating ground-mounted
October 2013 California (Jamestown), USA 2 Operating ground-mounted
June 2013 Calabria, Italy 24 Operating ground-mounted
February 2012 Somerset (Bridgewater), UK 2 Operating ground-mounted
February 2012 Somerset (Puriton), UK 4 Operating ground-mounted
December 2011 Wiltshire (Malmesbury), UK 5 Operating ground-mounted
November 2011 Puglia, Italy 5 Operating ground-mounted
October 2011 Piedmont, Italy 2 Operating ground-mounted
October 2011 Piedmont, Italy 6 Operating ground-mounted
September 2011 Piedmont, Italy 1 Operating ground-mounted
September 2011 Piedmont, Italy 5 Operating ground-mounted
September 2011 Piedmont, Italy 7 Operating ground-mounted
August 2011 Kent (Aylesford), UK 5 Operating ground-mounted
July 2011 Lazio, Italy 8 Operating ground-mounted
June 2011 Emilia Romagna, Italy 3 Operating ground-mounted
June 2011 Abruzzo, Italy 5 Operating ground-mounted
December 2010 Marche, Italy 2 Operating ground-mounted
September 2010 Marche, Italy 3 Operating ground-mounted
March 2009 Puglia, Italy 4 Operating ground-mounted
Total   1,134 MW