How solar power works

Solar power describes a number of methods of converting energy from sunlight into electricity, thereby reducing the demand for fossil fuels which are in limited supply and reducing carbon emissions.

Foresight's solar funds invest in solar photovoltaic ('PV') technology based on silicon semiconductors. PV is a method of generating power by converting solar radiation absorbed by solar panels (mounted on rooftops or on the ground) into electricity. The solar panels are connected to an inverter which converts the direct current ('DC') generated by the panels into alternating current ('AC') electricity. This AC electricity can then be used by the home/business and/or exported to the electricity grid.

Solar PV is a well established technology and radiation levels from the Sun are very consistent, particularly in Italy and Spain. Investments in this sector are expected to provide stable returns with relatively low risk, supported by long term government backed financial incentives for solar power generation.

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