Foresight Solar Fund’s interim results showed how favourable weather conditions can only do so much to counteract weaker long-term pricing assumptions.

The renewable energy trust, which invests in solar and battery storage assets across the UK, Spain and Australia, reported a net asset value (NAV) of £603.8mn at 30 June, equivalent to 108.5p per share. That compares with 112.3p at the end of 2024, a decline the board attributed primarily to falling power price forecasts.

Operationally, the picture was more encouraging. The UK portfolio — which remains the fund’s core market — generated 8.9 per cent more electricity than budgeted in the half year, thanks to irradiation levels that were more than 16 per cent ahead of forecast. Across the group, production was 4 per cent above expectations, a sharp contrast to the shortfalls seen in Spain.

The strong performance, coupled with active hedging, underpins the board’s confidence in delivering 1.3 times dividend cover for the year. A dividend of 4.05p per share was declared for the first half, slightly up on last year’s 4.0p, while the ongoing share buyback programme has been expanded to £60mn. Between dividends and buybacks, shareholders received £29mn in the first six months of 2025.

The portfolio generated £66.5mn of EBITDA in the period, up from £60.6mn a year earlier, while operating cash flow rose to £14.8mn. Debt remains stable at around 3.1 times EBITDA, with enterprise value at 7.5 times EBITDA.

Looking ahead, the board reaffirmed its plan to sell the Australian portfolio and divest a further 75MW of UK solar capacity, moves that should release capital for reinvestment and support balance sheet flexibility. The trust also pointed to progress in its development pipeline: grid connections have been secured for Spanish battery storage projects, while the Muel solar project in Spain is close to “ready-to-build” status.

Below is an interview with Foresight Solar Investment Managers Ross Driver & Tony Virno who provide an overview of the trust’s results