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 £603.8m 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% more electricity than budgeted in the half year, thanks to irradiation levels that were more than 16% ahead of forecast. Across the group, production was 4% 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 £66.5m of EBITDA in the period, up from £60.6m a year earlier, while operating cash flow rose to £14.8m. 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