Foresight Solar confident despite subsidy reduction

Foresight Solar results for the year ended 31 December 2014 have been released. The net asset value at the end of December was 100.9p – up from 98p post flotation of the company.

Two interim dividends of 3p were declared for the year. The fund is now switching to paying quarterly dividends. These will rise in line with inflation from 1 January 2015.

They say they now own and operate the largest portfolio of UK solar farms within their listed peer group with 231MWp across ten solar plants all of which attract subsidy at the rate of 1.4 ROCs.

The 1.4 ROC subsidy ends on 31 March and a new, less attractive regime takes its place. The Board say “Although the UK Government has confirmed changes to the Renewable Obligations incentives from March 2015, the Board and Investment Manager both believe that a combination of the investments made to date and the pipeline of potential opportunities currently being considered, together with the associated benefits of scale, will continue to provide attractive returns to shareholders over the longer term.”

FSFL : Foresight Solar confident despite subsidy reduction