Foresight Solar invests in operating UK solar power plants to provide shareholders with a sustainable and increasing income stream through an initial annual 6p dividend [in calendar year 2014] on the issue price of 100p. The Board intends to increase the dividend in line with Retail Price Index (RPI) inflation. The company also aims to preserve capital on a real basis by reinvesting excess cashflow in additional operating UK solar power plants and through prudent use of portfolio leverage.
The Company’s portfolio will consist of ground based, operational solar power plants predominantly in the UK. Investments outside the UK and assets which are still, when acquired, under construction will be limited to 25 per cent. of the Gross Asset Value of the Company, calculated at the time of investment.
Power purchase agreements (PPA) will be entered into between each of the individual solar power plant SPVs in its portfolio and creditworthy offtakers in the UK. Under the PPAs, the SPVs will sell solar generated electricity and green benefits to the designated offtaker. The Company may retain exposure to UK power prices through PPAs that avoid mechanisms, such as fixed prices or price floors.
The fund’s website can be found here.