NextEnergy Solar Fund has published its unaudited Net Asset Value and operational update for the quarter ended 31 December 2025, revealing a drop in NAV per share driven by weaker power price forecasts.
But changing hands at 50p on Wednesday, the solar-focused investment trust still trades at a huge discount to NAV, despite falling to 84.9p from 88.8p at 30 September 2025, as third-party consultants have revised down their long-term power price assumptions.
It also trades at a significant discount to the adjusted NAV of 82.9p, which reflects the UK Government’s retrospective change to ROC and FiT inflation indexation and the switch from RPI to CPI.
That adjustment will be reflected in the 31 March 2026 year-end figures.
Total ordinary shareholders’ NAV stood at £488.4m, against a gross asset value of £997m.
Operationally, the quarter was characterised by typical winter softness. UK irradiation came in 9.3% below budget, pushing electricity generation 12.9% under target, excluding grid outages. These seasonal fluctuations are to be expected and will have little long-term impact.
Importantly for investors, there was no change on the dividend front. NESF held its quarterly payout steady at 2.11p per ordinary share, matching the prior year.
The board reconfirmed its full-year dividend target of 8.43p per share for the year ending 31 March 2026, with cover forecast at 1.1x–1.3x by earnings.
“NESF’s portfolio continues to demonstrate its underlying resilience during what has traditionally been a seasonally softer period for solar generation,” said Tony Quinlan, Chairman of NextEnergy Solar Fund.
“Despite lower winter irradiation and the impact of revised power price forecasts on our NAV, the Company remains on track to deliver its full year dividend target of 8.43p per ordinary share.
“The Government’s recent confirmation to shift ROC and FiT inflation indexation from RPI to CPI has introduced an additional headwind; however, with clarity now emerging, we are confident that NESF is well positioned to navigate this transition through the strength of its diversified portfolio and disciplined capital management approach.”
Since inception, the company has returned £431m in dividends to ordinary shareholders, equivalent to 82.6p per share.
NextEnergy Solar Fund yields around 16% at current levels.