Nextenergy Solar Fund Limited (LON:NESF) has published its full year results and annual report for the year ended 31 March 2026.
Tony Quinlan, Chair of NextEnergy Solar Fund Limited, commented:
“The past year has been tough for shareholders. The sector continues to suffer from share prices trading at persistent discounts to reported NAV. From a NESF perspective the strategic reset announced in March 2026 included a dividend policy change which was a difficult decision, but was necessary to put shareholder distributions on a more sustainable basis.
“The strategic reset aims to improve long-term total returns (shareholder distributions plus NAV growth) by rebalancing income and strengthening the balance sheet which over time will support disciplined reinvestment. Within this reset, the immediate priority is to dispose of assets profitably to reduce gearing.
“The underlying portfolio has continued to demonstrate robust operational performance. We believe the current valuation does not reflect the quality or resilience of the cashflows and the optionally within the portfolio.
“At the forthcoming AGM, in accordance with our regular policy, shareholders will be asked to vote on the continuation of the Company. A discontinuation of the Company would involve a forced sale of assets, which the Board believes is likely to be value-destructive in the current market and would not be in shareholders’ best interests. Therefore, the Board will unanimously recommend voting against a discontinuation of the Company at the AGM.
“It’s a particularly challenging time for the sector and, as always, we remain in active dialogue with our shareholders.”
Annual Report:
· The Company’s Annual Report for the year ended 31 March 2026 is now available in the Reports & Publications section of the Company’s website here.
· A copy of the Annual Report has also been submitted to the FCA’s National Storage Mechanism.
Full Year Results Presentation:
· The Company will livestream its full year results presentation via webcast for both investors and analysts and will be followed by a Q&A session.
o Time: 14:00 BST
o Date: Monday 22 June 2026
o Webcast link: NextEnergy Solar Fund Full Year Results Presentation
· The presentation will be hosted by:
o Tony Quinlan, Chair, NextEnergy Solar Fund
o Ross Grier, Chief Investment Officer, NextEnergy Capital, Investment Adviser
o Stephen Rosser, Investment Director, NextEnergy Capital, Investment Adviser
· A recording of the presentation and accompanying materials will be available on the Company’s website shortly after the event.
Key highlights (Confirming all results are as per the Q4 NAV and Operational Update)
Financial:
· Net Asset Value (“NAV”) per Ordinary Share of 76.1p (31 March 2025: 95.1p).
· Ordinary Shareholders’ NAV of £437.5m (31 March 2025: £547.4m).
· Gross Asset Value (“GAV”) of £922m (31 March 2025: £1,061m).
· Total Income of £141.3m (31 March 2025: £135.5m).
· NESF Group Portfolio and Holdco EBITDA of £104.5m (31 March 2025: £96.9m).
· Cash income of £71.9m (31 March 2025: £67.1m).
· Amount available for Ordinary Share distribution of £56.2m (31 March 2025: £50.3m).
· Weighted average cost of capital of 6.9% (31 March 2025: 6.6%).
· Weighted average discount rate across the portfolio of 8.5% (31 March 2025: 8.0%).
Dividend:
· Total dividends declared of 8.43p per Ordinary Share for the twelve months ended 31 March 2026 (31 March 2025: 8.43p).
· Dividend cover for the twelve months ended 31 March 2026 was 1.2x (31 March 2025: 1.1x).
· Following the payment of the target dividend of 8.43p for the financial year ended 31 March 2026, the Company has transitioned from a progressive dividend policy to a percentage-based dividend policy, targeting a 75% distribution of operating free cash flows, post debt servicing and portfolio and fund operating expenses.
· The estimated dividend guidance range for the financial year ending 31 March 2027 is between 4.5p – 5.1p per Ordinary Share, subject to portfolio performance. This guidance is the equivalent to a dividend yield range of c.9% – c.11% based on the company’s share price as at 19 June 2026.
· As a result of the 75% dividend payout policy mechanics on earnings post debt amortisation, this would translate to a 1.3x dividend cover.
· As at 31 March 2026, the Company had declared total Ordinary Share dividends of £443m since inception, the equivalent to 84.7p per Ordinary Share.
Portfolio:
· 991 operating assets (31 March 2025: 1011).
· Total installed capacity of 838MW2 (31 March 2025: 937MW2).
· Total electricity generation for the year ended 31 March 2026 of 844GWh2 (31 March 2025: 830GWh2).
· Generation against budget for the year ended 31 March 2026 of +2.0%3 (31 March 2025: -5.3%3).
· Irradiation against budget for the year ended 31 March 2026 of +6.7% (31 March 2025: +0.1%).
· Remaining weighted asset life of 22.3 years (31 March 2025: 24.8 years).
· Since inception the Company has generated 7.4TWh of electricity (31 March 2025: 6.6TWh).
· The Company’s 50MW 1-hour duration standalone energy storage asset ‘Camilla’, continues to rank amongst the top-earning assets of its class on the GB grid and delivered 98% availability over the year and recorded a latest State of Health test of 54MWh versus a warranted level of 43MWh.
Strategic Reset:
· On 11 March 2026, the Company announced the outcome of the Board’s comprehensive review and its strategic reset, which establishes a clear set of actions within the control of the Board and the Investment Adviser. The strategic reset provided a roadmap that is focused on capturing the intrinsic value of its high-quality, cash-generative portfolio, with a clear objective of stabilising and growing NAV over the long term while strengthening the balance sheet.
· Observing the disciplined capital allocation priorities the Company has set out, the self-funded roadmap is expected to deliver material value creation over time, with initial estimates indicating potential to generate c.£60m to c.£100m of additional value through initiatives including further asset-life extensions, hybridisation of a proportion of the portfolio and realisation of the value embedded in the Company’s development pipeline.
· The Board believes that the current share price discount does not reflect the underlying value and potential of NESF’s diversified portfolio of long-life solar and energy storage assets, which continue to deliver resilient operational performance and stable cash flows. In response, the Company has taken decisive action to unlock value embedded within the portfolio which is not reflected in the current share price and NAV. This approach is designed to enhance total returns, support a sustainable dividend, and position the Company to benefit from a future market recovery and structural growth opportunities in solar and energy storage.
NextEnergy Solar Fund has also published its annual standalone Sustainability and ESG Report for the year ended 31 March 2026, and announced its designation as a Natural Capital Fund by the Guernsey Financial Services Commission.
The Report is available to download from the Sustainability and ESG Reports section of the Company’s website or via the following link: [2026 Sustainability and ESG Report].
Background:
The purpose of the Report is to inform NESF stakeholders of the Company’s approach to sustainability and Environmental, Social and Governance factors, how it executes its strategy, and how it creates impact. The Report is designed to be read in conjunction with the NESF Annual Report for the year ended 31 March 2026.
The intent of the integrated disclosures in the Report is to provide consistent, decision-useful information on sustainability and ESG issues to investors and other users of the Company’s Annual Report. As such the Report makes disclosures in alignment with the General (S1) and Climate (S2) standards of the International Sustainability Standards Board IFRS, as well as the recommendations of the Taskforce on Nature-related Financial Disclosures.
Key ESG highlights:
· Climate:
o Generated 844GWh of clean electricity, enough to power c.256,714 homes for a year.
o Avoided c.275,583 tonnes of carbon emissions, reducing reliance on fossil fuels.
o c.96% of the portfolio is not exposed to material physical climate risks, demonstrating strong asset resilience.
o Released its first Climate Transition Plan which sets out the Company’s ambition to progressively decarbonise NESF’s portfolio across both its operations and value chain.
· Nature:
o 68% of land under management is now restored or rehabilitated, supporting improved biodiversity.
o 89% of land is actively managed for both energy generation and nature (“dual use”), well ahead of long‑term targets.
o 100% of sensitive sites are covered by dedicated Nature Management Plans, protecting ecosystems where it matters most.
· People:
o Board gender diversity 60:40 (female/male).
o c.£167,000 community and charitable funding.
· Reporting:
o Maintained EU Article 9 classification, reflecting a core objective of sustainable investment, and continued reporting alignment with the ISSB and TNFD.
· Recognition:
o Achieved Natural Capital Fund designation from the GFSC, a regulated recognition of measurable positive environmental impact.
Approach to sustainability and ESG reporting:
There are three key priority areas in the NESF Sustainability and ESG Framework: People, Nature and Prosperity. Each priority area is underpinned by three focus topics as set out in the NESF Sustainability and ESG framework. These priority areas and topics are the result of a double materiality assessment undertaken in 2023. These areas remain a priority for the Company. The Framework structures NESF’s approach to creating positive sustainability and ESG outcomes alongside generating long-term total returns.
The Company’s reporting strategy aligns with the Framework’s priority areas and those of the ISSB and TNFD, ensuring stakeholders receive decision-useful insights into its performance. The information NESF discloses includes climate and nature-related considerations across its construction activities, direct operations, and value chain. NESF also reports on key people topics, such as health and safety, diversity, equity and inclusion, community engagement, and human rights.
Natural Capital Fund designation:
In February 2026, the GFSC recognised the Company’s long‑standing commitment to delivering measurable benefits for nature while generating investor value and awarded the Company one of its first Natural Capital Fund designations.
This designation puts the Company at the forefront of nature‑positive renewable investment and reporting and represents an important milestone for the renewable infrastructure sector, recognising the role that well-managed solar assets can play in delivering measurable natural capital outcomes.
Josephine Bush, Chair of the NESF Board’s ESG Committee, said:
“NESF continues to play an important role in the energy transition, providing resilient, domestically generated renewable power in an increasingly uncertain world. During the year, the Company made meaningful progress in delivering its sustainability strategy, including publishing its first Climate Transition Plan and achieving Natural Capital Fund designation, recognising its positive contribution to the environment. With a strong framework in place, NESF is well positioned to manage climate and nature-related risks while capturing the opportunities arising from the energy transition and delivering long-term value for shareholders.”
