# NextEnergy Solar Fund reports FY2026 results and strategic reset

- Link: https://www.directorstalkinterviews.com/nextenergy-solar-fund-reports-fy2026-results-and-strategic-reset/4121254249
- Published: 2026-06-22T07:24:47+01:00
- Author: Amilia Stone

**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](https://sparklive.lseg.com/NextEnergySolarFundLtd/events/232af224-e8a2-414a-9f62-d9f66f00b0c3/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:**

·    **99**^(1) operating assets (31 March 2025: 101^(1)).

·    Total installed capacity of **838MW**^(2) (31 March 2025: 937MW^(2)).

·    Total electricity generation for the year ended 31 March 2026 of **844GWh**
^(2) (31 March 2025: 830GWh^(2)).

·    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.

[NESF-Annual-Report-2026](https://www.directorstalkinterviews.com/wp-content/uploads/2026/06/NESF-Annual-Report-2026.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2026/06/NESF-Annual-Report-2026.pdf)

NextEnergy Solar Fund has also published its annual standalone [Sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)
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]](https://www.nextenergysolarfund.com/esg/esg-reports-and-publications/).

**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.”_

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