24 November 2022

Foresight Solar Fund Limited ("Foresight Solar" or the "Company")

Autumn Statement Update - Electricity Generator Levy

Foresight Solar Fund Limited, a fund investing in a diversified portfolio of ground-based solar PV and battery storage assets in the UK and internationally, announces the potential impact of the Electricity Generator Levy relative to the Company's unaudited NAV as of 30 September 2022 (£771.2 million, 126.4 pence per share).

On 17 November 2022 the Chancellor of the Exchequer announced, as part of the Autumn Statement, the introduction of a new Levy on excess profits realised by UK electricity generators, the Electricity Generator Levy. The Levy is proposed to take effect for the period from 1 January 2023 until 31 March 2028 at a rate of 45% of Exceptional Generation Receipts, which are calculated as revenue from power sales above a benchmark price of £75/MWh. A £10 million per year allowance will apply, such that Exceptional Generation Receipts below this threshold will be exempt.

The Company's UK solar assets are expected to fall within the scope of the proposed Levy. The Company's UK battery storage assets are not expected to fall within the scope of the proposed Levy. In respect of the UK solar assets which are within scope, revenues earned under Feed in Tariffs ('FiT'), Renewable Obligation Certificates ('ROCs') or Contracts for Differences ('CfDs') will be exempt from the proposed Levy.

The Directors have reviewed the details of the proposed Electricity Generator Levy and assessed the potential impact the Levy (ignoring any other potential adjustments) would have on the Company's 30 September 2022 NAV.

The Company's NAV calculated as of 30 September 2022 incorporated discounts applied to the blended Q3 2022 power curves for the period FY 2023 to FY 2027 inclusive, reflective of the uncertainty surrounding the likely form of Government intervention in the UK energy markets.  In assessing the potential net impact of the Electricity Generator Levy on the 30 September NAV, the Company has:

The net impact of these changes alone would be to reduce the 30 September 2022 NAV by 0.8 pence per share.

The Autumn Statement provides greater clarity as to the Government's approach to energy policy with regards to UK renewable electricity generators. The Government has announced its intention to publicise draft legislation for the proposed Electricity Generator Levy in mid-December 2022. The Company will reflect the expected impact of the Levy (along with any other appropriate adjustments) in the 31 December 2022 NAV update.

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