21 April 2026

Foresight Solar Fund Limited

("Foresight Solar", "FSFL" or the "Company")

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Update on UK Carbon Price Support removal

Foresight Solar, the fund investing in solar and battery storage assets to build income and growth, notes the UK government's announcement on 16 April 2026 that it will remove the Carbon Price Support (CPS) mechanism from April 2028. The government's move is intended to reduce wholesale electricity prices for consumers and industry in the medium term.

Based on the investment manager's analysis, the removal of the CPS is expected to have a limited impact on Foresight Solar's net asset value (NAV) of between 0.5 pence per share and 1.0 pence per share based on the 31 December 2025 NAV. As at this date, Foresight Solar's NAV per share was 99.2p.

This estimate remains subject to review as independent power price forecasters update their forecasts. The Foresight Solar board and the investment manager will provide a further update in due course.

The change will have no impact on FSFL's dividend target and expected 1.1x dividend cover for 2026.

Mitigating factors

It is important to note that the announced removal of the CPS mechanism is not taking place in isolation, with the outlook for UK power markets impacted by a range of factors. The expected effect on Foresight Solar's NAV is limited by several mitigating factors:

·    Active power price hedging: With merchant prices remaining elevated, the Company continues to benefit from its hedging strategy. As a reminder, Foresight Solar took advantage of recent market volatility to contract 87% of global forecast total revenues for 2026, 75% for 2027 and 63% for 2028.

·    Market assumptions: Foresight Solar's power price forecast is based on a blended average from three independent consultants, which captures a range of underlying forecasts. Two of them had already assumed a reduction or removal of the CPS over time, while the third estimated a tapered, longer-term impact. As a result, the effect was already partially reflected in current valuations.

·    Geographic diversification: Approximately 25% of FSFL's portfolio capacity is located outside the UK, reducing exposure to UK-specific policy changes.

·    Timing of impact: The effect of CPS removal is expected to be concentrated in the period between 2028 and 2030, with minimal impact on the Company's near-term cashflows.

·    Expected policy harmonisation: The UK and the European Union are currently in the process of negotiating a Carbon Border Adjustment Mechanism that is likely to align Emissions Trading Scheme (ETS) prices.

What is the Carbon Price Support?

The Carbon Price Support is a UK-specific tax applied to fossil fuel-based electricity generation. It increases the cost of generating power from gas and coal, which in turn has historically supported higher wholesale electricity prices.

With coal now fully phased out of the British generation mix and a focus on reducing electricity costs, the government has decided to end this mechanism from 2028. Its removal is expected to result in a modest reduction in UK power prices over time - and was already anticipated to varying degrees by market consultants.

Outlook

The board believes that the impact of this policy change is limited and manageable within the context of the Company's diversified portfolio and active hedging strategy. Foresight Solar will continue to monitor market developments and hedge production as appropriate to maintain revenue visibility and support its dividend.

For more information, follow Foresight Solar on LinkedIn or contact:

LEI: 213800VO4O83JVSSOX33