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18 December 2023

US SOLAR FUND PLC (USF, the "Company")

 NEW RENEWABLE ENERGY CERTIFICATE CONTRACTS SIGNED

US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to announce that six of USF's Oregon projects have signed new long-term contracts to sell Renewable Energy Certificates (RECs). The REC contracts and revised estimates of future REC prices are expected to result in a NAV increase of approximately $7.6 million based on the 30 September NAV ($286.3 million) and contribute to additional operational cash dividend coverage from 2024 onwards.

Renewable Energy Certificates are awarded to generators of renewable energy and are tradeable financial instruments. The award of RECs to incentivise renewable power generation in the US has increased in recent years as states seek to meet their renewable energy objectives. The new REC contracts will commence in January 2024, following the expiry of existing contracts in December 2023 and will expire in 2031/32.  The offtaker is 3Degrees, a leading global provider of climate solutions who will pay a fixed price per REC for the duration of the contracts.

The revenues resulting from the new REC contracts exceed the assumptions made for income from REC's for these assets in the Company's current NAV, reflecting a trend for increasing REC prices in Oregon and across the US. The relevant projects are Chiloquin, Turkey Hill, Merrill, Lakeview, Dairy and Tumbleweed, which represent in aggregate 79.4MW of generation.

The new REC contracts will be included in USF's NAV as at 31 December 2023 when the Company's Solar Power Assets are next valued by an independent third-party appraiser[1]. In line with the strategy of the manager, Amber Infrastructure Investment Advisor LLC ('Amber'), Amber will continually appraise opportunities for recontracting RECs, entering into accretive power purchase agreements and securing new credits or grants attributable to renewable power generation in the US on behalf of the Company.  

Tom O'Shaughnessy, Head of North America at Amber, US Solar Fund's Manager, said:

"US state-level policies are mandating increasing levels of renewables output and driving rising renewable power prices, particularly from operational solar assets. These supportive long-term trends underpin US Solar Fund's portfolio with favourable income characteristics and a more stable outlook for the asset class.

"Those characteristics are evidenced in the higher prices for the recontracted RECs we have announced today. Our active approach to capitalise on these trends means we see more opportunities to create value in the portfolio, and we look forward to keeping shareholders updated."

For further information, please contact:

About US Solar Fund plc 

US Solar Fund plc, established in 2019, listed on the premium segment of the London Stock Exchange in April 2019. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by owning and operating solar power assets in North America and other OECD countries in the Americas.

The solar power assets that the Company acquires or constructs are expected to have an asset life of at least 30 years and generate stable and uncorrelated cashflows by selling electricity to creditworthy offtakers under long-term power purchase agreements (or PPAs). The Company's portfolio currently consists of 41 operational solar projects with a total capacity of 443MW_DC, all located in the United States.

Further information on the Company can be found on its website at http://www.ussolarfund.co.uk.

About Amber Infrastructure Group

Amber Infrastructure is an international infrastructure specialist, focused on investment origination, development, asset management and in Europe, fund management. Amber's core business focuses on infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.

Among other funds, Amber Infrastructure advises International Public Partnerships, a FTSE 250-listed company with a market cap of approximately £2.5 billion and 15-year track record of long-term investment in infrastructure assets globally. Amber is headquartered in London with offices in Europe, North America and Australia and employs over 180 infrastructure professionals. Amber has had a strategic partnership with the Hunt Group of Companies in the US since 2015. Learn more at www.amberinfrastructure.com.