Portfolio Fully Operational

23 November 2020

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

Portfolio Fully Operational

128MWDC Milford Plant reaches commercial operations date on 19 November

US Solar Fund plc (LON:USF (USD) / USFP (GBP)) is pleased to announce that all 41 projects in the Company's portfolio, totaling 443MW_DC, are now fully operating and generating revenue for the Company. The final in-construction project, the 128MW_DC Milford plant in Utah, reached the commercial operations date (COD) under its power purchase agreement (PPA) on 19 November, on-time and under-budget.

USF will benefit from construction and development cost savings of approximately $4 million, as well as the proceeds from better-than-expected pre-COD electricity sales of approximately $1 million. The combined savings and increased electricity sales of approximately $5 million, compared to assumptions at acquisition, represent an expected net asset value (NAV) uplift of approximately 2.5 cents per share[1].

All the projects in the USF portfolio have PPAs with contracted prices for 100% of electricity generated for a weighted average PPA term of 15 years; with strong diversification across geographies and offtakers. All PPA counterparties are investment grade (S&P rated A to BBB+). USF's portfolio produces enough electricity each year to power approximately 74,000 US homes, effectively displacing over 630,000 tonnes of CO₂ emissions annually.

Commenting on the Company's progress, Gill Nott, Chair of the Company said:

"I am delighted that we have reached the point where all the Company's solar plants are in operation and generating power. This puts us firmly on track to pay and cash cover the full target dividend of 5.5 cents per share in 2021. We look forward to growing the Company and delivering on the investment mandate."

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About US Solar Fund plc 

US Solar Fund plc listed on the premium segment of the London Stock Exchange in April 2019, following its successful US$200m IPO. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas. 

The Company acquires or constructs, owns and operates solar power assets that 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). 

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

About the Investment Manager 

USF is managed by New Energy Solar Manager (NESM). NESM also manages New Energy Solar, an Australian Securities Exchange (ASX)-listed fund which has committed over US$900m to US and Australian solar plants since late 2015. 

NESM is owned by Walsh & Company, the funds management division of Evans Dixon, an ASX listed company (ASX: ED1) with over A$21 billion of funds under advice.