Bluefield Solar Income Fund Ltd (LSE:BSIF, FRA:5B3), the London-listed solar energy investment fund, expects a reduction of approximately 1 pence per share in its net asset value (NAV) following the government's announcement that it will scrap the Carbon Price Support (CPS) levy from April 2028.
CPS is a tax on fossil fuels used in electricity generation, introduced in 2013 to push fossil fuel generators off the grid.
The government said the levy had achieved its aim following the closure of the UK's last coal plant in 2024.
Bluefield said its investment adviser had already factored out the influence of CPS on electricity prices through the 2030s using a blended power curve model, limiting the impact.
Separately, the government raised the Electricity Generator Levy from 45% to 55%, though Bluefield said the impact on its NAV was minimal.
James Armstrong of Bluefield Partners described the overall policy changes as "neutral to positive" for operators such as BSIF.