Foresight Solar Fund Ltd (LSE:FSFL) will suffer a modest hit to its NAV following the introduction of the windfall tax on renewable generators on 1 January, it has announced.
In a statement following the fund, it confirmed its net asset value of £771.2mln (126.4p) in late September would be reduced by 0.8p due to the new 45% tax.
After Russia’s invasion of Ukraine saw energy prices skyrocket, low-carbon generators have been among companies enjoying hiked profits, leading the government to introduce the levy.
Foresight added in its statement that it’s solar assets will be affected by the levy, while its battery storage resources will not.
Another renewables group, NextEnergy Solar Fund Ltd (LSE:NESF) this week said on the levy it wanted tax breaks for renewables similar to those available to the oil and gas sector, which sees North Sea companies able to earn a 91% tax break if profits are used for investment.
Its chairman outlined that the company “remains supportive” of the windfall tax, but wanted a “consistent approach to the encouragement of reinvestment of proceeds into new projects through associated tax relief so that equality is created with the oil and gas sector".
Foresight’s share price was down 1.9% to 116p, while NextEnergy was up 0.24% to 113p.