Foresight Solar Fund Regulatory News (FSFL)

22 August 2018

Foresight Solar Fund Limited

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

Interim Results to 30 June 2018 and Dividend Announcement

Foresight Solar, a fund investing in a diversified portfolio of ground-based solar PV assets in the UK and internationally, is pleased to announce its Interim Results for the six months ended 30 June 2018.

Highlights

* Target returns are not a profit forecast. There can be no assurance that target returns will be met and it should not be seen as an indication of the Company's expected or actual results or returns.

The Company is also pleased to announce that the second Quarterly dividend of 1.64 pence per share was approved by the Directors and will be paid on 23 November 2018.

Key Metrics

* UK investments valued using an unlevered discount rate of 7.00% or a levered discount rate of 7.75%. Australian operational assets use a levered discount rate of 8.5%. Assets under construction are valued at cost.** Annualised from IPO on 29 October 2013.

Commenting on the Company's Interim results, Alex Ohlsson, Chairman of Foresight Solar Fund Limited said:

"The first half of 2018 has been a period of progress, marked by significant expansion in our UK portfolio, the first of our Australian assets connecting to the grid on schedule and the launch of an equity placing to support further UK asset acquisitions. We are pleased that we remain on track to deliver our targeted full year dividend of 6.58p.

"Following the period, the equity placing closed and was significantly oversubscribed. Proceeds from the placing funded our acquisition of 15 UK solar assets, which saw us become the largest UK-listed dedicated solar energy investment company by installed capacity. We remain confident that, with the positive operational performance of our assets, our continued ability to deliver NAV-accretive investment opportunities and the global trend towards a higher penetration of renewable generation, we are well-positioned to deliver further growth."

Results presentation

Foresight Solar Fund Ltd is holding a presentation to analysts at 09:00 today at Foresight Solar Fund Limited, The Shard, 32 London Bridge Street, London, SE1 9SG. Analysts wishing to attend should contact foresightsolar@citigatedewerogerson.com to register.

Analysts unable to attend in person may listen to the presentation live by using the details below:

Conference Call Dial-In Details: 0808 109 0700

Standard International Access: +44 (0) 20 3003 2666

Password: Foresight Solar

For further information, please contact:

Foresight Group +44 (0)20 3763 6951 Joanna Andrews InstitutionalIR@ForesightGroup.eu

Stifel Nicolaus Europe Limited +44 (0)20 7710 7600 Mark Bloomfield Neil Winward Gaudi Le Roux

Citigate Dewe Rogerson +44 (0)20 7638 9571 Louise Mason-RutherfordNick HaynsEleni MenikouElizabeth Kittle

Notes to Editors

About Foresight Solar Fund Limited

Foresight Solar is a Jersey registered, closed-end investment company investing in a diversified portfolio of ground-based solar PV assets in the UK and Australia.

Since its IPO in October 2013, FSFL has more than tripled in size and raised more than £510 million through share placings. The Company targets an index-linked annualised dividend inflated by RPI and has paid all target dividends to date. The target dividend for 2018 is 6.58 pence per share.

FSFL is managed by Foresight Group, a leading independent Global Infrastructure & Private Equity manager, which provides FSFL with depth of experience in fund management, deal origination and execution. The Company has a fully independent Board of Directors and is chaired by Alex Ohlsson. The lead Investment Manager for the Company is Ricardo Piñeiro, Head of UK Solar at Foresight Group.

LEI: 213800VO4O83JVSSOX33

Chairman's Statement

On behalf of the Board, I am pleased to present the Unaudited Interim Report and Financial Statements for Foresight Solar Fund Limited (the "Company") for the six months ended 30 June 2018.

This was a period of real progress for the Company, marked by further expansion of our UK portfolio, the connection to the grid of the Company's first Australian asset, Longreach, and the successful launch and post period completion of an equity placing to support further UK acquisitions.

In what has undeniably become a more competitive and price sensitive market, the Company has managed to source and acquire a number of attractive investment opportunities in the UK. During the period, we acquired a portfolio of five operational solar parks with a total installed capacity of 53.3MW. Post-period end, we also secured a portfolio of 15 assets totalling 114MW. Following this acquisition, the Company is now the largest dedicated solar PV listed investment company in the UK by installed capacity.

I am pleased with the pace of deployment and the Investment Manager's ability to diversify the portfolio and develop efficiencies of scale through a disciplined asset acquisition strategy.

The Board remains confident in the operational performance of our assets, the Investment Manager's ability to deliver NAV accretive investment opportunities and the global movement towards a higher penetration of renewable generation, all of which should support the Company's continued growth.

KEY FINANCIALS

During the period, the NAV per Ordinary Share decreased by 1.8 pence to 105.2 pence (31 December 2017: 107.0 pence). The reduction was primarily driven by a decrease in UK power price forecasts during the period.

DIVIDEND AND DIVIDEND GROWTH

The Company has continued to achieve its dividend objectives and has paid all target dividends since its IPO in October 2013. Dividends over that period totalled 24.6 pence per share.

During the period we approved the first two quarterly dividends of 1.64 pence each and the Company remains on track to deliver its targeted full year dividend of 6.58 pence per share. The Company is due to pay the first quarterly dividend for the current year of 1.64 pence on 24 August 2018.

The Board expects to maintain its stable and RPI inflation-linked dividend based on the financial performance of the current portfolio and existing market conditions. We continue to actively review the dividend policy to reflect the expected evolution of the Investment Portfolio and the ongoing relationship between power prices and inflation levels.

OVERSUBSCRIBED POST-PERIOD SHARE PLACING

On 4 July 2018, the Company closed a significantly oversubscribed share placing raising £48.1 million through the issuance of 44,995,209 new Shares. The issuance was undertaken under the Company's existing general authority to dis-apply pre-emption rights as approved by shareholders at the Annual General Meeting on 11 June 2018. The proceeds of the placing were used to fund the purchase of 15 solar assets in the UK, totalling 114MW, as noted above. In our opinion the over-subscription is indicative of the continued support and interest from existing and new shareholders in the Company's offering and track record in delivering targeted returns.

FINANCING

At 30 June 2018, the total outstanding debt for the Company and its subsidiaries amounted to £306.0 million (31 December 2017: £200.3 million), with long term gearing representing £201.0 million (December 2017: £152.4 million). The total gearing level increased to 41% of GAV (December 2017: 29%) as a result of the acquisitions completed in the period and the use of the Australian assets debt facilities. Long term gearing represented 27% (2017: 22%), remaining within the debt target level set by the Board.

The Investment Manager will continue to identify opportunities to optimise the Company's capital structure to enhance returns for investors.

OPERATIONAL PERFORMANCE

The second half of the period saw strong irradiation levels in the UK and production levels above base case assumptions. Portfolio performance continued to improve during the first half of the year with only two relevant isolated events causing production variance to fall behind irradiation variance. Those incidents will be compensated for through insurance or contractual liquidated damages and are explained in more detail in the Asset Management section.

PORTFOLIO DEVELOPMENT

During the period the Company reviewed more than 1.4GW of potential investments in the UK and internationally. The Company maintained its pricing discipline and acquired a 53.3MW operational portfolio of five ROC or FiT accredited assets for £36.6 million. The purchase of these assets is testament to the Investment Manager's continued ability to source value accretive opportunities which are in line with our objective of creating a diversified, sustainable portfolio through a focused approach to new acquisitions.

During the period, we secured exclusivity over a 134MW operational portfolio of ROC accredited assets located in the UK. We completed the acquisition of 15 of the 18 assets on 3 August 2018 for an equity consideration of £47 million. The remaining three assets remain under exclusivity and will be subject to further acquisition due diligence.

SOLAR MARKET DEVELOPMENTS

Global support for renewable energy generation continues to gain significant traction and the industry has matured to cater for this demand. In the UK, renewable generation represented approximately 9.3% of total energy generation in 2016, below the 2020 renewable energy target of 15%. The UK government has recently agreed to increase the 2030 renewable energy target from 27% to 32%, creating a clear opportunity for additional growth of the UK solar market in the medium to long-term.

In April 2017, the closure of the ROC Scheme prompted a shift in the UK market to an increased focus on secondary market acquisitions, subsidy-free solar and the integration of energy storage. The latter both remain in their infancy and the economic viability of these opportunities is yet to be proven. The Investment Manager continues to monitor the progress of these market developments but remains confident that these trends will provide future growth opportunities for the Company given industry support for these initiatives.

In July 2018 Ofgem issued a consultation which proposes a Significant Code Review ("SCR") to address inefficiencies in network access and forward-looking network charging arrangements. If launched, this would run in parallel with the current SCR in progress and the Targeted Charging Review ("TCR") launched in August 2017, which encompasses a review of residual network charging arrangements. The impact of these review processes on charging arrangements for embedded generation has the potential to materially affect the embedded benefits received by the portfolio. Embedded benefits revenue represents less than 2% of lifetime revenues for the portfolio.

In line with global trends, the Australian market has seen a significant increase in both actual and forecasted renewable energy generation. The country is expected to meet its 2030 target for a 26% reduction in carbon emissions ahead of schedule considering the increasing levels of new renewable generation capacity. In contrast to the developed renewables industry in the UK, the Australian renewables sector is in its early stages of development with a number of regulatory initiatives that are expected to support the deployment of renewables under discussion, most notably the Federal Government's National Energy Guarantee ("NEG") framework. The NEG framework focuses on reducing consumers' electricity prices and bringing reliability and emissions reductions to the country's National Electricity Market. The Investment Manager is actively monitoring this development as the NEG policy details and implementation timetable are yet to be confirmed.

PIPELINE AND OUTLOOK

The Investment Manager continues to source a number of value accretive opportunities as evidenced by the recent addition of 114MW of operational assets to the Fund's portfolio. The Company is currently actively reviewing a short-term pipeline of more than 300MW of potential investments in the UK and Western Europe, including a 72MW portfolio of 10 operational, ROC accredited assets located in the UK. The Company has secured exclusivity over this portfolio, which is currently owned by funds managed by Foresight Group LLP.

The Investment Manager will continue to focus on identifying operational assets available in the UK secondary market, as well as continuing to explore investment opportunities in international markets. Investment opportunities outside the UK are expected to deliver attractive returns on a risk-adjusted basis while further diversifying our portfolio, in line with its investment policy.

 Alexander Ohlsson

Chairman22 August 2018

Corporate Summary and Investment Objective

CORPORATE SUMMARY

The Company is a closed-ended company with an indefinite life and was incorporated in Jersey under the Companies (Jersey) Law 1991, as amended, on 13 August 2013, with registration number 113721.

As at 30 June 2018, the Company has 449,952,091 ordinary shares in issue which are listed on the premium segment of the Official List and traded on the London Stock Exchange's Main Market.

The Company makes its investments through intermediate holding companies and underlying Project Vehicles/Special Purpose Vehicles ("SPVs").

INVESTMENT OBJECTIVE

The Company's objective is to provide investors with a sustainable, inflation-linked quarterly dividend and enhanced capital value, through investment in ground-based solar assets predominately located in the UK.

THE COMPANY

The Company's Initial Public Offering on 24 October 2013 raised £150 million, creating the largest dedicated solar investment company listed in the UK at the time. To date, the Company has raised a total of £511 million through equity issuance.

During the period, the Company announced a placing of 44,995,209 new shares to raise up to £48.1 million. The placing was significantly oversubscribed with the Company issuing the maximum number of shares. Following the issuance of the new shares on 6 July 2018, the Company has 494,947,300 shares in issuance representing a market capitalisation of £537.0 million.

As at 30 June 2018, the Company's portfolio consisted of 28 assets with a net installed capacity of 674MW, including four Australian assets (representing 146MW), three of which are currently under construction. During the period, Longreach became the first of the Australian assets to begin exporting electricity to the grid.

INVESTMENT POLICY

The Company will pursue its investment objective by acquiring ground-based, operational solar power plants predominantly located in the UK. Investments outside the UK and assets which are still, when acquired, under construction will be limited to 25 percent of the GAV of the Company and subsidiaries, calculated at the time of investment.

The Company will seek to acquire majority or minority stakes in individual ground-based solar assets. When investing in a stake of less than 100 per cent in a solar power plant SPV, the Company will secure its shareholder rights through shareholders' agreements and other legal transaction documents.

Power purchase agreements ("PPAs") will be entered into between each of the individual solar power plant SPVs in the portfolio and creditworthy offtakers. Under the PPAs, the SPVs will sell solar generated electricity and green benefits to the designated offtaker. The Company may retain exposure to power prices through PPAs that do not include mechanisms such as fixed prices or price floors.

Investment may be made in equity or debt or intermediate instruments but not in any instruments traded on any investment exchange.

The Company is permitted to invest cash held for working capital purposes and awaiting investment in cash deposits, gilts and money market funds.

In order to spread risk and diversify its portfolio, at the time of investment no single asset shall exceed in value (or, if it is an additional stake in an existing investment, the combined value of both the existing stake and the additional stake acquired) 30 per cent of the Company's GAV post-acquisition. The GAV of the Company will be calculated based on the last published gross investment valuation of the Company's portfolio, including cash, plus acquisitions made since the date of such valuation at their cost of acquisition. The Company's portfolio will provide diversified exposure through the inclusion of not less than five individual solar power plants and the Company will also seek to diversify risk by ensuring that a significant proportion of its expected income stream is derived from regulatory support (which will consist of, for example, without limitation, ROCs and FiTs for UK assets). Diversification will also be achieved by the Company using a number of different third-party providers such as developers, EPC contractors, O&M contractors, panel manufacturers, landlords and distribution network operators.

The Articles provide that gearing, calculated as Group Borrowing (including any asset level gearing) as a percentage of the Company's GAV, will not exceed 50 percent at the time of drawdown. It is the Board's current intention that long-term gearing (including long-term, asset level gearing), calculated as Group borrowings (excluding intra-group borrowings (i.e. borrowings between members of the Group) and revolving credit facilities) as a percentage of the Company's GAV will not exceed 40 per cent at the time of drawdown.

Any material change to the investment policy will require the prior approval of shareholders by way of an ordinary resolution (for so long as the Ordinary Shares are listed on the Official List) in accordance with the Listing Rules.

SIGNIFICANT SHAREHOLDERS

The Company's shareholders include a substantial number of blue-chip institutional investors.

Shareholders in the Company with more than a 5% holding as at 30 June 2018 are as follows:

ALTERNATIVE INVESTMENT FUND MANAGEMENT DIRECTIVE ("AIFMD")

The AIFMD, which was implemented across the EU on 22 July 2013 with the transition period ending on 22 July 2014, aims to harmonise the regulation of Alternative Investment Fund Managers ("AIFMs") and imposes obligations on managers who manage or distribute Alternative Investment Funds ("AIFs") in the EU or who market shares in such funds to EU investors. Under the AIFMD, the Company is self-managed and acts as its own Alternative Investment Fund Manager.

Both the Company and the Investment Manager are located outside the European Economic Area ("EEA") but the Company's marketing activities in the UK are subject to regulation under the AIFMD.

PACKAGED RETAIL AND INSURANCE-BASED INVESTMENT PRODUCTS REGULATION

A new EU regulation, the Packaged Retail and Insurance-based Investment Products Regulation ("PRIIPS"), came into effect on 1 January 2018. Its aim is to ensure retail investors are provided with transparent and consistent information across different types of financial products. This new regulation requires the Company to publish a Key Information Document ("KID"). The KID is available on the Company's website under Publications and can be found at the following website address: http://fsfl.foresightgroup.eu/investor-relations/publications/kid/.

Board of Directors

The Directors, who are Non-Executive and independent of the Investment Manager, are responsible for the determination of the investment policy of the Company, have overall responsibility for the Company including its investment activities and for reviewing the performance of the Company's portfolio. The Directors are as follows:

Alex Ohlsson (Chairman)

Mr Ohlsson is Managing Partner of the law firm Carey Olsen in Jersey. He is recognised as a leading expert in corporate and finance law in Jersey and is regularly instructed by leading global law firms and financial institutions. He sits on the boards of a number of companies and is also chairman of the listed company GCP Asset Backed Income Fund Limited. He is an Advisory Board member of Jersey Finance, Jersey's promotional body and Treasurer of the Jersey Law Society. He has recently retired as the independent chairman of the States of Jersey's Audit Committee. He was educated at Victoria College, Jersey and at Queens' College, Cambridge, where he obtained an MA (Hons) in Law. He has also been an Advocate of the Royal Court of Jersey since 1995.

Mr Ohlsson was appointed as a Non-Executive Director and Chairman on 16 August 2013 and was reappointed on 11 June 2018.

Chris Ambler

Mr Ambler has been the Chief Executive of Jersey Electricity Plc since 1 October 2008. He has experience in a number of senior positions in the global industrial, energy and materials sectors working for major corporations including ICI/Zeneca, The BOC Group and Centrica/British Gas, as well as in strategic consulting roles. He is a Director on other boards including a Non-Executive Director of Apax Global Alpha Limited, a listed fund which launched on the London Stock Exchange on 15 June 2015. Mr Ambler is a Chartered Director, a Chartered Engineer and a Member of the Institution of Mechanical Engineers. He holds a First Class Honours Degree from Queens' College, Cambridge and an MBA from INSEAD.

Mr Ambler was appointed as a Non-Executive Director on 16 August 2013 and was reappointed on 11 June 2018.

Peter Dicks

Mr Dicks is currently a Director of a number of quoted and unquoted companies. In addition, he was the Chairman of Foresight VCT plc and Foresight 2 VCT plc from their launch in 1997 and 2004 respectively until 2010 and served on the Board of Foresight VCT plc until May 2018. He is also on the Board of Mercia Fund 1 General Partnership Limited and Miton UK Microcap Trust plc and Chairman of Unicorn AIM VCT plc and SVM Emerging Fund.

Mr Dicks was appointed as a Non-Executive Director on 16 August 2013 and was reappointed on 11 June 2018.

Investment Manager

The Company's Investment Manager, Foresight Group CI Limited ("Foresight Group"), is responsible for the development and management of the Company's assets, including the sourcing and structuring of new acquisitions and advising on the Company's borrowing strategy. The Investment Manager is a Guernsey registered company, incorporated under the Guernsey Law with registered number 51471. The Investment Manager is licensed and regulated by the Guernsey Financial Services Commission.

Founded in 1984, Foresight Group is a leading independent infrastructure and private equity investment manager that currently manages over £2.5 billion of assets on behalf of institutions and retail clients. Foresight Group's infrastructure team manages £2.2 billion of the £2.5 billion under management, invested in energy infrastructure assets representing 1.6GW of capacity. The solar investment team was established in 2007 and today it manages assets representing £1.3 billion, invested in 80 solar power plants across the UK, Europe and Australia with a total generating capacity of 1.1GW (788MW of which is managed by the Company). In Australia, following the recent acquisitions made on behalf of the Company, Foresight Group is now a significant investor in the Australian market with 252MW under management. Other solar assets include an 21MW portfolio of unsubsidised solar assets in Portugal and Spain, including one of the first corporate PPAs in that market.

The solar investment team, which includes 25 investment professionals, forms part of Foresight Group's 39 strong dedicated multinational energy infrastructure investment team. In the UK, the wider infrastructure team also manages 463MW of investments in bioenergy projects, onshore wind, lithium ion battery storage facilities and reserve power generation assets.

The Company's Investment Management team is led by three experienced UK-based managers and supported by a further team of solar investment managers located in the UK and internationally. The Investment Management team based in Australia has grown to six people comprising three investment professionals, one technical professional and two support staff. This team has been instrumental in the management of the Company's four Australian assets.

Foresight Group is overseen by an Executive Committee of which Gary Fraser is a member. Foresight Group's Executive Committee provides strategic investment advice to the management team and the Board.

During the period, Jamie Richards retired from Foresight Group, the Investment Manager. The Board and Foresight Group would like to thank Jamie, who was heavily involved in the original launch of the Fund and for his contribution during that period. Matt Hammond replaced Jamie on the Company's Investment Management team. Matt is a Director at Foresight Group and has over 20 years' experience in the infrastructure and renewable energy sector.

RICARDO PINEIRO, PARTNER, HEAD OF UK SOLAR

Ricardo has led Foresight Group's UK solar investments since 2011 and has been part of the Fund's management team since IPO. He has overseen more than 60 acquisitions representing over 800 MW and remains primarily focused on leading new renewable energy transactions across UK and international markets. Prior to joining Foresight, Ricardo worked at Espirito Santo Investment where he focused on lending and advisory for the energy infrastructure and transportation sectors.

GARY FRASER, PARTNER, CHIEF FINANCIAL OFFICER

Gary is a Chartered Accountant and Chartered Fellow of the Securities Institute. He worked with Ernst & Young between 1993 and 1999, predominantly in the audit and risk assurance and corporate finance areas and joined ISIS Asset Management plc in 1999 where he was responsible for the provision of similar services to several investment companies. He joined Foresight Group in 2004 and is an Executive Committee member.

MATT HAMMOND, DIRECTOR

Matt has worked as a Director at Foresight since 2015. Prior to joining Foresight Matt was a Director at Macquarie where he focused on infrastructure and renewable energy advisory, investing and lending. He has also worked at Henderson, BT Alex Brown and the WHEB Group where he raised and invested two renewable energy funds investing across Europe.

Asset Manager

The Company's underlying investment vehicles have appointed Foresight Group LLP, a subsidiary of Foresight Group CI, to act as Asset Manager. The Asset Manager is responsible for all operations, including the commercial, financial and technical management of assets under construction acquired by the Company. Foresight Group LLP is authorised and regulated by the Financial Conduct Authority.

Since 2011, Foresight Group has developed a leading Asset Management capability with expertise across electrical and civil engineering, finance and legal disciplines. The team manages over 140 energy infrastructure projects including solar, battery storage, reserve power, bio-energy and onshore wind investments, with 1.6GW of renewable energy capacity.

TOM MOORE, DIRECTOR

Tom has responsibility for the financial and operational performance of Foresight Group's energy infrastructure assets. Tom joined Foresight Group in 2013, having previously worked as Financial Controller at a hedge fund with oversight of internal finance, operations and compliance. He also performed advisory work for M&A transactions and corporate restructurings. Before this he spent four years in practice with Saffery Champness. Tom is a Chartered Accountant and holds a BSc in

Economics from The University of York.

ARNOUD KLAREN, TECHNICAL DIRECTOR

Arnoud joined Foresight Group in 2011 and is responsible for the technical aspects of Foresight Group's solar portfolio. Arnoud previously worked at SolFocus as a Project Manager where he focused on the deployment of concentrated photovoltaic plants in Southern Europe and the Middle-East. Prior to this, Arnoud founded ThinkSpectrally, a spin-off company of The University of Valencia in Spain, dedicated to quality assurance in the PV manufacturing process. Arnoud holds a MSc degree in Electrical Engineering from the Twente University of Technology in The Netherlands.

JULIAN ELSWORTH, SENIOR PORTFOLIO MANAGER

Julian joined Foresight Group in 2013 and has over 14 years of experience in the renewable energy industry. Julian is responsible for the management of the technical and commercial aspects of the UK solar portfolio. Prior to joining Foresight Group, Julian worked as a Senior Consultant for a large engineering consultancy where he focused on a variety of renewable energy projects globally. Julian is a Chartered Engineer and holds an MSc in Renewable Energy and the Environment from Reading University.

TULLY ROBERTSON, TECHNICAL PORTFOLIO MANAGER

Tully joined Foresight Group in 2018 and is based in Sydney. He is an electrical engineer with 13 years' experience in project/contract management, design and commissioning of various high voltage infrastructure projects throughout Australia. Tully has also performed design reviews and written EPC specifications for utility scale wind and solar farm projects in Australia. Tully is a Chartered Professional Engineer (CPEng), Registered Professional Engineer of Queensland (RPEQ) and Member of the Institution of Engineers Australia (MIEAust).

Portfolio Assets

Current Portfolio

Portfolio ACQUIRED POST PERIOD END

1 Original cost at time of acquisition, including transaction costs

Investment Manager's Report

For the period ended 30 June 2018

KEY INVESTMENT METRICS

PORTFOLIO SUMMARY

At the period end, the Company's portfolio consisted of 28 assets with total net peak capacity of 674MW. The UK portfolio represents a total installed capacity of 528MW across 24 operational assets accredited under the Renewables Obligation ("RO") scheme, with the exception of Yardwall which is Feed-in-Tariff ("FiT") accredited asset. The international portfolio consists of four assets located in Australia, representing 146MW of net installed capacity. The first Australian asset, Longreach, connected to the grid in March 2018, with the remaining three Australian assets under construction and expected to connect to the grid during the second half of 2018. The Australian assets benefit from subsidies in the form of Large-Scale Generation Certificates ("LGC").

During the period approximately, 53% of total revenues resulted from the sale of green certificates and FiT payments, with the remaining 47% representing the sale of the electricity generated by the assets in the Company's portfolio. The ROC buy-out price for the annual compliance period commencing in April 2018 increased to £47.22 (2017-18 compliance period: £45.58), reflecting the average monthly percentage change in RPI during 2017.

The Investment Manager has selected assets that deliver portfolio diversification by geographical location, panel manufacturers and O&M counterparties. The Australian assets, which at period end represented c.13% of the total equity invested, provide further diversification in a high irradiation environment and are expected to generate attractive returns on a risk-adjusted basis.

UK ACQUISITIONS

In April 2018, the Company acquired a portfolio of five operational solar parks with a total installed capacity of 53.3MW. The portfolio was acquired for £36.6 million, including transaction costs and approximately £4.2 million of cash balances. As part of the transaction, the Company acquired the economic benefit of all project cash flows from 1 January 2018.

At the date of acquisition, the portfolio had in place long-term debt facilities with an outstanding balance of £31.8 million provided by Macquarie Infrastructure Debt Investment Solutions, an existing lender to the Company investment portfolio.

The five assets acquired are detailed below:

The portfolio also includes a 0.5MW onshore wind asset. The Company plans to hold this asset on a temporary basis. The asset was commissioned in December 2014 and accredited under the FiT scheme. The asset represents an insignificant part of the investment portfolio, representing less than 1% of the Company's NAV.

POST PERIOD END

In August 2018, the Company acquired a 114MW operational portfolio for an equity consideration of £47 million, including the economic benefit of all cashflows from 1 April 2018. The portfolio consists of 15 assets located in the UK, all accredited under the RO scheme, receiving a weighted average of 1.41 ROCs/MWh.

The transaction offered a unique opportunity to the Company as the portfolio was acquired from funds managed by Foresight Group LLP. All assets in the portfolio have been in operation for a minimum period of two years and have been managed by Foresight's in-house Asset Management team, thereby ensuring the quality of assets.

The portfolio offers a wide range of module manufacturers and O&M contractors servicing the individual assets, thereby increasing the diversification of the Company's UK portfolio.

The portfolio currently has debt facilities in place totalling £107.2 million provided by the Royal Bank of Scotland, which have been arranged on an asset by asset basis. It is the Company's intention to refinance these facilities and other UK assets in the Company's portfolio currently funded by Revolving Credit Facilities ("RCFs") as a whole within the next 12 months.

The 15 assets acquired are detailed below:

POWER PRICES

UK

Power prices averaged approximately £50/MWh for most of Q1 2018 but increased significantly in March due initially to the very low temperatures and adverse weather that resulted in higher gas prices in Europe, with the daily average price temporarily increasing to £98/MWh at the beginning of March. The European Emission Allowances ("EUA") carbon price also rose significantly during Q1 2018 which further supported the increase in power prices.

In Q2 2018 power prices remained relatively stable, largely supported by gas prices and the continued rise in EUA carbon prices.

The Company's PPA strategy seeks to optimise revenues from power generated, while keeping the flexibility to manage the portfolio appropriately.

The Company continues to take advantage of current attractive forward electricity prices and has increased the proportion of fixed price arrangements from 29% (31 December 2017) to 54% of the electricity sales of the UK portfolio as at 30 June 2018. This increase is driven by new fixed price arrangements across six assets until 30 September 2018, at a weighted-average price of £48.07/MWh. Additionally, the 53.3MW portfolio acquired in April had, at the time of acquisition fixed price arrangements in place until 30 September 2018, at a weighted-average price of £44.83/MWh. This provides greater visibility over future cash flows and limits potential price volatilities in the short term.

The average power price for the UK portfolio during the period, including fixed price arrangements was £46.54, versus £40.61 in the first half of 2017, an increase of 14.6%.

The Investment Manager regularly reassesses conditions in the electricity market and updating its view on likely future movements. The Company retains the option to fix the PPAs of its portfolio assets at any time, but the Investment Manager is satisfied that the current proportion of fixed price arrangements offers an appropriate level of price certainty.

australia

In 2017, energy prices increased across the majority of regions as a result of the closure of base load plants (Hazelwood, Wallerawang, Northern and Swanbank E) and reduced availabilities of the coal fleet, as well as higher periods of electricity consumption and peak demand. South Australia and Tasmania exhibited the sharpest increases in pricing due to an extended period of outage of the interconnector with Victoria (in the case of Tasmania) and as a result of gas supply constraints over winter combined with interconnector outages (in the case of South Australia).

Wholesale prices during the first half of 2018 have fallen versus 2017 due to an increase in renewables penetration and reduced demand from large energy consumers.

The Investment Manager is currently reviewing the PPA options for Oakey 2 and expects to enter an agreement in advance of the target commissioning date in October 2018.

POWER PRICE FORECASTS

The Investment Manager uses forward looking power price assumptions to assess the likely future income of the portfolio assets for valuation purposes. The Company's assumptions are formed from a blended average of the forecasts provided by third party consultants and are updated on a quarterly basis for each relevant market.

UK

During the period, there was a downward movement of c.2.9% in the medium to long-term power price forecast driven by an expected higher penetration of installed renewable generation capacity and fall in commodity prices.

The Company's forecasts assume an increase in power prices in real terms over the medium to long-term of 1.1% per annum (31 December 2017: 1.3%).

Where the assumed asset life extends beyond 2040, the Investment Manager has assumed no real growth in forecast power prices.

AUSTRALIA

Prices are expected to fall between now and 2020 as a result of increasing levels of new renewable generation capacity entering the market under the large scale renewable energy target (LRET), in combination with stable levels of projected demand, as anticipated at the time of the Company's initial investment in the Australian market.

The federal government has announced its intention to introduce a National Energy Guarantee ("NEG") which is expected to reduce electricity prices, while continuing to provide a higher revenue stream for renewables in the form of higher contract prices linked to emission intensity. Further changes to the energy efficiency policy or the Renewable Energy Target are also feasible, as well as policy changes to encourage greater than 26% emissions reductions in the energy sector as reductions in other sectors are less feasible. On 20 August 2018 the federal government announced the NEG framework would no longer legislate on the country's commitment to reduce emissions by 26% by 2030, focusing instead on ministerial regulation driven by consumer electricity prices. The policy details and implementation of the NEG are yet to be finalised by the federal government.

THIRD PARTY DEBT ARRANGEMENTS AND Gearing Position

As at 30 June 2018, the total outstanding long-term debt was £201.0 million, representing 27% of GAV of the Company and Subsidiaries (31 December 2017: £152.4 million or 22% of GAV).

As at 30 June 2018, the total outstanding debt including RCFs was £306.0 million, representing 41% of GAV (31 December 2017: £200.3 million or 29% of GAV.)

Long Term Facilities

As at 30 June 2018, £186.6 million of long-term debt facilities was outstanding*. This figure includes the £31.8 million debt facilities in place at the date of acquisition of the 53.3MW portfolio acquired in April 2018. The new debt facilities have a remaining tenure of 16 years and includes an inflation-linked and a fixed-rate tranche, representing 85% and 15%, respectively, of the total facility amount. Inflation linked debt facilities represent £90.9 million of the total long-term debt outstanding as of 30 June 2018.

* Includes £5.8m of nominal revaluation of the inflation-linked facilities.

At 30 June 2018, the average cost of long-term debt, including the new facility was 2.47% per annum (2017: 2.5%), including the cost of the inflation linked facilities of 1.35% per annum. The cost of the inflation linked facility is expected to increase over time assuming the Company's long-term annual RPI forecast of 2.75%, to an equivalent average annual cost of c.2.99% over the term of the facilities.

Revolving Credit Facilities

As part of the acquisition of five new assets in April 2018, the Company agreed a £10 million facility extension of the RCF entered in February 2017 at the prevailing rate of LIBOR + 2%. As at 30 June 2018, RCFs of £105m were fully drawn.

At 30 June 2018 the all-in annualised cost of the revolving credit facilities was 1.71%. The Investment Manager expects to refinance the remaining balance either through future equity raisings or other long-term refinancing arrangement.

TERM FACILITIES FOR AUSTRALIAN ASSETS

As at 30 June 2018, the following project companies had drawn down on their debt facilities:

\* The balance of the loan as at the end of June, including capitalised interest and commitment fees was A$11.5m

When assets are not owned in their entirety by the Company only the pro-rata debt amounts drawn are considered for gearing ratio calculation purposes.

DIVIDENDS

Since the IPO, the Company has met all target dividends. The Company is targeting a full year dividend for the year ending 31 December 2018 of 6.58 pence.

DIVIDEND TIMETABLE FOR FY2018

The first interim quarterly dividend of 1.64 pence for the year ending 31 December 2018 will be paid on 24 August 2018.

On 21 August 2018 the Board approved the second interim dividend relating to FY2018 of 1.64 pence per share.

DIVIDEND COVER

Total dividends of £27.9 million were paid during the year to 30 June 2018. Compared with the relevant net cash flows of the Company and underlying investments, these dividends were covered 1.14 times when dividends paid to new equity are excluded.

FOREIGN EXCHANGE

As a result of its Australian acquisitions, the Company will be exposed to foreign exchange movements in respect of these investments. To reduce the impact of potential currency fluctuations and to minimise the volatility of equity returns and cash flow distributions, the Company will implement a hedging strategy by entering into forward contracts for up to two years in an amount equivalent to c.75% of its distributable foreign currency cash flows at project level. Due to the predictable nature of solar irradiation in Australia, and the known dividend payment dates, the Investment Manager believes this hedging solution will protect the cash yields from the Australian projects.

The cost of the equity investments will not benefit from foreign exchange hedging, considering the long-term investment strategy of the Company.

The Company will review this foreign exchange strategy on a semi-annual basis with the objective of limiting the short-term volatility in sterling distributable cash flows caused by foreign exchange fluctuations and of optimising the costs of the hedging instruments.

ONGOING CHARGES

The ongoing charges ratio for the year to 30 June 2018 was 1.19% (31 December 2017: 1.18%). This has been calculated using methodology as recommended by the Association of Investment Companies ("AIC"). Foresight Group LLP charges asset management fees directly to the assets and these are not included within the ongoing charge ratio.

INVESTMENT PERFORMANCE

The NAV per share for the Company as at 30 June 2018 decreased to 105.2 pence compared to 107.0 pence as at 31 December 2017.

GROSS ASSET VALUE ("GAV")

The GAV of the Company is £749.0 million as at 30 June 2018. The reconciliation below shows the GAV as it would be on a consolidated basis when all third party debt at the intermediate holding level is included. There is no external debt at asset level for the UK assets.

MOVEMENTS IN NAV

A breakdown in the movement of the Group NAV during the reporting period is shown in the table below.

* Movement in the valuation of underlying solar assets

VALUATION OF THE PORTFOLIO

The Investment Manager is responsible for providing fair market valuations of the Company's underlying assets to the Board of Directors. The Directors review and approve these valuations following appropriate challenge and examination. Valuations are undertaken quarterly. A broad range of assumptions is used in the valuation models. These assumptions are based on long-term forecasts and are not affected by short-term fluctuations, be it economic or technical.

It is the policy of the Investment Manager to value with reference to Discounted Cash Flows ("DCF") at the later of commissioning or transaction completion. This is partly due to the long periods between agreeing an acquisition price and financial completion of the acquisition. Quite often this delay reflects construction. Revenues accrued do not form part of the DCF calculation when making a fair and proper valuation.

The current portfolio consists of non-market traded investments and valuations are based on a DCF methodology or held at cost where the assets have not yet reached commissioning. This methodology adheres to both IAS 39 and IFRS 13 accounting standards as well as the International Private Equity and Venture Capital ("IPEV") Valuation Guidelines.

The Company's Directors review the operating and financial assumptions, including the discount rates, used in the valuation of the Company's portfolio and approve them based on the recommendation of the Investment Manager.

As reported in the 2017 Annual Accounts, as of 31 December 2017 the Company adapted its valuation methodology to apply a levered equity discount rate of 7.75% for UK assets which utilise long term debt facilities whilst maintaining an unlevered equity discount rate of 7.0% for those assets that are funded by equity or RCF proceeds. As of 30 June 2018, the discount rates remained unchanged, with Shotwick, Sandridge and Wally Corner, being valued at a 7.0% unlevered discount rate and the remaining assets in the UK portfolio valued at a levered equity discount rate of 7.75%.

The discount rate used for those assets which have received lease extensions is 9% after 25 years.

Longreach, the first Australian asset to become operational, is being valued applying a levered discount rate of 8.5%.

DIVIDEND PAID

The Company paid dividends of £14.2 million during the period 1 January 2018 to 30 June 2018.

INTEREST EARNED

The Company and its subsidiaries accrued £17.4 million of investment income during the reporting period. This income represents distributions from the underlying assets.

COSTS

Total costs of £4.9 million, which include corporation tax, management fees, finance and other costs, were incurred by the Company and its subsidiaries on a consolidated basis during the year.

INFLATION

The Investment Manager continues to use 2.75% as its medium/long-term inflation assumption. As at 30 June 2018, the models reflect OBR forecasts for the period between 2018 and 2020 are: 3.46%, 2.71% and 2.89% respectively.

ACQUISITIONS

During the period the Company completed the acquisition of a 53.3MW portfolio of five assets located in the UK, resulting in a NAV uplift of £0.5 million which represents the difference between the acquisition prices paid and the current valuations.

Longreach connected in March and as such has been revalued this quarter using the discounted cash flow methodology, in line with the rest of the portfolio. This resulted in a NAV uplift of £0.4 million.

The remaining Australian acquisitions are valued at cost and will continue to be held at cost until the assets become connected to the grid. These asset valuations are updated quarterly to reflect movements related to exchange rate.

EQUITY RAISED

No Share Placings took place during the reported period. The 30 June 2018 valuation does not include the £48.1 million proceeds from the July fundraise.

DISCOUNT RATE

The Company's discount rates reported above remain unchanged and as reported in the 31 December 2017 Annual Accounts.

The Investment Manager regularly reviews the discount rate to ensure it remains in line with any changes to the risk profile of the Company.

VALUATION DATE

This movement represents the impact of moving from one valuation date to another. Over the life of an asset this movement will reduce the valuation to nil. Short term increases arise from moving towards higher cash yields (and therefore discounting them less).

PERFORMANCE RATIO ("PR")

The performance ratio assumptions in the valuation models are initially linked to contractually guaranteed performance and the initial technical due diligence findings at the time of acquisition. The long-term assumptions are adjusted on an ongoing basis as more data becomes available, recognising the actual performance ratios experienced across the portfolio on an asset by asset basis. This approach is applied on a quarterly basis to ensure valuation assumptions better reflect the actual performance of the sites. The movements in assumed performance ratios are implemented conservatively at a rate that ensures short term fluctuations do not inflate performance potential.

POWER CURVE

The Investment Manager uses forward looking power price assumptions to assess the likely future income of the portfolio assets for valuation purposes. The Company's assumptions are formed from a blended average of the forecasts provided by third party consultants and are updated on a quarterly basis.

During the period there was a downward movement of 2.9% in the medium to long term power price forecast. The Company's forecasts continue to assume an increase in power prices in real terms over the medium to long-term of 1.1% per annum (31 December 2017: 1.3%).

OTHER MOVEMENTS

This includes other factors behind the valuation movement for example revisions in underlying assumptions regarding operational efficiencies, such as insurance.

lease extensions

Prior to the period, the Asset Manager secured lease and planning rights to extend the useful economic life of eight assets in the portfolio by up to an extra ten years beyond the standard 25-year period. These extensions are included in the DCF model.

The cash flows from operations that fall after the initial 25-year period have been discounted at 9.0%, reflecting the merchant risk of the expected cash flows beyond the initial 25-year period.

The average extension to useful economic life across the eight assets is 8.2 years with additional costs incorporated into the extended lives. The weighted life of the UK portfolio as at 30 June 2018 is 28.3 years (31 December 2017: 28.7 years).

There have been no lease extensions during the reported period.

VALUATION SENSITIVITIES

Where possible, assumptions are based on observable market and technical data. In many cases, such as forward power prices, independent advisors are used to provide reliable and evidenced information enabling the Investment Manager to adopt a prudent approach. The Investment Manager has set out the inputs which it has ascertained would have a material effect upon the NAV in note 16 of the financial statements. All sensitivities are calculated independently of each other.

Asset Manager's Report

Portfolio Performance

UK PORTFOLIO PERFORMANCE

The Asset Manager is pleased with production levels during the period, which were driven by higher than expected levels of irradiation. For the period production levels were 0.9% above expectations versus irradiation levels, which were 3.2% above forecasts.

The portfolio performance continued to improve during the first half of the year with only two isolated events causing production variance to fall behind irradiation variance. Those incidents, which will be compensated for through insurance and contractual liquidated damages are explained in more detail below. The incidents are isolated events and will not affect the long-term performance of the assets.

Further EPC remedial works were performed on three of the SunEdison-built sites which experienced underperformance in 2017 (Pitworthy, High Penn, Highfields). These sites combined represent 7% of UK installed capacity, with works resulting in lower availability than our long-term assumptions provide for. There is no concern around the long-term performance capability of these sites but the works needed are taking longer than initially envisaged.

PRODUCTION

The production figures below have been adjusted for events where compensation has been, or will be, received.

SHOTWICK (72MW)

On 25 April 2018, there was a break-in at Shotwick and cable was stolen from the site. The EPC reacted quickly, the damage was rectified and the site was fully operational by the end of May. The Asset Manager considers this an insurable event. This Incident accounted for 0.8% of Shotwick's expected production for the period.

On 25 June 2018, the cable connecting the solar power plant and the substation failed, forcing the site offline. The Asset Manager and Independent Connection Provider ("ICP") worked continuously to ensure re-energisation of the site as quickly and safely as possible. The cable route in question ran over and along a railway bridge, main road and gas main pipeline. The site was re-energised on 27 July 2018. The Investment Manager expects compensation to be received through a combination of insurance and ICP damages representing a high proportion of the revenues losses. Production losses not covered by insurance or contractual protection are expected to be around £0.32m.

CASTLE EATON (18MW), HIGH PENN (10MW), HIGHFIELDS (12MW) AND PITWORTHY(16MW)

In the six month period, the four sites have seen a marked improvement in performance. During the period, minor incidents occurred at High Penn, Highfields and Pitworthy, which reduced site availability. The incidents at High Penn and Highfields were dealt with in a timely manner and are of no ongoing concern to the Asset Manager. Pitworthy continues to be impacted by a lack of availability of inverters. The Asset Manager is working with the O&M Contractor and the inverter manufacturer to improve the situation. Despite this, during the period Pitworthy has seen continued improvement in performance due to the ongoing works. Castle Eaton performed in line with expectation.

KENCOT (37MW)

Under performance at Kencot was due to the failure of separate voltage transformers twice within the period, affecting approximately 50% of the site's capacity. The first instance occurred from 23 February to 10 March. The second from 9 April to 15 May. Liquidation damages are being sought from the O&M Contractor to cover periods of unavailability.

AUSTRALIAN CONSTRUCTION ASSETS

The Australian assets in construction have shown positive progress, with Longreach becoming the first operational asset and the remaining assets expected to connect to the grid in the second half of 2018.

Bannerton

Construction works on site remain broadly on time however the project is experiencing delays with the grid connection works that in turn are expected to cause delays in achieving full export capacity. The project is expected to be partially exporting at the end of August with full export targeted during early November 2018. The Company is protected financially from losses resulting from the grid connection delay under the existing project contracts.

Longreach

Construction of Longreach is complete and the site is now operational. The project connected to the grid in March 2018 and has started exporting electricity.

Oakey 1 and Oakey 2

Construction is progressing well with both sites currently on track to connect to the grid in September and October 2018 respectively.

The Investment Manager is currently reviewing the PPA options for Oakey 2 and expects to enter an agreement in advance of the target commissioning date in October 2018.

Environmental, Social and Governance Considerations

Environmental, Social and Governance ('ESG") considerations inform and shape all stages of the Company's investment process and the day-to-day operations of the portfolio to ensure sustainable, long-term growth.

Foresight Group is a signatory to the United Nations Principles for Responsible Investment ("UNPRI"). As a signatory to this voluntary framework, Foresight Group submits an annual report to the UNPRI on its responsible investment activities. For the 2017 full year period, both Foresight Group as an organisation, and Foresight Group's Infrastructure division, were awarded A ratings.

ENVIRONMENTAL STEWARDSHIP

In addition to the environmental advantages of large scale renewable energy, each investment is closely monitored for its localised environmental impact. The Company works with residents, landowners and local authorities to help minimise the visual and auditory impact of sites. Solar power plants are managed in a manner that maximizes the agricultural, landscaping, biodiversity and wildlife potential, which can also contribute to lowering maintenance costs and enhancing security.

During the six-month period, the Company continued its efforts to ensure the solar power plants are being effectively managed for biodiversity. Enhancement measures are installed and effectively maintained by conducting biodiversity audits. These audits ensure the following:

The Asset Manager is actively promoting beekeeping on the solar power plants to assist in restoring the native bee population and provide local opportunities for artisanal honey production. The Asset Manager is also looking to seed sites with nectar rich wildflower species to attract bees, birds and insects. On those sites where the land was previously used for sheep grazing, the Asset Manager has ensured that the solar plants do not displace tenant sheep graziers. Some sites have also been designed to allow for sheep grazing through the installation of protective barriers around electrical equipment.

At Paddock Wood solar power plant a new apple orchard and 440 metres of new hedgerow have been planted. In addition to this, wildflowers were planted, log piles built, bird and bat boxes installed and a local bee keeper invited to keep hives at the site. Funds have also been raised to set up signs for the Hop Pickers Line Heritage Trail as the solar power plant is located on the historic hop pickers railway route where London families used to take 'Hopper Specials' from London Bridge Station to the hop fields for harvesting to earn extra income and enjoy the countryside.

During the period, the Company's 528MW operational UK portfolio produced 260GWh of clean energy. This is the equivalent of:

Social and Community Engagement

The Asset Manager actively seeks to engage with the local communities around the Company's solar assets and has organised a number of educational site visits. For example, at the Company's Australian site, Bannerton, located in Victoria, students from Robinvale College visited the site and learnt about solar power, electricity and the solar panel process. In March 2018, the Company also launched the Bannerton solar park grant scheme, providing grants of up to $5,000 to local community groups. The groups which were awarded the grant were: Rotary Club of Robinvale- Euston, St Vincent de Paul Society Robinvale, Murray Valley Aboriginal Co-operative, Robinvale College, Mallee Almond Blossom Festival, Englefield V8 Car Trek team, Robinvale Storm Rugby Club, Robinvale - Euston Netball Club and Robinvale Rowing Club and Youth Association.

In the UK, for the second year running, in April 2018, the Company invited the Institution of Engineering and Technology to visit Wymeswold solar power plant in Leicestershire. The group toured the 78-hectare site to witness first-hand the operational aspects of a solar power plant. The site's Operations and Maintenance (O&M) contractor, Brighter Green Engineering, explained details of the day-to-day management of the solar power plant and steps taken to maximise operational efficiency and environmental stewardship.

The Asset Manager also regularly attends parish council meetings to encourage community engagement and promote the benefits of the solar assets. The Company also supports community benefit schemes to develop and maintain community assets. Projects funded include upgrading recreational facilities and playgrounds and the provision of bus shelters in rural communities.

Governance

The Asset Manager regularly reviews all solar assets to ensure they are compliant with planning consents and the conditions attached to them and actively engages with local councils. In addition to ensuring the Company is protected from prosecution, this also promotes trust with local communities.

Principal Risks

The Directors consider the following as relevant risks and uncertainties and mitigants to the Company at this time:

More detailed information on the risks and uncertainties affecting the Company can be found on pages 19-37 of the Company's most recent Prospectus issued on 3 March 2017 and the Risk Management section in the Company's latest Full Year Results Report for the year ended 31 December 2017.

Statement of Directors' ResponsibilitiesFor the period 1 January 2018 to 30 June 2018

The Disclosure Guidance and Transparency Rules ("DTR") of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Unaudited Half-Yearly Financial Report for the six months ended 30 June 201.

The Directors confirm to the best of their knowledge that:

(a) the summarised set of financial statements has been prepared in accordance with the pronouncement on interim reporting issued by the Accounting Standards Board;

(b) the Unaudited Half-Yearly Financial Report for the six months ended 30 June 2018 includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months of the year and a description of principal risks and uncertainties that the Company faces for the remaining six months of the year);

(c) the summarised set of financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company as required by DTR 4.2.4R; and

(d) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

For and behalf of the Board

Alexander OhlssonChairman

22 August 2018

Statement of Comprehensive IncomeFor the period 1 January 2018 to 30 June 2018

All items above arise from continuing operations, there have been no discontinued operations during the period. 

The accompanying notes on pages 48 to 73 form an integral part of these Financial Statements.

Statement of Financial Position

As at 30 June 2018

The Financial Statements on pages 44 to 73 were approved by the Board of Directors and signed on its behalf on 21 August 2018 by:

Alexander Ohlsson

Chairman

The accompanying notes on pages 48 to 73 form an integral part of these Financial Statements.

Statement of Changes in EquityFor the period 1 January to 30 June 2018

For the period 1 January 2017 to 30 June 2017 (unaudited)

For the period 1 January 2017 to 31 December 2017 (unaudited)

The accompanying notes on pages 48 to 73 form an integral part of these Financial Statements.

Statement of Cash FlowsFor the period 1 January to 30 June 2018

The accompanying notes on pages 48 to 73 form an integral part of these Financial Statements.

Notes to the Financial StatementsFor the period 1 January to 30 June 2018

1. Company information

Foresight Solar Fund Limited (the "Company") is a closed-ended company with an indefinite life and was incorporated in Jersey under the Companies Law (Jersey) 1991, as amended, on 13 August 2013, with registered number 113721. The address of the registered office is: 28 Esplanade, St Helier, Jersey, JE4 2QP.

The Company has one investment, Foresight Solar (UK Hold Co) Limited ("UK Hold Co"). Up to 31 March 2016, UK Hold Co invested in further holding companies (the "SPVs") which then invested in the underlying solar investments. On 11 January 2016, UK Hold Co incorporated a subsidiary, FS Holdco Limited ("FS Holdco"). On 31 March 2016, UK Hold Co transferred all equity investments and related shareholder loans in the SPVs to FS Holdco in return for 16 ordinary shares issued by FS Holdco Limited and a loan receivable on a pari passu basis.

On 1 December 2016, UK Hold Co incorporated a further subsidiary, FS Holdco 2 Limited ("FS Holdco 2"), which in turn incorporated a subsidiary, FS Debtco Limited ("FS Debtco"), on 2 December 2016. FS Debtco invested in SPVs which then invested in the underlying solar investments.

During the year ended 31 December 2017, UK Hold Co incorporated two additional subsidiaries, FS Holdco 3 Limited ("FS Holdco 3"), on 31 August 2017 and FS Holdco 4 Limited ("FS Holdco 4"), on 1 September 2017. FS Holdco 3 and FS Holdco 4 invested in SPVs which then invested in the underlying solar investments.

The principal activity of the Company, UK Hold Co, FS Holdco, FS Holdco 2, FS Debtco, FS Holdco 3, FS Holdco 4 and the SPVs (together "the Group") is investing in operational UK and Australian ground based solar power plants.

2. Summary of significant accounting policies

2.1 Basis of presentation

The Unaudited Interim Financial Statements (the "Interim Financial Statements") for the period 1 January 2018 to 30 June 2018 have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' ("IAS 34").

The Interim Financial Statements do not include all the information and disclosures required in the annual Financial Statements, and should be read in conjunction with the annual Financial Statements as at 31 December 2017.

These are not statutory accounts in accordance with Article 105 of the Companies Law (Jersey) 1991, as amended and the financial information for the period ended 30 June 2018 and 30 June 2017 has been neither audited nor formally reviewed. Statutory accounts in respect of the period to 31 December 2017 have been audited and reported on by the Company's auditors and delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Article 113B (3) or 113B (6) of the Companies Law (Jersey) 1991. No statutory accounts in respect of any period after 31 December 2017 have been reported on by the Company's auditors or delivered to the Registrar of Companies.

2.2 Going concern

The Directors have considered the Company's cash flow projections for a period of no less than twelve months from the date of approval of these Interim Financial Statements together with the Company's borrowing facilities. These projections show that the Company will be able to meet its liabilities as they fall due.

The Directors have therefore prepared the Interim Financial Statements on a going concern basis.

2.3 Changes in accounting policies and disclosures

New and revised IFRSs adopted by the Company

The accounting policies used in the preparation of the interim financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 31 December 2017 and are expected to be consistently applied during the year ended 31 December 2018.

In addition, the following new standards and amendments to standards and interpretations are effective for annual periods after 1 January 2018 and will be applicable for the year ended 31 December 2018 and therefore for the current six month period ended 30 June 2018:

The impact of the adoption of these standards and the new accounting policies are disclosed in note 25. The other new or amended standards did not have any impact on the Company's accounting policies and did not require retrospective adjustments.

New and revised IFRSs in issue but not yet effective

There are no standards, amendments or interpretations in issue at the reporting date which have been issued but are not yet effective that are deemed to be material to the Fund.

2.4 Consolidation

Associates

Associates are entities over which the Company has significant influence, being the power to participate in the financial and operating policy decisions of the investee (but not control or joint control).

Subsidiaries

All subsidiaries are entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Investment Entity

Qualifying entities that meet the definition of an investment entity are not required to produce a consolidated set of Financial Statements and instead account for subsidiaries at fair value through profit or loss.

The defined criteria of an 'investment entity' are as follows:

However, the absence of one or more of these characteristics does not prevent the entity from qualifying as an 'investment entity', provided all other characteristics are met and the entity otherwise meets the definition of an 'investment entity':

As discussed in note 1, the Company has one direct subsidiary, a 100% controlling interest in UK Hold Co and a number of indirect subsidiaries.

Under IFRS 10 "Consolidated Financial Statements", the directors deem that the Company is an investment entity and therefore the Company does not consolidate its subsidiary but carries it at fair value through profit or loss. The Company does not meet all the defined criteria of an 'investment entity' as the Company only has one investment. However, the Directors deem that the Company is nevertheless an 'investment entity' as the remaining requirements have been met and, through the Group, there is a diverse investment portfolio which will fill the criteria of having more than one investment. Therefore, the Company qualifies as an 'investment entity'.

As UK Hold Co is not consolidated, its subsidiaries (plus their underlying investments) are not separately presented at fair value through profit or loss in the Company's accounts. However accounting standards require that if an investment entity is the parent of another investment entity, the parent shall also provide the additional disclosures required by IFRS 12 Interest in unconsolidated subsidiaries. These disclosures are set out in notes 16 and 17.

3. Critical accounting estimates and judgements

The preparation of Financial Statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.

The Board considers that the only areas where management make critical estimates and judgements that may have a significant effect on the financial statements are in relation to the valuation of financial assets at fair value through profit and loss, new significant judgements and key sources of estimation uncertainty related to the application of IFRS 15 and IFRS 9, which are described in Note 25 and the determination that the Company meets the definition of an investment entity, which is discussed in detail in note 2.4.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and underlying assumptions are reviewed on an ongoing basis.

The Board considers that the determination that the Company meets the definition of an investment entity involves significant judgement because the entity does not possess all the typical characteristics of an investment entity. While the absence of one or more of the typical characteristics of an investment entity described in IFRS 10 Consolidated Financial Statements does not immediately disqualify an entity from being classified as an investment entity. The entity is required to disclose its reasons for concluding that it is nevertheless an investment entity if one or more of these characteristics are not met. In order to reach that conclusion of whether the Company meets the definition of an investment entity the Board had to make significant judgements.

The Board considers that the fair value of Investments not quoted in an active market involves critical accounting estimates and judgements because it is determined by the Directors using their own models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. Models use observable data, to the extent practicable. However, they also rely on significant unobservable inputs about the output of the asset (including assumptions such as solar irradiation and technological performance of the asset), power prices, operating costs, discount and inflation rates applied to the cash flows, and the duration of the useful economic life of the asset. Furthermore, changes in these inputs and assumptions could affect the reported fair value of financial instruments. The determination of what constitutes 'observable' requires significant judgement by the Fund. The Fund considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

4. Interest income

Loan notes were issued by the Company to UK Hold Co for the purchase of investments. Interest is payable at 9% per annum in arrears on each Interest Payment Date (28 / 29 February and 31 August each year). Where interest is not paid on the payment date, it will compound and future interest shall accrue at 11% per annum from the due date up to the date of actual payment, compounding on each Interest Payment Date. The loan notes balance at period end on which interest is charged is £250,000,000 (30 June 2017: £250,000,000, 31 December 2017: £250,000,000). These loans form part of the fair value of the investments as per note 14.

A shareholder loan is created when the total amount paid by the Company on behalf of UK Hold Co to acquire the underlying investments is more than the total loan notes issued by the Company to UK Hold Co. Interest was previously accrued at 9% per annum, decreasing to 2% per annum with effect from 1 April 2017, and is repayable in full on demand. The shareholder loan balance at period end is £158,609,725 (30 June 2017: £126,609,725, 31 December 2017: £154,109,725). These loans form part of the fair value of the investments as per note 14.

5. Management fees

The Investment Manager of the Company, Foresight Group CI Limited, receives an annual fee of 1% of the Net Asset Value ("NAV") of the Company. This is payable quarterly in arrears and is calculated based on the published quarterly NAV. For the period ended 30 June 2018, the Investment Manager was entitled to a management fee of £2,299,044 (1 January 2017 to 30 June 2017: £1,306,418, 1 January 2017 to 31 December 2017: £4,276,808) of which £1,341,858 was outstanding as at 30 June 2018 (30 June 2017: £498,574, 31 December 2017: £1,257,741).

6. Administration and Accountancy fees

Under an Administration Agreement, the Administrator of the Company, JTC (Jersey) Limited, is entitled to receive minimum annual administration and accountancy fees of £156,000 (2017: £156,000) payable quarterly in arrears. For the period ended 30 June 2018, total administration and accountancy fees were £84,105 (1 January 2017 to 30 June 2017: £133,534, 1 January 2017 to 31 December 2017: £211,534) of which £39,000 was outstanding as at 30 June 2018 (1 January 2017 to 30 June 2017: £39,000, 1 January 2017 to 31 December 2017: £39,000).

7. Directors' fees

8. Other Expenses

Included within legal and professional fees is £19,750 (1 January 2017 to 30 June 2017: £6,400, 1 January 2017 to 31 December 2017: £20,500) relating to the accrual of the 2018 audit fees. There were no other fees paid to the auditors for non-audit services (1 January 2017 to 30 June 2017: £nil, 1 January 2017 to 31 December 2017: £nil).

9. Earnings per Ordinary share - basic and diluted

The basic and diluted profits per Ordinary Share for the Company are based on the profit for the period of £6,044,557 (1 January 2017 to 30 June 2017: £11,469,047, 1 January 2017 to 31 December 2017: £35,086,596) and on 449,952,091 (1 January 2017 to 30 June 2017: 377,780,949, 1 January 2017 to 31 December 2017: 398,908,689) Ordinary Shares, being the weighted average number of shares in issue during the period.

10. Interest receivable

11. Trade and other receivables

*Amounts due from subsidiaries are unsecured, interest free and repayable on demand.

12. Cash and cash equivalents

13. Trade and other payables

14. Investments at fair value through profit or loss

The following table presents the Company's investments at fair value through profit or loss:

The Company has one investment in Foresight Solar (UK Hold Co) Limited ("UK Hold Co"). This investment consists of both debt and equity and is not quoted in an active market. Accordingly, the investment in UK Hold Co has been valued using its net assets.

In turn, UK Hold Co has four investments in FS Holdco Limited ("FS Holdco"), FS Holdco 2 Limited ("FS Holdco 2"), FS Holdco 3 Limited ("FS Holdco 3") and FS Holdco 4 Limited ("FS Holdco 4"), and FS Holdco 2 has one investment in FS Debtco Limited ("FS Debtco"). These investments also consist of both debt and equity and are not quoted in an active market. FS Holdco is fair valued using its net asset value as reported at period end, with adjustments to its long term external debt to reflect the fact that the carrying value at amortised cost is not considered to be the best approximation of its fair value. FS Holdco 2, FS Debtco, FS Holdco 3 and FS Holdco 4 are fair valued using their net asset value as reported at period end.

In turn, FS Holdco, FS Debtco, FS Holdco 3 and FS Holdco 4's investment portfolios consist of unquoted investments in solar projects, the valuations of which are based on a discounted cash flow methodology (as set out in note 16).

Fair value hierarchy

IFRS 13 "Fair Value Measurement" requires disclosures relating to fair value measurements using a three-level fair value hierarchy. The level within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. Assessing the significance of a particular input requires judgement, considering factors specific to the asset or liability. The following table shows investments recognised at fair value, categorised between those whose fair value is based on:

All investments held at fair value through profit or loss are classified as level 3 within the fair value hierarchy.

As UK Hold Co's net asset value is not considered observable market data the investment in UK Hold Co has been classified as level 3. There were no movements between levels during the period.

As at 30 June 2018:

As at 30 June 2017:

As at 31 December 2017:

Sensitivity Analysis

Due to the nature of the Group structure and the underlying valuation basis of UK Hold Co, FS Holdco, FS Holdco 2, FS Debtco, FS Holdco 3, FS Holdco 4 and the underlying solar project investments, the valuation of the Company's investment at fair value through profit or loss is directly linked to the valuation of the underlying solar investments. Therefore, the unobservable inputs driving the valuation of the Company's investments in UK Hold Co are directly attributable to the valuation of the unquoted investments in FS Holdco, FS Debtco, FS Holdco 3 and FS Holdco 4 which is discussed further in note 16.

15. Subsidiaries and associates

Details of the undertakings which the unconsolidated subsidiaries held as at 30 June 2018 are listed below:

16. Interests in unconsolidated structured entities

Period ended 30 June 2018

The following table represents the fair values of the investments held by FS Holdco Limited as required by IFRS12.