NextEnergy Solar Regulatory News (NESF)

18 December 2017

NextEnergy Solar Fund Limited

("NESF" or the "Company")

Acquisitions Update

· Acquisition of two operating solar plants (Gilley's Dam and Pickhill Bridge) totalling 8.6MWp with an investment value of £10.1m

· Gilley's Dam is the Company's first plant acquired having a long-term take-or-pay power purchase agreement ("PPA") with an industrial counterpart in place

· Acquisition of Solis Italian Portfolio completed and 15-year foreign currency hedge implemented

· Since the Company's IPO in 2014, NESF has acquired a portfolio of 60 solar PV assets with a total capacity of 548MWp and a total investment value of £710.6m.

NESF is pleased to announce the signing and completion of two share purchase agreements for the acquisition of two operating solar plants with a total installed capacity of 8.6MWp. The plants were acquired from different counterparties and comprise Gilley's Dam (5.0MWp, Cornwall) and Pickhill Bridge (3.6MWp, Wrexham).

Gilley's Dam was connected to the grid during March 2016 and accredited under the 1.3 Renewable Obligation Certificate regulation. The plant is located in the grounds of an industrial company and has a PPA in place with the company covering the period up to 2040. Under the terms of the PPA, the counterpart will acquire on a take-or-pay basis the entirety of the electricity generated by the plant. The plant's revenues will comprise the sale of ROCs and of electricity generated under the terms of the PPA.

Pickhill Bridge was connected to the grid during March 2017 and accredited under the 1.2 Renewable Obligation Certificate regulation. Both acquisitions were funded by the Company's existing cash resources.

Further to the announcement dated 1 November, NESF is pleased to announce the completion of the Solis Portfolio acquisition, with the change-of-control approvals secured by the portfolio's lenders Unicredit S.p.A. and ING Bank N.V. Following completion, the Company has implemented a 15-year foreign currency hedge covering approximately 80% of total expected distributions from the portfolio over the hedge life. The hedge counterpart is Banca Intesa San Paolo, Italy's largest bank.

NESF continues to pursue further transactions from its pipeline of acquisition opportunities and expects to announce further investments in due course.

For further information:

Notes to Editors:

NESF is a specialist investment company that invests primarily in operating solar power plants in the UK. It is able to invest up to 15% of its Gross Asset Value in operating solar power plants in OECD countries outside the UK. The Company's objective is to secure attractive shareholder returns through RPI-linked dividends and long-term capital growth. The Company achieves this by acquiring solar power plants on agricultural, industrial and commercial sites.

NESF has raised equity proceeds of £591.9m since its initial public offering on the main market of the London Stock Exchange in April 2014. It also has credit facilities of £226m in place (£150m from a syndicate including MIDIS, NAB and CBA; MIDIS: £54.3m and NIBC: £21.7m).

NESF is differentiated by its access to NextEnergy Capital Group (NEC Group), its Investment Manager, which has a strong track record in sourcing, acquiring and managing operating solar assets. WiseEnergy is NEC Group's specialist operating asset management division and over the course of its activities has been providing operating asset management, monitoring, technical due diligence and other services to over 1,300 utility-scale solar power plants with an installed capacity in excess of 1.9 GW.

Further information on NESF, NEC Group and WiseEnergy is available at www.nextenergysolarfund.com, www.nextenergycapital.com and www.wise-energy.eu.