US Solar Fund Reports Interim Results for 2026

US Solar Fund plc (LON: USF (USD)/USFP (GBP)), a renewable energy investment firm focused on utility-scale solar power plants in the United States, has released its interim results for the six-month period ending 30 June 2026. The report outlines the company’s financial performance, operational highlights, and outlook amid evolving energy policies.

Financial Overview

As of 30 June 2026, US Solar Fund reported a Net Asset Value (NAV) of $185.9 million, slightly down from $186.2 million at the end of 2025. The NAV per share remained stable at $0.60, reflecting a minor decrease of 0.2%. During this period, the company’s total energy generation reached 357 GWh, which was 0.5% below the revised operating projections for the fiscal year 2026 and 8.2% below the long-term forecasts established in previous reports.

The NAV benefited from upward movements in energy price forecasts, although this was counterbalanced by an increase in the discount rate and adjustments to long-term inflation assumptions. Notably, the company experienced a significant outage at its Milford asset, which contributed to a 3% underperformance. However, this issue has since been resolved. On a positive note, higher than expected solar irradiance across the portfolio resulted in a 2.8% increase in performance.

The Board of Directors has emphasised the importance of maintaining balance sheet strength and liquidity. They are committed to disciplined capital allocation and are prioritising initiatives that enhance operational recovery and reliability. The Board is also reassessing the capacity for dividends, with plans to declare a modest dividend for the fourth quarter based on improved performance and reduced market uncertainty.

Operational Highlights

In the first half of 2026, the company’s total generation was reported at 357 GWh, a slight increase from 350 GWh in the same period of 2025. However, this figure fell short of both revised operating projections and long-term forecasts, largely due to unscheduled outages and other non-irradiance related factors. The company attributed 11.1% of the underperformance to these outages, while the above-average solar irradiance partially mitigated the impact.

Improvements were noted in the operational performance of the company’s assets, particularly within the Heelstone and Euryalus portfolios. These enhancements were driven by the completion of capital investment initiatives at California projects and improvements in operations and maintenance practices. The company anticipates further operational improvements as additional remediation plans are completed later in the year.

Despite challenges such as equipment order and technical support lead times, particularly for older equipment designs, the internal asset management team is actively working to mitigate these impacts. The weighted average term of power purchase agreements (PPAs) across the portfolio stands at 9.4 years, with all counterparties rated investment-grade, averaging a credit rating of BBB+.

Governance and Shareholder Engagement

At the 2026 Annual General Meeting, shareholders voted against the discontinuation of the company, affirming their support for its continuation. Preparations are underway to refresh the Board’s composition, particularly if the potential sale of the company’s assets does not proceed. This includes plans for succession for long-standing Board members Gill Nott and Jamie Richards, who have been with the company since its initial public offering.

Impact of US Energy Policy

Throughout the reporting period, US energy policy and regulation regarding solar assets remained relatively stable, contrasting with the significant changes seen in 2025. Market participants, especially developers, have been navigating the implications of the One Big Beautiful Bill and related executive actions from the federal government’s current energy agenda. The potential for constrained generation build-out, coupled with strong forecasted load growth from data centres and electrification initiatives, is expected to support long-term power price fundamentals.

The stability in US energy policy has encouraged a steady rate of transactions for operational renewable assets. This includes acquisitions by large incumbents seeking consolidation and financial investors looking for yield-oriented investments, as well as new energy IPOs. The Board remains optimistic about the long-term value of the company’s portfolio, supported by a positive market backdrop and signs of improved operational performance.

Conclusion

US Solar Fund plc’s interim results for the first half of 2026 reflect a period of stabilisation and gradual improvement in operational performance, despite facing challenges such as outages and market fluctuations. The company’s commitment to financial discipline and operational enhancements positions it well for future growth in the evolving landscape of renewable energy. As the Board continues to navigate potential asset sales and operational improvements, the outlook for the company remains cautiously optimistic, underpinned by a supportive market environment for renewable energy.