Nextenergy Solar Share Discussion Threads

[prokartace] 14/3/2025 13:09:38

Technicals using the current rising parallel lines suggest a short-term target of 75p

[cousinit] 13/3/2025 12:38:36

Mantels - issue is solar is delivered all at the same time. So the market price at those points can be depressed. More solar coming on stream may well exacerbate that.

Solar also the reverse of what's required in the UK - more in the winter and less in the summer would be the ideal...

This is why (co-located) batteries are potentially attractive to solar funds - charge up the batteries and then sell the energy into the evening peak (price).

[mantelsloris] 13/3/2025 11:44:59

I don't understand the argument for energy prices trending downwards, energy prices have always trended upwards

[roddyb] 13/3/2025 10:46:13

Just noticed SSE update to the market on T-4 contract prices for supply of electricity to the UK market

26-27 price agreed at £64/kw
28-29 price agreed at £60/kw

All far higher than our own averages shown on p43 of the 2024 interim report of £50-£55 for the corresponding years.

I suggest we are under-estimating our future income as electricity prices in the future are not retreating as predicted.

[speedsgh] 12/3/2025 12:24:32

@marktime1231 - "I seem to recall the refinanced c. £70M Santander part of the RCF was previously on base + 1.5%."

The rate (SONIA + 1.5%) on the now-retired £70m Santander RCF is confirmed in the table in today's rns.

[marktime1231] 12/3/2025 11:50:37

I seem to recall the refinanced c. £70M Santander part of the RCF was previously on base + 1.5%. The saving is welcome but there will have been an arrangement cost because it was due to run until June and Santander will want their pound of flesh.

Debt reduction is the imperative.

[nickrl] 12/3/2025 09:19:35

@garbetklb original dual facility split Jun 25/Jun28. They've got the lender of the Jun 28 portion to take on the 73m that needed refid at the same terms. Whether that was a provision in the agreement I don't know but I would expect the lenders to have run some checks before inking the arrangement. 1.2% is a very favourable margin which obviously indicates reasonable financial health to get their money back in 3 yrs. What I don't know is are they using this to bank roll the amortisation thats built into the loans associated with some of the SPV portfolios they acquired.

[garbetklb] 12/3/2025 08:46:09

And, notably absent, any info on what the margin was on the facilities being replaced......

[flyer61] 12/3/2025 08:05:31

1.2% over SONIA sounds like a good deal, however, what fees were paid for this facility?

[riskvsreward] 12/3/2025 07:44:20

Exactly, they need better marketing people

[grahamg8] 12/3/2025 07:39:12

An unfortunate title for the RNS - "reduce" sounds like bad news. "New RCF finance agreement on better terms" would convey the message to moron journalists in more digestible way.

[masurenguy] 12/3/2025 07:24:40

Revolving Credit Facilities Consolidated & Margin Reduced

NextEnergy Solar Fund is pleased to announce it has consolidated its two existing short-term Revolving Credit Facilities ("RCFs") into one facility, leading to an overall reduction in margin at attractive terms of 120bps over SONIA ("Sterling Overnight Index Average"). The new consolidated facility combines the Company's existing RCF with Santander into its other RCF under a consortium of lenders Allied Irish Banks - London branch, NatWest, and Lloyds. The new combined RCF has the same aggregated commitment limit of £205m and includes two additional 12-month extension options at the Company's sole discretion to bring the maturity date up to June 2028. The Company remains committed to the down payment of debt. As at 31 December 2024, the Company had down-paid a net amount of £46.3m of short-term debt through proceeds from the Capital Recycling Programme, and repaid a cumulative amount of £60.4m of long-term amortising debt from operational cashflows.

Helen Mahy, Chairwoman of NextEnergy Solar Fund, said: "I am pleased to report a reduction in NextEnergy Solar Fund's short-term revolving credit facility costs, as a result of the facility being consolidated at a market-leading rate of 120bps over SONIA. The Company is making good progress reducing its total debt, and it is encouraging that NextEnergy Solar Fund continues to make operational efficiencies where possible to benefit its shareholders."

[jpatara3] 05/3/2025 08:37:59

Big Tech and Green Energy (US)Big businesses are stepping in to buy power from new wind and solar farms. They're filling a gap left by governments that pulled the plug on subsidies for renewables.There was a 35 per cent jump in the amount of renewable power sold under these long-term agreements last year. And the total amount of renewable power like cumulatively sold under these agreements is now somewhere around 270GW, which is the equivalent of all of the power in Germany.Increase is basically being entirely driven by tech companies. Amazon is the biggest. And then all of the others are in there Google, Meta, Apple, and so on. And the reason they're doing this is because they promise that their data centres that they're using to train AI and all those other things are going to be powered by green energy. So they are looking for the power as they build out those data centres. these are long term deals directly between the people who are building the wind farms or the solar farms and the companies themselves. And it just stretches over a set period of time. So you'll say, I'll take this percentage and I'll pay this much for this many years. And for banks, that's a really big deal these days. They want to be able to see or have some certainty over the long term future of these projects. Banks are willing to fund green energy if demand is also seen to be coming from companies.

[prokartace] 03/3/2025 16:34:54

This is my biggest, non fixed income holding. Breakeven is very close. Will reduce holding on rally into div payment on 31/3.

[mantelsloris] 03/3/2025 16:17:17

The sunny weather giving this a boost

[wallywoo] 27/2/2025 11:41:31

httPs://www.proactiveinvestors.co.uk/companies/news/1066597/nextenergy-solar-hails-stable-quarterly-performance-maintains-dividend-target-1066597.htmlInteresting interview, FYI. Hold a fair few of these at an average around this level. Quite happy to hold. A solid investment in isa / sipp accounts imo. The tax implications of such a high dividend make it much less attractive otherwise.

[petersinthemarket] 22/2/2025 10:25:07

All way above my head.
Simple question - is this a buy atm, or not?
(I hold)
peter

[skinny] 22/2/2025 10:09:39

Some very interesting / informative posts - thanks!

[nickrl] 22/2/2025 09:59:04

ROC price reset to 67.06 from 1/4/25 so thats c 93.88/MWh for the ROC assets.

[nickrl] 21/2/2025 18:29:38

@ilef thats just on the ROC assets they do have FiT assets as well as Italian sites. I believe all the unsubsidised sites have been sold but need to double check.

[llef] 21/2/2025 18:04:23

Nickrl, thanks for the info.

So if right now Nesf are receiving £90/Mwh in subsidies, and subsidies comprise 57% of revenue, then NESF are effectively receiving (or charging end users) £150 per Mwh.
That's not helping utility bills!

[nickrl] 21/2/2025 17:13:44

@ilef as they have two amortising debt facilities which have an annual increase in what has to be paid back each year reaching its peak in 2035 coincidentally with expiry of the ROCs. The other advantage here is that subsidies are indexed linked so they've benefited hugely from the spike up in inflation and they will continue well unless Reform somehow get a majority! That said current ROC buyout price is 64.75 and the ROC portfolio is an average of 1.4/ROC so thats worth nominally 90.87/MWh. So it will represent a big loss of income but that debt will be gone but also the solar panels will have continued to deteriorate although replacement costs maybe a lot lower by then.

[llef] 21/2/2025 16:23:18

Skinnypope, thanks for that information.

So on my rough calcs, that means that the subsidies expire in 2034/35.
At which point income will drop considerably, though debt interest payments will also fall a lot by that point too.
Assuming no changes to the portfolio in the intervening period, how much value will be left in NESF portfolio in 2035?

[nickrl] 21/2/2025 16:10:19

@skinnyhope good luck with that exercise! I see main issue is the accounts being filed are so far out of date compared the trusts reported accounts as to be of limited use but at least you will be establish what the true position is even if over 12mths stale.

@WC solar isn't dispatchable power and you don't need ne tot ell you it only works during the day. Thus its all producing simultaneously at the same point and already drives the day ahead price negative. The more thats connected the worse that is and whilst it displaces gas fired power stations its now getting to the level that they can't turn anymore off to keep the system stable. This will drive ppa prices down and the smart producers will agree to prices now which might be low but at least they will generate income.