NextEnergy Solar Fund
NextEnergy Solar Fund Limited (LSE: NESF) is a FTSE 250 closed-ended investment company and one of the largest specialist solar funds on the London Stock Exchange.
Managed by NextEnergy Capital—a group founded in 2007—the fund has built and acquired a solar portfolio valued at over £1.05 billion since its 2014 launch.
As of June 2025, the group’s portfolio comprises 101 operating assets across nine jurisdictions. This includes 90 solar assets in the United Kingdom, eight in Italy (see the location map at the bottom of this page), and one asset each in Spain and Portugal, representing a combined installed capacity of 937 megawatts (MW).
In late 2021, NextEnergy Solar Fund committed £50 million to NextPower III, a private international solar fund, adding an indirect 30 MW to NESF’s total generation capacity.
This strategic allocation represents an approximate 6% stake in NextPower III, which holds over 173 assets across eight geographies. Alongside the UK, Italy, Spain, and Portugal, these assets are primarily located across the Americas, parts of Europe (such as Poland and Greece), and India.
Since its initial public offering (IPO), the group’s total power generation has surpassed 5.8 terawatt-hours.
NextEnergy Solar Fund is a relatively new addition to our Self-Invested Personal Pension (SIPP). With renewable infrastructure and real estate investment trusts (REITs) remaining a generally underappreciated sector amid higher interest rates over the 2023–2025 period, we took the opportunity to build our position, acquiring shares at a significant discount to net asset value (NAV).
The portfolio’s objective is to maintain a balanced allocation across both solar and wind energy. This structure allows us to compare income generation directly while building more meaningful comparative data and analysis—helping us answer practical questions around the relative performance of wind versus solar over time.
A core pillar of our strategy is prioritising holdings with robust environmental, social, and governance (ESG) credentials. For investors seeking ethically minded income, this holding provides direct exposure to clean power generation, which firmly underpins its inclusion in the SIPP.
You can view the full investor factsheet by clicking here.
Next Energy Solar Fund Dividends
NextEnergy Solar Fund distributes a quarterly dividend every March, June, September, and December.
As we look to gradually shift the portfolio toward more ethical investments while maintaining our focus on dividend growth, we believe we have identified a solar stock with promising potential for income growth over the foreseeable future.
The primary objective of the portfolio is to compound dividend income on the path to financial independence and early retirement. For the 2026/27 financial year, the first interim quarterly dividend has been reduced to £0.0177 per share.
The group’s ambition is to steadily build out battery storage to 30% of the portfolio. By doing so, NESF will be diverting capital over the coming years toward these projects, with the intention of enhancing shareholder returns and increasing future dividends.
At a recent shareholder meeting, NextEnergy Solar Fund suggested they would operate a flexible, seasonally adjusted dividend payout ratio. Put simply: when the sun shines during the summer, payments will increase. Conversely, when the lower solar radiation of autumn and winter sets in, investors should expect lower distributions—which makes practical sense. Only time will tell how early investors and loyal shareholders will be affected within their income-focused portfolios.
For research purposes, the annual dividends for the past five years are presented below:
– 2025: £0.0843
– 2024: £0.0835
– 2023: £0.0752
– 2022: £0.0717
– 2021: £0.0705
Basic stock fundamentals are:
Dividend yield is 17.45% (30.09.26)
Estimated NAV is 76.10 pence (30.06.26)
The total income received from our investment in NextEnergy Solar Fund over the five-and-a-half-year period stands at £2,804.98.
As shown in the breakdown below, the initial two quarterly dividend payments were calculated based on a holding of 400 shares. Over the course of 2025, we increased our position to 9,000 shares, reflecting our growing allocation alongside our exposure to wind generation.
Further dividend analysis can be viewed in the file below:
Important Disclaimer:
The content on this website is published solely for educational, research, and informational purposes and reflects personal opinion and portfolio tracking. It does not constitute personal financial, investment, or tax advice, nor is it an offer or solicitation to buy or sell any security.
The value of investments and the income derived from them can fall as well as rise, and you may not recover the full amount originally invested. Past performance and dividend yields are not reliable indicators of future results.
If you are uncertain about the suitability of any investment mentioned, please consult an independent financial adviser authorised and regulated by the Financial Conduct Authority (FCA).
