US Solar Fund portfolio now fully operational
All 41 projects in US Solar Fund's portfolio, totalling 443MWDC, are now fully operating and generating revenue for the Company.
The final in-construction project, the 128MWDC Milford plant in Utah, reached the commercial operations date (COD) under its power purchase agreement (PPA) on 19 November, on-time and under-budget.
USF will benefit from construction and development cost savings of approximately USD4 million, as well as the proceeds from better-than-expected pre-Covid electricity sales of approximately USD1 million. The combined savings and increased electricity sales of approximately USD5 million, compared to assumptions at acquisition, represent an expected net asset value (NAV) uplift of approximately 2.5 cents per share.
All the projects in the USF portfolio have PPAs with contracted prices for 100 per cent of electricity generated for a weighted average PPA term of 15 years; with strong diversification across geographies and offtakers. All PPA counterparties are investment grade (S&P rated A to BBB+). USF’s portfolio produces enough electricity each year to power approximately 74,000 US homes, effectively displacing over 630,000 tonnes of CO2 emissions annually.
Gill Nott, Chair of the Company, says: “I am delighted that we have reached the point where all the Company’s solar plants are in operation and generating power. This puts us firmly on track to pay and cash cover the full target dividend of 5.5 cents per share in 2021. We look forward to growing the Company and delivering on the investment mandate.”