3 popular high-yielding renewable energy trusts

Investment trusts that provide exposure to renewable energy projects such as solar and wind farms have been out of favour for several years, so it was interesting to see that three of these trusts were among the best-sellers on the Fidelity Personal Investing platform in July. This was the first time that these particular funds had featured in the year-to-date numbers. 

• Read: Top 10 best-selling investment trusts in July

The renewable energy sector is known for its high yields, which are often in excess of 7%, but the attractiveness of these income streams was undermined by the sharp rise in interest rates after the pandemic. Please note these yields are not guaranteed. It is likely that investors are being tempted back ahead of further possible rate cuts by the Bank of England.

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The Renewables Infrastructure Group

In fourth place on the list of bestsellers was the two billion pound Renewables Infrastructure Group, which owns a diversified portfolio of wind farms and solar parks in the UK and Europe. These generate revenues from the sale of electricity and government-backed green benefits.

The trust aims to provide investors with long-term, stable dividends and to retain the portfolio’s capital value through re-investment of surplus cash flows. Its management has a total return focus, although much of this is in the form of dividends, with the target distribution of 7.55 pence for 2025 giving the shares a prospective yield of 9.2%.¹ Please note this is not guaranteed.

As with all of these sorts of funds, the net asset value (NAV) calculation is extremely complicated with lots of assumptions so they only tend to be updated on a quarterly basis. The end of June figure of 108.2p suggests that the shares are available at a discount of around 24%, despite the active buyback programme.²

• More on Renewables Infrastructure Group

Foresight Solar Fund

Sixth on the list was the £484m Foresight Solar Fund that owns a portfolio of solar farms and battery storage assets in the UK and overseas. It aims to provide investors with a sustainable, progressive quarterly dividend and enhanced capital value, whilst facilitating the transition to a lower-carbon economy.

Foresight’s target dividend for 2025 is 8.1 pence, giving the trust a prospective yield of 9.4%.³ Please note this is not guaranteed. At the end of June the NAV was 108.5p, which equates to a discount of around 20%, although there is an active share buyback programme that has recently been increased to £60m.⁴

The Board is trying to sell its Australian wind farms and intends to use the proceeds to reduce the level of gearing (debt to equity ratio) that currently stands at 40%. However, no bids have been received at time of writing.⁵

• More on Foresight Solar Fund

Bluefield Solar Income

In seventh position was the £568m Bluefield Solar Income whose main asset is a portfolio of solar farms located in the UK. It aims to provide shareholders with an attractive return, principally in the form of quarterly distributions, with the target dividend for the 2024/25 financial year of not less than 8.90p giving the shares a prospective yield of 9.3%.⁶

Bluefield’s latest available NAV at the end of June was 117.8p, which implies a discount of 19%. The Board is exploring strategic options to address this and maximise shareholder value.⁷

One important feature that differentiates it from its peers is the significant pipeline of development assets identified by the Investment Advisor that provide a future platform for growth. Another is the strategic partnership with a group of UK pension funds, which gives Bluefield a means of recycling capital from its existing projects. 

• More on Bluefield Solar Income

Source:

¹ TRIG, August 2025 and Deutsche Numis Investment Companies Research, 8 August 2025
² Deutsche Numis Investment Companies Research, 8 August 2025
^3,4 Foresight Solar Fund Factsheet, 31 March 2025 and Deutsche Numis Investment Companies Research, 6 August 2025
⁵ Foresight Solar Fund interim results to 31 June 2024
⁶ Bluefield Solar Income Fund factsheet, 31 March 2025
⁷ Deutsche Numis Investment Companies Research, 15 May 2025

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing, please read the relevant key information document which contains important information about each investment trust. Shares in investment trursts are listed on the London Stock Exchange and their price is affected by supply and demand. Investment trusts can gain additional exposure to the market, known as gearing, potentially increasing volatility. Overseas investments will be affected by movements in currency exchange rates. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.