Renewables investment manager FIM Services is aiming to capitalise on the UK’s booming secondary PV market by expanding its solar fund.
It has opened FIM Solar Distribution LLP for immediate subscription, offering potential investors targeted returns of 7%.
FIM said that the fund would look to acquire large-scale solar farms in the UK and build on its existing experience in the domestic renewables market.
Although FIM’s renewables experience is perhaps strongest in wind, it has invested in four solar parks across the UK ranging from 4 - 7MW in size.
Alf Francis, fund manager at FIM Services, said the fund would provide investors with access to a stable revenue stream from a “low risk, well proven trade”.
“Solar parks have few moving parts and are easy businesses to manage. The structure is more tax efficient than a listed vehicle, so investors can maximise the return from their capital,” Francis said.
The closing date for subscription is 29 September 2017, and the minimum investment level is £50,000.
The UK’s secondary solar market continues to attract strong interest from various parties, not least institutional investors with an appetite for solar as a proven technology.
Earlier this summer NextEnergy Capital, one of the most prolific investors in UK solar, suggested the secondary market could be as large as 4.2GW - with a more immediate opportunity of between 1.5 - 2.5GW - as those who’ve developed assets look to cash in.