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Legal & General invests in UK solar energy

Legal & General has used long-term debt to invest in UK solar power as it grows its presence in the renewable energy sector.

The London-based insurer provided £57.5 million (€62.97 million) of debt to support Hermes Infrastructure in its recapitalisation of two solar photovoltaic portfolios in England and Wales.

Both portfolios consist of fully operational solar power systems installed on the rooftops of over 9,000 residential homes throughout the country. The systems have the combined installed capacity to generate around 34.52 megawatts at peak, according to the firm.

The investment, made through L&G Investment Management’s (LGIM) real assets arm, is expected to provide a high level of cash flow visibility until reaching maturity in 2033 and 2036.

“Renewable energy now accounts for a third of global power capacity, with wind and solar totalling 84% of new renewable generation capacity in 2018,” said Tom Sumpster, head of infrastructure finance at LGIM Real Assets.

“With the cost of power from wind and solar continuing to fall, consumer demand for clean power is increasing.  Further investment in sustainable energy benefits society and provides secure investments to match our pension liabilities and payments.” 

The transaction follows a series of renewable energy investments made by the firm over the last two years, including three in UK offshore wind energy.

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