Solar Income and Growth (“SIG or the Company”) owns and operates over 2,600 UK-wide, Feed-in Tariff (“FiT”)-accredited rooftop solar systems, with a combined capacity of over 13.4 MW. The company sells the electricity generated to utilites. The portfolio was established from 2011 to 2014 and has excellent geographical diversification, being spread across the UK.
SIG was ranked the no. 2 performing company over the past 5 years in the Inheritance Tax market review, published by Tax Efficient Review in December 2022.
As asset manager, Armstrong played an integral role in the development and roll out of the portfolio, and ultimately managed the acquisition of the portfolio from the original owners in December 2015.
The clean power generated by the solar power stations is sold under long-term contracts benefiting from Feed-in Tariffs (“”) that provide long-term (>20 years in most cases), stable and predictable RPI-adjusted revenue.
The power sales of SIG make it strongly cash-generative, and it has operated in line with budgeted estimates during its 8 years of operations. It provides immediate access to a low- volatility cash yield plus the scope to build a liquidity reserve.
The Company has excellent institutional partners, with Legal & General Investment Management (‘LGIM’) investing £29.5 million in 2015 through the issuance of secured RPI-linked bonds listed on the London Stock Exchange, at an annual cost of approximately 1.2% indexed to RPI. LGIM is one of the largest asset managers in the UK, with over £1 trillion under management.
The Company is a portfolio-trading company within the Proven Estate Planning Service (‘PEPS’), a discretionary IHT service managed by leading venture capital firm Beringea. PEPS has been an investor in the Company since 2021, and is targeting to invest upwards of £5m a year in equity in the Company, alongside existing and new investors who subscribe for shares in the Company directly.