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Renewable energy trusts seek growth after subsidy loss

Renewable energy trusts seek growth after subsidy loss

Renewable energy trusts invest in wind and solar generation and are popular with investors due to their high, inflation-linked and government-backed yields. The average investment trust within the Association of Investment Companies (AIC) Infrastructure - Renewable Energy sector is trading on a 9.6 per cent premium to net asset value (NAV). The yields these trusts are currently generating have been partly driven by generous subsidy schemes, with around 60 per cent of fund revenues coming from this source. But March saw the closure of an important subsidy – the Renewables Obligation Certificates (ROCs) scheme – to new projects, raising the question of how renewable trusts will continue growing in future.  

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