For institutional investors, assets such as small-scale solar PV installations can be attractive investments as they deliver long-term (20 years+), secure, inflation-linked income streams.

Solar PV Installations (commonly referred to as 'solar panels') generate electricity. which is then available to be used by homeowners or other users connected to the grid.

The Aviva Investors PiP Solar PV Fund seeks to deliver predictable, long-term, inflation linked cash flows through investing in small scale solar PV installations in the UK.

Ian Berry

Head of Infrastructure Equity

We consider investments in the UK small-scale solar PV sector attractive as the sector can provide low risk and attractive returns through a combination of:

  • predictable revenues for 20-25 years (through Feed-in-Tariffs (“FiTs”), regulated by OFGEM and a low-volatility resource: i.e. solar irradiation);
  • predictable and manageable operating costs;
  • low operational leverage.

Aviva Investors has substantial experience in the renewable energy sector, and were a pioneer in the small-scale solar PV sector.  Today, we are a market leader in the aquisition and management of small-scale solar PV installations where we manage a large portfolio installed on private residences and social housing.

The UK solar PV sector is one which allows Aviva Investors to:

  • leverage its market position and expertise to achieve attractive returns with conservative underlying assumptions; and
  • manage the assets to enhance returns over their life (through consolidation of portfolios, reducing administrative and operational costs).

Aviva Investors has an established team which invests in infrastructure assets capable of providing low-risk, long dated, inflation linked income streams. In February 2015 this team was mandated by PiP to launch a UK Solar PV investment fund. The fund achieved a first close on 16 June 2015 with £131 million of commitments from four UK pension schemes. It has a target of £250 million.

For more information, please contact:

Keith Kelsall CFA
Investment Director
+44 (0)20 7809 6479

Matthew Graham
Business Development Director
+44 (0)20 7809 8795

Boris Mikhailov
Client Solutions Director
+44 (0)207 809 8749

The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.  

Where funds are invested in real estate or infrastructure, investors may not be able to switch or cash in an investment when they want because real estate or infrastructure may not always be readily saleable. If this is the case we may defer a request to switch or cash in units. Investors should also bear in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact.