Green investors face 50% losses as solar panel backers hit by Net Zero backlash​

Joe Sledge
Fri, 10 Apr 2026 11:42:42 +0000

An eco-friendly energy investment trust has confirmed it will wind down operations following mounting pressure on returns and shifting investor sentiment towards green assets.

SDCL Efficiency Income Trust (SEIT), which is listed on the Ftse 250 and manages £1.2billion of renewable and energy‑efficiency investments, said yesterday it would pursue an orderly closure.

It said higher borrowing costs and a more challenging market environment had made its model increasingly difficult to sustain.

The decision marks a sharp reversal for a fund that once attracted strong investor demand during the early stages of the UK’s green‑energy expansion.

TRENDING

Stories

Videos

Your Say

Shares have fallen heavily since launch, with some investors having paid up to 114p per share. The stock now trades at around 42.5p, leaving those who bought at peak levels facing losses of more than 50 per cent.

When SEIT launched in 2018, it targeted annual returns of 7–8 per cent and went on to raise £1.2billion over four years, including significant retail investment.

Returns have since failed to meet expectations.

The trust’s portfolio includes a mix of energy‑efficiency and renewable assets, such as solar panels installed on Tesco stores across the UK and biomass facilities in Indiana that convert waste into energy.

Chairman Tony Roper warned in December that several investments were facing difficulties linked to “policy and regulatory changes”, particularly in the United States.

He also highlighted the impact of higher interest rates, which have reduced the relative appeal of the trust’s returns.

The board explored options to stabilise performance but opted for a wind‑down after consulting shareholders. Mr Roper said investors had shown a “clear preference for liquidity” rather than continuing recovery efforts.

Saba Capital, led by investor Boaz Weinstein, is understood to hold around 10 per cent of the trust.

LATEST DEVELOPMENTS

Sir Jim Ratcliffe backs Tory pledge to scrap Net Zero levies amid 'killing British industry' fears

Pressure mounts on Ed Miliband after SNP softens stance on North Sea oil

Rachel Reeves 'very happy' to see North Sea oil and gas drilling

Analysts at Panmure Liberum said selling assets in the current market could prove challenging, describing conditions for renewable‑energy disposals as a “tough market”.

SEIT completed the sale of £105million of energy‑efficiency infrastructure in March at a nine per cent discount to its reported value.

Management said the transaction took longer than expected, suggesting further disposals during the wind‑down may face similar delays.

This comes as a recent Institute for Economic Affairs (IEA) briefing warns the gross cost of reaching Net Zero could far exceed even the highest official estimates.

Analysts say public bodies have relied on overly optimistic assumptions about renewables, heat pumps and electric vehicles.

The paper argues that shifting methodologies have masked the true scale of the transition’s price tag.

It concludes that underestimating costs risks shutting down honest debate over one of the UK’s biggest economic commitments.

The authors call for greater transparency, warning that credible policymaking depends on realistic accounting.