Sentient exited the IIG Solar Income Fund (Fund) on 22 February 2024 and we take this opportunity to reflect on the significance of the Fund: one of the first utility-scale renewable energy investment products offered to Australian investors.

In 2016, at the Fund’s inception, the National Electricity Market’s proportion of renewable energy was less than 15%. It is now, 7 years later, over 40% (according to recent data for January 2024), with a new instantaneous share of renewable energy record reaching 72.5%. The Williamsdale and Mount Majura solar farms helped the ACT achieve 100% renewables, making it the first Australian state or territory to do so. This valuable demonstration in the nation’s capital has acted as an example for other jurisdictions to follow and provides proof of a clean energy system reality. The 40% renewable energy supply milestone takes Australia close to the halfway mark of the national renewable energy target of 82% by 2030.

In the transformation of the energy sector, and indeed the broader economy, to a net zero reality, it remains critical to continue the drive of capital to near-term investment in clean energy. Clean energy investment is driving the orderly replacement of ageing, increasingly unreliable and harmful emissions generating energy infrastructure, increasingly democratising energy provision, and contributing to a long-term framework to ensure economic and social prosperity for the Australian community.

We are proud to be part of the clean energy transition, shifting capital towards solutions addressing environmental, health and social issues.

Solar Asset Fund: launched in mid 2018 the Fund owns three large-scale solar farms built to meet the market’s demand for new generation infrastructure. This $120m fund targets a 10% IRR (pre-tax, post-fees) over the term of the Fund with an 8% target yield over the first 5 years. The solar assets in this Fund are exposed to wholesale market prices.