Solar Income Fund - bluefieldsif.com

1 1 IntroductIonBluefield Solar Income fund Limited ( BSIF or the Company ) is a sector specialist infra-structure fund focused on the acquisition and optimisation of UK based Solar photovoltaic ( PV ) energy assets. The Company was listed on the LSE on 12 July 2013 and now has a market capitalisation of 392m as at 31 Dec Board comprises four experienced independent directors (the Directors , see left), receiving arms-length investment advice from Bluefield Partners LLP ( Bluefield or the Investment Adviser , see page 4 for details).FInAnCIAL AnD OPErATIOnAL HIgHLIgHTSAs of 31 Dec 2016, the Company has 41 Solar PV projects spread across England and Wales.

2 Total portfolio capacity increased by megawatts peak ( MWp ) to a total of MWp in the the period, the Company completed the acquisition of five new build sub-5MW ground mounted plants. The projects were acquired for a total consideration of Each plant is expected to become operational before 31 March 2017 and to qualify under the renewable Obligation Certificate ( rOC ) regime. During the period, the Company announced successful issue of new Ordinary Shares, raising gross proceeds of first interim dividend of per Ordinary Share ( POS ) in respect of the financial year ( FY ) ending 30 June 2017 was annouced on 6 October 2016 with a payment date of 4 november 2016.

3 The Company is on target to deliver a POS dividend for the FY ending 30 June 2017 ( POS target return in FY 2016, POS delivered).InVESTMEnT OBJECTIVESThe Company seeks to provide shareholders with an attractive return, principally in the form of quarterly Income distributions, by investing in a portfolio of large scale UK-based Solar energy infrastructure assets. COMPAnY OUTLOOKThe Company and its Board have set a target to deliver long-term, stable dividends growing in-line with Directors believe that attractively priced acquisitions and strong contractual protections will allow the Company to achieve the target return of 7p POS annually, rising with to maintaining prudential level of reserves.

4 The Directors intend to distribute cash generated in order to optimise shareholders returns and that the Company will achieve its target returns without recourse to reinvestment of spare cash POLICY AnD STrATEgY SUMMArYThe Company invests in a diversified portfolio of Solar PV energy assets, each located within the UK, with a focus on utility scale assets and portfolios on greenfield, industrial and/or commercial sites. The Company targets long life Solar energy infrastructure investments, expected to generate stable renewable energy output over a 25 year asset single investment in a Solar energy infrastructure asset (excluding any third party funding or debt financing in such asset) will represent, on acquisition, more than 25 per cent.

5 Of the prevailing net asset value ( nAV ).Total non-recourse financing within the portfolio will not exceed 50 per cent. of the prevailing gross asset value ( gAV ). Short term debt to facilitate the acquisition of investments (when taken together with the project finance noted above) will also be limited so as not to exceed 50 per cent. of see the Company s website for the full investment Income FundQ4 2016 BSIF FACTSHEETR egistered OfficeHeritage Hall, PO Box 225, Le Merchant Street, St. Peter Port, Guernsey, GY1 STATISTICSAs at 31 December 2016 Ordinary Shares Issued369,811,281 Share Cap 392mnAV1 368mnAV per Ordinary to ongoing charges2(based on 30 June 2015 calculation) Dividend per Ordinary p Yield (based on Target Dividend) InFOrMATIOnListing: London Stock Exchange Premium SegmentIndex Inclusion: FTSE All-Share FTSE SmallCapSEDOL BB0rDB9 ISIn gg00BB0rDB98registered number: 56708 Ticker: Payments: QuarterlyFinancial Year End: 30 JuneWebsite: OF DIrECTOrS Chairman: John rennocksSenior Independent Director.

6 John ScottChairman of Audit Committee: Paul Le PageDirector: Laurence Mcnairn1 Based on the audited nAV per Ordinary Share as at 30 June 20162 The on-going charges ratio is calculated in accordance with the Associationof Investment Companies ( AIC ) recommended methology2 BSIF fact sheet - Q4 2016 Solar Income FundRegistered OfficeHeritage Hall, PO Box 225, Le Merchant Street, St. Peter Port, Guernsey, GY1 OVErVIEW AT 31 DECEMBEr 2016 - SUMMArY POrTFOLIO DATAPrOJECTMWpLOCATIOnSUBSIDYInVESTMEnT DATECOMMISSIOnIng rOCSep 2013 Dec 2013 Hardingham rOCnov 2014 Feb rOCAug & nov 2013 Mar 2014north rOCOct 2013 Mar 2013 Hill rOCOct 2013 Feb 2014 Hall rOCDec 2013 Mar rOCDec 2013 Mar rOCDec 2013 Mar 2014 Pentylands rOCFeb 2014 Mar rOCJan 2014 Jun of WightFiTSep 2014 Jul / OxfordshireFiTSep 2014 Jul 2012 - Apr rOCJun 2014nov rOCAug 2014 Mar rOCAug 2014 Mar rOCDec 2014 Mar rOCDec 2014 Mar rOCFeb 2015 Mar 2015 West rOCMar 2015 Mar

7 ROCJul 2015 Oct 2015 Sep 2015 Between Mar & Jul / HampshireFiTAug 2015 Between Mar & Jul 2012 Bunns Hill rOCDec 2015 Feb 2016 Folly rOCDec 2015 Feb 2016 Frogs rOCDec 2015 Dec 2015 Tollgate rOCJan 2016 Mar rOCJan 2016 Feb rOCJan 2016 Oct rOCJan 2016 Feb rOCJan 2016 Mar rOCJan 2016 Mar 2015 The rOCFeb 2016 Mar rOCFeb 2016 Feb rOCFeb 2016 Mar 2016 Jul rOC Dec 2016 Expected Mar rOC Dec 2016 Expected Mar 2017 Court rOC Dec 2016 Expected Mar rOC Dec 2016 Expected Mar rOC Dec 2016 Expected Mar 20173 As at 31 December fact sheet - Q4 2016 Solar Income FundRegistered OfficeHeritage Hall, PO Box 225, Le Merchant Street, St.

8 Peter Port, Guernsey, GY1 Loke MWpNORTH WALSHAM, NORFOLKF olly Lane MWpSTICKNEY, LINCOLNSHIREB unns Hill MWpNORTH WALSHAM, NORFOLKP romothames MWpBERKSHIRE / HAMPSHIREB utteriss MWpOXFORDSHIRET rethosa MWpST STEPHEN, CORNWALLS alhouse MWpSALHOUSE, NORFOLKWest Raynham MWpWEST RAYNHAM, NORFOLKElms MWpWANTAGE, OXFORDSHIREA shlawn MWpAXBRIDGE, SOMERSETR edlands MWpBRIDGEWATER, SOMERSETC apelands MWpBARNSTAPLE, DEVONH oback MWpROYSTON, HERTFORDSHIREG oshawk MWpGOSHAWK, SURREY / OXFORDSHIRE Durrants MWpISLE OF WIGHT, NEWPORTS heppey MWpISLE OF SHEPPEY, KENTB etingau MWpSWANSEA, GLAMORGANR oves MWpSEVENHAMPTON, WILTSHIREP entylands MWpHIGHWORTH, WILTSHIRES axley MWpANDOVER, HAMPSHIREHall Farm MWpEAST BECKHAM, NORFOLKHill Farm MWpABINGDON, OXFORDSHIREN orth Beer MWpLAUNCESTON, CORNWALLG oosewillow MWpSTEVENTON, OXFORDSHIREH ardingham X MWpWICKLEWOOD, NORFOLKH ardingham MWpWICKLEWOOD, NORFOLKR omsey MWpROMSEY, HAMPSHIREO ulton MWpOULTON, NORFOLKThe Grange MWpWINTERBOURNE,GLOUCESTERSHIREM olehill MWpCHESTFIELD.

9 KENTS outhwick MWpWINCHESTER, HAMPSHIREP ashley MWpBEXHILL, EAST SUSSEXL ittlebourne MWpCANTERBURY, KENTR ookery MWpBESTHORPE, NORFOLKT ollgate Farm MWpBISHOPS TACHBOOK,WARWICKSHIREB urnaston MWpBURNASTON, DERBYSHIREE qual or less than 5 MWp Between 5 MPp & 20 MWPMore than 20 MWPK islingbury MWpNORTHAMPTON, NORTHAMPTONSHIREW illows MWpUTTOXETER, STAFFORDSHIREC ourt Farm MWpNEWPORT, SOUTH WALESG ypsum MWpLOUGHBOROUGH, LEICESTERSHIREB arvills MWpTILBURY, ESSEXPOrTFOLIO MAPPOrTFOLIO SEgMEnTATIOn BY InVESTMEnT VALUE3norfolkOxfordshireHampshireKentWil tshireHertfordshireCornwallSomersetSusse xOther2 rOCFiTgeography10%7%4%3%3%3%17%25%15%13% Subsidy Vintage54%7%10%22%2%5%4 BSIF fact sheet - Q4 2016 Solar Income FundRegistered OfficeHeritage Hall, PO Box 225, Le Merchant Street, St.

10 Peter Port, Guernsey, GY1 , Broker & Financial AdviserAdministrator & Company SecretaryPublic relationsnumis Securities LimitedThe London Stock Exchange Building 10 Paternoster SquareLondon, EC4M 7 LTHeritage International fund Managers LimitedHeritage Hall PO Box 225Le Marchant Street, St Peter Port, guernsey gY1 4 HYCnC Communications 55 Whitfield Street London, W1T 4 AHContact:Tod Davis / David Benda / Jamie LillywhiteE: Smith T: +44 (0)1472 716 000E: nick BastinT: +44 (0)20 3219 8800 E: Agent & UK Transfer AgentPrincipal BankersCapita registrars (guernsey) LimitedMont Crevelt HouseBulwer Avenue, St Sampsonguernsey, gY2 4 LHCapita registrars LimitedCorporate ActionsThe registry 34 Beckenham road Beckenham, Kent, Br3 4 TUroyal Bank of Scotland International Limitedroyal Bank Place1 glategny EsplanadeSt Peter Portguernsey, gY1 4 BQHELPLInE:0871 664 0300+44 20 8639 3399 (OVErSEAS)InVESTMEnT ADVISEr Bluefield Partners LLP53 Chandos PlaceLondon, WC2n 4 HST: +44(0)2077480020E: Contact.