Meet the team: Chris Carlson

Chris Carlson is investment director at Armstrong Capital, a longstanding investor in UK renewables and partner to Beringea in the management of the ProVen Planning Estate Planning Service (PEPS). Armstrong has facilitated the development and construction of more than ￡300m of UK solar projects since 2013.

Below, Chris gives an overview of the UK renewable energy market and how the current energy crisis is impacting the sector.

Q: What is your background and how do you work with Beringea?

I’ve been in the financial and professional services industry for more than 20 years, focusing on energy for the past decade. Prior to joining Armstrong in 2021, I was an investment director at Octopus Renewables, investing in energy infrastructure across solar, storage and flexible generation.?

Armstrong is a specialist investor focusing on the renewable energy and storage sectors. We work with Beringea’s ProVen Estate Planning Service (PEPS) to provide investors with opportunities in UK solar projects. We aim to offer investors consistent returns of around 4%-5% a year. And because we invest in trading companies that are expected to qualify for Business Relief, money invested through PEPS could be free from any potential inheritance tax charge (providing the qualifying criteria is met)*.

Q: What are the main changes you’ve seen in the renewable energy sector over the past 10 years?

There are two main changes I’ve seen over the past decade.

1. The falling cost of solar panels and batteries. The price of solar panels and battery storage are far cheaper now than they were 10 years ago. That’s enabling us to roll out technology at a much lower cost, reducing our reliance on government subsidies.

2. Rising demand from investors. There has been a tremendous increase in global capital flows wanting to invest in green projects.?

Q: What is the outlook for the UK renewable energy sector in the coming years?

There are massive opportunities in renewable energy for investors in the UK and around the world. The Government is committed to achieving net-zero by 2050, which means the UK will not contribute any surplus greenhouse gas emissions into the atmosphere from this date.?

We are still a long way from achieving net zero, so huge developments in clean energy infrastructure is still required. At Armstrong, we believe we are very well placed to capitalise on that opportunity.?

Q: What makes Armstrong stand out from competitors?

We have a team of very experienced investors in the renewable energy space and our specialist UK solar project developer Renewable Connections is dedicated to finding the best opportunities. Unlike others, we keep all our asset management capabilities in-house and this means we have full control over how we manage our assets and are across all aspects of the pipeline. This allows us to monitor projects for a long time before they reach the ready-to-build stage, and we are ready to invest at various stages during the project life-cycle.?

Ultimately, keeping so many aspects of solar investing in-house, plus maintaining a deep network amongst other developers, allows us access to the best opportunities for our clients.

Q: What projects or assets are you looking for?

Armstrong invests in a wide range of renewable assets across the UK, across both new projects and those that are already in existence. We’re active in both the ground-mounted PV and roof-top mounted PV sectors. We’re looking for projects that clearly meet our return requirements, and are looking for opportunities where we can make positive changes and drive more value.

For example, we have a vast amount of experience with roof-mounted solar assets. By working with companies to put solar panels on the roofs of their warehouses or offices, we’re enabling them to generate a lot of their own electricity and this reduces their reliance on the network for that power.

From our perspective, working with these companies guarantees us contracted long-term revenue as we insist on a Power Purchase Agreement (PPA) of at least 25 years. This is a financing arrangement that allows a business to reap the benefits of solar energy without having to invest capital upfront to install solar systems.

Q: What is the impact of the current energy crisis on the sector?

Inflation affects us in two ways:

1. Most of our long-term PPAs are pegged to inflation, which means payments rise in line with RPI. This has been great for our portfolios, as we’ve seen strong valuation increases with inflation currently running much higher than expected.?

2. Rising inflation means higher electricity prices, so we can sell our electricity for more money.

The rising cost of fossil fuel-powered energy means it is even more important we are capable of generating our own energy through renewables. The government has made clear it wants to expand the renewable generation sector here in the UK, and reduce our reliance on foreign sources of fuels to ensure we have enough energy.?

Now is a great time to invest in renewable energy as the sector prepares to meet the challenges and opportunities ahead.?

How do I find out more about the PEPS?

For more information, please call us on 020 7485 7820 or email [email protected].?

* UK tax rules and regulations are subject to change, and such changes may be retrospective. Your ability to obtain tax reliefs will depend on your personal circumstances.