$40m for commercial solar

Up to $40 million for commercial-scale solar installations will be available from the New Zealand Green Investment Finance (NZGIF) in partnership with solar energy services provider SolarZero.

Building on an earlier $10 million facility for financing residential solar, NZGIF will now also provide a senior debt facility to SolarZero to finance power purchase agreements (PPAs) for solar installations on commercial buildings. The investment includes a $10m facility to finance solar installations and up to $30m in additional funds held in reserve to scale up the facility, enabling the deployment of up to 40MW of solar generation.

The facility will directly support the growth of distributed solar power generation, reducing New Zealand’s overall reliance on thermal generation, generating more than 50GWh of electricity annually and creating up to 175 new clean technology jobs.

Commercial solar is a market that is predicted to grow significantly as New Zealand continues to replace thermal with renewable generation.

Analysis undertaken by Transpower forecasts a 700% increase in distributed solar generation between 2020 and 2030. Distributed solar will play a key role in achieving New Zealand’s emissions reduction targets and it is a flexible energy solution that can be deployed fairly quickly, the study suggests.

“Our long-term horizon and flexible mandate allow us to undertake this type of innovative investment,” NZGIF chief executive Craig Weise says.

“This facility is capable of scaling to finance large commercial solar projects to meet growing demand. We are pleased to be able to make this offer to multiple corporate clients seeking to finance commercial solar projects under a PPA structure.”

Weise says NZGIF is also pleased to continue to support the expansion of SolarZero with this facility, marking a significant step-change in the commercial solar market, enabling large corporate clients to deliver on their own commitments to decarbonisation.

“This facility with SolarZero, and future investments, will make it easier and quicker for commercial enterprises to adopt solar and will show them that acting sustainably and reducing emissions can deliver both economic and environmental benefits – every client that signs up for solar is not only saving on energy costs but also doing their part to shift the dial on climate change.”

SolarZero chief executive and founder Andrew Booth is excited to be able to unlock the advantages of cheaper renewable energy both for companies and for communities across New Zealand.

“Commercial and community solar are two of the most powerful tools we have to provide affordable renewable energy both to businesses and communities,” he says.
“For many Kiwis who do not own their own home or have a roof suitable for solar panels, this new financing tool will enable companies to help them save money on electricity costs,” Booth explains.

“This investment by NZGIF and our shareholders will lead to meaningful energy cost savings, create jobs in our communities, and make our clean energy transition more equitable.”

Booth says SolarZero has been working closely with a series of major New Zealand corporations and hopes to be able to announce their first customer early next year.