New Zealand Green Investment Finance (NZGIF) has agreed to provide a senior debt facility to solarZero so as to enable the domestic solar energy services company to finance power purchase agreements (PPAs) for up to 40 MW of commercial-scale solar installations.
NZGIF said on Monday that it is offering an initial amount of NZD 10 million (USD 7m/EUR 6.1m) plus NZD 30 million in additional funds to solarZero to boost the number of solar systems installed on commercial buildings. The move will support the growth of solar power generation as New Zealand targets net zero greenhouse gas emissions by 2050.
"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,” NZGIF chief executive Craig Weise said, adding that this facility and future investments will help accelerate the adoption of solar energy by commercial enterprises.
Auckland-based solarZero has been working closely with several major New Zealand corporations and expects to announce its first customer and the location of the installation in early 2022.
The fresh funds by NZGIF come on top of a NZD-10-million investment in solarZero made in April to help fund the development of residential solar systems in the country.
Tracing its origins to solar water-heating services in the 1970s, solarZero is now focused on corporate clients and entities with large roof areas across New Zealand. The company is backed by local entrepreneur Stephen Tindall's K1W1 investment fund, Pencarrow Private Equity and the state-owned personal injury fund Accident Compensation Corporation (ACC). Its systems include solar PV and battery hardware as well as smart management and energy efficiency monitoring.
NZGIF was established in 2019 to invest an initial NZD 100 million in projects enabling the domestic energy transition. Earlier this year, the New Zealand government increased the green bank's investment capital to NZD 400 million.
(NZD 1 = USD 0.703/EUR 0.614)
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