NZGIF to spend up to $40m on commercial solar power installations

Government funded NZGIF invest up to $40 million on solar power installations through solarZero. Photo / File

A "green" investment bank set up by the Government will provide up to $40 million for commercial-scale solar installations in partnership with solarZero, which is backed by Stephen Tindall's K1W1 investment fund and Pencarrow.

The bank - New Zealand Green Investment Finance (NZGIF) - will also provide a senior debt facility to solarZero to finance Power Purchase Agreements (PPAs) for solar installations on commercial buildings.

SolarZero, whose origins date back to water heating innovation in the 1970s, says it has installed more solar systems on Kiwi homes and businesses than any other company.

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 40 megawatts of solar generation over time.

The facility will directly support the growth of distributed solar power generation, reducing New Zealand's overall reliance on thermal generation, generating more than 50 gigawatt hours of electricity per annum and creating as many as 175 new clean technology jobs, NZGIF said.

Analysis undertaken by Transpower forecasts a 700 per cent increase in distributed solar generation between 2020 and 2030 and it is expected to play a key role in achieving New Zealand's emissions reduction targets.

NZGIF is working to drive growth in the distributed energy sector, chief executive Craig Weise said.

"Our long-term horizon and flexible mandate allow us to undertake this type of innovative investment," he said in a statement.

This facility is capable of scaling to finance large commercial solar projects to meet growing demand.

"Commercial and community solar are two of the most powerful tools we have to provide affordable renewable energy both to businesses and communities," solarZero chief executive Andrew Booth said.

"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," he said.

NZGIF was established by the New Zealand Government to accelerate investment that can help to reduce greenhouse gas emissions.

It was incorporated in April 2019 with an initial $100m of investment capital.

Earlier this year, NZGIF announced a $10m investment in solarZero to support the growth of the company and boost its residential smart "solar-as-a-service programme".