Solar energy services company solarZero in the New Zealand has secured up to $40 million financing from New Zealand Green Investment Finance (NZGIF) to finance power purchase agreements (PPA) for commercial solar installations in the country. It will enable the deployment of up to 40 MW.
NZGIF financing includes $10 million to support solar installations on commercial buildings, and up to $30 million in additional funds held in reserve to scale up the facility. This financing is in addition to $10 million facility solarZero raised from NZGIF for residential solar and storage in April 2021.
The expected 40 MW distributed generation capacity will generate more than 50 GWh annually while creating up to 175 jobs. solarZero said it hopes to announce its 1st business customer under the financing in early 2022 and offer an inflation-free price for solar energy generated for a period of 20 years.
"Commercial and community solar are two of the most powerful tools we have to provide affordable renewable energy both to businesses and communities," said solarZero's CEO Andrew Booth. "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."
Set up as the country's 1st green investment bank, NZGIF sees distributed solar with its quick deployment feature for large energy users, as playing a key role in reducing the country's carbon emissions as New Zealand aims to achieve net carbon zero by 2050.
In July 2021, the New Zealand government allocated $300 million to the NZGIF taking its total investment capital to $400 million.
Activity in New Zealand's solar market is finally gathering steam. Recently, local company Genesis Energy signed up FRV Australia as its partner to develop up to 500 MW solar power capacity in the country (see 500 MW Solar Joint Venture For New Zealand).