Green Investment Finance backs commercial solar
A new initiative by New Zealand Green Investment Finance will provide financing of up to $40 million for commercial-scale solar installations, in partnership with solar energy services provider solarZero.
Building on an earlier $10 million facility for financing residential solar, New Zealand Green Investment Finance (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 will include a $10 million facility to finance solar installations and up to $30 million in additional funds held in reserve to scale up the facility, enabling the deployment of up to 40MW of solar generation over time.
NZGIF CEO Craig Weise said that this is an exciting next step as NZGIF works to drive growth in the distributed energy sector.
Commercial solar is a market that is predicted to grow significantly as New Zealand continues to replace thermal with renewable generation. Distributed solar will play a key role in achieving New Zealand’s emissions reduction targets, Weise said.
‘‘Our long-term horizon and flexible mandate allow us to undertake this type of innovative investment, and 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.’’
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 GWh of electricity per annum and creating as many as 175 new clean technology jobs.
Weise said 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 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,’’ he said.
Andrew Booth, solarZero CEO and founder, said the company is excited to be able to unlock the advantages of cheaper renewable energy both for companies and for communities across New Zealand.