NZ’s biggest solar player, BlackRock-backed solarZero, in liquidation

Tuesday, 26 November 2024

SolarZero retains ownership of the solar systems it installs, and Consumer NZ warns the 25-year contracts homeowners sign with the company have significant break costs.

SolarZero NZ, the company that owns roughly a third of the country’s solar power installations and is majority owned by the world’s biggest investment fund manager, BlackRock, has gone into liquidation in a shock move announced on the company’s Facebook page Tuesday night.

The company received $80m in funds from the government’s NZ Green Investment Fund last year, the largest ever such amount from that fund at that point.

Directors Andrew Booth and Simon McIver told company employees today that due to unsustainable operating losses, and liquidity constraints, it was unable to continue trading in its current form.

Customers woud not be affected by the liquidation, the company said.

SolarZero’s customers - there are 15,000 solar arrays installed on homes around the country - will not be affected by today’s announcement, the company said. That’s because ahead of the liquidation, the company’s senior lenders appointed a company Verofi as the replacement service provider to ensure energy services to customers across the country were uninterrupted.

But solarZero has over 160 employees at key office sites in Auckland, Christchurch and Wanaka, and their future is unclear.

On the company’s Facebook page, the directors of solarZero said: “This difficult decision follows work to explore a range of options to restructure the company. Regretfully, SolarZero and its key stakeholders were unable to find a viable solution to sustain the business.

“This is a tough day for solarZero teams, who have worked hard to build a more sustainable New Zealand. Today’s decision is not a reflection on their work or commitment.

“From day one, the company’s mission was to make solar energy affordable and stop climate change. We remain optimistic for New Zealand’s transition to becoming 100% renewable and thank the customers, colleagues and partners who shared our vision of a cleaner, greener, Aotearoa.”

As the company is now in liquidation, no further comment will be made, they added. Comment from the company was referred to Auckland PR firm Sherson Willis, who had not responded at time of writing.

The company ceased operations from 4pm today and Russell Moore and Stephen Keen of Grant Thornton were appointed liquidators of the company.

The Post has contacted BlackRock for more comment.

SolarZero installations cost about $25,000 apiece and the company was doing around 400 a month.

Founded in the 1970s, solarZero grew to be New Zealand's largest solar company, pioneering the country’s first solar subscription service, and developing and operating Australasia's largest virtual power plant.

The company was sold to global investor BlackRock Investments last year. At the time, BlackRock's Climate Infrastructure business, which sits within BlackRock Real Assets, said it would work with solarZero's management team to “build on the company's market leading track record and drive its next phase of growth, both in New Zealand and internationally.”

Around the same time, solarZero was the recipient of the largest-ever investment to be made by the government’s NZ Green Investment Fund. It gained $80 million from NZGIF alongside $90m from two international investors, Sydney-based First Sentier Investors and Paris-head quartered global funds manager Natixis.

The money allowed the company to refinance existing debt, and extend its financing of its typical 20 year contracts signed with customers. The company was doing about 400 domestic rooftop solar installations a month, costing some $25,000 apiece for the panels and the battery kit.

In a story done by The Post roughly a month ago, the company said the biggest problem it had was that only 24% of people knew it existed, as it had never spent money on advertising.