Source: Press Release Service – New Zealand

As the holiday season unfolds, the liquidation of SolarZero looms over New Zealand’s solar energy landscape. Equity Solar Brokers, a leading solar broker, is raising the alarm on the implications of this development in our advancing solar industry. We believe this is a wake-up call for consumers and policy makers alike, highlighting the urgent need for a sustainable, long term plan to help develop New Zealand’s residential solar sector.

SolarZero’s Sudden Withdraw

In a move reminiscent of the Grinch who stole Christmas, Blackrock, one of the world’s largest asset managers, pulled the plug on SolarZero just as the festive season approached. Despite acquiring the company for a reported $100+ million in 2022, Blackrock’s decision left over 160 employees jobless and contractors unpaid, casting a shadow over the holiday spirit.

Blackrock’s investment in SolarZero, while significant for the company, was a relatively minor component of their extensive portfolio, likely accounting for less than 0.001% of their total assets under management. So, why did they invest into solar in the first place? They saw an opportunity, but one of our insider sources at SolarZero suggests Blackrock didn’t understand the B2C business model and the need to hit scale.

“BlackRock had invested as Australiasia is predicted to have the biggest need for power infrustructure going forward – EVs, smart homes etc. NZ doesn’t have the money to fund these upgrades. BlackRock invested for the long term, our contracts don’t break even til around year 10. We were never cashflow break even, and were only forecasted to from June. They had never invested in a B2C business before. Honestly, I don’t think they spent enough time in the business to understand the intricacies, nor the complexities. Their messaging was always that they were supportive so to end in such a way was truly shocking” – SolarZero on Blackrocks withdraw.

New Zealand vs. Australia: A Comparative Look at Solar Uptake

Equity Solar Brokers analysis indicates that New Zealand’s solar market possesses immense potential but lags behind its neighbor, Australia. Currently, solar power is installed by a mere 2.5% of New Zealand’s households, with over 600 installations being completed each month. In contrast, Australia boasts a solar penetration rate exceeding 30%.

Kiwi’s often comment that Australia’s uptake was primarily due to government subsidies. This statement carries merit, but misses the point.

Australia installed solar at an immense pace for one reason only. That reason – it made sense. Aussie’s saw the ‘no-brainer’ case for solar, where solar systems saved enough energy annually to pay for the upfront cost in as little as 3 years. The question is; is NZ on the same path, where solar energy enters the ‘no-brainer’ category?

For New Zealand to truly embrace a sustainable energy future, a multi-faceted approach is essential:

Government-Led support: The NZ Government should be rallying behind already existing initiatives, such as those proposed by rewiring Aotearoa to level the playing field for consumers installing solar on their home or business. Furthermore, policy frameworks should be tailored to New Zealand’s specific environmental and regulatory landscape, make it affordable and affordable for Solar Rooftop installs.

Scaling insights: “No-brainer” funding methods exist. Like usual, NZ isn’t lacking in great ideas! Awareness is our challenge, as we haven’t yet reached the tipping point.

The opportunity: Over the next 25 years, most households will incur over $100,000 in energy costs. We must be empowering kiwis to take ownership of their energy costs.
It’s all well and good to remember to turn off light switches and dial down the temperature on hot water cylinders, but there’s a lot more that can be said for empowering each individual and their wider community on how solar can save them money, keep them connected in a power outage, and accelerate NZ on it’s race to 100% renewable.

Long-Term Investment Strategies: Investors with a genuine commitment to sustainability can create lasting change. With rooftop solar dropping in price, energy costs on the rise, and fixed yields on the way down, now is the time for investors to allocate time and energy to exploring the positive returns of solar.

Equity Solar Brokers calls on Energy Minister Simeon Brown to lead the charge in developing a comprehensive plan for solar energy in New Zealand, specifically with a focus on rooftop solar, as distributed generation decreases our need for longer term grid infrastructure investment.

Further to policy and support, we suggest a two-fold increase to solar-export restrictions, which will enable larger residential rooftop solar installations.

If subsidies are considered, we suggest a subsidy only for solar batteries, which is a double edged sword approach to increasing both energy generation and storage.

We challenge the Minister to craft a strategy that prioritizes local investment and innovation over reliance on overseas funds with conflicted motives. By fostering a homegrown solar industry, New Zealand can secure its energy future, ensuring that the benefits of solar adoption are felt by all Kiwis.

Media Release 27 December 2024.

MIL OSI