Representatives from New Zealand Green Investment Finance (NZGIF) met with Shareholding Ministers today to address concerns about the unexpected voluntary liquidation of SolarZero, one of New Zealand’s largest solar energy providers.
The decision, initiated by SolarZero’s owner, BlackRock, has left NZGIF and other stakeholders seeking answers.
NZGIF Chair Cecilia Tarrant expressed frustration with the abrupt decision.
“Our Shareholding Ministers rightly have questions about how this all happened, and so do we. The change in stance from SolarZero’s owner, BlackRock, came as a surprise to NZGIF and other lenders, and indeed appears to have caught SolarZero’s CEO off guard given recent public comments,” she said.
SolarZero had been a significant player in New Zealand’s renewable energy sector, focusing on providing solar panel installations and energy management systems for residential and commercial customers.
The company was wholly owned by BlackRock, one of the world’s largest investment firms, which had been funding its operations until its sudden move to liquidate.
The decision has sent shockwaves through the renewable energy sector, affecting hundreds of staff, suppliers, contractors, and customers.
Tarrant criticised the lack of communication from BlackRock. “BlackRock has not explained its sudden change in stance toward this company, which has severely impacted its staff, suppliers, contractors and partners,” she said.
During the meeting, NZGIF provided ministers with details about its lending arrangements, highlighting that its funding was not directly provided to SolarZero Limited (now in liquidation).
Instead, the lending was made through NZGIF Solar Finance, specifically tied to the installation of solar equipment in customers’ homes. This arrangement, managed through a trust structure, offers a measure of protection for customers and lenders.
“It is important to note, we lent against the installation of equipment at customers’ homes, which are owned by a trust structure that has provided customers and lenders with a measure of protection,” Tarrant said.
The liquidation has raised questions about BlackRock’s sudden withdrawal of support for SolarZero.
Tarrant said NZGIF had no indication of trouble before early November, when the SolarZero board or BlackRock ceased their financial backing.
“We take an active role in monitoring and engaging with investee and client companies, and it is fair to say we, along with staff, suppliers and customers, have been shocked by BlackRock’s decision to place the company in liquidation,” she said.
SolarZero’s liquidation has highlighted broader challenges within the renewable energy sector, including the reliance on private funding and the need for robust oversight mechanisms. NZGIF, a government-backed green investment fund, is now focused on protecting taxpayer money while ensuring that customers impacted by the decision are supported.
“We are focused on protecting customers and taxpayers’ money,” Tarrant said. The organisation continues to engage with Shareholding Ministers and other stakeholders as it seeks clarity on the situation and next steps for affected parties.
