Chapman Tripp Advises SolarZero On Groundbreaking Financing Model

Chapman Tripp is proud to have advised SolarZero, New Zealand’s largest provider of solar and battery systems, on its new financing model under the New Zealand Green Investment Finance Limited (NZGIF) Solar Finance Programme, providing $195 million of debt facilities under a scalable ‘split-series’ structure.

Société Générale acted as arranger of the facilities and Public Trust continues its role as trustee. The financing model splits SolarZero’s growth financing trust into two distinct series, enabling them to present bespoke offerings to different types of investors. The Customer Series has been designed to provide broad appeal to institutional investors in asset-backed securities and focuses on financing the widespread adoption of SolarZero's solar subscriptions. A separate Battery series supports SolarZero to build out their Virtual Power Plant technology which supports the national grid in potential emergencies, and is designed to appeal to more ambitious and outcome-oriented investors.

Chapman Tripp’s expertise in structured finance and sustainable funding were instrumental in advising SolarZero on this pioneering financing model. Led by finance partner Luke Ford, the Chapman Tripp team included Tom Yates, Rupert Gates and Tom van Schaik. Tax partner Bevan Miles and Conor Tinker provided tax advice across the transaction.

In 2021, Chapman Tripp advised SolarZero on its initial $10m investment from New Zealand Green Investment Finance (NZGIF), followed by a facility to launch its SolarZero Schools initiative, providing solar installations in schools. In 2023, Chapman Tripp again advised SolarZero on its partnership with NZGIF to become the initial cornerstone participant in the NZGIF Solar Finance Programme. SolarZero is owned by BlackRock via its Climate Infrastructure franchise.

James Allard, Chief Financial Officer of SolarZero, says, "This is a really exciting milestone not only for us, but for Aotearoa’s structured debt space. Going forward, it’ll open the door to a range of new investors, enabling us to continue to scale our customer base and help more kiwis save money by switching to solar, while expanding our Virtual Power Plant which we expect will play a meaningful role in supporting New Zealand’s energy transition.”

Luke said, “It is great to work with SolarZero as it continues to grow and innovate with NZGIF, Société Générale and investors. This new financing model paves the way for future growth of the company and our sustainable finance markets, as the country strives to accelerate its renewable energy transition.”

Mayne Wetherell advised Société Générale, DLA Piper advised NZGIF and Webb Henderson advised Public Trust.

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