Charging forward with NZGIF and SolarZero

DLA Piper's New Zealand-based finance experts have assisted New Zealand Green Investment Finance Limited (NZGIF) on its collaboration with SolarZero, the country's largest provider of solar and battery systems. NZGIF attracted further foreign direct investment into its Solar Finance Programme, providing NZD195 million of debt facilities with Société Générale to SolarZero under an innovative ‘split-series’ structure. The structure is designed to accelerate the adoption of residential solar energy and support the development of cutting-edge Virtual Power Plant (VPP) renewable technologies.

The financing model strategically divides SolarZero’s funding into two separate series, each tailored to attract distinct investor groups. The Customer Series finances SolarZero's residential solar subscriptions and is designed to appeal to institutional investors. In parallel, the Battery Series supports SolarZero's growth of its VPP technology, designed to support New Zealand’s national grid during emergencies and aimed at more ambitious and results-driven investors.

Rachel Brown, Auckland-based DLA Piper finance partner, provided structured finance expertise to ensure the success of this transaction. Rachel is well regarded for her strong financing expertise in the renewable energy sector with several high-profile engagements in the past year, including acting on the financing aspects of the Solar Finance Programme, which went on to win the 2024 Securitisation and Structured Finance Deal of the Year at the IFLR Asia-Pacific Awards in Hong Kong, and Finance Asia's Best Sustainable Finance Deal for 2023. Rachel also recently advised Aquila Clean Energy APAC with a pioneering financing structure for its development of solar farms in New Zealand.

Rachel said, “We are proud to work with NZGIF and SolarZero on this pioneering financing model. This initiative builds on the exciting developments and future growth in our sustainable finance markets and aligns with New Zealand’s goals to charge ahead with its renewable energy transition.”

Commended for their “marathon effort”, the DLA Piper team also included Jacob Nutt, Aminder Patwalia, and Ruby Medlicott.

Société Générale played a pivotal role as the arranger of the facilities, and Public Trust as the trustee for the Customer and Battery Series. Other advisors included Chapman Tripp for SolarZero, Mayne Wetherell for Société Générale, and Webb Henderson for Public Trust.