BlackRock adds to clean energy portfolio with NZ solar and battery storage company

American investment giant BlackRock has agreed to acquire New Zealand’s leading solar energy services company, SolarZero, a month after announcing the purchase of Australian battery storage developer Akaysha Energy.

BlackRock Real Assets will acquire SolarZero for an undisclosed amount, but has committed to spending more than $NZ100 million over the next three years to accelerate the growth of SolarZero’s solar and battery technology platform.

SolarZero started out as a solar thermal company in the 1970s, and its present incarnation was established in 2008, since when has built itself up to become a leading provider of rooftop solar and smart battery storage systems across New Zealand’s residential, commercial, and community buildings.

It bills itself as a “solar-as-a-service” option, and offers a fixed monthly solar services fee and no upfront installation costs.

“Kiwis want clean and resilient energy,” said Andrew Booth, the CEO and founder of SolarZero.

“BlackRock Climate Infrastructure team’s investment and backing will enable us to rapidly increase our scale, grow our energy services network, and accelerate the transition to a 100% clean energy future.

“By 2030, 50% of the world’s energy will be generated in the Asia Pacific region. The window to prevent the worst impacts of the climate crisis is closing fast, and the power couple of solar plus storage is one of the few true paths to energy security, stable power prices, and a livable planet.

New Zealand has set a target of reaching 100% renewable electricity generation by 2035 and to become a carbon neutral economy by 2050.

However, solar penetration currently sits at only 2%, and with demand for electricity in New Zealand expected to double by the middle of the century, there exists a clear need for much more residential solar.

“New Zealand is widely recognised as a global leader in renewable energy and climate finance, and we are pleased to make our first investment in this market,” said Charlie Reid, Asia-Pacific co-head of climate infrastructure for BlackRock.

“Our move into New Zealand demonstrates BlackRock’s commitment to invest in attractive markets as part of our broader efforts to offer a flow of addressable global climate investment opportunities for our clients.

Last month, BlackRock announced the purchase of Melbourne-based Akaysha Energy, and said it would commit to $1 billion of spending for new battery storage projects over coming years.