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BlackRock Real Assets has acquired SolarZero, a leading solar and smart battery company in New Zealand. This significant move marks BlackRock's first residential solar and battery investment in the Asia-Pacific region. The acquisition is poised to accelerate SolarZero's growth and support the region's transition to clean energy, reflecting BlackRock's commitment to sustainable infrastructure.
Founded in 2008, SolarZero offers a subscription-based solar energy service that includes residential solar panels and energy storage. The service is unique in that it incurs no hardware or consumer finance costs, providing customers with solar panels and batteries at no upfront cost. SolarZero differentiates itself with its zero emissions commitment, 24/7 performance monitoring, and a 20/25-year service guarantee. Additionally, SZ Servicing Limited manages a fleet of batteries to reduce grid usage during peak times, enhancing energy savings and sustainability.
BlackRock is a global asset manager and fiduciary, dedicated to helping clients achieve financial well-being. The company offers a diverse range of investment funds, including equity, bond, alternative, cash, multi-asset, and index funds. Additionally, BlackRock provides advanced financial technology services like Aladdin, which offers risk and investment management solutions. Known for its market insights and sustainable investing focus, BlackRock holds a significant position in the asset management industry.
BlackRock acquired SolarZero on September 14, 2022. This acquisition aligns with a broader industry trend of increasing investments in renewable energy and battery storage solutions. At the time, New Zealand was leading the Asia-Pacific region in the clean energy transition, aiming for 100% renewable electricity by 2035. The acquisition also reflects BlackRock's strategic move to expand its climate infrastructure portfolio in the region, following its recent investments in similar projects in Australia, Taiwan, and Korea.
The acquisition of SolarZero by BlackRock Real Assets has led to significant changes in the company's operations and management. BlackRock's Climate Infrastructure team is now collaborating closely with SolarZero's management to drive the company's next phase of growth. This partnership aims to scale SolarZero's operations and expand its market presence both locally and internationally. The investment of over NZ$100 million in the next three years will enhance SolarZero's technology platform, enabling the company to offer more advanced solar and battery solutions. However, the transition has not been without challenges, as the company faced internal management changes and financial difficulties, including the quiet exit of CEO Matt Ward and subsequent liquidation discussions.
On the product and service front, SolarZero's energy-as-a-service model, which eliminates upfront costs for customers, remains a key offering. The acquisition is expected to bolster SolarZero's ability to provide innovative solar and battery solutions, contributing to New Zealand's goal of 100% renewable electricity. While the strategic partnership promises growth and technological advancements, the reactions from employees and customers have been mixed. Employees have expressed concerns over management changes and financial uncertainties, while customers have shown apprehension due to aggressive sales tactics and the impact of the company's liquidation. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring smoother transitions and better stakeholder communication.
