Solar power company SolarZero Limited placed into liquidation

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turtleattacks

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#317917 27-Nov-2024 09:09

Thoughts on what will happen to the current customers still trying to pay back the panels?

https://www.nzherald.co.nz/business/solar-power-company-solarzero-limited-placed-into-liquidation/QN3RWMACORGK5DPJL5E3LUSIPE/

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shk292

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#3313388 27-Nov-2024 12:37

Presumably the customer debts will be assets on the balance sheet and will be transferred to a new company owner. Seems unlikely that Joe Consumer will get any benefit out of this liquidation

nzkc

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#3313393 27-Nov-2024 12:48

One wrote: “Our contracts still stand and we still get the second battery free after 10 years, correct?”

Oh boy... are they going to be upset when they realise all the contracts are now basically worthless. Not likely anyone picking up the customers will honour that kind of commitment. Absolute best I think they can hope for is they are offered a discount on a complete purchase on the remainder of their contract from the liquidators.

mentalinc

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#3313395 27-Nov-2024 12:55

It's going to be a very interesting liquidation process for sure. I expect will feature in 'text books'.

Who actually owns the kit installed? I assume SolarZero state they own the panel until paid for (20 year contract term completes). I then suspect the company SolarZero purchase the panels from have a similar clause, that they own all products until paid in full.

The value of the kit installed is going to be cents on the dollar as it's all second hand kit now, so assume next to no value so limited benefit to roll trucks to 'repossess' the installed kit on houses.

Assume the kit is all installed using borrowed funds, backed by the 'assets' installed on houses, and the 'value' of the loan - refer to sub-prime market lessons.

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wellygary

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#3313419 27-Nov-2024 14:39

I would wager there are 20K "customers" of Solar Zero that are now likely to get a significant jump in the "monthly subscription" prices,

(I'm betting the Fine Print of the contract will be heavily in SZ's favour, to allow increases in prices and modifications to the contract, while the customers will have very few avenues to exit early )

But either way , its pretty much going to kill stone dead the "free install and long term lease" solar panel option for years, until this is all sorted out...

empacher48

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#3313483 27-Nov-2024 18:52

wellygary:
I would wager there are 20K "customers" of Solar Zero that are now likely to get a significant jump in the "monthly subscription" prices,

(I'm betting the Fine Print of the contract will be heavily in SZ's favour, to allow increases in prices and modifications to the contract, while the customers will have very few avenues to exit early )

But either way , its pretty much going to kill stone dead the "free install and long term lease" solar panel option for years, until this is all sorted out...

The more recent customers do have the ability for SolarZero to increase in their contract. Those of us who were early adopters when it was known Solarcity don’t have that clause.

It will be interesting to see how it unfolds, as an original customer, I’m not too worried.

gzt

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#3313588 27-Nov-2024 22:45

nzkc:

One wrote: “Our contracts still stand and we still get the second battery free after 10 years, correct?”

Oh boy... are they going to be upset when they realise all the contracts are now basically worthless. Not likely anyone picking up the customers will honour that kind of commitment. Absolute best I think they can hope for is they are offered a discount on a complete purchase on the remainder of their contract from the liquidators.

Imo it's too early to make assumptions.

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CYaBro

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#3313589 27-Nov-2024 23:05

From the SZ Facebook page:

Opinions are my own and not the views of my employer.

Bung

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#3313615 28-Nov-2024 07:31

Apparently the US investment company Blackrock having bought a majority share in SolarZero two years ago weren't happy with sales numbers.

"In a story done by The Post roughly a month ago, the company said the biggest problem it had was that only 24% of people knew it existed, as it had never spent money on advertising."

wellygary

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#3313635 28-Nov-2024 09:07

Bung:

Apparently the US investment company Blackrock having bought a majority share in SolarZero two years ago weren't happy with sales numbers.

"In a story done by The Post roughly a month ago, the company said the biggest problem it had was that only 24% of people knew it existed, as it had never spent money on advertising."

But like all Private Investment Funds, they were smart enough to choose investments where they had access to plenty of government funding too... This Newsroom story is paywalled, but the headline pretty much says it all..

Basically the "loans" from the Government were secured over the panels installed on roofs -which doesn't sound overly fungible..

"Minister seeks ‘urgent advice’ on $115m at risk in SolarZero collapse

"The climate finance contagion has spread to the government green bank that engineered the multimillion dollar deal to put solar panels on 20,000 Kiwi roofs"
https://newsroom.co.nz/2024/11/28/minister-seeks-urgent-advice-on-115m-at-risk-in-solarzero-collapse/