Lightyears Solar raises $6m equity for solar farms with capital raise led by Prime Energy and Hoku Group

Lightyears Solar recently completed its first solar farm in Waiuku south of Auckland.

Lightyears Solar says it has raised $6 million to help build three new community-scale farms over the next year.

The equity raised will help fund the construction of farms in Wairarapa and Canterbury, totalling 18 megawatts (MW), and allow the company to expand and grow in other areas, including its engineering and construction arm.

“The power produced from these farms is enough to power nearly 4000 homes with renewable energy and will also help alleviate energy poverty around New Zealand,” Matt Shanks, Lightyears development manager and co-founder, said.

Along with its already operational Waiuku Solar Farm, Lightyears will have a 20MW portfolio of solar farm assets on completion of these projects. It has 60MW of projects commencing construction in 2025.

The capital raise was led by electricity retailers, Prime Energy and Rowan Simpson’s Hoku Group.

Prime Energy already has a long-term power purchase agreement to take power from Lightyears’ Waiuku Solar Farm.

The energy generated from these farms will be available for consumers to purchase directly from Prime Energy.

Prime Energy CEO Michael Skates said the New Zealand electricity market desperately needed to increase its renewable generation capacity to be able to decarbonise the country.

“The relationship between Lightyears Solar and Prime Energy moves us from wanting and encouraging increased renewable energy and lower emissions in New Zealand to being a core part of the movement delivering that change,” he said.

“We are seeing a growing appetite and direction from customers to not only find comfort that the energy they consume is renewable, but to see exactly where it comes from and that it is changing the status quo”.

Lightyears Solar also has a $25m debt facility from New Zealand Green Investment Finance (NZGIF), to help finance project construction and operation.

Lightyears Solar is a New Zealand-owned and operated company developing and constructing ground-mounted, community-scale solar farm generation assets connected to New Zealand’s electrical distribution networks.

The company aims to support productive agriculture via dual use farm design.

Prime Energy supplies electricity and gas to business and commercial customers throughout New Zealand.