The MyFarm Solar Fund LP offers wholesale investors the opportunity to invest in a portfolio of solar farms throughout New Zealand, with projected cash returns of 10-12% p.a. supported by long-term Power Purchase Agreements.
The Offer
MyFarm is partnering with Hiringa Energy Limited, a leading green energy producer, to develop five utility scale(5MW) solar farms over the next 24–36 months. Overall, the project aims to build up to 25 MW of electricity production capacity and involve total capital of $36 million. Electricity generated from these solar farms is intended to be sold to Hiringa Energy through long-term Power Purchase Agreements (PPAS), providing the potential for attractive inflation-adjusted returns.
The MyFarm Solar Fund will own the farm infrastructure and long-term leases and is forecast to provide cash distributions of 10%-12% p.a., paid quarterly, with depreciation benefits expected to provide significant tax advantages for investors. With these tax benefits, the target distribution of 10–12% p.a. is estimated to be the equivalent of an average 15% p.a. return on a fully taxable investment, from years 2 to 10, assuming a tax rate of 33%.
The MyFarm Solar Fund is open to wholesale investors. It is not available to retail investors.
Why Renewable Energy
With strong market fundamentals and significant government support, we believe the renewable energy sector can provide attractive opportunities for private investment. The Ministry of Business, Innovation and Employment forecasts total electricity demand to grow between 35% and 80% by 2050, with electrification in the commercial and industrial sectors driving short-term growth. The government has committed to doubling renewable energy generation by 2050 to meet this demand and achieve net-zero emissions targets. Meeting this increased demand will require an estimated $14 billion investment in new generation by 2035.
Private investment that can generate attractive returns is critical to achieving our clean energy and environmental objectives.
View the Fact Sheet for MyFarm Solar Fund Limited Partnership by clicking here.
Find out more about the MyFarm Solar Fund and the opportunity for private sector investment in solar energy by watching this video:
