The MyFarm Solar Fund LP offers wholesale investors the opportunity to invest in a portfolio of solar farms throughout New Zealand, with projected returns of 10-12% p.a. achieved through long-term Power Purchase Agreements.
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 will 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 farms and is forecast to provide cash distributions of 10%-12% p.a., paid quarterly, with depreciation benefits (9.5-year straight-line method) 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 a 15% p.a. return on a fully taxable investment, assuming a tax rate of 33%.
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, and MyFarm is pleased to offer investors the opportunity to align financial and sustainability goals via the MyFarm Solar Fund LP.
