Freetricity has signed a contract to install up to 10,000 residential solar photovoltaic (PV) systems in the south of England and south Wales on behalf of London-based fund manager Zouk Capital (Zouk).
The deal follows an earlier one in which Freetricity installed 3,000 of the 7,000-strong portfolio of rooftop systems that Zouk sold to UK insurer Aviva Investors in July this year in a deal worth around £76 million (€96 million; $126 million).
The residential PV investment model enables homeowners and social housing residents to benefit from free use of the electricity generated by the systems. They are also installed at no cost to the residents under a government feed-in tariff (FIT) scheme.
“We were the pioneers of distributed solar projects of this type in the UK,” said Colin Campbell, managing partner at Zouk, in a statement. “Distributed solar PV remains an extremely efficient method of power generation, has a strong carbon benefit and provides fuel poverty relief, while at the same time fits our fund’s capital gain strategy.”
Earlier this month, Zouk closed its second European renewable energy infrastructure fund on €220 million, beating its €200 million target. The fund covers “niche and underinvested” markets such as waste-to-energy, geothermal, biomass, storage, energy efficiency and distributed small-scale energy.
The firm’s first fund was a €52 million vehicle which closed in 2008 and was focused exclusively on the solar sector.