With a pipeline of over 100 PV projects, chiefly on roofs of commercial buildings such as warehouses, the Bournemouth-based acquiree is projected to boost Octopus Energy’s solar assets by 11% over the next five years.
Zestec’s business model follows the industry-standard template for big roofs, sleeving power back to site owners or occupiers by means of PPAs, power purchase agreements.
Undisclosed funds from privately held Octopus Energy Generation will now pay to complete unbuilt on-roof systems currently totalling 160MWp, the largest of them standing at 7MWp.
The deal comes as the latest in Octopus’ drive to embed new green power across Britain. It follows recent buys into floating offshore wind developer Simply Blue, and onshore wind developer Wind2 – all on behalf of the funds which the team manages.
With recent clients including builders Kier Group and transport operators Stagecoach, Zestec boasts of being “the UK’s leading provider of capital free on-site solar PV”.
Zoisa North-Bond, CEO of Octopus Energy Generation, said: “There’s a significant untapped opportunity in the UK to generate more cheap green power from businesses’ rooftops. This space is fast-growing and it’ll help bring more energy security and lower energy bills, all while allowing companies to reduce their carbon emissions.”
Zestec’s COO Simon Booth added: “Having worked with the team at Octopus over the last two years, it has become clear that we have a shared ambition to scale in this exciting sector of the renewable energy market”
Octopus Energy Generation is among Europe’s biggest investors in renewables. Its fund management specialists manage over 3 GW of wind and solar farms in eleven countries, together valued at £5bn.
In the UK Octopus is also behind the Fan Club, launched last year as the world’s first local energy tariff designed to provide greener energy at up to half price, to customers willing to accommodate a wind turbine in their post code.