RACQ takes majority stake in leading PV installer, in pivot to solar and storage

Queensland motoring group RACQ has taken a majority stake in one of the state’s largest and most successful solar companies, Gem Energy, in a deal announced alongside a new rooftop PV and home battery offering to the club’s 1.8 million members.

RACQ, which in its 100-plus years of existence has grown from offering motoring services to insurance and banking, said on Tuesday it had made the acquisition having successfully collaborated with Gem Energy on solar installs for members over the past two years.

“We’re now looking to deepen that relationship and help members live more securely and sustainably,” said RACQ CEO David Carter in a statement.

“RACQ is committed to providing Queenslanders with affordable, reliable and high-performing solar energy to help reduce emissions, lower power bills and provide emergency power relief.”

Gem Energy describes itself as “Australia’s leading commercial and residential solar energy company” and has won multiple awards from the Clean Energy Council, as well as from solar industry analyst SunWiz for being a top 10 commercial PV installer in Australia and a top 5 installer in the Northern Territory.

In 2019, Gem was one of a number of high profile solar companies to voice its opposition to a proposed Queensland government rule change that had threatened to slam the brakes on the state’s PV development pipeline, including for large commercial rooftop projects.

For Gem, the new relationship with RACQ will mean a boost to residential installs, and potentially home battery sales, where the company has been a stronger player in the large commercial and industrial segment of rooftop solar.

Among some of its more notable projects is the 648kW rooftop solar array installed at Australia Zoo, the Queensland native wildlife park founded by the late “crocodile hunter,” Steve Irwin – at the time, the largest on any zoo in Australia (pictured above).

Gem has also installed a 760kW rooftop system for the CSIRO offices at Pullenvale, a 1.3MW rooftop system for DFO in Cairns, and countless large commercial PV systems on rooftops of schools across Queensland.

Gem Energy CEO and founder Jack Hooper, said in a statement that he was looking forward to growing the business with RACQ.

“Gem Energy has installed more than 5,000 solar and battery systems across the state since launching in Emerald in 2013 and we look forward to improving the lives of more Queenslanders through RACQ in the future,” he said.

The coming together of the two companies mirrors a similar deal in Victoria when that state’s motoring insurance club, RACV, bought up regional PV business Gippsland Solar, and formed RACV Solar.

RACV Solar, which is headed up by Gippsland Solar founder and CEO Andy McCarthy, has since gone from strength to strength, buying up further small regional PV installation businesses and – just last week – launching a retail energy offer, called Arcline.

For RACQ and Gem Energy, the first order of business will be rolling out a branded solar and battery product later this year, offering “high-quality energy solutions” for residential and commercial customers, including solar, battery storage, EV charging, and commercial LED lighting services.

“Together, we aim to reduce emissions by creating more accessible renewable energy solutions for our members,” the companies said on Twitter.

RACQ has committed to being carbon neutral by 2030. Through its banking arm it also offers members access to low interest “green home loans” of up to $50,000 for energy home improvements including solar panels, batteries, solar hot water, heat pump hot water, and electric vehicle charging.