The future of the Green Investment Fund is being questioned by the Government over its stake in the collapsed company SolarZero.

The fund, set up by the previous government to invest in sustainable projects, had put in more than $100 million of taxpayer funds into the solar energy equipment supplier.

SolarZero was placed into surprise liquidation last week with its owner, multinational investment firm BlackRock, blaming "unsustainable losses". Close to 200 workers are owed millions in holiday and redundancy packages.

The fund's chairwoman Cecilia Tarrant was today called in for a "please explain" meeting with Finance Minister Nicola Willis and Climate Change Minister Simon Watts.

When asked how the meeting went immediately after, Tarrant said the ministers had "expressed their concerns".

She clarified later this afternoon that the fund had not "invested in SolarZero, the company".

"What we've done is we've lent money on the panels and the batteries."

She said the fund was "confident" it had done "the right due diligence" for the transaction.

The liquidator's first report showed that the company owed nearly $40 million to employees, tradies, and contractors — many of whom were left out of pocket.

BlackRock also owns large parts of KiwiSaver funds, which has former employees concerned.

"If they can treat people like they've treated SolarZero, just throw them out on the street, they're not complying with the social part of sustainability," SolarZero's former director of public affairs and policy Eric Pyle said.

"So, I don't think we can trust them with our KiwiSaver funds."

A standby company will continue servicing solar panels for its 15,000 customers, and there are hopes it will continue.

Tarrant said the fund is now looking for "the best option for us to protect taxpayers' money".

Willis said she has sought assurances about other taxpayer-funded investments made by the fund, adding that it potentially raises questions about its viability.

"This is not a great situation for any lender to be in, but I believe that we are an important part of New Zealand's decarbonisation and that there is a real reason for us to continue to exist," Tarrant said.