A New Wave of Financing Options
Earlier this week the Government confirmed it is “actively considering” a council-rates financing mechanism that could slash upfront costs for rooftop solar with as little as $6 million in seed funding. (Newsroom) The concept is simple: councils pay the installer, then residents repay through their rates bill—spreading the cost over 10–20 years at ultra-low interest.
Banks Join the Party
The big five banks now offer “green home” top-ups:
| Bank | Max Loan | Rate | Term | Source |
|---|---|---|---|---|
| BNZ | $80 000 | 1 % fixed | 3 yrs | (BNZ) |
| ANZ | $80 000 | 1 % fixed | 3 yrs | (Kiwibank) |
| Westpac | $40 000 | 0 % | 5 yrs | (Kiwibank) |
| Kiwibank | Top-up $5 000+ | 0–4 % + $2 000 cash-back | 4 yrs | (Kiwibank) |
Market Momentum
Back in Jan 2021 there were roughly 31 000 residential solar systems. By the end of 2023 that figure had climbed past 56 000, meaning the market has more than doubled in < 4 years. (mysolarquotes.co.nz)
Why Finance Beats ‘Cash-Upfront’
- Instant Savings: Even with loan repayments, many homes see a net drop in monthly power costs from day one.
- No Equity? No Drama: Because green loans sit alongside the mortgage (or rates), first-home buyers with limited cash can still play.
- Future-Proofing: Solar adds resale value and insulates households against volatile electricity markets.
Case Study: Tauranga Family of Four
- 6 kW system, cost $17 500
- BNZ 1 % loan over 3 yrs → repayments $492 / mo
- Average power bill cut from $315 to $110 → net cash-flow +$133 / mo even before the loan is paid off.
What’s Next?
Industry group SEANZ is lobbying for battery storage to be added to low-interest programmes, mirroring Australia’s new subsidy. If approved, Kiwis could finance panels and batteries in one go super-charging self-consumption and grid resilience.
