Solar Financing in New Zealand: Choosing the Best Option for Your Home

One of the first questions people ask when considering solar power is, "How much will it cost?" While solar prices have come down significantly in recent years, it’s still a major investment. Fortunately, many banks in New Zealand offer special loans and subsidies to support renewable energy upgrades, making solar more accessible than ever.

To help you navigate your financing options, we’ve compared the solar loan offerings from four major banks: ANZ, BNZ, Westpac, and Kiwibank.

Bank of New Zealand (BNZ)

BNZ offers a Sustainability Loan of up to $80,000 at 1% interest for three years. This loan isn’t limited to solar; it can also be used for energy-efficient heating, insulation, water tanks, and even electric vehicles. If the loan isn’t repaid within the three-year term, the interest rate reverts to BNZ’s floating home loan rate, which is currently 8.69%.

✅ Pros: Generous loan amount, broad eligibility for sustainable upgrades. ❌ Cons: High interest rate after three years.

More details on BNZ’s Sustainability Loan

Westpac New Zealand

Westpac’s Greater Choices Home Loan provides up to $50,000 at 0% interest for five years. Like BNZ, this loan covers solar, heat pumps, EVs, and other energy-efficient upgrades. To qualify, you must provide a quote from an approved installer. After five years, the interest rate rises to 5% per annum.

✅ Pros: No interest for five years, competitive long-term rate. ❌ Cons: Lower borrowing limit than BNZ or ANZ.

More details on Westpac’s Greater Choices Home Loan

ANZ Bank New Zealand

ANZ’s Good Energy Home Loan is very similar to BNZ’s, offering up to $80,000 at 1% interest for three years. Like BNZ, it covers solar, heating, insulation, and EVs. The key difference is that after three years, borrowers can choose between ANZ’s special or standard rates or a floating rate, though these rates are not pre-determined at the time of signing up.

✅ Pros: Large loan amount, flexibility in post-term rates. ❌ Cons: Uncertainty about future interest rates.

More details on ANZ’s Good Energy Home Loan

Kiwibank

Kiwibank takes a different approach by not setting a maximum loan amount. Instead, they offer a contribution of up to $2,000 over four years for loans over $5,000. This loan is specifically for renewable energy systems, including solar, wind, hydro, and geothermal. The trade-off is a variable interest rate of 8.5% per annum.

✅ Pros: No borrowing limit, cash contribution. ❌ Cons: High interest rate compared to other options.

More details on Kiwibank’s Sustainable Energy Loan

Important Consideration: Home Loan Requirement

Most of these solar financing options are only available if you have your home loan with the respective bank. If you’re considering switching lenders or refinancing to take advantage of a particular loan, it’s essential to weigh the overall benefits and costs of making that move. Be sure to speak with your bank to understand their specific eligibility criteria before applying.

Which Loan is Right for You?

Each of these banks provides valuable options for financing your solar investment, but the best choice depends on your budget, financial goals, and repayment plans. Westpac’s 0% loan is a great short-term option, while BNZ and ANZ offer larger amounts with competitive early rates. Kiwibank’s offering is better suited for smaller projects.

At Solar One, we can help you navigate your financing options and provide a tailored solar solution that maximizes your savings. As a SEANZ-approved solar installer, we meet the eligibility criteria for all these loan programs.

If you’re ready to power your home with solar, get in touch with us today!