Solar Finance NZ: Green Loans Compared (2026)

Sarah ChenSolar Energy Writer

Updated 3 April 2026Study

How NZ green loans work

There is no government subsidy for solar panels in New Zealand. Instead, NZ’s five major banks have created their own incentive: green loans with rates between 0% and 1% for homeowners installing solar.

These loans are structured as mortgage top-ups, meaning they’re secured against your home. That lets banks offer far lower rates than personal loans or hire purchase.

The catch? Most require an existing mortgage with that bank, at least 20% equity, and a quote from a vetted installer. If you tick those boxes, you can finance a full solar system for less than you’d pay in electricity savings each month.

Four of NZ’s five major banks offer green loans at 0-1%. That’s effectively a bank-funded subsidy for solar.

Below, we compare every option: rates, terms, eligibility, and what it actually costs on a $15,000 system.

All 6 green loans at a glance

This table covers all six green loan products from NZ’s major banks. Rates verified January 2026.

Bank	Rate	Max loan	Term	Post-term	Best for
Westpac	0%	$50,000	5 years	5% p.a.	Lowest total cost
ANZ	1%	$80,000	3 years	Standard floating rate	Higher borrowing ($50k-$80k)
ASB	1%	$80,000	3 years	Standard floating rate	ASB customers needing $50k+
BNZ	1%	$80,000	3 years	8.69% floating	Flexibility
Kiwibank	~8.5%	No maximum	7-10 years	Rate stays the same	No equity required
ASB Rural	0%	$150,000	5 years	TBC	Farms and orchards

Westpac’s 0% rate for five years makes it the clear winner for most homeowners. If you need to borrow more than $50,000, ANZ and ASB both go up to $80,000 at 1%. For rural properties, ASB Rural offers 0% on up to $150,000.

Bank-by-bank breakdown

Full details on each lender including eligibility requirements, worked examples, and direct links to apply.

Westpac Warm Up Loan

Zero percent for five years. Not a teaser rate, the real deal.

Interest rate	Borrow up to	Pay it off in	After the term
0%	$50,000	5 years	5% p.a.

What’s good:

5 years at 0%
Up to $50,000
Longest interest-free term in NZ

Worth knowing:

Must be existing Westpac customer
Need 20% equity

Eligibility:

Existing Westpac mortgage
Minimum 20% home equity
Quote from a SolarScout-vetted installer
Quote less than 90 days old

$15,000 system over 5 years = exactly $250/month. Total paid: $15,000. Interest: $0.

Apply at Westpac →

ANZ Good Energy Home Loan

1% for 3 years with an $80,000 maximum. Ideal for premium or multi-structure installs.

Interest rate	Borrow up to	Pay it off in	After the term
1%	$80,000	3 years	Standard floating rate

What’s good:

Higher maximum ($80k)
1% is still very low
Quick approval process

Worth knowing:

1% vs Westpac's 0%
Shorter term (3 years)

Eligibility:

Existing ANZ mortgage
Minimum 20% home equity
Quote from a SolarScout-vetted installer
Quote less than 90 days old

$15,000 system is about $15,228 total. Around $423/month for 3 years. $228 interest.

Apply at ANZ →

ASB Better Homes Top-Up

Same 1% deal as ANZ but through ASB. Slightly stricter on quote expiry.

Interest rate	Borrow up to	Pay it off in	After the term
1%	$80,000	3 years	Standard floating rate

What’s good:

Higher maximum ($80k)
Generally quick processing

Worth knowing:

1% vs Westpac's 0%
Stricter quote expiry (60 days)

Eligibility:

Existing ASB mortgage
Minimum 20% home equity
Quote from a SolarScout-vetted installer
Quote less than 60 days old

$15,000 system is about $15,228 total. Around $423/month for 3 years. $228 interest.

Apply at ASB →

BNZ Green Home Loan Top-Up

Standard 1% green loan. Post-term rate is higher than others.

Interest rate	Borrow up to	Pay it off in	After the term
1%	$80,000	3 years	8.69% floating

What’s good:

Higher maximum ($80k)
Flexible terms

Worth knowing:

Higher post-term rate (8.69%)
1% vs Westpac's 0%

Eligibility:

Existing BNZ mortgage
Minimum 20% home equity
Quote from a SolarScout-vetted installer

$15,000 system is about $15,228 total. Around $423/month for 3 years. $228 interest.

Apply at BNZ →

Kiwibank Sustainable Energy Loan

Higher rate but no equity requirement. Your main option if you don't have 20% equity yet.

Interest rate	Borrow up to	Pay it off in	After the term
~8.5%	No maximum	7-10 years	Rate stays the same

What’s good:

No 20% equity requirement
No maximum loan amount
Longer repayment terms

Worth knowing:

Much higher rate (~8.5%)
Significantly more expensive long-term

Eligibility:

Existing Kiwibank mortgage
No minimum equity requirement
Quote from a registered electrician

$15,000 system over 7 years at 8.5% is about $20,700 total. Around $246/month. $5,700 interest.

Apply at Kiwibank →

ASB Rural SMART Solar Loan

Zero percent, massive limit. But only for rural properties.

Interest rate	Borrow up to	Pay it off in	After the term
0%	$150,000	5 years	TBC

What’s good:

0% interest like Westpac
Highest maximum ($150k) for large installations
5-year term

Worth knowing:

Rural properties only
Must deal with ASB Rural division

Eligibility:

Rural property (farm, orchard, lifestyle block)
Existing or new ASB Rural customer
Contact ASB Rural directly

$50,000 farm system = exactly $50,000 repaid. Zero interest over 5 years.

Contact ASB Rural directly to apply.

Cash vs financing: which is better?

If you have the cash, paying upfront maximises your return. But financing with a green loan (especially Westpac’s 0%) still delivers strong returns. Your solar savings often exceed your loan payments from day one.

Factor	Paying cash	Financing (0-1%)
Total cost (example)	$15,000	$15,000-$15,500
Upfront outlay	100%	$0 deposit
Payback period	5-6 years	5-7 years
Cash flow impact	Large one-time hit	Small monthly payments
Opportunity cost	Money tied up	Cash free for other uses

If you have the cash, paying upfront is technically cheapest. But at 0% interest, the financial difference is zero, and you keep your cash for emergencies.

Monthly payment example

Here’s what a typical $15,000 system looks like with Westpac’s 0% Warm Up Loan over five years.

Monthly payment	Total interest	Total cost
$250	$0	$15,000

For comparison, the same system on ANZ or ASB at 1% for three years costs $423/month with just $228 in total interest. Even Kiwibank at ~8.5% over seven years adds $5,700 in interest, bringing monthly payments to $246.

How we compared these options

We reviewed all major NZ banks and lenders offering loans suitable for solar installation as of January 2026. Here’s what we weighted.

Criterion	Weight	What we looked at
Interest Rate	40%	Total cost of borrowing over the full term
Eligibility	25%	How accessible the loan is to most NZ homeowners
Post-Term Rate	15%	What happens after the promotional period ends
Lender Reputation	10%	Bank stability, customer service track record
Flexibility and Terms	10%	Loan amounts, terms, early repayment options

Important information: The content on this page is general in nature and is not personalised financial advice under the Financial Markets Conduct Act 2013. It does not take into account your individual financial situation or goals. Interest rates and product details were verified in January 2026 but may change without notice. Always confirm current rates directly with lenders before applying. We recommend seeking advice from a qualified financial adviser before making financial decisions. SolarScout does not receive compensation from any lenders listed on this page.

Sources and verification

Bank green loan programmes

Industry data

WorkSafe NZ: Electrical Safety Requirements
NZ banks have issued over $1 billion in green loans since 2022 (Newsroom, August 2025)

Last verified: January 2026. Loan terms and eligibility may change. Always confirm directly with banks before applying.

Frequently asked questions

Is there a government subsidy for solar panels in NZ?

No nationwide subsidy exists in New Zealand. However, NZ's major banks offer green loans with subsidised rates (0-1%) specifically for solar panel finance as of Jan 2026. This is effectively a bank-funded subsidy as they want to lend for green home improvements.

Can I pay monthly for solar panels in NZ?

Yes. All bank green loans allow monthly payments over 3-5 years. A $15,000 system typically costs $250-$425/month depending on the loan you choose. Your electricity savings often exceed these payments, making solar cash-flow positive from day one.

What is the 20% equity rule for solar loans?

Most bank green loans are mortgage top-ups, which require at least 20% equity in your home. This means your mortgage balance must be less than 80% of your home's value. If you don't have this, Kiwibank's Sustainable Energy Loan or personal finance are alternatives, though rates are higher.

Which bank has the best solar loan in NZ?

For most Kiwi homeowners, Westpac offers the best deal: 0% interest for 5 years on up to $50,000. For larger systems ($50k-$80k), ANZ, ASB, and BNZ all offer 1% for 3 years. If you don't have 20% equity, Kiwibank is the main option as of Jan 2026.

Do I need a vetted installer for a green loan?

Yes. All five major NZ banks require your quote to come from an installer who meets recognised industry standards. This protects both you and the bank by ensuring quality workmanship and proper certification. All SolarScout installers meet these requirements.

Can I get solar panels with no deposit in NZ?

Green loans don't require a cash deposit as the loan covers the full system cost. But you do need home equity (typically 20%). Personal finance options like Q Card accept no deposit and no equity, but charge much higher interest rates (25%+ after promotional periods).

How long does it take to pay off solar panels in NZ?

With green loans, most homeowners pay off their system in 3-5 years. The good news: electricity savings often exceed loan payments, so many homes are cash-flow positive from day one. The system pays for itself, then keeps saving you money for another 20+ years.

What happens after the green loan fixed period ends?

After the 0-1% period, the rate reverts to a standard variable rate (typically 5-8.69% depending on bank). We recommend paying off the loan within the fixed period. If that's not possible, you can refinance at that point.

What to do next

Ready to see what solar could save your home? Our free quiz takes two minutes and matches you with a vetted local installer. Scout my savings →

Next steps for your solar journey

Written by Sarah Chen

Sarah has spent three years covering renewable energy in New Zealand, from residential rooftop systems to community solar projects. She holds a degree in Environmental Science from the University of Auckland.

Reviewed by

Matt Wilson

Registered Electrician & Solar Installer