Financing Solar Power in New Zealand: A Comprehensive Guide
Solar energy is gaining traction in Auckland, and with the rising interest, many homeowners are exploring financing options to make the transition smoother. If you're considering solar power for your home, understanding the available financing options can help you make an informed decision.
The Potential of Solar Power in Auckland
Tāmaki Makaurau's geographical location and climate conditions make it an ideal place for harnessing solar power. With a huge number of daylight hours throughout the whole year, Auckland has the potential to generate a significant amount of its energy needs from solar power.
However, a primary concern for many people and businesses considering the switch to solar is the initial costs. So today we are going to break down those false narratives and explore the various financing options and how the long-term savings on electricity bills and the potential for selling excess power back to the grid can offset these initial costs over time.
The Bright Future of Solar Power in New Zealand
The Growing Trend of Renewable Energy in New Zealand:
New Zealand has been progressively shifting towards renewable energy sources over the past decade. This transition is driven by our country's commitment to reducing carbon emissions and its abundant natural resources that make renewable energy a viable option. Among the various renewable energy sources, solar power has seen a significant rise in installations across households and businesses. In the past seven years alone, here at Steel Solar, we have installed over 1,000 solar systems.
Environmental Benefits of Solar Power:
Solar power stands out as one of the cleanest energy sources available. Unlike fossil fuels, solar panels produce electricity without emitting greenhouse gases. This means that every kilowatt-hour of solar-generated electricity reduces the carbon footprint, contributing to a decrease in harmful emissions that lead to climate change. Additionally, solar power helps in reducing air pollutants like sulfur dioxide and particulate matter, which can cause health problems for humans and harm the environment.
Long-term Financial Benefits of Solar Power:
While the initial investment for solar panel installation can be substantial, the long-term financial benefits are noteworthy. Once installed, solar panels significantly reduce electricity bills as they allow homeowners and businesses to generate their own electricity. Over time, the savings from reduced electricity bills often surpass the initial investment!
Another thing that people don't always realise is that with the decreasing costs of solar technology and the availability of various financing options in New Zealand, the payback period for solar installations is becoming shorter.
BONUS: There is also research that shows that properties equipped with solar power systems often see an increase in their market value, making it a sound investment for the future no matter if you are staying in your property for the short or long run.
Financing Options for Solar Power in New Zealand
Home Mortgage Top-Up for Solar Power:
One of the main methods homeowners can utilise to finance their solar power system is by topping up their existing home mortgage. This approach allows you to spread the cost of the solar system over the duration of your mortgage, often benefiting from the relatively lower interest rates associated with home loans.
Specialised Solar Loans from Major Banks
Several major banks in New Zealand offer specialised loans tailored for solar power installations. Institutions such as ANZ, ASB, Westpac, and BNZ have specific loan programs designed to support renewable energy initiatives. These loans often come with competitive interest rates and terms that align with the expected lifespan and return on investment of solar power systems.
ANZ Good Energy Home Loan: Offers a 1% interest rate, allowing customers to borrow up to $80,000 with a loan term of 3 years. The loan application must be accompanied by a quote from a SEANZ member solar company.
Westpac Warm Up Loan: Provides a 0% interest rate, permitting customers to borrow up to $50,000 with a loan term of up to 5 years. A quote from a SEANZ member solar company is required for application - Steel Solar is a SEANZ member.
BNZ Green Home Loan Top-Up: Offers a 1% interest rate, with the possibility for customers to borrow up to $80,000 over a 3-year term. A quote from a SEANZ member solar company is necessary for the application.
Some of the banks may require a quote from a SEANZ member solar company for the application. Here at Steel Solar, we are a SEANZ member so can help you with that process.
Personal Loans and Interest-Free Financing
Various financial institutions, including Q Card, Gem Visa, Q Mastercard, and Finance Now, offer personal loans or interest-free financing options. While some of these options might seem attractive initially, it's essential to understand the terms.
Government and Regional Council Solar Initiatives
If you are lucky enough to live in Hawkes Bay, you have access to some unique sustainable energy initiatives spearheaded by your regional council.
You may be wondering if there is any government funding or subsidies for solar energy in New Zealand.
Despite our nation's commitment to achieving 100% renewable electricity by 2035, there's a noticeable absence of such subsidies. This is partly due to over 80% of our electricity already being sourced from renewables like hydroelectric and geothermal power. The government seems to prioritise these established sectors, believing in the power of market dynamics to drive solar adoption in the residential sector. So if you are not one of the lucky ones, don’t bother waiting around for a government subsidy. Exploring bank financing options for your solar system can be a practical approach to begin recouping your investment.
The Bigger Picture: Subsidies and National Support
Kiwibank and New Zealand Home Loans (NZHL) have introduced a distinctive approach to promoting solar energy adoption. Rather than providing loans, they offer a solar subsidy of up to $2,000 towards the installation of a solar energy system in residential properties. This financial support aims to make solar energy more affordable and encourage more homeowners to consider solar installations.
The subsidy is directly applied to the installation costs to reduce the financial burden on homeowners and make the transition to solar energy more feasible. You will require a quote from a SEANZ member for the application which Steel Solar can help you with.
Conclusion
Embracing solar energy in Auckland isn't just a step towards a brighter, sustainable future—it's a smart financial move waiting to be made. Auckland's prime geographical and climatic advantages beckon every homeowner and business to harness the sun's power.
While the initial investment might seem substantial, have a chat with Steel Solar & Electrical and your bank today, and you'll discover a wealth of financing solutions designed to make this transition not just feasible, but incredibly rewarding.
Whether it's leveraging your home mortgage, tapping into specialised solar loans from leading banks, or benefiting from regional initiatives, there's a tailored pathway for everyone. And let's not forget the undeniable long-term financial perks: slashed electricity bills and a boost in property value.
As New Zealand ambitiously marches towards a green future, now is the time to seize the moment. Dive into the world of solar energy, and you'll not only contribute to a cleaner planet but also make a decision that your future self will thank you for.
Ready to take the next step? Contact us today.
Disclosure Statement: The information provided in this article by Steel Solar is intended solely for informational purposes and does not constitute financial or investment advice. Steel Solar is merely stating the available financing options for solar power in New Zealand and does not endorse or recommend any specific financial product or service. Readers are encouraged to consult with a financial advisor or professional before making any financial decisions.
Finance information as of February 2024.