How a Green Loan Can Fund Your Rheem Solar Solution

3 April 2025

Installing solar power has become one of the most popular ways for Kiwi homeowners to reduce their energy bills and lower their impact on the environment. With the cost of energy dramatically increasing in recent years, solar power provides the clearest path to lowering your reliance on an energy company’s changing prices, and instead relying on the world’s greatest free energy source – the sun.

While the benefits of installing solar power are clear, the upfront cost can be a barrier for many homeowners – but this is where green loans come in. They can provide affordable financing solutions to help Kiwis transition to renewable energy.

A green loan, often in the form of a home loan top-up, allows homeowners to borrow money at a significantly lower interest rate compared to standard personal loans. Several banks in New Zealand provide these loans to encourage energy-efficient upgrades, including solar panels, batteries, and inverters (all products available in a Rheem Solar Solution). So, if you’ve been considering going solar, here’s a quick guide to using Green Loans in New Zealand for purchasing solar.

What Is a Green Loan?

Green loans are special financing options that help homeowners fund energy-efficient upgrades, including solar energy and heat pump hot water systems. Many major banks in New Zealand, including ANZ, ASB, BNZ, Kiwibank, and Westpac, offer these loans at highly discounted interest rates – some even as low as 0% or 1% for a fixed period.^[1] Unlike traditional loans which can lock you into often unsustainable interest payments, green loans are designed to make sustainability more accessible and financially viable. The interest repayments will also be offset by the energy savings from using the solar energy.

How Can a Green Loan Fund Your Solar System?

The cost of installing solar panels varies based on system size and the type of battery storage. Rheem Solar Solutions solar panels range from $6,000 for small homes to $16,990+ for larger homes, but a green loan can help you cover these costs with minimal financial strain. Here’s how:

Low Interest Rates: Many banks offer green loans with interest rates as low as 1%, compared to the higher rates of personal loans or credit cards.
Flexible Loan Amounts: Some banks provide up to $80,000, much more than what is required for a Rheem Solar Solution (even for large homes).
Extended Loan Terms: Repayment periods generally range from three to ten years, making it easier to manage monthly payments.^[2]
Potential Cash Contributions: Some lenders, like Kiwibank, offer subsidies (up to $2,000) to further reduce installation costs.^[3]

Green Loan Options Available in New Zealand

Most major banks in New Zealand offer green loans, each with slightly different terms and conditions. Here are some of the key options^[4]:

ANZ Good Energy Home Loan

Interest rate: 1% fixed for three years
Maximum amount: $80,000 per application, up to $500,000 total
Covers: Solar power systems, heat pump hot water heaters, insulation, EV chargers, and more

ASB Better Homes Top-Up

Interest rate: 1% fixed for three years
Maximum amount: $80,000
Covers: Solar power systems, heat pump hot water heaters, double glazing, and more

BNZ Green Home Loan Top-Up

Interest rate: 1% fixed for three years
Maximum amount: $80,000
Covers: Solar power systems, EV chargers, heat pump hot water heaters, insulation, and more

Kiwibank Sustainable Energy Loan

Interest rate: Standard home loan variable rate
Loan contribution: Up to $2,000 towards installation costs. It’s important to note here that Rheem is a member of the Sustainable Energy Association of New Zealand (SEANZ), as this loan can only be used for a system supplied and installed by a SEANZ member.
Minimum loan term: Seven years
Covers: Solar power systems, small-scale hydro, geo-thermal and wind energy

Westpac Warm Up Loan

Interest rate: 0% for five years
Maximum amount: $40,000
Covers: Solar power systems, heat pump hot water heaters, insulation and more

How to Apply for a Green Loan

Applying for a green loan is relatively straightforward but it will require some preparation – and it will differ slightly per bank. To begin, you will need to check your eligibility. As most green loans are only available to existing mortgage customers, you should start this process by contacting your bank to discuss their specific terms. If you are eligible, you will then typically need to get an official quote from a solar provider (the Rheem Solar Solutions team are happy to provide a free quote to help you with this stage of the process if you are considering solar). You will then need to submit your application to your bank, and provide any requested documents.

A green loan can be your gateway to making solar power an affordable and accessible option. The best part is that once solar is installed, your interest costs will be offset by the savings on your monthly energy bill. By using a renewable energy source, you’ll also be reducing your household’s carbon footprint in a tangible way – so it’s a ‘win-win’ situation. So, if you’ve been considering making the switch to renewable energy: