A government proposal would allow people to install solar panels using loans from their council. (File photo) Photo: Unsplash
A proposal to let people install solar panels and other green technology using low-interest loans from their council needs to go ahead “as soon as possible”, its proponents say.
The government asked Local Government New Zealand to present its business case for the proposed Ratepayer Assistance Scheme (RAS) in late 2025.
However, ministers still had not made any decisions about whether to go ahead with the scheme – which would let councils provide long-term loans to any homeowner who wanted to access them.
That’s despite growing political support from parties across the spectrum.
At an energy debate at the Electrify conference in Queenstown on Monday, the Greens and the Opportunity Party said they both strongly supported the scheme, while National and Labour said they were open to the idea.
New Zealand First deputy leader Shane Jones said he was also “quite interested”.
Local Government New Zealand chief executive Scott Necklen said the scheme “had pretty broad support right across the parties that we’ve spoken to”.
“We’ve also talked to the prime minister about how the scheme will deliver immediate cost-of-living relief to New Zealanders.”
However, the organisation was still waiting on a decision.
“We would like to get a green light from the government as soon as possible.”
The scheme, which all councils in the country could opt into, proposed to leverage councils’ high credit ratings to access low-cost finance from markets.
The loans – which would remain off council balance sheets – would have long-term, flexible repayment periods.
If a house was sold, the remaining loan could be paid in full at that point or passed on to the new owner.
Necklen said they would be available for three things: rates deferrals, development contributions, and home energy improvements like solar panel and battery installations, hot water heat pumps, and double-glazing.
The last element had attracted support from decarbonisation advocacy group Rewiwirng Aotearoa, along with political parties, as a way to finance rapid uptake of zero-emissions technology without large government subsidies.
The Energy Efficiency and Conservation Authority (EECA) estimated a small-to-medium rooftop solar array costs between $8500 and $11,500 to install, with a battery – which allows the energy to be stored for use – adding an extra $5000 to $15,000.
EECA’s research showed that was recouped at an average of $1000 a year, through power bill savings, but many people could not afford the upfront cost, Necklen said.
“We know from research that’s been done by Rewiring Aotearoa … that the financing cost is the biggest barrier to solar installation.”
Low- or no-interest green loans, which some banks offered, were only available to current mortgage holders, he said.
That excluded about 80 percent of people, including retirees who no longer held a mortgage, and renters.
Labour’s energy spokesperson Megan Woods said at Monday’s debate that she was interested in seeing more detail about how renters and landlords would access the scheme.
“We’re open to looking at what we can do through a financing scheme like the RAS… but we need to tread very carefully.
“We don’t want it to become inflationary in terms of rent.”
The scheme would require a law change, and about $7 million of government funding that would be used as equity, Necklen said.
Councils who opted in as shareholders would contribute the remaining equity, up to a total of $30 to 35 million, Necklen said.
Once that happened, he said the scheme could be up and running in 12 to 18 months.
Preliminary advice on the RAS went to Climate Change Minister Simon Watts in February.
A spokesperson for Watts said he and other ministers were waiting on additional advice from officials.
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