Financing Solar in NZ: Green Loans vs Interest-Free vs Personal Loans (2026)

Written by Kristy Hoare, Founder & Solar Market Research Specialist
Last updated: 22nd October 2026

One of the lowest-cost ways to finance solar panels and batteries in New Zealand is through a green loan from your bank. ANZ, ASB and BNZ currently offer loans at 1% interest for three years, on up to $80,000. Westpac offers 0% interest for five years on up to $50,000. You'll need a home loan with the bank to qualify, and lending criteria apply.

If that's not an option, interest-free finance through Q Mastercard, Gem Visa or NOW Rewards Visa is another way to spread the cost, but it only stays interest-free if it's paid off before the interest-free period ends. Personal loans are generally a more expensive way to finance solar.

The way I look at it, financing solar makes good sense if the numbers stack up. Rather than handing over money to your power company every month, you're putting that money towards your own little power station on the roof. Once the loan is paid off, your solar panels can keep producing electricity for decades, helping keep your power bills down.

I've spoken to plenty of solar installers around New Zealand, and they tell me a good chunk of their customers are using bank green loans to pay for their solar installations.

Unfortunately, the banks don't publish exactly how much of their green lending goes towards solar. ANZ reported lending more than $1 billion through its Good Energy Home Loan to over 25,000 customers since July 2022. That's an impressive figure, although it includes electric vehicles, heat pumps, insulation and other energy-efficient upgrades, not just solar panels.

There are three main ways you can finance a solar power system:

• Topping up a home mortgage with a green loan
• Interest-free finance on a credit card
• A personal loan

1. Financing Solar With a Mortgage Top-Up (Green Loan)

Often called a green loan, this is one of the cheapest ways to finance solar panels and batteries in New Zealand. ANZ, ASB, BNZ and Westpac all offer low-interest green loans, which are essentially mortgage top-ups.

Green Loan Eligibility

To qualify for a green loan, you'll need a mortgage with the bank (or be willing to move yours), enough equity in your home and approval for the extra lending. Banks will check whether you can afford the repayments, much like a home renovation loan. You'll generally need at least 20% equity, although requirements vary between banks. Not sure if you qualify? It's worth asking your bank!

Green Loans Compared (October 2026)

Sources: bank websites and EECA, checked October 2026. Rates and terms can change, so always check with the bank.

Westpac Greater Choices Home Loan

• 0% Interest rate
• Customers can borrow up to $50,000 (this is shared across all your Greater Choices loans, e.g. if you also have one for an EV)
• The loan has to be paid off within 5 years
• Solar power systems with batteries are on Westpac's eligible list
• You need a Westpac home loan of at least $150,000, and your main income paid into Westpac
• No establishment fee
• Westpac will need to see a quote, and pays out against an invoice

ANZ Good Energy Home Loan

• 1% Interest rate, fixed for 3 years
• Customers can borrow from $3,000 up to $80,000
• After 3 years, anything left moves onto ANZ's floating rate
• ANZ prefers your quote to come from a SEANZ member or an installer with relevant solar credentials

ASB Better Homes Top-Up

• 1% Interest rate, fixed for 3 years
• Customers can borrow up to $80,000
• After 3 years it moves to ASB's housing variable rate
• Minimum 20% equity
• ASB will need to see a quote/invoice for the purchase that is no more than 60 days old
• ASB prefers your quote to come from a SEANZ member or an installer with relevant solar credentials

ASB SMART Solar Loan (For Farms & Orchards)

• 0% Interest rate
• Customers can borrow up to $150,000
• The loan term is 5 years
• For solar and battery systems, available to existing or new ASB Rural customers
• Offer runs to 30 June 2027

BNZ Better Future Home Loan Top-Up (was the Green Home Loan Top-Up)

• 1% Interest rate, fixed for 3 years
• Customers can borrow up to $80,000 in total at 1%
• Solar panels, batteries and inverters are all eligible, including planning and installation costs
• Fee of up to $100 for existing customers, or up to $150 for new customers
• After 3 years you can refix or move to BNZ's floating rate

Get 3 Free, No-Obligation Quotes From SEANZ Members Here ›

Kiwibank Sustainable Energy Loan

• This is for solar power, small-scale hydro, wind or geothermal power generation.
• If you borrow more than $5,000, they will contribute up to $2,000 over four years towards the cost of the system - $800 at the end of the first year and $400 at the end of each of the following three years.
• The sustainable energy loan is a variable-rate home loan. The minimum loan term is seven years and the maximum term is 10 years.
• The system needs at least a 10-year manufacturer's warranty, and it's for owner-occupied homes only.
• The sustainable energy loan has to be taken out either when the system is installed or when you get an agreement for installation.

The Catch With Green Loans

Green loans aren't totally free money, and the catch depends on the bank:

• ANZ, ASB and BNZ (1%): the low rate lasts 3 years. Whatever's left after that moves onto the bank's normal floating or variable rate, which is a lot higher.
• Westpac (0%): the loan has to be paid off within 5 years. Fall behind on repayments and a 5% default rate kicks in.
• Kiwibank: there's no low rate to lose. It's your normal home loan rate from day one, with up to $2,000 back over four years.

It's worth checking whether you can pay off your solar loan within the discounted interest period, as any remaining balance could attract a much higher rate. And because the 1% loans have fixed rates, paying them off early or switching banks could mean break fees. Always check the loan terms before signing up.

2. Interest-Free Finance (Q Mastercard, Gem Visa, NOW Rewards Visa)

Some solar installers offer interest-free finance through providers like Q Mastercard (Q Card), Gem Visa and NOW Rewards Visa (previously Purple Visa). For example, Solar Hub advertises 50 months interest-free finance through Q Mastercard.

But here's the catch - interest-free doesn't always mean completely free. There are usually some fees involved, although these are relatively small compared to the cost of a solar installation.

The biggest thing to watch is what happens when the interest-free period ends. If you haven't paid off the full amount, the remaining balance can attract interest rates of around 26% to 29% per year. Ouch!

Sources: qcard.co.nz, worldsolar.co.nz (Gem Visa), Canstar (NOW Rewards Visa), checked October 2026.

What Does 50 Months Interest-Free Solar Finance Really Cost?

Let's look at how a 50-month interest-free deal with Q Mastercard works on a $15,500 solar system, which is about what you'd pay for a typical 8kW solar installation in New Zealand.

• If you pay it off within 50 months: You'll need to repay $310 a month, plus around $280 in fees ($55 establishment fee and $50 annual account fee). That's a total of roughly $15,780.
• If you only make the minimum repayments: Q Mastercard requires you to pay at least 3% of your outstanding balance each month. After 50 months, you'd still owe around $3,400, before allowing for fees. That remaining balance would then attract a hefty 28.95% annual interest rate. Keep making only the minimum repayments, and you could be paying off your solar panels for decades, with thousands of dollars added in interest.

Even Q Mastercard warns that making minimum repayments won't clear your balance before the interest-free period ends.

The bottom line: Interest-free finance only stays interest-free if the full amount is paid off within the interest-free period. Otherwise, those hefty interest charges could quickly eat into the savings you're making on your power bills.

3. Personal Loans - A More Expensive Way to Finance Solar

Personal loans aren't a particularly common way to finance solar panels in New Zealand, which isn't surprising given the interest rates. These typically range from around 8% to 30% p.a., depending on the lender and your credit history, often with additional fees.

At those rates, interest can eat into a good chunk of the savings you'd make from solar.

Here's an example of financing an 8kW solar system with a personal loan:

Say you borrow $15,500 over five years at 14.95% interest, with a $230 establishment fee.

• Monthly repayments: Around $368
• Total interest and fees: Around $6,830
• Estimated solar savings: Around $187 a month, based on our 6.9-year median solar payback
• Extra monthly cost: Around $181 more going out than you're saving on power during the five-year loan term
• Solar payback period: Stretches from roughly 7 years to almost 10 years when you include the borrowing costs

That's nearly $7,000 going to the lender rather than towards your solar system. Ouch!

Personal loans can help cover the upfront cost of solar, but the higher interest rates make a big difference to the overall savings. Compared with low-interest green loans, they can add thousands to the final cost.

For homeowners without access to a green loan, other options to compare include saving towards the installation or starting with a smaller solar system that costs less upfront.

These figures are illustrative estimates, assuming fixed monthly repayments, no additional fees and consistent electricity savings. Actual costs and savings will vary.

Financing a $15,500 Solar System: Five Ways Compared

Assumes a $15,500 8kW system saving about $2,250 a year (6.9 year median payback, see our solar cost page). Example only - your figures will be different.

Disclaimer: This article provides general information about solar finance options in New Zealand and does not constitute financial advice. My Solar Quotes is not a licensed financial advice provider. Interest rates, fees, eligibility criteria and loan terms can change, so always check the latest information directly with the lender. Consider speaking with a licensed financial adviser before making any borrowing decisions.