Solar has suddenly become a hot political topic in New Zealand.
Labour, National and the Greens have all announced major policies aimed at getting more solar onto Kiwi homes, while ACT, Opportunity and NZ First have taken quite different approaches.
I'm pleased solar is finally getting this much attention. But I'm also a little frustrated that it has taken an election to make it happen, but don’t worry I won’t whinge too much.
Before getting into comparing the policies, there is one really important piece of context.
Solar Is Already Much More Affordable Than It Used To Be
A typical 6kW residential solar system in New Zealand currently costs around $12,000 fully installed, while smaller systems start at around $7,000.
And for homeowners with a mortgage and enough equity, some of the finance available today is already incredibly cheap. Below is what each bank offers - which also serves as a benchmark I think the political parties' policies need to be measured against.
Current bank options include:
• Westpac: 0% interest, up to $50,000, up to 5 years
• ANZ: 1% interest, up to $80,000, 3 years
• ASB: 1% interest, up to $80,000, 3 years
• BNZ: 1% interest, up to $80,000, 3 years
• Kiwibank: variable home-loan rate over 7-10 years, with up to a $2,000 contribution towards the system
These generally require you to already have a mortgage and sufficient equity, which means they don't work for everyone.
And a shout-out here to Rewiring Aotearoa, who have given the political parties a much-needed push along. They’ve been strong advocates for the fact that while the bank loans are great, too many people are locked out of them - and easier-access finance needs to be available. Which at its core, the barrier to the green bank loans is what the most parties are trying to solve - but the question is do hit the mark with their policies? Let's dig in.
Labour - SolarSaver
Labour currently has the most comprehensive solar policy of the two major parties.
Its SolarSaver programme would cost $160 million over four years and includes government-backed, long-term, low-interest finance for solar and batteries.
Homeowners could access finance either through participating lines companies, with repayments made through their power bill, or through a Ratepayer Assistance Scheme where the loan stays with the property and is repaid through rates.
Labour would also offer up to a $3,000 subsidy for eligible low and middle-income households, including eligible renters.
There is a $30 million community battery fund, $22 million for EECA to deliver its solar support service, and $4 million for workforce development (a bit too modest in my opinion), including apprenticeships, on-the-job training, reskilling and micro-credentials.
Would Labour's policy make a difference?
Yes - particularly for households that currently can't access a cheap bank green loan. That's where Labour's policy could make the biggest difference. Alternative finance through lines companies and councils, without relying on home equity as National's finance scheme does, could open solar up to many more households who are currently locked out of affordable finance.
The $3,000 subsidy is a genuine reduction in the cost of solar, rather than simply another way of borrowing the money. Of course, this has been positioned as a subsidy for low and middle income households, which is still to be defined.
For homeowners already eligible for a 0% or 1% bank green loan, Labour's finance policy probably won’t be an attractive option, as their finance rate will likely be a lot higher, likely to be around 6.5%.
National - Home Energy Fund
National's Home Energy Fund takes a different approach.
It would establish a central government and council-backed financing scheme allowing homeowners to borrow for solar, batteries, insulation, heat pumps and other electrification upgrades.
The loan would be secured against the property and repaid through rates over 10 years.
Importantly, National's policy requires homeowners to have at least 20% equity in their property, and councils would choose whether to participate.
National has committed $7 million for a 20% Crown shareholding in the organisation running the scheme. That shouldn't be confused with the total amount available for loans - participating councils and the Local Government Funding Agency would provide the balance of the financing structure.
National is also proposing to make solar easier to install through national planning rules.
Would National's policy make a difference?
Yes, but I think its biggest benefit is cash flow rather than making solar dramatically cheaper.
A low interest loan with a 10-year repayment period could make monthly repayments much easier to manage than the three-to-five-year green loans currently offered by most banks.
But National hasn't specified the actual interest rate yet, and the requirement for 20% home equity means it doesn't completely solve the access problem.
For someone who already qualifies for Westpac's 0% loan, for example, the existing bank option could still be financially better.
One Important Update - The Current Government Is Already Changing Solar Rules
Separate from National's election policy, the current National-ACT-NZ First Government announced on 17 August 2026 that it will progress the recommendations of the Solar Regulatory Review.
This includes legalising plug-in solar for renters and apartment dwellers, reducing unnecessary approval costs and delays, shortening lines company processing times and removing some resource consent barriers.
I think these changes could be genuinely useful.
Green Party - Power For All Of Us
The Greens have the most ambitious solar and household energy package.
Their policy includes zero-interest clean energy loans over 15-30 years for solar, batteries and other home electrification upgrades.
If all councils participated, the Greens estimate the scheme could reach up to 90% of rateable properties. The Government would effectively subsidise the remaining interest rate down to 0%.
They also want to legalise plug-in solar and create a renters' right to solar, invest $200 million in community-owned energy, put solar on more than half of public homes within four years and invest $80 million in renewable energy for Māori housing.
Their wider energy policy also includes Kiwipower, a publicly owned renewable generation and firming company with $980 million allocated over four years.
Would the Greens' policy make a difference?
Absolutely - particularly the loan terms.
A 0% loan over 15-30 years is very different from borrowing at 1% for three years through a bank.
The repayments could be spread over such a long period that solar becomes accessible to a much wider group of homeowners.
It is also a much more expensive intervention for taxpayers. The Greens estimate subsidising the zero-interest Clean Energy Loan Scheme alone would cost about $421 million in operating expenditure through 2031. Their complete energy package is considerably larger again.
ACT - Fix the Rules, Don't Subsidise Solar
ACT takes almost the opposite view.
ACT opposes taxpayer-funded solar subsidies and argues that homeowners who can make solar stack up financially will invest themselves.
The party specifically points to the 0% and low-interest loans already available from New Zealand banks and argues taxpayers shouldn't fund another subsidised finance scheme to compete with them.
Where ACT has been much more supportive is deregulation.
David Seymour has been driving the Solar Regulatory Review, and the Government has now agreed to legalise plug-in solar and streamline many of the approvals around installing and connecting solar.
ACT had not yet released its full standalone 2026 energy policy in the material available when this article was updated.
Would ACT's approach make a difference?
Yes - although in a different way.
Reducing installation delays, connection costs and unnecessary regulation could make solar slightly cheaper and reduce the administration headaches.
However, ACT's approach doesn't address one of the biggest barriers for some households - access to affordable finance in the first place.
Opportunity Party - Abundant Energy
Opportunity's Abundant Energy policy goes further afield.
For households, it supports a national Ratepayer Assistance Scheme offering low-interest loans for solar, batteries and other electrification.
It would also expand Warmer Kiwi Homes so lower-income households could receive assistance with solar and electrification upgrades.
The wider policy includes community-owned generation, electricity market reform, network investment and a large expansion in renewable generation.
Their policy is wide reaching, but lacks details. And of course the Opportunity Party's ability to influence what eventually becomes law will obviously depend on its position after the election.
NZ First
NZ First hasn't released a detailed household solar incentive policy comparable with Labour, National or the Greens.
Shane Jones has previously expressed interest in rates-based solar lending while being cautious about direct subsidies.
More recently, Winston Peters has dismissed the other parties' household solar proposals as "tinkering around the edges", with NZ First instead putting much greater emphasis on domestic oil and gas supply and wider electricity-market reform.
So Which Solar Policies Would Actually Make the Biggest Difference?
It depends entirely on who you are.
If you own a home, have a mortgage and plenty of equity, you may already have access to some of the best solar finance available.
A 0% Westpac loan or a 1% ANZ, ASB or BNZ loan is very hard to beat.
For those households, I don't think a government simply announcing another "low-interest solar loan" necessarily changes much. Although Labours and Greens loan are much more helpful as they don't require equity in the home as National Parties does.
Labour's $3,000 subsidy would shift the needle. Similar to the EV subsidy, which demonstrated the small government payment made a big difference.
The Greens' 0% finance over 15-30 years would.
The bigger opportunity with these government schemes is reaching the people who don't currently qualify for cheap bank finance.
That's where I think government intervention has the strongest argument.
My Frustration With All This
My turn 😅 - while I'm happy to see so many political parties finally offering something for solar, it has come far too late down the track.
Credit to Labour and the Greens for putting solar incentives on the table previously, including in 2023. But I would have much rather seen this groundwork done while Labour was actually in government, rather than solar again being used as a carrot to dangle in front of voters.
The timing also worries me. Since the Iran War kicked off, My Solar Quotes saw a huge jump in homeowners wanting to go solar. In some regions, many of the good solar companies became stretched within weeks.
I absolutely support helping more Kiwis access solar - but the foundations need to be there first.
We Need More Electricians Before Another Solar Boom
If incentives send demand through the roof while reputable companies are already at capacity, opportunists step in and some will cut corners. Australia has shown what can happen when solar demand grows faster than training, standards and consumer protection.
Workforce development can't be a small add-on to solar policy. It needs to be a major part of it.
At least the Labour party has put some thought into this with an anouncement of $4 million towards workforce development, although I'm sceptical that will make much of a dent.
Many electrical companies are already flat out, and taking on apprentices requires time and money. Government support needs to make it much easier for them to train the next generation.
And this isn't only about solar. New Zealand needs a much larger electrical workforce for EV charging, batteries, home electrification and network upgrades.
Ideally, we'd build that workforce first, then gradually introduce incentives as the industry becomes ready for the extra demand.
Wishful thinking, perhaps - but I'd much rather build a sustainable solar industry than create another election-driven boom and hope the workforce catches up.
My Bottom Line
I think it is fantastic that rooftop solar has finally become mainstream political territory.
There are genuinely useful ideas across several of these policies.
Labour does the most to address the upfront cost and people currently excluded from cheap finance.
National offers a practical longer-term financing model and is already progressing some very useful regulatory changes.
The Greens offer by far the most generous long-term household finance.
ACT's focus on removing unnecessary regulation also has merit, particularly when excellent private bank finance already exists for many homeowners. Personally I think that ACT hypes up the amount of red tape that exists
And Opportunity has put forward a surprisingly substantial whole-of-energy plan that includes solar finance and support for lower-income households.
But subsidising demand is the easy political announcement.
Building the skilled workforce, maintaining installation standards, protecting consumers and making sure our electricity networks can accommodate rapidly growing distributed generation is the harder part.
That's the bit I want to hear much more about before anyone promises to put tens of thousands more solar systems on Kiwi roofs.
This document is an independent explainer, not affiliated with or endorsed by the Labour Party or the National Party. Policy details are based on public announcements as at 14 July 2026 and may change before the 7 November 2026 election. Figures, eligibility and timelines described are policy promises, not confirmed government programmes. For financial decisions about your own home, get independent advice suited to your circumstances.
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