For businesses, making a green investment has many benefits. It future-proofs the business, while also helping address our planet’s sustainability challenges. Often, it also helps meet certain regulations or customer demands. But for New Zealand businesses, there is another perk - ANZ’s Green Business Loan.
ANZ is one of the leading banks in NZ that is promoting eco-friendly investments via soft loans. It also has a loan for homeowners buying solar and/or batteries, charging only 1% interest.
As for businesses, those who have identified the clear benefits of solar (or other green investments), can apply for a green loan with ANZ. The loan amount can be up to $3 million, and the interest rate is ANZ’s special floating rate. Currently, this is an appealing 4.35% p.a.
Businesses can apply for the Green Business Loan for one or more of the following investments/upgrades:
- Renewable energy
- Energy efficiency
- Green Buildings
- Sustainable land use
- Sustainable water and wastewater
All types of businesses can apply for the Green Business Loan facility. The applicant will be independently reviewed by the Loan Market Association’s Green Loan Principles (GLP).
If the business and the proposed project fit the GLP and ANZ criteria, and demonstrate clear environmental benefits, they will be eligible for the loan.
Let’s take a look at the GLP criteria, and criteria lists for each of the project types listed above.
Commercial Solar Power System Installed On A Business in East Tamaki, Auckland - By Trilect Solar
Green Loan Principles (GLP) Eligibility Criteria
The GLPs, set forth by the Loan Market Association for green loans, comprised of four main criteria that a borrower must fulfil:
1. Use of proceeds
The borrower should prove that the loan amount will indeed be used for environmental benefits, which will be assessed, quantified (wherever possible), and reported by the borrower.
2. Process for project evaluation and selection
The borrower should clearly communicate their environmental objectives and project selection process to the lenders (in this case, ANZ). They should also disclose if they are seeking a green standard or certification.
3. Management of proceeds
The loan amount will be credited to a dedicated account, and the borrower is expected to maintain full transparency of all dealings related to the project. They are also encouraged to establish an internal governance process to track the allocation of funds.
The borrower is expected to keep up-to-date information on the use of funds at every stage, along with the expected impact. GLP also suggests using qualitative and quantitative performance indicators, such as reduced energy consumption or reduced GHG emissions.
Project-Wise Eligibility Criteria
1. Renewable Energy
Renewable energy is the first thing that comes to mind on hearing the word “green”. Under ANZ’s green business loan, you can apply for the costs related to the purchase of solar power products.
The eligible costs include consulting, planning and consenting, site preparation, and labour costs. Applicants are required to submit documentation for the design as well as completion phase (wherever applicable).
Applicant must also submit proof of project completion/proposal from an SEANZ certified installer. You can also apply for the loan for an older system, as long as the project was completed within the last 24 months.
2. Energy Efficiency
Another popular type of upgrade when going green is improving energy efficiency of a building/facility. This includes an array of eligible projects such as:
- Heat pumps
- Biomass boilers
- Heat recovery systems
Here too, the eligible costs are consulting, planning, permits, and labour.
3. Green Buildings
Green buildings are an excellent, holistic way to reduce carbon emissions as well as waste generation. ANZ’s green business loan allows customers to use the loan amounts for
A) Purchase of a green building, or
B) Upgrades to a building that can qualify it as a green building, or
C) Construction of a new green building
The eligible costs are similar to previous categories.
4. Sustainable Land Use
Businesses can also apply for the green business loan for costs related to planting projects that improve environmental outcomes through afforestation, reforestation and/or preservation of natural landscapes.
The eligible costs include consulting, planning and consenting, site preparation, planting management and pest control, and labour. The eligible planting for this category includes native, wetlands and riparian plantings, mixed plantings, and exotic plantings.
5. Sustainable water and wastewater
Lastly, businesses can also avail of the loan if they are investing in products that deliver clear improvements in water quality, wastewater and effluent treatment.
Under this category, there are a variety of eligible projects such as effluent ponds, weeping walls, primary screens, rotating drum screens, flocculation tanks, etc.
Other Highlights of the ANZ Green Business Loan
Businesses can apply for the green loan for an amount as small as $5,000. A business can also apply for more than one business loan at a time.
Despite the $3 million limit, applicants can apply for loans greater than $3 million. However, anything above that number will be separately documented with standard interest rates. ANZ charges no approval fee for the first $3 million borrowed.
The maximum term for the green business loan is five years. Applicants can use the loan amount to finance new projects or refinance eligible projects. For refinancing, however, projects must have been completed within 24 months of the date of the signed loan application form.
Green investments are a true win-win, especially when it comes to businesses. Whether it is solar power or heat pumps, every clean investment is a wise long-term decision that benefits both the organization and the society.
Thankfully, making a green investment is even easier if you are a New Zealand business, thanks to ANZ’s Green Business Loan.
The loan helps commercial entities invest in their green projects while benefiting from lucrative interest rates and terms. In conclusion, making a green investment was already a smart decision, and ANZ’s Green Business Loan makes it smarter.
Click here to get 3 quotes for commercial-sized solar power systems from SEANZ-approved solar companies.