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ANZ Offers Loan For Solar Power And Batteries at Just 1% Interest!

By Aniket Bhor on in Solar Power News In New Zealand

ANZ Offers Loan For Solar Power And Batteries at Just 1% Interest!

The costs of solar power have dropped by more than 80% in just a decade, and going solar is one of the wisest financial decisions you can make. And yet, it is a sizable investment, often deterring a contemplating homeowner from making a decision. What comes to the rescue is a soft loan, or a low-interest loan, meant to promote climate-friendly tech.

ANZ’s Good Energy Home Loan is a recent example of a low-interest loan for, as they call it - “Good Energy”. With a strikingly low interest rate and a fairly large withdrawal amount, it has set the renewable industry as well as homeowners abuzz. Let’s take a closer look at what’s offered.

What is the ANZ Good Energy Home Loan?

ANZ, one of the largest banks in New Zealand, recently announced the Good Energy Home Loan, which is essentially a top-up to your existing home loan, and offers up to $80,000 for energy-efficiency upgrades of several kinds.

The interest rate on this loan is a mere 1%, while the tenure for this interest rate is three years.  

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Terms and Conditions

As mentioned before, the Good Energy Home Loan is not an independent energy loan, and is an extension of a home loan. To avail the loan facility, one must have an existing home loan with ANZ, or should move their home loan from another bank to ANZ. The loan is not available for businesses or new builds (until the new build lending is fully drawn).

The interest rate of 1% is only applicable for the first three years from the date of the loan being granted. After that, you can choose to fix at one of ANZ’s Special fixed interest rates (if you are eligible) or Standard fixed interest rates, or you can let your loan move onto the floating rate.

A unique feature of the Good Energy Home Loan is the customer’s ability to replenish the amount of lending. For example, if you borrowed $80,000 and used $20,000 from that to buy a solar system, you can apply for another top-up of up to $20,000 to purchase another ANZ Good Energy Upgrade. This is subject to a maximum of $500,000 being drawn down under ANZ Good Energy Home Loans over time.

You can also avail a loan that crosses the $80,000 mark. However, for anything above that mark, you will be charged a regular interest rate.

Eligible Home Upgrades

The term ‘energy upgrades’ can often seem vague and mean different things to different people - from having a coffee to building a nuclear power plant for a whole city. ANZ has therefore listed a number of eligible home upgrades for which the loan can be availed. This includes:

  • Solar panels and batteries
  • Energy efficiency upgrades like heat pumps, insulation, double glazing and ventilation.
  • Clean transport such as hybrid and electric vehicles and chargers
  • Rainwater tanks

As far as solar panels and batteries are concerned, the industry is booming in NZ, and a lot of players have come up. The loan, however, will be approved only if you submit a quote provided by a solar panel installation company that is a member of SEANZ (Sustainable Electricity Association of New Zealand). My Solar Quotes only works with SEANZ approved solar installers.  Click here to get 3 quotes from SEANZ approved members.

Other Available Options

ANZ’s soft-loan may seem ground-breaking, but it is not the first, and definitely not the only bank to promote eco-friendly purchases. Here are a couple of other options that Kiwis can choose from when going solar or choosing any other energy-efficiency upgrade.

Kiwibank Sustainable Energy Loan

If you borrow $5,000 from Kiwibank for an energy-efficiency upgrade, the bank will “kick in some cash to help you pay it off faster.” More specifically, Kiwibank will put in $2,000 over four years - $800 at the end of the first year and $400 at the end of each of the following three years. The bank will also waive off the home loan top-up fee if you are already its home loan customer.

Westpac Warm-Up Loan

If you like the idea of ANZ’s 1% interest, you will love Westpac’s “interest-free” loan for energy efficiency upgrades. The only catch is that the loan can be a maximum of $10,000 only. Despite that, it is an incredible deal for someone looking to install anything from insulation, heat pumps, and double glazing to ventilation, wood burners, and of course, solar power.

Westpac also provides you with the flexibility to make lump sum payments or pay the loan off earlier without prepayment costs. Similar to ANZ’s loan, Westpac’s warm up loan is also available only to existing home loan owners of the bank.

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