Many banks offer subsidies or incentives to help install solar power. Photo: Fabian Rieger / 123RF
Westpac expects more people will want to tap into low and no-interest loans offered by banks to install solar-power systems on their homes, as power prices rise.
A survey shows nearly half of respondents were considering solar power, if they had not already installed it.
Nine percent of people had solar panels at home and another 13 percent planned to install them within a year.
Most were considering solar power due to the cost of traditional electricity supply, which has risen faster than inflation.
Westpac NZ managing product, sustainability and marketing director Sarah Hearn said spring was a good time to consider solar, because people could get set up before higher winter bills rolled around again.
"Solar is environmentally friendly, widely available, can add value to a property, is getting cheaper to install and can lead to significant cost savings on energy bills over time," she said.
"However, installing solar panels can be a significant upfront cost. Nearly half of those surveyed who weren't planning to get solar cited cost as a reason.
"A quarter of respondents who do plan to get solar are putting it off for at least a year, which speaks to the cost pressures many are still facing."
Hearn said banks could help. Westpac had a 'Greater Choices' option, which offered up to $50,000 interest-free for five years for home and vehicle improvements, including solar power. She said $270 million had been lent that way since 2020.
ANZ, BNZ and ASB offer up to $80,000 fixed at one percent interest for three years. Kiwibank offers a potential $2000 contribution.
Westpac consumer lending and insurance products head Jo McGregor said there had been less uptake of borrowing for solar panels than for other categories covered by the loan, such as energy efficiency improvements or low-carbon transport.
"It's still relatively low, but it's an area that we are keen to see a bit more in."
She said the reduction in the upfront cost of solar also helped.
"Particularly if the financing costs can be minimised through the likes of a Greater Choices loan, then you can look to get payback between 5-10 years."
She said having an alternative energy source also had benefits.
Solar provides about two percent of New Zealand's electricity generation, but the Ministry of Business, Innovation and Employment says that could increase tenfold by 2050.
Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money.
